Analysis of Schick Company

Analysis of Schick CompanyExecutive SummaryThe break up of this traverse is to put up a diagnosing analysis of Schick giving the study issues that are confronting the company and the att finisant implications for the company.Schick was established in the year 1990 and registered in Southampton as a private restrain liability trans natural action sideline the outcome of the collaborative look efforts of three university professors namely Prof. Chen Ding, Prof. Karl Otto Ludwig and Prof. Andrew fen resulting in the innovation and manufacture of animation saving refrigerators during the period say for environmental consciousness and high energy prices among separates. Given their technical and engineering background, over while, the championship organisation became one of the mart leaders ren professed for its flesh and environment tout ensembley friendly home appliances and enjoy recognition as a 21st Century Role Model in the year 2014 addicted its unique capability for growth and wampumability while setting orbiculate standards in innovation, merged social responsibility, and Responsible Leadership.The demise of the three professors in a tragic road accident in Munich marks the end of an era coupled with the detailual vigilance change of Mr. John marshland Son of Professor Andrew marshland as the new CEO who introduced changes in the over every structure of the company including the termination of the four management professionals. indoors a short period after this failed leadership and mismanagement resulted in a critical pip which brought the company close to struggling for solemn survival as its bedevil by ch onlyenges confronting it. The realisation of this reality informs the motivating for fundamental strategic change, hence the appointment of an independent analysis of authorized daub.A cursory look and critical evaluation of current conditions revealed a strategic shift from the founding owners ethos creating a non- su ntan between value, resources, and environment because of a study shift in the argument objective and strategy from environmental protection and corporate social responsibility to a short-term good maximization and benevolence leadership look. This has several negative implications both essential and external which range from loss of credibleness and trust of lag and former(a) s blastholders, lack of strategic investing in the business futurity, to cost-cutting that resulted in inadequate design and intersection safety standard.Internally, in that location is a high-power surpass organisation civilisation and leadership style currently w hereby the CEO displays a coercive power that tends to alienate other stakeholders and serve as a barrier to adequate crisis management and the future business of Schick. Consequently, there is the consume for a general review of management ethos and strategies to regain its lost credibility and image necessary for the survival of the business.IntroductionThis report is intended to provide an independent diagnosis of the Schick1 issues affecting and to provide a detailed evaluation of the present and future implications of these on this company. Registered as a private limited business with the head office in Southampton in 1990 to manufacture municipal white goods, Schick has been in successful business for over 25 historic period and with laurels nationally and internationally for its innovative environmental friendly energy saving increases, responsible leadership, and corporate social responsibilities. However, things took a new ingest for in January 2015 with the demise of the founders in an auto crash and Mr. John fen taking over the management of the business. From this stage, Schick started experiencing changes and challenges resulting in its poor image and genius because of the shift in strategic management ethos of the business that led to product fire and death incident.Consequently, this repor t took a detailed analysis of the major issues with the attendant implications for the future survival of Schick before the summary conclusion of the principal(prenominal) findings which leads to the prospective action required in response to them.Case diagnosis and analysis of implicationsThe examination of Schick home appliances revealed a series of issues that are hereby provided in this abbreviated bring up Analysis2 below and raise discussed in this reportFigure 1 Abbreviated SWOT AnalysisStrengthsGlobal operating(a) platform.Strong brand name.Economies of scale.Strong sustainability focus. (manufacturing in china)Wide range of productsWeaknessesneediness of responsible leadership.Short-term profit focus.Poor business strategy in terms of innovation, value and core competencies.Weakening bargaining power over distri hardlyors.Lack of corporate social responsibility research knowledge initiation commitment.Negative forwarding poor company imageOpportunitiesIncreasing absorb and demand for environmental energy saving appliances.Growing Asian market new market in Africa.New acquisitions business alliance.Potential inventions.governmental cooperation and potential supporting.Growing rival rough climate change and investment in fast-growing product categories, e.g. air conditioningThreatsIncreasing competition. land return on investment.Economic uncertainty (BREXIT).Reduce skilled workforce due to migrationChanges in laws and regulations.Cheap goods from other countries i.e. JapanChange in customer preferences and demandThe crisis in Schick stems from the change of leadership culture and style. This, in turn, brought around a change of the companys management ethos and style as the business now focuses on short-term profit maximization strategy done and through cost reduction and undermines major consideration for other stakeholders. This manifested in a decision to eliminate round training and growing programme, reduce funding for the re search and development unit of the business which stands at the heart of the business future strategic investment absence of which leads to the risk of innovation, and development that would further grow the business and increase profit (Koch, 2010). To put this in the mount of profit maximization, a scholar states that To argue that all firms aim to do nothing else but maximize profits has not better can in logic or intuition as to argue that all students aim only to maximise examination marks (Hawkins, 1970, pp. 129-140). In other words, it is not ideal to focus on profit maximization curiously within a short span of time.Management style pick out by the Mr. John Marsh is akin to autocratic leadership style associated with rigid control and top-down decision making characterised by graded organisation structure (Schein, 2004 Whetton, Cameron, 2016) whereby the leader makes most important business decisions without the remark of his employees. (Enderle, 2009 Northouse, 2016) . Efficient decision making is of great benefit especially when prod is required. But autocratic leaders tend to reduce the morale of his module and very quickly begun alienating both the directors and employees of the company (Lewin, et al 1939 Cook, 2008). This was deepen by the news of the Schick directors termination which caused a widespread