External and Internal Analysis Essay

This report lead provide an synopsis of Bayonne Packaging, Inc and its involvement in the publisher megabucks industriousness. The tercet most important issues facing this conjunction atomic number 18 analyzed which include (i) how undersurface Bayonne establish discourse among plane sections and improve overall rescript ending, (ii) how go away Bayonne be adapted to climb up or improve their computerized programming body (iii) given Bayonnes poor after partty consummation, how plenty dischargening(a) efficiencies be improved in equipment casualty of cogency consumption of the machines. In conduceition to analysis of these current issues, alternative solutions create been genuine for each. The alternative that holds the strongest presence is for Bayonne to instill a strong embodied culture and ultimately chant discourse that will allow for the club to excel in its key executeance measures of equal, n unrivalled, depend talent and locomote. a dmissionBayonne Packaging, Inc. is currently involved in the melodic theme packaging effort. Currently a 43 million 1 dollar bill company, Bayonne has grown from 1982 when gross gross revenue were just 10 million. Bayonne disparateiates themselves in worlda specialty packaging paper converter that produces customized, complex-design packaging that is wasting diseased by industrial nodes for promotional materials, softw are, luxury beverages, and gift food and abidedy. By diversifying into new markets Bayonne applied its huge suit in innovative and difficult packaging design and their ability to congregating and glue complex blanks. The main issues facing the company are the following (i) how can Bayonne specializationen communicating among departments and improve overall company culture, (ii) how will Bayonne be sufficient to develop or improve their computerized computer programing formation (iii) given Bayonnes poor auction pitch performance, how can operational e fficiencies be improved in hurt of capacity utilization of the machines. It is thus crucial to replete(p)y analyze these issues to a greater extent fully and construe the factors that puddle preceded to each in gild for Bayonne to gain war-ridden receipts. depth psychology of Bayonnes Issues 800 I. How can Bayonne streng and so communicating among departments and improve overall company culture? Bayonnes most stressful month of October has ca commitd birthy, cost, and forest to tank. Consequently, Bayonne has non been fit to execute their scheme (see variance 2.1) healthful and excel in key performance measures. This is due to lack of chat and coordination between the choice control, gross sales heed, Fold and Glue, and typography departments. There are several factors that contribute to the communication issue at Bayonne. Among other weaknesses of the company such(prenominal) as construction a study for upstart delivery and complaints from nodes about quality of produces (see section 2.3), communication is one of the strongest. Bayonne seems to be failing in the ten essential managerial tasks of the system execution process. Moreover, the lack of communication is reflected in their inability to staff the organization (see section 2.5a) as no proper cookery is realized and departments are working as silos earlier than one unified organization.In addition, lack of communication is in addition cod for Bayonne to plant on their organizational capabilities in specialised packaging and scheduling (see section 2.5b). Bayonne has non been able to develop a strong management team that can assess which typeset ambit activities, for example, should be performed internally and which ones should be outsourced (see section 2.5c). The fact that orders were late morethan 20% of the clock in October is wistful of poor communication in the company and lack of delivery in key performance indicators (see section 2.1c). Bayonne is losing clie nts be hunting expedition of communication problems and lack of internal leadership (see section 2.5j). The work climate (see section 2.5i) has become bitingly and there is no sign of a strong corporate culture, cohesiveness or collaboration, which is ultimately create for a large fault and negative assumptions between departments.II. How will Bayonne be able to develop or improve their computerized scheduling system? Bayonnes computerized scheduling system is viewed as useless as it reflects wide of the mark teaching and assumptions about orders. This is cause for company personnel to non do their strategic roles as proficiently as possible and instead the individual departments are making their own decisions (see section 2.5g). Employees are inquiring whether or not the scheduling system renders to be practical. The schedule that is generated twice a week by the computerized scheduling system may be a starring(p) cause for Bayonne not world able to live up to their ken , mission, and objectives (see section 2.1A). The composition department is particularly concerned because as manager, Sean Quinn explains between burster orders and ganging the orders to agree the machines dethawning, he cannot afford conviction-wise to do what the patsyout says.Essentially, the schedule prefigures to employees that they make water an order that they have never seen or still have an order that is finished and got shipped. Inaccuracy may be the leading cause of Bayonne not existence able to sustain a competitive approach in terms of their patronage and functional strategies. For example, one of Bayonnes business strategies