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Penwick Home Appliances’ Subsidiary in El Pais Case Study

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Updated: Jul 3rd, 2020

Abstract

Every business organization wants to emerge successfully. However, the existence of disagreements and misunderstandings can affect the performance of many business firms. This essay explores the issues affecting one of Penwick’s subsidiaries in El Pais. The paper discusses how the firm can deal with its challenges.

Introduction

Penwick Home Appliances is a leading producer of many products such as microwaves, kitchen stoves, and refrigerators. The firm’s manufacturing subsidiary in El Pais is currently facing several issues. The subsidiary currently uses a powerful strategy to remain competitive. Maquinas para el Hogar Penwick has been making high profits in El Pais. The firm has managed to deal with competition in the country. The firm produces a wide range of products. This product mix has continued to support the company’s goals. It is also the leading marketer of different household appliances. The organization is also expected to embrace the use of synchronous manufacturing. This paper describes the major issues affecting the firm. It also offers meaningful recommendations that can make the firm successful.

Issues Facing Penwick-El Pais

Jose Garcia believes that Penwick El Pais is a successful company. The firm markets a wide range of products to remain competitive. However, the firm’s Local Operations Manager (LOM) thinks differently. Manuel Cardenas wants the firm to reduce its products. Cardenas believes that the strategy will eventually make the firm more competitive and successful (Hill & Jones, 2012). The current production system makes it impossible for Cardenas to address the needs of different vendors. The manager is also unhappy with the firm’s Design Department (DD). Cardenas has been disagreeing with Garcia because of the targeted outcomes.

Penwick Home Appliances has also adopted a new manufacturing system. Cardenas is also expected to embrace the use of synchronous manufacturing. According to Cardenas, the firm should not embrace the power of synchronous manufacturing. He also highlights the socio-economic differences existing between El Pais and the United States. Cardenas builds different products depending on Garcia’s expectations. The firm should, therefore, make good decisions to remain competitive (Pearce & Robinson, 2012).

Analysis and Evaluation

This case study highlights the major problems affecting Maquinas para el Hogar Penwick. The firm has been producing various products depending on the changing demands of its customers. Manuel Cardenas is also unhappy with Garcia’s production strategy. Garcia wants the firm to produce a wide range of products to emerge successfully. The firm has also been using a traditional manufacturing system. Cardenas is also comfortable with the current manufacturing process. On the other hand, Garcia fails to consider the changing expectations of many customers. This fact explains why the issue of pricing is currently affecting the company (Riezebos, 2013).

According to Cardenas, the firm has the potential to double its outputs. The firm should reduce its products to achieve its goals. Garcia and Cardenas have unique differences that continue to affect the organization’s performance. This complexity forces Cardenas to produce whatever Garcia orders. He is now required to adopt a new manufacturing system. This new manufacturing system will present several advantages to the firm (Riezebos, 2013). The recommendations presented below will, therefore, make it easier for Maquinas para el Hogar Penwick to achieve its future goals.

Recommendations for the Firm

Several recommendations are needed to address the issues affecting the firm. To begin with, Garcia should embrace the use of modern manufacturing processes. This approach will make the firm more competitive. The continued production of many products is something meaningful for Maquinas para el Hogar Penwick. However, this strategy might affect Penwick’s business strategy. That being the case, Cardenas and Garcia should exchange their views. This organizational practice will ensure the company produces quality appliances that can compete in the market (Frazier & Reyes, 2000). According to Riezebos (2013, p. 4), “the production of fewer products can make many firms successful”. This strategy will improve the level of production and eventually make the firm successful.

The proposed manufacturing system is also advantageous. For instance, the approach will “ensure every system works harmoniously to achieve the targeted goals” (Riezebos, 2013, p. 5). Synchronous manufacturing will make it easier for the firm to manage its resources. This approach will improve the performance of the system (Anderson & Brown, 2010). It will also reduce the costs incurred by the firm. The proposed manufacturing system will improve the level of product specialization. The managers at the firm should also collaborate to produce the best outcomes. This strategy will create powerful teams that can address the changing needs of targeted customers. The important goal is “ensuring that the company gets closer to its goals” (Ogbonna & Harris, 2000, p. 773).

Conclusion

Manuel Cardenas and Jose Garcia must work together to support the firm’s goals. They should also collaborate with every manager and HR leader in the organization. The firm should also use modern manufacturing systems to produce quality products. The company should implement a long-term strategy to become more competitive. The proposed practices will eventually increase the company’s profits.

Reference List

Anderson, C., & Brown, C. (2010). The Functions and Dysfunctions of Hierarchy. Research in Organizational Behavior, 1(1), 1-35.

Frazier, G., & Reyes, P. (2000). Applying Synchronous Manufacturing Concepts to Improve Production Performance in High-Tech Manufacturing. Production and Inventory Management Journal, 1(1), 60-65.

Hill, C., & Jones, G. (2012). Strategic Management: An Integrated Approach. Boston, MA: Cengage Learning.

Ogbonna, E., & Harris, L. (2000). Leadership style, organizational culture and performance: empirical evidence from UK companies. International Journal of Human Resource Management, 11(4), 766-788.

Pearce, J., & Robinson, R. (2012). Strategic Management. New York, NY: McGraw Hill.

Riezebos, J. (2013). Work Order Release and Capacity Balancing in Synchronous Manufacturing. Web.

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IvyPanda. "Penwick Home Appliances' Subsidiary in El Pais." July 3, 2020. https://ivypanda.com/essays/penwick-home-appliances-subsidiary-in-el-pais/.

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IvyPanda. 2020. "Penwick Home Appliances' Subsidiary in El Pais." July 3, 2020. https://ivypanda.com/essays/penwick-home-appliances-subsidiary-in-el-pais/.

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IvyPanda. (2020) 'Penwick Home Appliances' Subsidiary in El Pais'. 3 July.

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