MGT604 Strategic Management Report: Pro-Go Pty Ltd After Disruption

This report, focusing on strategic management, analyzes the challenges faced by Pro-Go Pty Ltd, a small action camera manufacturer, after a product malfunction that caused cameras to burst into flames, leading to significant loss of sales and client contracts. The report, from the perspective of a production manager, discusses proposed strategies to mitigate the crisis. Key themes include the potential implementation of a six-sigma strategy to improve quality control and reduce waste, production innovation to diversify product offerings and generate revenue through new product lines like cameras for smartphones and other devices, and marketing activities like distribution, positioning, and branding to rebuild customer trust and maintain market presence. The report provides recommendations for Pro-Go, emphasizing the importance of quality control, product innovation, and effective marketing to overcome the crisis and ensure future success. It also highlights the importance of a PR team to manage the crisis communication and protect the company's reputation. The report provides a detailed analysis of the company's current situation and provides recommendations for future strategic planning.

Running head: STRATEGIC MANAGEMENT
MGT604 Strategic Management
Assessment 2 Part B
Student’s name:
Name of the university:
Author’s note:

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Executive Summary
This white paper reflects the impact of the proposed strategies of Production department after the
disruption of Pro-Go Pty Ltd. Pro-Go is small and action camera manufacturer which has been
faced the issue of bursting the cameras into flame. This sudden crisis of the organisation leads to
loss of sales drastically and the organisation has been facing the issue of losing the largest client
due to this reason. Production Manager thought of using six-sigma in the near future which
would be helpful to ensure the quality of the cameras and it would eliminate the waste in the
production. Future issue regarding the issue of the camera will not be repeated after using the
six-sigma quality control technology. In addition, using innovative technologies would be
helpful for the organisation to diversify the product offering. These innovative products can
bring revenue and it can be sold to manufacturers of electronic gadgets. Finally, marketing
activities like distribution and positioning can help the organisation to mitigate the issue like
crisis communication.

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Table of Contents
Introduction......................................................................................................................................3
Aim..................................................................................................................................................3
Discussion........................................................................................................................................4
Six-sigma strategy to reduce the waste elimination....................................................................4
Production innovation to generate more revenue........................................................................6
Marketing related activities of distribution, positioning and branding........................................7
Conclusion.......................................................................................................................................8
Recommendations............................................................................................................................9
Reference List................................................................................................................................11
Appendix........................................................................................................................................13

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Introduction
Pro-Go Pty Ltd is small and high-quality action camera manufacturer and it is based in
Victoria. Australia. This privately-owned organisation was enjoying continuous growth until last
year. Pro-Go has been into the innovation and technological improvement which provides an
excellent quality result for a small package which would able to operate with the different
technological gadget. From the perspective of production manager, Pro-Go management was
thinking to use six-sigma strategy so that it can reduce the waste elimination during the
production of cameras. Pro-Go was also thinking to invest more time in innovative technologies
to make the low light camera. During the last stakeholder meeting, Pro-Go was thinking to use
more marketing related elements like positioning, distribution and branding of the products.
However, recently, Pro-Go cameras have burst into flames and the management has failed
without an explanation. Pro-Go has faced the issue of losing sales in the Chinese market and
domestic market. The largest customer of Pro-Go wants to cancel the contract due to the poor
quality of the camera.
This assessment reflects the impact of the proposed strategy in the previous stakeholder
meeting on the business after the disruption. This white paper assesses concerns and modified
strategic plan after the disruption and three key themes are discussed along with providing
recommendations to Pro-Go from the perspective of a production manager.

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Aim
The aim of the assessment is to adjust the strategy development of production
management department due to sudden crisis and it reflects the impact of the proposed strategy
after the disruption.
Discussion
Six-sigma strategy to reduce the waste elimination
Pro-Go Pty Ltd manufactures small and high-quality action cameras for the purpose of
clicking photos and recording videos. Production Manager of Pro-Go has decided to use six-
sigma strategy in production to reduce the waste in production process which would enable the
overall production in low budget. Low cost of the production would also enable the firm to sell
the products in lower budget and the firm will also generate higher profit. Six-sigma strategy
wants to provide continuous effort for gaining well-maintained manufacturing process. Six-
sigma also enables the organisation to produce the products in lower budget and using less
numbers of human resources (Gee, 2016). Pro-Go cameras have burst into flames in recent time
which made the customers panic. The clients wanted to cancel the contract of purchasing the
products from Pro-Go as they thought they the products would be poor quality. Therefore, at
present, Production Manager of Pro-Go is needed to delay the venture of six-sigma into
production process as the implementation of six-sigma would cost higher for the organisation. At
present, the organisation is in need to reduce the operational cost as the firm is losing the clients.
Implementation of Six-sigma is designed to develop the performance of the manufacturing sector
(Hakimi et al., 2018). It was originally developed to control the quality especially for the large-
scale development of the product. The main purpose of six-sigma is to eliminate the defects of