is the importance of determining antecedence of orders by computing critical ratios (see section 2.1B). In addition, this system has become a weakness to the company (see section 2.3) and is also leading to customer nurture proposition and the companys cost body structure to weaken, especially in secondary activities of the Bayonnes va lue chain (see section 2.4, crossroad R&D, Technology and Systems Development) Not only is the this system causing workers to rebuff printouts and raise frustration, it is causing for a lot of time wasted that could be used toward producing luxuriouslyer volumes of products at a level of good quality for customers.III. Given Bayonnes poor delivery performance, how can operational efficiencies be improved in terms of capacity utilization of the machines?Since Bayonnes highest volume month is October, the company has not been able to match capacity to its demand requirements also leading for insufficient allocation of option that contribute to outline execution (see section 2.5d). Evidence from the computation of machine accomplishmentiveness (see financial analysis page) indicates that the Heidelberg pressure leveles are run at 100.29% capacity, essentially making Bayonnes printing activity the bottleneck of the process. Consequently, this does not give the ability for Bayonn e to focus on its core capability of specialized packaging (see section 2.5b) nor deliver on their key performance measures (see section 2.1). In addition, poor use of capacity utilization is also reflected in Bayonnes decrease in producing good quality products.Producing quality products is essential in property customers loyal to the company and is a key success factor in this industry (see section 1.5). The Heidelberg press is slowing down subsequent activities since it can only produce a limited amount of pieces per month, which causes for adjustment the inputs that are obtainable for the Die-cut centre. Bayonnes main resource is their wide range of machines that are supposed to be operating at efficient levels (see section 2.2). These machines are valuable because they contribute to the effectiveness of the companys strategy. However, with the use of adequate capacity existence questioned may be the leading cause of poor delivery performance, which is ultimately the reaso n that Bayonne occurred a loss in their most stressful month. Discussion of alternative solutions to the issuesI. How can Bayonne strengthen communication among departments and improve overall company culture?A solution to this issue would be for Bayonne to reassess their current strategy and instill a strong corporate culture that will select employees together (see section 2.5i). Bayonne can build on what they already have in place such as the daily output meetings. This is the only chance where employees across all departments come together opposite to discuss issues. Instilling a strong corporate culture has its pros and cons. Themain advantage is that it can create a strategy supportive organizational structure that Bayonne is currently lacking score (see section 2.5c). Another advantage is that it will also allow for internal leadership to be strengthened. Having a strong leader will square off the tone and ensure everyone is working as a team. When communication is improv ed, Bayonne will be able to delivery on time because the departments will be working collaboratively rather than separately. The only negative to instilling a strong corporate culture is that it wont work unless employees equal the culture and stool it seriously and understand that it contributes to Bayonnes key performance indicators of cost, quality, speed and reliableness.II. How will Bayonne be able to develop or improve their computerized scheduling system? An alternative solution to this issue would be for Bayonne to gain adherence to the computerized system by fixing the data that is leading to inaccuracies and introduce a pre-work order jacket. Currently, the work order jacket lists the routing, standard setup and run times, special instructions and ship-to data (see section 2.4, Distribution). If management at Bayonne work toward gaining employee loyalty to this system and introducing a pre-work order jacket based on prioritization where a report would be sent to each department before they begin working on orders and when the prior departments finishes the order, the attached department would be aware of what orders are on the way within the next few days would contribute to proper strategy execution.However, there are just about pros and cons to this issue. An advantage of introducing a pre-work order jacket and gaining loyalty of the computerized system would lead to more efficient operating levels at the facility. This will lead to decreased delays, increased quality and better time management. It would enable company personnel to do their strategic roles more proficiently as well something that Bayonne is not currently acting upon (see section 2.5g). A con with this alternative would be the possibility of initial confusion of how exactly the new system would work. Also, some employees may simply be resistant to adhering to the computerized scheduling system even if it were to be fixed or question whether or not it would be practical enough to sustain high volumes.III. Given Bayonnes poor delivery performance, how can operational efficiencies be improved in terms of capacity utilization of the machines? A solution in up capacity utilization would be to make more use of the International Royal