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Parker Earth Moving Co.

Parker Earth Moving Co. has experienced a reduction in their market share because of foreign competition.
Resource: Parker Earth Moving Company Consulting: Business Process Recommendations located on the student website under Week Four
Read the scenario and apply the current principles of system operations management to help Parker Earth Moving Co. be more competitive.
Create a 300- to 500-word memo that contains recommendations to improve the company's business process.
Address the following requirements:
? Recommend ways to implement revised business practices and processes that will achieve profitability for Parker Earth Moving Co.
? Describe how your recommended revised business practices and processes will affect the company.


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Parker Earth Moving Company: A Case Analysis

Company Background
Parker Earth Moving Company has been in business for 34 years and has traditionally been profitable. Being in business for almost four decades, PEMC has established an excellent reputation for producing high-quality small earthmoving equipment used in the home and small-business landscaping industries. The company produces four models of earthmoving equipment.

Statement of the Problem
The following are the current critical problems that the company is facing. These have to be addressed to bring back the company to life and reap the fruits of long years of stay in the industry and an excellent reputation:
1. The company has experienced reduced market share from 47% to 29% due to entry of foreign competitors. It is possible that the competitors have better offers than PEMC that customers have been better satisfied by competitors' offers than those offered by PEMC.
2. PEMC has suffered losses of 3%, 7%, and 11% in the last 3 years. This can be a spill off of the reduced market share. However, this could have been brought too by ineffective management of expenditures.
3. Productivity in the plant has decreased sharply.
4. Customer complaints are mounting because shipment of finished equipment is often 45 to 60 days late.

Current Management Orientation and competencies
The owner and founder is a genius in designing and ...