University Business Development: Australian Hardware Case Study Report

This report presents a detailed business analysis of Australian Hardware, examining its supply chain, operational systems, and product delivery model. The analysis covers key processes such as sales, distribution, and retail, along with a review of performance indicators, including profit generation and employee turnover. The report assesses the company's market analysis capabilities, identifying missed opportunities related to changing customer preferences and the importance of quality management. It suggests strategic recommendations for improvement, including employee training, the acquisition of skilled personnel, and the implementation of consultancy services. The report also includes a review of proposed processes, risk analysis, and contingency plans for implementation issues. The analysis uses a framework of sales targets, departmental strategies, employee training, and performance reviews, highlighting the need for adaptability and strategic planning in response to market dynamics. The report concludes with a summary of meeting outcomes and the incorporation of results into a new strategy.

Running head: BUSINESS
BUSINESS
Name of the Student:
Name of the University:
Author Note:

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Assessment Task 1.
Part 1a. Supply chain:
The supply chain of Australian Hardware consisted small suppliers which supplied
products for the home ware and hardware products of the company. The company employed
designers which made the designs for the products. The designing of the products enabled the
company determine the raw materials which would be used in the final products.
Part 1b. Operational systems:
The operational system which Australian Hardware employed functioned under the
leadership of Alfred Carlton Gilbert who was succeeded by his son A.C. Junior. The operations
systems of the company failed to adjust to the changing market conditions which led to the
products of the company suffering fall in the revenue generation.
Part 1c. Product delivery:
Australian Hardware followed a three tier product delivery model. The sales generated
orders from the customers which was followed by the distribution strategy. The distributors
delivered goods to the retailers which in turn sold goods to the retailers. The retailer sold the
goods directly to the end customers.
Part 2.
The key processes of Australian Hardware as per the case study were sales team,
distribution and retailers. The systems of Australian Hardware were designing, planning,
purchasing, manufacturing and distribution. These systems and processes would be reviewed on
the basis of a review strategy.

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Key processes
key
systems
sales team designing
distribution planning
retailers purchasing
manufactur
ing
distribution
Review strategies
Time(mont
hs)
The apex management of Australian Hardware
makes decides the sales and profit target to be
achieved
1
The departmental heads of each department
like sales department communicates the targets
to their respective teams and forms strategies
2
Departmental heads recognise the training
needs of the employees
1
Employees are provided training 1
Employee perform 2
Departmental heads compare between the
targets achieved by employees
1
Submits reports to apex management 1
Apex management reviews perfomances 1
Takes further corrective actions 1

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The apex
management of
Australian Hardware
makes decides the
sales and profit target
to be achieved
The departmental
heads of each
department like sales
department
communicates the
targets to their
respective teams and
forms strategies
Departmental heads
recognise the training
needs of the
employees
Employees are
provided training
Employee perform
Departmental heads
compare between the
targets achieved by
employees
Submits reports to
apex management
Apex management
reviews
perfomances
Takes further
corrective actions
Part 3.
The key results areas would be volume of finished goods produced and the amount of
wastes generated. The key performance indicators would be profit generated and employee

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turnover. The performance review would be conducted by the departmental heads in accordance
to the guidelines laid down by the apex management. There should be a service level agreement
between the company and its employees.
Part 4.
The techniques of measuring the performances would be based on the generated business
and the net profit percentage. For example. if the business generated is $ 100000, the target net
profits should be 120 percent of the capital invested.
Part 5.
The management of Australian Hardware should apply quality management and
continuous improvement theory. The company should aim to produce goods as per the
requirements of the customers which would allow to generate higher profits.
Part 6.
The graph below compares between sales, expenses and profits (differences between the
two variables) shows Australian Hardware experienced rise in expenses but its sales generated
fell. This resulted in lowering of the profits.

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1 2 3 4
-10
-5
0
5
10
15
20
Chart Title
Sales ($m) Differencefor previous year($m)
Profit/Loss
($m) Expenses
1 2 3 4
-6
-4
-2
0
2
4
6
8
10
12
14
Chart Title
Sales ($m) Differencefor previous year($m)
Profit/Loss
($m)
Part 7.
Australian Hardware failed to analyze the macroeconomic trends and thus, was not able
to perceive the changing customer preferences. Thus, it failed to manufacture products aligned to
the market trends and incurred losses.

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Part 8a.
The market share of Australian Hardware was high which, was its strength. The
reputation of the company was high but the company enjoyed poor stability owing to its failure
to analyse the market movements.
Part 9.
The opportunity which Australian Hardware missed was that it compromised on its
quality to produce cheaper and outwardly attractive goods which repelled the upper class
customers. This resulted in heavy losses.
Part 10.
The management of Australian Hardware should have trained its existing employees like
production staff, sales personnel and HR personnel. The company should have also acquired
trained and experienced technical personnel like engineers.
Part 11.
The company should also have obtained consultancy services from marketing consultants
and advertisement experts.

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Assessment Task 2.
Part 3.
Review strategies Time(months)
The apex management of Australian
Hardware makes decides the sales and
profit target to be achieved(strategic goals)
1
The departmental heads of each
department like sales department
communicates the targets to their
respective teams and forms
strategies(description of proposed process)
2
Departmental heads recognise the training
needs of the employees 1
Employees are provided training 1
Employee perform 2
Departmental heads compare between the
targets achieved by employees 1
Submits reports to apex management 1
Apex management reviews perfomances 1
Takes further corrective actions(proposal
would improve performances) 1
Part 4.
(PPT attached)
Part 5.
The manager should lead the discussion session.
Part 6.
The manager should summarise the outcomes of the sessions and obtain the approval of
the group.

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Part 7.
The maanger should incorporate results of the meeting into the new strategy.
Part 8.
The management of the company should develop a risk analysis strategy. The strategy
should enable the company identify risks and take appropriate action.
Part 9.
The manager should present the cost benefit analysis before the management.

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Task assessment 3:
Part 2.
The case study would be reviewed and the all aspects of the implementation plan would
be reviewed.
Part 3.
Action plan would be developed.
Part 4.
The two contingency plans which would be maintained relating the implementation
issues would be maintaining of contingency funds and contingency resources.
Part 5.
The implementation issues and failures would be scarcity of financial resources and lack
of talented manpower.
Part 6.
The action plans and contingency plans would be addressed and strategies would be
formed to counteract the issues and failures.
Part 7.
The time for the scheduled evaluation would be carried out half yearly. The evaluation to
capture learning would take place every month.

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