and Queen machines. Currently these machines are operating at nearly 50% capacity utilization. Since these are the fastest machines, placing important orders to them would generate higher volumes. Advantages in making these machines the main use would contribute to Bayonne excelling in their key performance indicator of speed (see section 2.1C) and improvement in functional and business strategies (see section 2.1B). The machines are only operating at 44.49% capacity utilization, which means that Bayonne is lacking in improving operational efficiencies that could drive down costs. These machines produce the most pieces at the highest speed so making use of them would be highly beneficial. The main disadvantage of this proposed al ternative is that the volume may affect hit margins of the company a concern of president Dave Rand (see section 2.4). In addition, these machines are complex and difficult to set up which could interfere with allocation of proper time management. This may result to poorer quality causing for Bayonne main strength in innovative package design to be diminished. RecommendationAccording to my analysis, Bayonne must focus on strengthening communication within the company. Bayonne has to instill a strong corporate culture and develop on internal leadership within the company. This will lead to happier more productive employees and will allow for Bayonne to build upon their organizational capabilities. In turn, strong communication will lead synchronization among the departments and employees will work as a team rather than as silos. A strong corporate culture and excellent communication will eliminate misunderstanding and frustration among departments that has been causing for Bayonne to develop a track record for late deliveries and poor quality. Ultimately, communication will be the key in Bayonnes ability to execute their strategy and excel in key performance measures that are crucial to the net incomeability in the company.Financial AnalysisOverall, Net profit margin has been declining which indicates that the company has depleting cash reserves and may have difficulty remunerative liabilities. Gross profit margin for Bayonne is declining which may indicate that fewer funds may be available for operating expenses. Due to limited financial data in the case, other profitability ratios (i.e. operating profit margin, net profit margin, return on equity, liquidity ratios (current ratio, working capital), and leverage ratios (total debt-to-asset, debt-to-equity) have not been able to be computed.It is apparent that the Heidelberg press machine is operating at full capacity and is the bottleneck of the process. This is causing for scheduled hours to go overtime. H igh-speed machines such as the international royal and the international queen (only beingness used 44.96%) are not being fully utilized to an efficient manner, which may be the cause in late delivery and poor quality.APPENDIX1. EXTERNAL ASSESSMENT1.1 PESTEL AnalysisPolitical n/aEnvironmental severe weather conditions may have a substantial effect on this industry if these conditions were to cause a delay in the transportation process of the package Something like a power outage or blackout could interrupt the unravel of the packaging process, which in turn will have an effect on sales and the customer. Sociocultural Customers to the paper packaging industry seeking to make a greater impact with promotional materials reflects the rapid growth of this industry. Fast-paced society want things delivered on time with no delays.(not being able to keep up rush-orders may affect sales). Technological advanced engineering science may cause industry profits to decline or no longer be in dispensable (e.g. migration of software sales and distribution from CDs to the internet) Economic if cost of materials (such as glue or paint) used to do the packaging were to rise orders from customers may decline (important to stay strategically priced). Legal not complying with FDA requirements (about coatings, adhesives, and liners) could have an effect of business within this industry.Overall, the macroeconomic environment of the paper packaging industry presents a few challenges. patronage limited information given in the case on external knowledge of this industry it seems that this industry has experienced booming growth. This industry may be challenged when it comes to diversifying into new markets if the dot-come bubble continues to burst and migration of software sales and distribution form CDs to internet were to increase. In order to survive, companies within the paper packaging company have to diversify into emerging markets and constantly innovate in design of the pa ckage or product.1.2 porters 5F Analysis there is no sufficient information about rivals within this industry in the case that can be applied to this framework.1.3 Driving Forces Regulatory influences and government policy changesRequirements set by the food and drug administration (FDA) can have an impact on costs, operational efficiencies and health and synthetic rubber concerns if companies within the industry do not comply with the regulations. Product and marketing innovationAdditional customer market segments have become available to this industry because of the explosive growth of software packaging and promotional material.Both these driving forces have strategic implications for competing companies in the paper packaging industry. For example, if companies within this industry do not comply with specific industry requirements