Bradtech Limited Company - Essay Example

Apart from this the balanced scorecard focuses on integrating the output or performance different departments and units of the organisation in order to generate more effective consolidated end result (Lawrie & Cobbold, 2004). In this case analysis, the initial process of balanced scorecard has been utilised i.e. the generation of the important performance measures and indicators for the company. If the organisation will review and monitor these performance indicators on regular basis then there will be better control over the overall output and profits of the organisation.

Overview of the Company: Bradtech is a subsidiary of another manufacturing company. It is currently facing a very stiff environment. The company under capital constraint from the parent company needs to expand its current capacity. But to this decision are affecting further conditions also: one of the major products of the company is losing its utility and thereby is facing a shrinking market; the other product although new has its own set of constraints. One major constraint is its ability to be customised which requires prior ordering before manufacturing; this entails a vibrant supply chain which unfortunately the company does not have.

All these restraints are not allowing the company to operate or compete effectively. Key Factors which should be Considered by Bradtech: Bradtech should prepare counter measures for the shrinking market share of its flagship product (product A). Whereas for its other product (product B), which needs to be customised as per the buyers demand, the company should adopt a pull based strategy to avoid inventory holding cost (Northcott and Smith, 2011). For this it needs to restructure its supply chain and make it vibrant, sensitive and efficient.

Other key factor which should be considered is: relationship build with customers; who demand on time delivery, honest technical advice, good quality and product reliability. The company should come up with some form of competitive advantage at the service level to gain customers and prevent getting engaged in price competition. The company should keep track of its processes and try to minimise cost to raise its profit margins. For product A, it can be assumed that no new competitor will enter the market, looking at the current market crisis, so Bradtech should offer some sort of price benefits to capture more market share.

Bradtech also has to utilise its capacity optimally because it is highly unlikely that it would receive additional funds to expand its current capacity. In this endeavour the company needs to undergo stringent capacity and space planning. The company also need to keep its parent company interested in its operations because if the parent company starts to believe that the Strategic Business Unit (SBU) is creating more trouble than it could handle, than the parent company may start thinking about divesture.

Other key factor to consider would be the rising buyers’ power and the buyers’ tactics to play one supplier against other. Since the product has no additional offering the company will keep facing this