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manufacturing process to make faster the production. In Pro-Go, Production Manager thought
that six-sigma identifies and removes the defect-causing elements which reduce waste in
manufacturing process and it improves the quality of the overall products. However,
implementation of the six-sigma costs large investment in the production unit and the human
resources of the organisation need to provide continuous effort.
Figure 1: Proposed Six sigma of Pro-Go
(Source: Self-developed)
Pro-Go cameras are bursting into flames and the management does not have the
explanation; implementing the six-sigma into production can improve the quality of the products
as it uses the measurable metrics in manufacturing processes. Pro-Go cannot use six-sigma at
present; however, the organisation can use the technique of six-sigma in near future as it uses the

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approach to determine the projects which best fit the business goal at present. As a Production
Manager, it is needed to measure the existing system and benchmark to eliminate the defects.
Therefore, in near future, after discussing with the stakeholders, Pro-Go can utilise the six-sigma
to determine the root cause of issue and it would help to improve the production in optimal level.
Finally, six-sigma in production of camera would be beneficial for avoiding such disruption in
the market as the human resources can control the step which may modify the operating
instruction, procedures and policies to prevent the defects in future (isixsigma.com, 2018).
Production innovation to generate more revenue
Pro-Go has been into small and action camera manufacture industry which was doing
well in the industry. The videos of the camera produce superior colour and it operates effectively
in lower lighting conditions than the competitors' cameras. The technology used in the cameras is
of very good quality; however, the cameras have burst into flames in recent time. This incident
led to reducing the sales of Pro-Go drastically and the clients requested to cancel the contract. In
previous stakeholder meeting, Production Manager stated a plan to do the product innovation
where the cameras of Pro-Go can be sold to the third-parties by contract. Product innovation is
associated with the idea of making different types of cameras which can be used in Smartphone,
Smart-watch and CCTV. After the disruption, Pro-Go has lost large numbers of customers as the
customers do not want to buy the products which have burst into flames. Therefore, Production
manager wanted to shift their camera business into product innovation where they would
manufacture not just the small and action camera; however different types of cameras based on
the needs of the gadgets manufacturers. The Production Manager is needed to talk to the Chinese
manufacturing sector where they can sell their cameras. Product innovation is the introduction of
the new goods which is significantly improved for the intended users and it refers to the

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implementation of the new or significantly improved production of delivery (Tokimatsu et al.,
2016). Pro-Go will follow the privacy legislation along with an improved technical specification
of the products to reach the wider customers with lower cost. It would be beneficial for the
organisation to generate more revenue during the time of crisis. Production Manager can ask the
HR to recruit more skilled employees who can manage the production of innovative products.
Production Manager would make a new relationship with suppliers for the components and raw
materials along with incorporated software. As stated by Purakayastha (2018), architectural
innovation is taking the skills and lessons along with technology to apply them in a different
market. Pro-Go would do the same as Production Manager is asking to use same camera
technology to use in the different electronic gadgets manufacturing segment. The innovation is
amazing to increase the new customers as the market is receptive. However, architectural
innovation is associated with risk due to reintroduction and reliance on the proven technology
which may require a tweak to match the requirements of the new market
(Innovativetechnologies.com, 2018).
Marketing related activities of distribution, positioning and branding
Production Manager of Pro-Go focused on the marketing of the cameras so that
marketing related activities like distribution, positioning and branding can be done properly.
After the sudden crisis, the need of the marketing activities has become doubled. Production
Manager takes the responsibilities to make the manufacturing process and manufacturing process
faster which allow the operational procedure smooth. As stated by Boin et al., (2016), quality
manufacturing and faster marketing was the aim of the previous meeting. Production Manager
observed that manufactured products took a longer time to distribute to the clients and
positioning of the products is not strategically presented in the market to reach wider customers.

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As stated by Zhao et al., (2016), the marketing activity of the manufactured products is very
important for communicating, creating and delivering the exchanged offering which has value
for the clients. After disruptions in the market, Pro-Go can make a PR team which would help
the organisation to reach wider audiences and communicate the clients necessarily. Marketing
activities create partners, clients and it offers society help to ensure the growth of the business.
PR team enables the organisation to work for both internal and external audiences which would
look to the organisation’s management team for the answers (Emana et al., 2015). PR team of
Pro-Go would enable the crisis situation to be under control as the team members would have
technique and equipment to intelligently respond the manner which mitigates the damage to the
organisation. Disruption of the business leads to losing the clients as Pro-Go management
determines to reach potential customers to make them aware of the offerings and management
needs to persuade the clients to buy the products.
Conclusion
It has been observed that Pro-Go has been faced the issue of disruption of the business
due to the bursting of the camera into flames. In the previous stakeholder meeting, the
Production Manager has averred about the use of six sigma strategy and reduces of the waste
management in the production process. Pro-Go management was thinking of diversifying the
business using innovative technologies to make the high-quality cameras to be used in the
manufacturing sector. Marketing activities of the organisation were trying to be improved by
developing the elements of distribution, positioning and branding. Therefore, six-sigma is
disciplined which is statistical base analysis and it improves the quality of the production. Six-
sigma methodology helps the organisation to eliminate the defects of the production which may
help in future to avoid the crisis like bursting of the cameras. Six-sigma can help in the quality

