Morgan Motor Company Essay

Morgan Motor Company (MMC) began as a family company and has remained that way over the years. Decisions were largely driven by steady demand for their luxury product. Traditionally, decision-making was premised on production quotas that kept supply slightly behind demand. While the company made a profit, it was not enough to sustain the company in the long term due increasing costs caused by inefficient methods of production. The key area for improvement was strategic planning based on detailed and accurate information.

The implementation of the strategic plan would require a review of human resource management practices in order for MMC to develop into an organisation that valued continuous innovation. MMC could gain valuable information about its environment through SWOT analysis, which could be used to inform strategic planning decisions. The company survived difficult circumstances (e. g. World War II) and demonstrated its ability to diversify through the manufacture of munitions. Another key strength is the global demand for their differentiated product.

Its domestic and international appeal creates an important opportunity to further expand its global customer base. However, the potential threat associated with this opportunity is uncertainty in a number of dimensions in MMC’s “general environment” (Samson & Daft, 2009). Economic and political and legal factors in other countries could potentially impact on MMC’s sales, as was the case in the late 1960s where strict emission control regulations caused their US market to collapse.

In this instance, domestic demand absorbed its impact and highlighted the importance of maintaining a diverse client base that could absorb the impact of any environmental changes. A sales and marketing department that is production led is ineffective in improving revenue and achieving the aim of increased profits. Additionally, this production led sales creates an artificial view of demand for its product. Thorough research of its client attributes coupled with careful planning and stronger collaboration between the sales and marketing and production departments enables the formulation of agreed sales targets.

The key benefits of setting targets are: 1. integration with production planning, which reduces the likelihood of over-investment in inventory; 2. a proactive sales and marketing department that devises strategies to improve sales; and 3. measureable targets that can be used to evaluate efficiency and effectiveness. Despite having a keen and loyal workforce, the presence of change aversion confirmed that incremental change was initially more effective than radical change which may have created an unproductive atmosphere of dissent amongst its workforce.

Moreover, steady demand for their product led to complacency, which justified Peter Morgan’s caution about change. This could be interpreted as lack of vision and is reflected in the lack of innovation and under-capitalisation of MMC’s machine shop. In a study done on Toyota (UK) Ltd. , it was noted that the traditional car manufacturing base in the UK was located in the West Midlands and these were “rich in precision engineering skills” (Winfield & Kerrin, 1996, p. 50).

MMC’s proximity to this manufacturing hub created opportunities for research and development by inspecting some of these manufacturers in an effort to improve their production practices and processes, specifically focussing on how technology could be used to improve efficiency. This acknowledgement of the power of technology finally came in the form of Charles’ introduction of a manufacturing resource planning computer system and use of CAD/CAM. Perhaps differences in generational attributes enabled Charles Morgan to more easily embrace technology.

However, the positive outcome was product innovation such as design features to improve aerodynamics. Examination of how human resource management practices could transform MMC from an organisation where everyone defends their own corner into a team-based learning organisation was a natural progression once management accepted the need for change. In the first instance, focus should be on developing managers to help facilitate organisational change (Waldersee, 1997) and enable them to be effective role models within the company.

Training solutions and interventions should target general areas such as effective teamwork and communication, motivating workers and encouraging innovation. Additionally, where there are identified skills gaps, it should also target content-specific areas e. g. contemporary sales and marketing practices would make up for the sales director’s lack of recent sales experience. Once again, Charles was led by example by enrolling in an MBA, thus demonstrating his commitment to ongoing education and development.

Although collectivism has traditionally been associated with eastern cultures (Hartel, Fujimoto, Straybosch, & Fitzpatrick, 2007), motor companies like Ford and Toyota moved away from Taylorism and demonstrated the value of teamwork in vehicle manufacturing (Winfield & Kerrin, 1996). However, MMC’s reward system of individual production bonuses did not acknowledge the value of teamwork. Moreover, an unspecified dollar amount that was eroded by inefficiencies in the production process did not provide an incentive to improve production.

Not only should these individual production bonuses be quantified, the company should also consider a reward system for foremen to acknowledge their efforts in encouraging individuals and teams to achieve higher production. The present day success of MMC is testament to management’s vision and commitment to continuous product and process innovation. Examination of their website confirms their ability to stay current through value adding which resulted in features in their cars such as lightness and environmental friendliness.

This has enabled them to cater both for the on-road user and the racing arena, as is evident in the videos available on their website. Furthermore, offering factory tours not only gives potential customers insight into the manufacturing process, it also provides the company with the opportunity to share some of its knowledge with others. The insight gained by watching the video on MMC’s factory processes makes it evident that the MMC today is collaborative both internally and with its external stakeholders.

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