Introduction
The global catastrophe caused by the COVID-19 pandemic has significantly impacted many businesses worldwide. Businesses have been forced to adapt rapidly in response to the crisis caused by sudden and unexpected fluctuations in consumer demand. In this review, I will be a consultant engaged in generating and evaluating solutions for a business reeling from the effects of a global economic collapse. I intend to use innovation and design thinking to assess the company’s adaptability and readiness to change.
Part 1: Laying the Foundation for Innovation
Synthesis of the Company Problem
Company Overview
Next-Auto Enterprises is a medium-sized automobile manufacturer with over 300 employees. The company’s principal focus is the production of engine and transmission components. The COVID-19 outbreak has significantly hindered business operations by decreasing consumer demand for the company’s products. Due to this, the firm has had to reduce production and lay off many employees.
Business Problem
Next-Auto Enterprises faces a significant problem because of the falling consumer demand and the decrease in sales, which have driven the company into a crisis of being unable to make any profits. Reduced manufacturing capacity has reduced the company’s inability to provide its products to clients on time (Small, 2019). In addition, the decline in demand has resulted in a loss of market share, eroding the company’s competitiveness.
Internal Strengths and Weaknesses
The engineers and technicians employed by Next-Auto Enterprises are one of its greatest assets due to their extensive experience and competence in the automotive industry. With this group’s efforts, the company was able to develop such high-quality products that satisfy customer expectations. Additionally, the firm has a superb record for manufacturing and delivering products of the best quality on time.
However, the current crisis has revealed the company’s inherent faults. The company’s single product line is a severe shortcoming. A history of focusing on engine and transmission parts has made it difficult for the company to diversify into other product areas. The company’s lack of experience with e-commerce has also made the transition to online sales challenging.
External Opportunities and Threats
Next-Auto Enterprises has benefited in numerous ways from the present economic crisis. The opportunity to expand into new areas and boost revenue is one possibility. Using its expertise in the vehicle industry, the company could expand its product offerings to include those for other modes of transportation. The current economic crisis has accelerated the trend to online buying, creating an opening for the corporation to expand its online storefront’s reach.
However, the crisis has created significant risks for the company. Customers’ declining demand has hampered the company’s ability to generate profits. Moreover, because the current crisis has caused havoc on global supply networks, it has been difficult for the company to acquire the raw materials it needs to continue manufacturing (Harris et al., 2019).
Appraisal of the Company’s Readiness to Innovate
Next-Auto Enterprises has a history of risk aversion, which has hindered the company’s ability to tolerate risk and develop a creative atmosphere. The company’s management is conservative and hesitant to implement significant changes. However, the current crisis has prompted the firm to think creatively to solve its difficulties. The company’s willingness to experiment with new distribution methods and expand its product line is a hopeful indication of its dedication to growth.
Conclusion
Next-Auto Enterprises is ultimately a mid-sized producer in the automotive industry. The COVID-19 pandemic has significantly disrupted company operations, resulting in a decline in client demand and a loss of market share. In addition to its strong team of engineers and technicians, the company’s reputation for on-time, high-quality product delivery is one of its numerous strengths. However, the company must overcome several difficulties, including an outdated production system, a lack of investment in R&D, and a limited product range.
Part 2: Considering Stakeholder Needs
The global economic crisis has been problematic for Next-Auto Enterprises, a medium-sized automobile sector manufacturer. Due to this issue, the company can less respond to consumer demands and distribute products promptly. Discuss how the wants and needs of the company’s stakeholders will inform the development of potential solutions to the problem.
Stakeholders:
Identifying the stakeholders is the first step in considering their requirements. Next-Auto Enterprises’ stakeholders can be divided into internal and external groups. Internal stakeholders include leaders, managers, employees, and shareholders, whereas external stakeholders include customers, suppliers, regulators, and the community (Radtke, 2022).
Prioritized List of Stakeholder Needs:
- Customers: Customers are essential people in this situation. They anticipate obtaining timely, high-quality goods. Due to the current crisis, the company’s ability to fulfill customer requests must be addressed immediately.
- Employers: The voices of those who perform the actual job for a corporation must be heard. Employment and physical safety in the workplace top the concerns for most workers.
- Shareholders: For shareholders, the business’s financial health is of the utmost importance. They believe the company will remain profitable despite the obstacles.
- Suppliers: Payment dependability is of the most considerable significance when it comes to suppliers to ensure constant business.
Greatest Point of needs
According to Next-Auto Enterprises’ analysis of its business problem, the company’s key goals are maintaining operations during the global economic slump, satisfying customer requests, and delivering products on time. Since the beginning of the epidemic, the automobile industry has experienced a significant decline in demand; thus, the firm must focus on innovation to keep up with consumer demands.