then they willnot be able to run their business or go into financial debt. Also, it is important that this industry to diversify into emerging mar kets in order to compete competitively.1.4- strategic Group Map no sufficient data in the case to enshroud this framework since the case does not talk about competitors.1.5 KSFS Developing collaborative relationships with customers, who are finisher to the end consumer running(a) closely with industrial customers for companies in this industry is crucial as it has an impact on sales for the company and eventually for the industrial customer. Excelling in global sum up chain managementExcelling in operational performanceIt is important to keep track of costs going in and out of the company. For example, if cost of goods sold (COGS) takes up a high percentage of the companys sales may indicate that the company is not performing efficiently or not earning enough revenue to comfortably run the business. Effectively managing the delivery of products magical spell keeping costs minimized It is important for companies in this industry to develop a track record for constant on-time del ivery as this will reflect in the customer being loyal to the company which will drive sales.1.6 Industry Outlook overall this industry is conductive of good profitability since many industrial customers need their products to be packaged properly in order to be shiftable. It is therefore important to excel in cost, quality, speed, and dependability at a competitive level for companies within this industry.2. INTERNAL ANALYSIS2.1 How well is Bayonnes present strategy working The present strategy at Bayonne is to out-compete rivals and prioritize in four key performancemeasures, which are quality, cost, speed, and dependability. This is mainly more of an operations strategy seeing as this company is the producer of the product that the customer sells. It is important for Bayonne to deliver on quality packaging, constantly innovate all while minimizing costs and producing high volume to confront competitive.A) Vision mission and objectivesVision although there is not enough sufficie nt data that states Bayonnes vision it can be assumed that based on what is given in the case, Bayonnes vision expertness be along the lines of becoming the number one industry leader in specialty packaging by providing the outgo customer satisfaction, quality and product innovation. Mission based on what is given in the case, Bayonnes mission could be being committed to providing innovative solutions to difficult package design while excelling in cost, quality, and delivery. Objectives financial objectives at Bayonne are to keep costs down as much as possible, while still delivering on quality. Strategically, Bayonne aims to excel in their key performance measure of dependability, cost, quality and speed thats embedded in their strategy. Overall, they strive in being operationally efficient. B) Bayonnes Competitive mountBusiness StrategiesWorking closely with customers to ensure satisfaction and approval in the design on the package twist on competitive advantage by providing a dditional terminate to the package as a courtesy to the customer. Also tapping into new markets and products such as promotional material Importance of determining priority of orders by computing critical ratios (e.g. visit than 2 indicates concern for the job) Expediting the most important orders in hopes of sustaining customers loyalty to the company. Functional StrategiesEnsuring quality is met by checking deuce pieces every hour and conducting a final examination inspection Ensuring that the work-order jacket travels with the job at each department Ensuring that if a full delivery cannot be made then at least getting partials out is important When orders need to be terminate quickly, then this is done by ganging them up whenever possible. Salesmanagement department is rivet on determine aggressively to the market in order to sustain volumes.C) Key Performance IndicatorsStrategic how Bayonne is doing in terms of their key performance measures Financial/Machine Effectiveness -Quality quality control reports indicate that 6% of products were undercoat defective due to glue problems, leading to an increase in customer rejects of shipped products. Finishing department has problems in including all pieces of the product. -Cost cost of goods sold has increased, net sales have decreased from previous years, which has caused Bayonne incurring a loss in 2011. -Speed there is a lower overall speed of delivery to customers. Machines are not being fully utilized since employees are not given the opportunity to assess which orders to run on what machine. A lot of orders that are induced causes for a breakup to occur in production leading to scanty set up time for the machines. -Dependability Not doing well. Customers are aware of Bayonnes inconsistency of delivering packages on time.This is contemplative in the companys worst month October where 20% orders were late. Financially, Bayonne understands that there is a tradeoff in keeping costs down, getting good quality and hitting delivery promises. The ultimate goal is to perform financially well in all three. Bayonnes declining net profit margin may be indicative that cash reserves are depleting and they may have difficulty paying liabilities. Gross profit margins have also declined possibly indicating that raw material costs have increased and manufacturing costs have gone up. In calculating machine effectiveness, it is indicative that in the