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control of the camera production and it would reduce the waste. Diversifying of the business will
help the organisation to have extra revenue and Pro-Go needs to recruit more employees who can
work better for the organisation. Diversifying of the business would not make the organisation
dependent on just the cameras as the organisation can bring revenue from the different
innovative cameras to be used in Smart-watch, Smartphone and CCTV. Marketing activities of
the Production Manager are related to the distribution and positioning. Distribution strategy
helps the organisation to reach wider clients and it can bring the revenue. After the disruption of
the organisation, marketing activities would help the organisation to have branding. Crisis
communication deals with the reputation of the organisation and Pro-Go takes initiative to
protect the reputation of the organisation to maintain a public image.
Recommendations
Improvement of quality control
Pro-Go has been facing loss in the market due to the camera bursting and Production
Manager is thinking to improve the quality of the camera and overall manufacturing unit. Quality
control of the manufacturing unit can be developed through a six-sigma strategy. Pro-Go can
implement six-sigma in near future to reduce the waste elimination. Six-sigma is accomplished
by limiting the number of defects in the overall manufacturing process. Quality control process
works under the statistical control which can be measured through the input process and it affects
the output of the process. Six-sigma can aim to maximise the speed along with the accuracy of
the production which aims to minimise the overhead cost. Pro-Go will get the benefit of
increasing demand along with increase the internal communication within the organisation.
Best use of innovative technologies

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Pro-Go is thinking to use innovative technologies to improve the quality of the camera to
sell the manufacturing units of electronic gadgets. This innovative technology will increase the
demand of the cameras in the international market. This innovation will bring more revenue for
the organisation and the management needs to select the appropriate method of using the
technologies. It is to ensure that information must show the representation of the organisational
innovation. The firm needs to make a partnership with some of the electronic gadget
manufacturing firms to which Pro-Go would sell their products. Keeping the users in mid will
help to research on the innovative technologies.
The right set of marketing techniques
Production Manager needs to use the best marketing activities to reach wider clients after
the disruption. Marketing activities will smooth up the market positioning and distribution of the
manufactured products in the right way. Marketing of camera will definitely create a buzz in the
market by recruiting the PR team which will communicate in a crisis situation. Crisis
communication will definitely improve the brand image of Pro-Go and it will also help to find
new clients for the organisation. PR team and Production Manager can discuss the right use of
the advertising and promotions to reach wider customers. PR team can use techniques like Cause
marketing, paid marketing and relationship marketing.

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Reference List
Boin, A., Stern, E., & Sundelius, B. (2016). The politics of crisis management: Public leadership
under pressure. Cambridge University Press.
Emana, B., Afari-Sefa, V., Dinssa, F. F., Ayana, A., Balemi, T., & Temesgen, M. (2015).
Characterization and assessment of vegetable production and marketing systems in the
Humid Tropics of Ethiopia. Quarterly Journal of International Agriculture, 54(2), 163-
187.
Gee, J. (2018). The new work order. Abingdon: Routledge.
Hakimi, S., Zahraee, S. M., & Mohd Rohani, J. (2018). Application of Six Sigma DMAIC
methodology in plain yoghurt production process. International Journal of Lean Six
Sigma, 9(4), 562-578.
Hitomi, K. (2017). Manufacturing Systems Engineering: A Unified Approach to Manufacturing
Technology, Production Management and Industrial Economics. Routledge.
Innovative technologies. (2018). Innovative. Retrieved from: https://innovative-technology.com/
Purkayastha, S. (2018). Are Business Group Affiliation Advantages and Diversification
Premium Found in Emerging Economies Likely to Hold Over Time?. In Strategic
Marketing Issues in Emerging Markets (pp. 297-305). Springer, Singapore.
Six Sigma. (2018). Retrieved from: https://www.isixsigma.com/new-to-six-sigma/getting-
started/what-six-sigma/

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Tokimatsu, K., Konishi, S., Ishihara, K., Tezuka, T., Yasuoka, R., & Nishio, M. (2016). Role of
innovative technologies under the global zero emissions scenarios. Applied energy, 162,
1483-1493.
Zhao, D. Y., Yuan, J. C., Xu, K., Cheng, C. G., & Yan, S. (2016). Analysis of apple production
and marketing at home and abroad in the past 10 years. Chinese Tree, 3, 87-93.

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Appendix
Activity Team Log
Meeting dates and
Times
Meeting notes Detailed description Evidence
10th November (1 pm) Pro-Go issues were
discussed along with
recent disruptions and
three key themes have
been brought out
One of the team
members discussed
and we saw the video
The points have been
kept on bullets using
the computers and
these points where
helpful in writing the
report
14th November (3 pm) Six-sigma advantages
were understood and
made relations with
production
The team members
discussed quality
control and six sigma
along with innovative
technologies
Bullet points were
made on six-sigma
and innovative
technologies
17th November (4 pm) Diversification of the
market was analysed
in light of Pro-Go
along with marketing
activities
The meeting was
based on marketing
like positioning and
distribution. One of
the team members
The budgetary
limitation and
recommendations
were made using the
points

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tried to find out the
recommendations
based on the
discussions