Leaders’ and Employees’ Most Pressing Concerns
The continuous profitability and financial stability of Next-Auto Enterprises is a primary objective for its management. The decline in demand has adversely impacted revenue; consequently, company executives must devise innovative strategies to maintain profitability while still satisfying consumer needs.
Concern for one’s safety on the job is widespread among employees. Workers are concerned about their ability to keep their jobs and safety in the workplace because of the pandemic. The management must address these challenges to maintain employee satisfaction and company loyalty (Florida &Goodnight, 2005).
Another concern is the maintenance of corporate operations. The pandemic has caused havoc on supply chains; therefore, the business must rethink its operations to reduce costs and better meet customer expectations.
The business must prioritize innovation to meet these needs, enter new markets, and preserve profitability. Leaders and employees must work together to address these difficulties, generate new sources of innovation, and ensure the company’s long-term success (Mongelli & Rullani, 2017).
Other needs to consider that are a lower priority but still significant.
In brainstorming potential solutions, the business should consider a few other needs in addition to those described above. These requirements should be considered even if they are less critical than those previously described.
Enhanced departmental communication and collaboration are one of these requirements. Communication and coordination inefficiencies delay project completion and delivery (Sander, 2015). For this reason, the organization needs to identify ways to improve communication between its different divisions, such as implementing new communication technology or scheduling regular cross-functional meetings.
Additionally, the company must increase employee excitement and satisfaction. As a direct result of the current scenario, numerous employees suffer elevated stress levels, overwork, and job disengagement. Therefore, the firm should increase employee engagement and satisfaction by extending training and development opportunities, increasing scheduling flexibility, and developing a friendly environment (Brandenburg, 2019).
Finally, the company should consider how to enhance its digital skills. Given the rise of remote work and the significance of digital technology in the automobile industry, the organization needs robust digital capabilities. This includes investing in new technology, such as automation and artificial intelligence (Moote, 2013), that can help streamline operations, boost productivity, and strengthen the organization’s existing digital infrastructure.
Assessing considerations needed to promote stakeholder buy-in.
In order to get the stakeholders’ support, it is essential to address any concerns or objections they may have with the proposed solutions. The higher management of Next-Auto Enterprises may have questions regarding the financial sustainability and practicability of implementing innovative technology and processes. Employees may be concerned about job loss and need to refresh their skill sets continuously. Therefore, it is essential to address these concerns and make the advantages of the suggested solutions crystal evident to all parties concerned (Liedtka, 2013).
It may be beneficial to undertake a change readiness assessment to identify potential hurdles and proactively address them regarding company leaders’ openness to change. As part of this review, surveys and focus groups could be used to assess leaders’ and employees’ attitudes and receptivity to change (Brenner et al., 2016). Participation of key stakeholders in the planning and decision-making process may be advantageous for enhancing their ownership and commitment to the proposed solutions.
Possible obstacles include more resources, such as time and money, to execute reforms. Another impediment is resistance to change, possibly out of worry for one’s safety on the job. Changes may be challenging to implement promptly, especially if they require extensive internal reorganization.
To overcome these challenges and win over skeptical stakeholders, it is essential to comprehensively explain how the new policies will improve operations and reward hardworking employees (de Brito & Terzieva, 2016). Consider involving and obtaining input from affected parties as a further alternative. This can create confidence and cooperation and ensure the proposed solutions address the challenges. In addition, it may be advantageous to provide staff with training or resources to facilitate their transition to any new technologies or processes.
Recommendations
It is essential to have a clear and appealing vision for the suggested improvements in order to reduce risk and gain support. In the vision, the benefits of the proposed solutions to the firm, its employees, and its customers should be described. Additionally, it may be advantageous to conduct pilot tests with a subset of employees to demonstrate the solutions’ efficacy (Birnbaum, 2019). The pilot project outcomes can be used to enhance the company-wide implementation of the solutions.
Another suggestion for winning over resistant employees is to provide them with training and development opportunities to acquire the adaptability skills they need to take advantage of the proposed changes. Consequently, employees’ confidence in their adaptability to new technologies and work methods may be bolstered (Grant, 2016).
A change management plan is required to implement the suggested adjustments. The change management plan should include a strategy for monitoring and evaluating the efficacy of the solutions, as well as tactics for communicating with and engaging employees (Kelley & Kelley, (2012). The plan should also include strategies for convincing skeptics and maintaining the support of key players throughout the launch.
