Major Problems at Chuck Wagon Inc.
The most critical problem for Chuck Wagon Inc. as confirmed in the case is related to the fact that the company has products which are less in demand and customers are not willing to use them. Therefore, the most obvious concern for the management is to overcome the issue of product line shutdown. With some products not generating the similar kind of revenue as expected off them, therefore, the product line needs to be shutdown.
Along with this, another issue which is obviously a consequence of product line shutdown is the fact that the company is facing financial crisis. The major reason for the financial debacle at the company is solely because of the growing competition which has led to added pressure and the fact that Chuck Wagon Inc. has been unable to retain the customers. The lack of leaders in the company has also been a worry because the company has been unable to bring in innovative and charismatic leaders that can grab on opportunities to help the company overcome the issues.
Therefore, the two major problems for the management of the company that are evident in the current situation are the financial crisis within the organisation and finally the product line shutdown.
Recommendations For The Company
To overcome the financial crisis and to actually ensure that are product lines are functional and active, the company needs to focus on meeting the customer requirements. For instance, focus on improving the quality and services of existing product line so that the customers are attracted towards the products. Furthermore, by being focused on specific products, the company can better serve the customers and can attain profitable outcome and results which will help in revenue generation.
Along with this, the CEO of the company has to find leaders in the company that can motivate the employees and can bring about the results in favour of the firm. As for now, Chuck Wagon Inc. has been under severe pressure because of poor strategic approach. In order to overcome the prevailing issues, the management needs to have leaders who can create opportunities, attract customers and strategically approach the positive direction for the organisation.In addition to this, the decline in profits has affected the customer trust in the company and the retention of customers has become a worry for Steve Jones.
Finally, it can be said that the above recommended solutions can help Chuck Wagon overcome the issues and become a profitable firm. It also needs to focus on innovation and building products that can attract customers. By doing so, the financial issues can be reduced, it will also help in operational competency and finally no product line shall be shut down in the future.
The elimination of all the slowest moving products will help in optimizing the performance and allow the company to eventually preserve all its resources and facilities on the revenue generating products. This idea or approach will help in accelerating the company and business simultaneously.