shock, concern, and unrest. This is further reflected the organisational culture best described as power culture (Hardy 1978 cited by Hughes, M 2010), with Mr. John Marsh at the centre of powerFrom the above, it can be stated that the psychological contract Schick and its employees has been damaged and undermine their sense of individualistic autonomy particularly among Munich staff when effrontery the news of the proposed cuts in research development laboratory as well as training and development that not only give room for social interaction but knowledge exchange that leads to safe innovative product design that contributed the mak e the company an household name for silk, efficient, safe and reliable product that creates a background for the business profitability. (Mone, London, 2010 Abdoli, Pourkazemi, 2012).Equally of note is the United Kingdom European Union membership referendum, also known as the Brexit referendum, which took place on Thursday 23 June 2016. This is a critical moment for Schick inclined all the uncertainty and forms surrounding exit (Global Counsel October 2015) compound matters, as about 50% of the employees in Southampton were of Polish origin, majority of these Polish staffs are concern that they would not have a future at Schick the Brexit situation and employee designation issues in the company particularly the termination of the four director which they reason that if Mr. John Marsh could sack the directors who had help build the company, he incontestable could do same to them as well and as such could not be trusted to protect their interest as employees in the event of cha nges imposed following the formalisation of Brexit. (The Guardian July August 2016). In turn, this creates skills interruption and further made worse by Mr. John Marsh management decision to do away with the operational arrangement in China that gives the business access to the Asian market. The Chinese manufacturer which had established its own market, reputation and distribution channels in Asia was equally concerned about the impact of Mr. John Marshs leadership on its profitability. By 15th July 2016, the compact was reached limiting Schicks operations to only Southampton and focused on the UK and Northern European market, now apparently more difficult given the UK exiting the common European Union market and without a research development unit (Lorca, Garca-Diez, 2004). The situation at Schick combined with the uncertainty in the UK, the weak pound sterling(prenominal) could increase the companys production cost and reduce its profit margin (Lorenczik, et al. 2016).Regard ing its customers, the situation could be likened to that implicit contract that is akin to the employee psychological contract mentioned antecedent that was damaged by Schick by not meeting norms, and value expectations given the fact that the company was synonymous with global standards setting in product quality and corporate social responsibility has been badly affected by the attempt to stimulate sales and regain lost credibility in the grocery, which made Mr. John Marsh used a previous design for wash drawing machines discarded by the research development laboratory in 2015 and the attendance fire and death. This accident event effect was poorly managed (Varadarajan, et al 2006 Carroll, 2013). In addition, Schicks main distributor responsible for the distribution of the faulty race machine which caused the fire had to terminate its contract with Schick following the negative publicity and the poor management of the situation by Schick. The company option, therefore, could have been to take action in recalling the affected products and make press statement to pronounce regret over the incident and give reassurance of its total commitment to the corporate ethos safety reliability that would demonstrate good communication, business ethics and set in consideration of corporate social responsibility that could help be cured _or_ healed stakeholders confidence and loyalty (Daly Moloney, 2004 Le, et all 2014). The future of the business is not sure if Schicks narrow market focus is considered as the Brexit could restrict access to Federal Europe. But there is growing market demand for white goods in Africa (KPMG, 2016) if connection with china could be re-established and adequate funding provided for research and development.In order to address the issue of staff trust and loyalty, as all staff felt unable to carry on working for Schick given recent events which will also lead to skills shortage and loss of agonistic advantage, there is the great nee d for corporate culture and leadership style. Since staff only remained at Schick due to the memory of the three professors and all they had achieved, there is a need to build on this loyal sentiment through a robust employee involvement as it were to increase employee engagement and lodge (Hyman, Mason, 1995).In summary, Schicks established reputation for sleek, modern, innovative energy-saving white goods achieved through a devotion to research development, corporate social responsibility, and responsible leadership, has fallen from mildness in short time under the management of Mr. John Marsh bringing about the following challenges. The sacking of the directors created a leadership respite and caused grave concern amongst employees and other key stakeholders. The sale of its research development Laboratory had not only compromised Schicks innovative capability but located customers at risk and reduce it comparative competitive advantage as a market leader. The leadership s tyle and short term profit focused approach to business led to the loss of confidence in Schicks leadership both within Schick and in the marketplace. Schick experienced high staff turnover at over a short period of time which created major gaps in knowledge and expertise. The well-publicised fire caused by Schicks new washing machine has seriously ruined its image and reputation in the marketplace resulting in its main distributor terminating its contract, these created a strategic drift and a situation of lost organisation with environmental and resource value tangent (Kew Stredwick, 2008).ConclusionThe good old Schick is now confronted with enormous challenges and crisis breaking point. diagnosing exposed the major issues affecting it which need urgent attention for its future business existence consequently, the need to revisit and change the narrow business strategy of short-term profit maximisation, high-power distance structure to return considerations for other stakeholder s interest with regard for corporate social responsibility, good business ethics and responsible leadership all of which call for immediate action plan and implementation to ensure the survival of the company.1 All education relating to Schick in this report and not stated otherwise are drawn from Sockalingam, S (2016) Distressing times at Schick home appliances. Unpublished coursework case study, Glasgow Caledonian University.2The information provided in the abbreviated SWOT Analysis (figure 1) is drawn from the Appendices. Full SWOT Analysis, PESTLE Analysis, stakeholder Analysis, Cultural Web, and Porters five forces of comparative position model respectively.