Create a 5 page essay paper that discusses MDCM (A) write up.
Each of the company’s subsidiaries operates autonomously and so they compete on their own terms instead of as one company. It therefore means that the price that the company pays for its products is too high when compared to the competition. This is even more so with the large number of suppliers that MDCM deals with as a group.
Additionally, MDCM is not obtaining time critical information that will allow it to produce and mange its operations more efficiently.
Based on the information given in the case the overall strategic goals of MDCM at this time are to improve its organizational structure, improve its information systems, reduce its operational cost and gain a greater market share. This can only be done through the integration of MDCMs information systems both departmentally, regionally and worldwide. The company has recently done some major re-organizations but the root cause of the problem has not been fixed. The CFO has indicated that margins have been shrinking for eight quarters with too much working capital and an inefficient cost structure (p.1).
The structure of MDCMs operation does not augur well for its efficient operations. The company has done some restructuring and has reduced its staff complement but it still needs to do a strengths, weaknesses, opportunities and threats (SWOT) analysis of its operations in order to see what additional restructuring is required.
The Chief Operating Officer (COO) has indicated that because of the inability to forecast MDCM is spending almost three times as much as the company needs to spend on materials because of having to expedite the process in order to satisfy the needs of customers. Production cannot be scheduled properly because of the rush to satisfy the immediate needs of customers. All of this suggest that the company does not have the information that it needs to plan or is not getting the information early enough in order to carry out its operations efficiently. Indeed the COO has