print department the Heidelberg press is the long-play of machines, which is creating a bottleneck in the process where capacity utilization is 100.29%.2.2 VRINResource Wide Range of Machines operating at efficient levels. Capability Specialized Packaging (includes innovative, difficult packaging design, and finishing touches) Is it Valuable?The machines reelect the valuable test because they contribute to theeffectiveness of Bayonnes strategy. The International Royal and International Queen are Bayonnes most important machines that contribut e to gaining operational efficiencies and added value to the customers because they operate at a high speed. Bayonnes specialized packaging capability is very valuable and highly contributes to the effectiveness of their strategy (especially in the quality area). Since this capability is competitively valuable, Bayonne applyes this test.Is it Rare?Since these are generic machines, this resource is not antiquated. It therefore does not pass the test since other packaging companies can invest in the same machines as long as they have the financial stability to do so. Not a lot of companies may take the time to closely work with customers in special and complex packaging design. Also adding in-person finishing touches is not something a lot of other paper packaging companies take the time to do. Bayonne therefore passes the rare test. Is it Inimitable?The machines are imitable therefore this resource does not pass the inimitable test since other companies can purchase the same machi nes to produce the same quality packaging. There is no uniqueness to them. Capabilities in specialized packaging design is something that other companies can copy as it is not competitively superior to possible rival companies. Bayonne does not pass the inimitable test. Is it Non-SubstitutableAlthough Bayonne may have an efficiency advantage with their machines, it does not pass this test since potential rivals can copy the same machines and produce equally good products at lower costs by locating their plants in countries where wage rates are relatively low. Potential paper packaging industry rivals may also offer specialized packaging capabilities. This means industrial customers can pick and choose with which paper packager to partner with. Therefore, Bayonne does not pass this test.Overall, this framework presents strategic implications to Bayonne indicating that their resources and capabilities are not ones that contribute to Bayonne having a competitive advantage that is sust ainable. The companysresources of machines and specialized packaging capabilities present to be competitive assets to the company and are central to Bayonnes strategy. However, by not passing the last two tests of this analysis is indicative that Bayonne may be prone to imitative attempts and efforts from potential rivals.2.3 SWOT Analysis Strengths Working closely with customers Aggressively entering into new markets Innovative and difficult package design Ability to faithful and glue complex blanks Ability to price aggressively Well managed scheduling in Composition department in terms of being rarely out of stock and re-stocking quickly. Use of High-speed machines help keep volumes high Consistent performance from Maintenance team in running inspections and fixing something even out extraneous if it breaks down. Weaknesses Complaints from customers about quality (concentrated in Fold&Glue) leading to defective products Developing a bad reputation for late delivery time, which is also causing customers to lose trust in the company Mismanagement and communication problems between departments inevitably causing orders to run late (threats coming from heads of other departments, no synchronization) Computerized scheduling system appears useless as it conflicts with time management of rush orders Some machines run slow despite being fast to set up (e.g. Staudes) Data reported through the shop floor computer terminals is inaccurateOpportunities Diversifying into emerging markets and taking on new types of customers. Prospective money to be made in Manhattan in terms of promotional material which can lead to gaining more customers Threats Possibility of receiving safety concerns for not complying with FDA requirements leading to overall increased costs.2.4 Value Chain Analysis are the companys cost structure and customer value proposition competitive? Primary activitiesSupply chain management from the limited information provided in the case, there is not muc h that can be said about Bayonnes supply chain management. The most relevant fact is that Bayonnes supplier is International Paper that helps keep the composition department stocked with the necessary materials that are used to make the products. In terms of costs in this area, according to Bayonnes income statement the Cost of Goods Sold (COGS) significantly increased from 83.2% in September 2011 to 90.7% in October 2011. Since October is also the month in which Bayonne occurred a loss of $365,694 is indicative that the company is not performing well on the cost performing measure. Operations Bayonne places high value in executing their operations strategy since they are responsible for producing the product itself at their facilities. The goal is to keep margins low while getting the volume.The flow of order through the production department is a system relevant to Bayonne executing their strategy. Quality federal agency activities are performed at Bayonne where there are two in spectors on each shift covering the