Part 3: Bringing It Together
Possible solutions to the company’s problem.
Based on input from stakeholders, the following six options for resolving Next-Auto Enterprises’ business problem have been determined.
- Diversification of the company’s production line-Due to the growing demand for electric vehicles, Next-Auto Enterprises may need to expand their product offering to include electric automobiles and trucks. Consequently, the company can diversify its revenue stream and sell less of a single product.
- Investing in automation and robotics to increase production rates and turnaround times. There will be a decrease in manufacturing time, an increase in quality, and a decrease in labor expenses. The company’s market position and competitiveness will improve because of investments in these technologies.
- Implementing the principles of lean production, which aim to maximize value while minimizing waste in the production process. By adhering to these recommendations, the business can save money, improve quality, and increase output efficiency. This will allow the company to address client requests much more quickly.
- Expansion into new markets- Next-Auto Enterprises can study untapped markets that can expand the consumer base. This may involve domestic and international markets, such as the aerospace and defense industries. Increasing the company’s consumer base can reduce its susceptibility to global crises.
- The company needs to focus on implementing a sustainable initiative- Consumers are becoming more concerned about the environmental impact of industrial processes and the necessity for businesses to embrace sustainability measures. With well-executed sustainability marketing, the company may stand out and attract environmentally conscious customers.
- Creating a digital transformation strategy to assist Next-Auto Enterprises in enhancing its offerings and delighting its customers. A few examples are providing online sales and support, utilizing data analytics to refine procedures, and implementing a customer relationship management (CRM) system.
Although not exhaustive, these concepts can serve as a basis for developing more precise and viable solutions. In the subsequent step, each of these options will be evaluated for their viability, cost, and potential impact, after which the most promising will be picked for development.
Selecting 2 most appropriate solutions
Solution 1: Implementing an automation and Robotics System
Justification:
Utilizing robotics and automation in Next-Auto Enterprises’ production process could solve their challenges. With the implementation of this solution, manufacturing efficiency will surge, expenses will decline, and output will increase, all of which will increase customer satisfaction (Dodds et al., 2020). Thanks to automation and robotics technology, human error is removed, and the need for human intervention in production is reduced. In addition, the company will be able to compete with car industry rivals who have already embraced automation and robotics.
Components of the Solution:
Deploying robotics and automation systems requires the coordination of several moving pieces. First, the firm must acquire robots, software, and other industrial technology capable of performing various tasks. The company’s manufacturing process must also be overhauled to utilize robotics and automation technology (Shaul & Tauber, 2013). Installing new workstations and teaching employees how to utilize the new equipment may be necessary. Thirdly, the company must invest in cutting-edge solutions enabling the robots and automation systems to collaborate and be centrally managed.
Steps for Smooth Execution:
Before implementing this solution, there are several considerations for the organization to make. The business must first invest in relevant technology compatible with its current infrastructure. Second, the firm must invest in training to operate and maintain the new technology. Funds must be dedicated to employee training and development initiatives to achieve this objective. Third, the firm must develop a phased implementation plan for the new technology to maintain business as usual. Fourth, the organization should determine and set aside the money required to acquire and maintain the new technology.
Solution 2: Implementing Principles of Lean Manufacturing
Justification:
Next-Auto Enterprises may also be successful if it adopts lean manufacturing principles. This strategy recommends eliminating manufacturing waste to boost efficiency, reduce costs, and speed up production. Lean manufacturing strategies can influence product quality, defect rates, and customer satisfaction. Adopting lean manufacturing principles will make it easier for the company to rapidly introduce new products to the market, in addition to increasing sales and profitability (Zifkos, 2015).
Components of the Solution:
There are numerous moving elements involved in implementing lean manufacturing processes. The first order of business is to identify and eliminate every source of waste in the production process. Streamlining the production process, inventory, and supply chain may be necessary. Second, the company must invest in technologies for monitoring and controlling the production cycle. This will aid the firm in monitoring production, reducing waste, and maintaining product quality. Thirdly, the firm must conduct training and development programs for its employees to educate them on the lean manufacturing principles that will be adopted.
Steps for Smooth Execution:
Before the company can successfully adopt this solution, several considerations must be taken. The first stage is for the company to assess its current manufacturing process for inefficiencies and waste carefully. Second, the organization must develop a phased implementation plan for the new lean manufacturing concepts in order to maintain business as usual. The business should then determine how much it will cost to adopt lean manufacturing processes and set aside funds to purchase the necessary equipment (Shaul & Tauber, 2013). The organization must convince all relevant parties of the benefits of adopting lean manufacturing practices for the rollout to be effective.
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