After a careful analysis of the problems encountered by Mountainside Industries in recent years due to the lack of unity and communication between the Mountainside Industries companies which have lost their competitive advantage, it is important to increase the efficiency and profitability of the company by enforcing the administrative measures. To remedy the situation, we should implement the following measures: Unify Mountainside Industries businesses and rebuild the administrative framework, encourage employees to take action initiatives, create a purchase division plan to implement all purchase orders appropriately, resulting in more harmonious and efficient operations.
1. Combine companies in the mountain sector and rebuild the administrative framework.
It is clear that the administrative and financial system set up within the company has not produced results, as it has caused an unstable financial situation in the sector due to a lack of adequate communication. Therefore, to overcome these problems, the four companies of Mountainside Industries should merge into one administrative entity to foster their cooperation, eliminate marketing divisions, adopt a new leadership style with a stronger and more authoritarian approach to facilitate cooperation between the four companies. Then, Mountainside Industries companies will be able to enforce administrative standards as opposed to lenient transactions that took place before the downsizing of production units. Ms. Hill, you would recommend moving from a benevolent leadership style to a firm and strict style, starting with the position of CEO. In addition, the company must introduce a “code of ethics” that employees of the administrative and production departments must respect in order to avoid any future complication between employees and management. This will resolve current facial expressions of employee resentment toward management and improve the relationship between management and employees.
2. Encourage employees to take initiatives
To encourage employees to become more involved in the company, it is necessary that they actively participate in the initiatives and take the necessary measures to ensure the profitability of the company. However, we should note that not all employees at the company receive the same quality treatment, which remains a major problem for Mountainside Industries. As a result, employees are unhappy because they feel that unfair treatment has discouraged them and is invaluable to them. In this case, all employees should be encouraged and rewarded for their involvement, initiative, and sharing of ideas. In addition, a clear and shared vision is necessary, defining not only the values ??of a company and its employees but also guiding the behavior of all employees. Therefore, a company that encourages its employees to become involved in the decision-making process will encourage them to become more integrated while increasing their productivity.
3. Build a Purchasing Division
After the merger of the four companies, it is now necessary to create a purchasing division that receives and inspects all orders before sending them to suppliers. Currently, one of the major problems is that each department acts separately, which will prevent Mountainside Industries from not taking advantage of quantity discounts. To place orders, it is imperative to have the authorization of the head of the division of the purchases which will have to analyze them with the standards of procedures in force.
Finally, I recommend that we merge all of our four Mountainside Industries immediately, adopt a new style of leadership style with a solid approach and the creation of a purchasing division.