A critical analysis of Eriez Magnetics' competitive position

Poonan, Kumaran (2001-12)

Thesis (MBA)--Stellenbosch University, 2001.

Thesis

ENGLISH ABSTRACT: Eriez Magnetics, a manufacturer of specialized magnetic and associated equipment, is well positioned in terms of image and reputation. However, a growing number of low cost competitors are continuously eroding its Market share. The objective of the study was to perform a comprehensive situational analysis, and identify key issues that are necessary for Eriez to improve its competitive position. Various analytic tools and filters were used to analyse the company information, which was predominantly obtained form structured interviews. The key issues identified were: a. No clear and visible vision, mission and objectives agreed and understood by all in organisation. b. No common value system threading through organisation. c. Lack oftrust between workers and management. d. No integrated information system to enable sharing of information. e. Lack of formal and visible performance. f. No formal quality plan in workshop that is adhered to for every job. g. Lack of concerted customer focus due to understaffed sales and marketing team. h. Potential for the diverse product range to be streamlined. i. Lack of Staff and Agent Training. j. Lack of Employee encouragement to submit ideas to enhance performance. In order to regain its position as the market leader, it needs to focus strongly on its people management, internal processes, customer service and core products, as detailed in this report. The Balance Scorecard is a tool that Eriez SA must consider using to actively monitor key variables identified that will enhance the company's competitive position. The next phase of the project is syndicating these findings and recommendations with Eriez SA top management with a view of setting up an implementation plan.

AFRIKAANSE OPSOMMING: Eriez Magnetics, a maatskappy wat gespesialiseerde magnetiese en assosieerde toerusting vevaardig het 'n goeie reputasie en beeld wereld wyd. Hulle mark word huidiglik bedreig in Suid Afrika deur 'n groeiende aanslag van lae koste vevaardigers. Die uiteensetting van die skrif is gegrond op 'n analiese van Eriez se huidige situasie, om sleutel items te identifiseer wat hulle in staat sal stel om hulle mark posisie te verbeter. Informasie vanuit die maatskappy was grooteliks bekom deur gestruktureerde onderhoude met sleutel staf. Verskillende analietese applikasie toerusting was gebruik om die maatskappy se informasie te evalueer. Sleutel punte was as volg:: a. Daar is geen duidelike, sigbare visie of rigting wat almal in die organisasie kan verstaan en identifiseer mee nie. b. Geen waarde sisteem was opsigtilik in die organisasie. c. Daar bestaan 'n duidelike wantroue tussen werkgewer en werknemer. d. Daar is geen sentrale informasie stelsel wat werknemers toegang tot het nie. e. Geen formele werk verrigtings stelsel. f. Geen formele kwaliteits standaarde wat toegepas word nie. g. Bemarking en verkope span is erg beperk in terme van staf, dit impak op kliente fokus. h. Hulle diverse produk reeks behoort krities ondersoek te word. i. Minimale staf en agente opleidings programme in plek. j. Werknemers word nie aangepor om konstruktiewe idees voor te lê nie. Indien Eriez sy posisie as mark leier wil herwin, sal hy streng fokus op sy bestuur, interne prosesse, kliente diens en kern produkte moet plaas, soos beskryf in die verslag. Eriez SA word ook aangeraai om die gebalanseerde telkaart metode toe te pas, wat fokus sal plaas op koste besparing en ook sy kompeterende posisie verhoog. Die volgende fase is om die bevindinge, soos saamgevat in die verslag, voor te lê aan Eriez SA hoofbestuur en om 'n implementeerings program daar te stel.

Please refer to this item in SUNScholar by using the following persistent URL: http://hdl.handle.net/10019.1/49684
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