MGT Essay Example | Topics and Well Written Essays - 1000 words

MGT - Essay Example FoldRite Furniture Company was started in the year 1986. The company has been operation with the management being involved in a number of initiatives that have been aimed at its continued growth and profitability. The company operated in a very competitive environment and there was always a need to be more innovative in order to stay ahead. In 2006, there was a change in ownership which warranted some changes in management. However, the company had experienced a growth rate of over 3.5% from 1999 to 2006. This is evidenced by the increase in revenues from $47.5M to $60.3M. This recorded growth was well above that of the industry at the time. However, the company had a cyclic nature at this time as there was a growth and decline sort of scenario which was occasioned by a financial turmoil and loss of yields and general decline in productivity occasioned by high staff turnover. The turnover of staff meant that the company was mainly reliant on the inexperienced staff members at most ti mes. There was also an increase in the production lead time and increased margins. In 2007, the company began undergoing a transformation that was started when a new CEO was recruited. The new CEO, Marshal Epstein only made two changes to the structure of the organization and these proved to be vital in its rejuvenation. The first major change was that he reduced the number of products that the company offered while at the same time embarked on the consolidation of manufacturing. The other major change was that he reduced the lead time to a maximum of a fortnight and also made sure that the shipping policy was changed to reflect only two days. Despite the recession in the latter years, the company was profitable in 2009. FoldRite has a very dynamic market structure and although the demand for their products is seasonal, they have managed to spread out and rely on a large market base. Currently, the largest market segment is the