Original Creation Business Case: Relocating Manufacturing for Growth

This case study analyzes Original Creation's decision to relocate its manufacturing unit from China to address issues related to product quality, customer dissatisfaction, and communication barriers. The company faces challenges such as high product returns, low sales, and language barriers affecting communication with its Chinese manufacturers. The report explores various business options, including talent management, improved communication practices, and a complete manufacturing unit transfer. Expected benefits include improved customer satisfaction, increased sales, reduced production costs, and enhanced profitability. Potential dis-benefits involve financial burdens, supply chain disruptions, and employee turnover. The report outlines a timeline for project implementation and estimates associated costs. Strategic partnerships with new delivery partners are also considered to ensure safer and more reliable product delivery. This analysis aims to provide a comprehensive understanding of Original Creation's strategic shift and its potential impact on the company's future performance. Desklib provides access to similar case studies and solved assignments for students.

Project Business Case Report
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Executive Summary
Original Creation is facing an issue related to low product quality, customer dissatisfaction,
customer retention related issues, low sales, return of product and many such issues. Currently
company is having its manufacturing unit in China which create many language barriers that
further lead to a massive communication gap between company and producers. Management has
decided to shift the manufacturing unit from China. Also, company want to introduce its own
delivery system to solve the whole issue.
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Table of Contents
Executive Summary.........................................................................................................................2
Table of Contents.............................................................................................................................5
INTRODUCTION...........................................................................................................................5
Reasons........................................................................................................................................6
Business Options..........................................................................................................................7
Expected benefits.........................................................................................................................9
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Expected dis-benefit...................................................................................................................10
Time scale..................................................................................................................................10
Cost............................................................................................................................................11
CONCLUSION..............................................................................................................................12
INTRODUCTION
Business case report is defined as analysis the business situation to understand the actual
position of the company in market. This project is based on the case study of Original Creations.
Company is a product design company whom carry out operations related to designing the
p[product based on the needs and requirements of potential customers in the market. Recently
company faced many issues related to returning the product due to the quality issues company is
facing. This project is about addressing the issue Original Creation is facing in the respective
target market. Issues will summaries related to the return customer make of product purchased to
the organization and such related aspects will be covered. IT is essential to boost the growth of
the company to deal with this issues. Many customers are returning the product due to the quality
issue, damaged delivery of finished product and such related issues. It is essential fro the
company to address this issue as it is directly influencing to the growth of the organization in
market and its competitiveness in respective target market. This project will discuss all the
potential business operations, exp[expected benefits and benefits and such aspects will cover.
Reasons
Original Creation is facing an issue related to many customer returning the product sold by the
company due to the damaged delivery or quality related issues customer faced. There are a
several reason behind this quality issue and damaged delivery one is the manufacturing units are
based in Chain which is causing to the language related issues to the company. Other issues are
like many customer are complaining about the quality of the products. Delivery terms are also
not clear as many customary received a late delivery of the product. Operation cost is also high
which allowing the company to face losses in the business (Ali and Bhasin, 2019). This is
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important for the company to address these issues as it will affect to the growth and development
possibility of the business unit. Customer satisfaction play an important role in every
organization to boost the overall growth and development of the organization. Quality issues and
delivery related issues company is facing affecting to the customer exp[expectations and the
sales [feasibility of the organization in market. IN case Original Creation do not address this
issue it will end up loosing potential customer base, sales growth, profitability an such are the
consequences company will face. Unsatisfied customer base lead to massive failure in the
business. All these reasons allow the organization to address this issue.
Stakeholder Analysis
Keep satisfied Customers, investors, shareholders.
Manage closely Employees, suppliers, manufacturer.
Monitor minimum effort Dealers, financiers.
Keep informed Government, management.
Activity list
Resolve product quality issue Currently company is facing issues with the
product quality. It is important for the
company to take necessary steps to address the
product quality.