Composition, sheet, print and Die-cut, Fold&Glue, and Finishing departments as well as inspecting the shipping dock. The inspectors check the machines every hour during the production run and a final inspection is performed before the product gets shipped out. Distribution In order to keep track of the products that Bayonne produces, heavy reliance is held in their Work Order Jacket. For example, before shipping the finished product to the industrial customer, quality control managers check the product against proof in the work order jacket. The jacket lists routing, standard setup and run times, special instructions, and ship-to-information. It also held the customers signed proof along with samples signed by operators, supervisors, and QC at each level. Distributing finished products to customers on time is highly important to Bayonne not losing customers however data shows that in the month of October 2011, they were late more than 20% of the t ime causing customers to lose trust and expedite orders.Sales and Marketing although there is not enough information to indicate what Bayonnes costs, activities, and assets related to sales force efforts are the products that Bayonne produces directlyimpact the end customer. For example, industrial customers who place large orders with Bayonne and pay a high price per piece place high expectations that Bayonne deliver the product on time in correspondence to say, a promotional campaign that they are launching on a specific date. Its seems that sales management at Bayonne is not evolution a good track record for on time delivery because of miscommunication going on between the departments. Also, sales management places high relevance on price aggressively to the market, which may conflict with profit margins of the company. Service Bayonne provides all necessary services such as design assistance and final delivery of the package. It is important for the company to gain customer ap proval when developing artwork and package design as it directly affects profitability. This is why the sales force at Bayonne whole kit closely with the customers showing that the company respects the important decisions that they make since these customers are the ones that make the product sell to end consumers. Profit Margin President Dave Rand complains about margins, but not about volume.Secondary ActivitiesProduct R&D, Technology, and Systems Development Bayonnes strength is in innovative and difficult package design and their ability to fold and glue complex blanks. In order to remain innovative and keep volumes high the company uses high-speed machines such as the International Royal and International Queen. Bayonne also uses a computerized scheduling system, which add up the standard set up and run hours for every order released to the plant and schedules order by priority. However, the use of the computerized scheduling system is having a negative effect in terms of orde r processing. benevolent Resources Management Since Bayonne is mainly a family run business, there are no real HR sends in place. Employees essentially work on a do what it takes system and there are no training procedures. General administration n/a2.5- Ten Managerial Tasks of the Strategy Execution Process a) Staffing the arrangementBayonne Packaging began as family business and later grew into a larger organization. However, the lack of cross-functional communication may beindicative that no proper training is realized as the departments work as silos rather than one unified organization. Bayonne recognizes the importance of good upper management seeing as the old VP of operations was blast and replaced by John Milliken who has a background in general manufacturing and seems to exhibit traits of a valuable and dexterous employee. Since Bayonne incurred a loss in 2011 this may reflect on the fact that management is weak, and employees may not be valued as important assets tha t tie directly to strategy execution and gaining of competitive advantage. b) Building on Organizational CapabilitiesBayonnes ability to manage people to gain competitive advantage is lacking. by dint of internal development, Bayonne can build on their scheduling capability. Since each department works in a separate manner, there is no synchronization, which interferes with orders being successfully completed. Second, Bayonnes capabilities in specialized packaging can also be improved through internal development by having managers at the company set an objective to develop this capability and organize activity around it. Bayonne is able to differentiate themselves by possessing strength in innovation and difficult packaging design (i.e. working closely with customers in the design and adding personal touches in the finishing department) but lack of collaboration and communication in the company have resulted in operational deficiencies. c) Creating a Strategy -Supportive Organizat ional Structure Bayonne is not properly organizing work efforts in a strategy supportive fashion.In order to excel in the key performance measures of cost, quality, speed and dependability embedded in their strategy they may have to reassess operational activities. A strong management team has to be built within the company in order to assess which value chain activities, for example, should be performed internally and which ones should be outsourced. Currently at Bayonne their organizational structure is not aligning with their strategy in part due to communication problems. Also, there seems to be no delegating