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Introduction
Shipper Manufacturing Company which is a manufacturing company has been discussing
how best to undergo a transition in its operations, marketing and office equipment. The managing
director has come up with a formula that in his views is the best to revamp the company. In this
paper, the issues surrounding the company transition are analyzed and at the end
recommendations given.
The proposed transition and what triggered the business strategy change
According to the planned transition, the items that are being affected have been
prioritized. Of most importance has been the computer system that the company has been using
which is being converted from IBM to Hewlet-Packard. The change is expected to reduce the
machine time of computer operation which will in return reduce the flexible costs of
administration. While the installation of the new computer system will require high initial costs
of installation, the new system will require less maintenance costs which will lead to increase in
the gross income should all other costs remain constant.
The change is triggered by the fact that the company is planning to shift from low volume
production to high volume production while still maintaining customer oriented design. This has
called for increased logistical approach. The computer system has to be changed so as to meet
the demands of the growth in technology and also the compatibility of new structure.
Cost, quality, flexibility and delivery
The priorities cited by the managing director are the change in the accounting systems.
This is done in two views and references. One, the accounting system have to be compatible with

the new computer system that the company shall be using. This will include training of the
accounting staff on the application software of the new computer system. Secondly, the
accounting system will change in order to conform to the new requirements of the international
accounting standards. The international standards are the mark of quality and a reference point in
accounting field. The other conversion is in the organization structure where new lines of
authority shall be drawn.
While the company has been majoring on seeking new markets, the proposed change is
expected to be more reliant on the customer based marketing. This shall be done by
standardizing all its products for both local and international consumer so as to create equity to
its customers. This will ensure that the products are flexible for any market and this will reduce
duplication of processes. Standardization of these products will increase the quality of products
(especially in packaging) aimed for consumption by local customers. This shall also include
involvement of customers in decision making process which makes the customers to own up to
the operations of the company. The customer based marketing is faster; less costly and
unqualified (the customer is not dictated on what to tell other prospect customers but gives a
direct report).
Recommendations
Process, quality, capacity and inventory
The authorship of this paper recommends that the plan stated above be adopted and
implemented in phases. The conversion of the computer system for example should not be done
though direct method as this will affect the operations and the market. The computer system
holds all the records and since the recording quality must be improved, there should be measures

to ensure that no record is lost. The new computer system also has a larger capacity enough for
new changes and which can accommodate the prospected growth. Shipper Manufacturing
Company should divide its system in different phases and note the times when operation in each
section are low so as to convert the system at such times. To ensure that customer based
marketing is quality based; the authorship of this paper recommends that Shipper Manufacturing
Company should introduce customer appreciation events. These events shall be used to
brainwash the customers on benefits of the products and the company. It is after these events that
the marketing team shall roll out the customer based marketing.
The other conversion that should be implemented in phases is the change in the
organization structure of Shipper Manufacturing Company. This will ensure that the change
process does not affect production. A direct change will lead to lapses in management as the
operations shall not be halted. Change in organization structure should be carried hand in hand
with change in the computer system. Where possible this can also be done concurrently with
accounting systems.