Ensure effective delivery system Effective delivery system will allow the
company to ensure timely delivery of products
and services offer by the organization.
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Customer satisfaction Company is lacking in this area. With support
of quality monitoring and effective delivery
practices organization will be able to address
this whole issue.
Regular meetings This will support organization to manage
quality in production and also cope up with
business plans.
Business Options
Weighted score card model
Factor Weight Total score
Skilled employee 6 10
Manufacturing quality 5 10
Delivery system 5 10
Product quality 6 10
Talent management 8 10
Do nothing option
In this option Original Creation can consider the talent management practices. Currently
company is following and covering all areas of talent management that include talent acquisition,
training and employee development areas (Alzaydi and et.al., 2018). In the field of talent
acquisition and employee development company do not need to make or introduce any changes
that can offer a suitable benefit and advantage to the organization. I current situation also
company is able to cover all area and aspects that can favour the best and most suitable talent
management practices to entertain all different business needs and requirements.
Do the minimum we can option
IN this option company can wok on its communication practices. The current situation is very
tricky as company is holding its manufacturing units in China. Due to the fact that all
manufacturing operations are handling from China communication barriers are created due to the
language. People in Chain understand the regional language but the management understand
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English which many times create a communication gap between the stakeholders
(Chandrasekhar, Gupta and Nanda, 2019). This option will involve appointing a intermediary
who will look after to all the conversation with the manufacturing units of the company. The
person must understand the local or regional language of Chain and also the English to address
this communication gap between the company and the manufacturers.
Do something else
Original Creations is facing many issues at this point in time. Company is dealing with the
product quality related issues,d delivery related issues, costing related issue and many more. It is
important that company should transfer its manufacturing unit from China. As people in China
understand only the local language which do not allow the company to communicate effectively
with the manufacturers. This will be a huge step but it will allow the company to entertain
quality related issues along with the delivery related issues as well. Company should also built a
strategic alliances with the delivery agents so that better delivery system can establish by the
company to deal with the market requirements. Switching the whole manufacturing unit is a long
term decision company may make to address the quality related issues (Ghoumrassi and Tigu,
2018). Formation of new strategic alliances with the distributors and suppliers is also a key
decision that will favour the organization to establish a better control over distribution. In long
run company can look forward to launch its own delivery system that will take care of all
delivery related need and requirements of the business. Product delivery need to be safe so that
better amount of customer satisfaction can be achieved by the organization. Due to not being
able to provide a safer delivery company is loosing many of its customer. Launching own
delivery system will change the dynamics for the company.
Expected benefits
Original Creation is planning to introduce many changes in its operations and infrastructure. All
these decisions will allow the company to improve the customer satisfaction level. This will also
create a direct impact over boosting up the sales of the organization. Turnover is a strong
indicator of the performance business could achieve. All these decisions company is planning to
make will create a direct and positive impact over increasing the sales of the company (Prasetyo
and et.al., 2021). Currently company is facing an issue related to return of product delivery by
the consumer. This issue will also address by the organization by taking decisions like setting up
new manufacturing unit, changing delivery systems and such related practices. All these
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decisions will allow and favour to the company to approach the customer satisfaction level
archived by the organization in more efficient manner. Cost of production will also go down in
future due to all these decisions. This is also anticipated that profitability related benefits will
also entertain by the organization. It is expected that all these decisions will help the company to
boost the profits. Company will also be able to attract to the new potential customer that can
procure the products offer by the organization in respective target market. Return of investment
of the company will also improve in future (Saad, 2020). IT can demonstrate that all these
decisions company is making will create a positive impact over the performance of the company
along with the customer satisfaction company could witness. New set up of production unit will
offer a better control over production practices to the organization that would eventually allow
the Original Creation to introduce new ideas and also to innovate in the existing products to
make them more competitive in the market. Competitive advantage is among the most significant
advantage or benefit company will gain in this project.