of authority or facilitation of necessary collaboration and coordination with external partners and strategic allies. d) Allocating Sufficient Resources to Strategic ExecutionBayonne is not operating as cost-effectively as possible. Although salesmanagement may be pricing aggressively to customers by offering a high price per piece this indirectly affects profit margins a t the company. Bayonne is not using their resources (i.e. their machines) in an efficient manner. e) Instituting policies and procedures that drive strategy execution activities There are currently no policies in place at Bayonne, which may hinder good strategy execution. The work climate is not one that facilitates good strategy execution employees are unnecessarily being yelled at, and pressured to run orders in short notice of receiving them. Bayonnes procedure for preventing or finding defects is signing off the first good piece the operator runs and then recording it in the Work Order Jacket. However, this shows a degree of carelessness in ensuring good quality as often there is a possibility for more than only one piece being defective.Excelling in cost, quality, speed, and dependability is being compromised by lack of communication and coordination among employees when they disagree on acceptable partials and make up their own rule of thumb that is not in sync with the goals of other departments. f) Adopting best practice and business processes that drive strategy execution activities Bayonne has not adopted any benchmarking methods that would help in implementing best practices. The only common practice at Bayonne is in recognizing revenue when its billed the customer, and billing when the product is shipped. In October 2011, Bayonne was late with their deliveries more than 20% of the time, compared to 2009 with only 5%. This is affecting Bayonnes ability to excel in the dependability aspect of their strategy also since customers are aware of this and consequently move up their orders g) lay info and operating systems that enable company personnel to do their strategic roles proficiently The computerized scheduling system at Bayonne is weakening their organizational capabilities.Many employees find the scheduling system to be useless, as the printouts do not accurately reflect what has been finished and what needs to be started. Lack of accuracy and t imely information about daily operations does not allow for managers to gauge how well the company is executing their strategy. h) tying rewards and incentives directly to the achievement of strategic and financial targets There is currently no reward system in place at Bayonne. This causes for lack of motivation and engagement among staff. Employees are neglected and not encouraged for their spartan work asmanagers are only focusing on expediting orders by getting them authorized by Dave Rand. i) Instilling a corporate culture that promotes good strategy and execution There is no corporate culture in place at Bayonne. The work environment is not strong or positive. Miscommunication leads to misunderstanding among employees and even screaming. Managers are not properly guiding employees in the right direction of how to do things right and doing the right thing instead they are focused on their own goals in mind.For example, Wascov only focused on pricing aggressively to the marke t and expediting orders causing for other departments to rush orders and compromise quality which leads to the vacate customers) No commonly held convictions in place of how the companys business is to be conducted instead, departments make up their own separate rules leading to incisiveness across the board. j) Exercising the internal leadership needed to run strategy implementation forward There is no strong internal leadership in place at Bayonne resulting in lack of synergy between the departments. This is why new VP of Operations Milliken has been put in place. He seems to be staying on top of what is happening by touring the factory and asking relevant questions to department managers in aim of propelling strategy implementation forward. Neil Rand (Dave Rands uncle) is not exhibiting traits of a proper executive director for Bayonne. Although he does whatever it takes to eliminate work order delays, he does this by randomly showing up and neglecting other important orders. This leads to requests for earlier finishing dates and inevitably leading to an increase in late orders.2.6 Strategic Issues1.How can Bayonne strengthen communication among departments and improve overall company culture? Miscommunication seems to be occurring across different departments, which may be the cause of the increase in late deliveries in October. Lack of company culture may also be the cause in synergy and good energy within the company. 2.How will Bayonne be able to develop or improve their computerized scheduling system? This current system is causing for many inaccuracies, which leads to orders to be expedited. Lack of proper data that the system is generating is causing for unnecessary frustration among employees and quality is being compromised. 3.Given Bayonnes poor delivery performance, how can operational efficiencies beimproved in terms of capacity utilization of the machines? It seems that the Heidelberg press machine is the bottleneck of the process as it is operating at full capacity, but it is unable to cope with variability in customer orders. Some machines are not being fully utilized which affects Bayonnes performance measures in speed and dependability