CASE ANALYSIS FORM
1. The relative importance of a number of product groups and companies have resulted into sporadic and annual change in the percentage of sales and profitability.
2. Profit margins for chemical manufacturing companies have experienced letdown, which suggests that the chemical manufacturing industry undergoes inflation on an annual basis.
1.As the industry inflation increases annually, Exley Chemical Company is affected; resulting to a reduction of net sales that used to be at par with the industry average.
2. The structural paradigm of the company organization was revamped in order to re-establish the company's high profit margins.
1. Funding for new processes and innovations in the field of chemical manufacturing
2. Further reformatting of organization structure
3. The increase in the price of raw materials
III. Systems affected
The company organization paradigm will experienced a lack of coherence due to the inconsistency regarding the chain of command; and the holistic process of product input and output will undergo unnecessary changes.
Consumers will be deliberately affected by the inconsistencies in the product distribution due to the incoherence within the organization flow of the product department.
Not only does the structural change of the product department will affect consumers,
other departments will be affected as well. The domino effect will be apparent because
of technical inconsistencies of production.
Since the product department experienced internal conflicts with other departments,
upper management will be responsible for technical loopholes, which hinder the progress
of the product, as well as the company's operations.
The aim of the company in order to increase its profit margins will eventually result
increased liablities instead of generation of revenues for the company due to the lack of
coherence within the various departments in the company.
1. The internal operations of the Exley Company must be monitored by the top
2. The upper management should implement regulations pertaining to the
product development in order to sustain product consistency.
3. Profit margins will increase whenever the company's liablities are reduced.
4. Net sales should be bolstered by being frugal yet efficient in terms of
purchasing raw materials for production.
5. Manufacturing capacity is to be established in order to establish the company's
1. Exley Company's growth and progress should begin with the establishment of an apt
chain of command, which will result to coherence among the key departments of the
2. Exley's top management should be at the forefront of any marketing engagements, and
should oversee the research and development themselves aside from having product
3. If the above recommendations are applied already, the Exley Company's next task is to
initiate the assessment of its competitors. The competitive advantage of the Exley
Company will make it possible for the company to generate more than satisfactory