Expected dis-benefit
All these decisions are very costly to implement. Implementation process of all these
various decisions require financial resources. Financial burden will be huge on the company.
Setting up the new production channel is a risky process. This may also result into the fact that
company end up damaging its own brand value. Company is planning to change the whole
system which may also influence to the supply chain management system currently using by the
Original Creation. It is also anticipated that in short run cost of production may also increase that
might lead to reduced profitability margin of the organization (Rajendran, 2021). All these
decision will create an extra burden or work pressure on the existing employees of Original
Creation. High employee turnover is another risk that is associated with all these changes or
decisions company is planning to make. High employee turnover will further influence to the
talent acquisition of the company. Immediate changes may also lead to many legal issues and
challenges in front of the organization. Contractual agreement is there between the manufacturer,
suppliers and many other. Making fundamental changes will lead to many legal issues that may
also damage to the brand image of the company in market.
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Time scale
Task Name Duration Start Finish Predecessors
Project aim and objectives 5 days Mon 3/7/22 Fri 3/11/22
Reason identification 15 days Mon 3/14/22 Fri 4/1/22 1
Stakeholder analysis 20 days Mon 4/4/22 Fri 4/29/22 2
Business options
identification 5 days Mon 5/2/22 Fri 5/6/22 3
Strategic selection 8 days Mon 5/9/22 Wed 5/18/22 4
Benefit identification 6 days Thu 5/19/22 Thu 5/26/22 5
Limitations of strategic
options 4 days Fri 5/27/22 Wed 6/1/22 6
Risk management 5 days Thu 6/2/22 Wed 6/8/22 7
Project closure 3 days Thu 6/9/22 Mon 6/13/22 8
Task Name Duration Start Finish Predecessors
Improved product quality 6 wks Mon 3/7/22 Fri 4/15/22
Regain customer trust 4 wks Mon 4/18/22 Fri 5/13/22 1
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Sales growth 3 wks Mon 5/16/22 Fri 6/3/22 2
Cost
Research 50000
Machinery 1500000
Legal charges 50000
Human resources 50000
Equipment 100000
Documentation 50000
Transportation 20000
Total 470000
CONCLUSION
Original creations is facing various issues related to product quality, delivery related
issues, customer satisfaction related issues and many more. All these issues company is facing
influencing to the customer retention rate of the company. Management has taken a decision to
take a control measures over production set up. Further the entire transfer is taken of production
unit from China that will offer a better control over production practices applied. New strategic
partnerships are also developed with new delivery partners so that more secure and safer delivery
can practice by the company.
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REFERENCES
Books and Journal
Ali, A. and Bhasin, J., 2019. Understanding customer repurchase intention in e-commerce: role
of perceived price, delivery quality, and perceived value. Jindal Journal of Business
Research. 8(2). pp.142-157.
Alzaydi, Z. M. and et.al., 2018. A review of service quality and service delivery: Towards a
customer co-production and customer-integration approach. Business Process
Management Journal.
Chandrasekhar, N., Gupta, S. and Nanda, N., 2019. Food delivery services and customer
preference: a comparative analysis. Journal of Foodservice Business Research. 22(4).
pp.375-386.
Ghoumrassi, A. and Tigu, G., 2018. The impact of the logistics management in customer
satisfaction. In Proceedings of the International Conference on Business
Excellence (Vol. 12, No. 1, pp. 407-415).
Prasetyo, Y. T. and et.al., 2021. Factors affecting customer satisfaction and loyalty in online food
delivery service during the COVID-19 pandemic: Its relation with open
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innovation. Journal of Open Innovation: Technology, Market, and Complexity. 7(1).
p.76.
Rajendran, S., 2021. Improving the performance of global courier & delivery services industry
by analyzing the voice of customers and employees using text analytics. International
Journal of Logistics Research and Applications. 24(5). pp.473-493.
Saad, A. T., 2020. Factors affecting online food delivery service in Bangladesh: an empirical
study. British Food Journal.
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