Pure Lenz Technologies company formerly known as Lenz Global Electronics is an international focal company known for manufacturing and distribution of general electronics, all types of software for the computer, website hosting services, 4G internet provision and currently also offering accounting services. Was established thirty years ago on March 1, 1987, in North California USA.
The company has built a reputation over time because of its good quality products and good marketing strategies. Was named by Fortune magazine among the top ten most admired companies in for its quality products, excellent personnel, and fast growth.
Factors Affecting Performance of the Firm
Some critical factors have been affecting the performance of this company. Financial distress being the major issue here, financial management for this company is a big problem since there is no central financial manager; the company has several financial managers who misappropriate cash.
Cause of the Problem
This company could have grown further and should be competing with other big companies like Samsung and Apple; the problem is that is that it is a family based company where CEO, all the directors, and most of the staff members come from the same family. When there is a job in this company, they normally consider people from their family or relatives first hence limiting new skilled labor from joining the company. Still, on financial misappropriation, it is very rare for these managers to be fired since they are relatives and regardless of misconduct they do tolerate each other hence compromising the company’s success.
Critical Facts for Consideration
The fact that the company is currently in a critical situation, not growing and many issues rising each day, I had to conduct this analysis to find what is exactly slow down company’s progress and what can be done to solve these issues. If this analysis is not done then a lot of cash will be misappropriated, and the company will cause eventual collapse since from the analysis it was discovered that most of the departmental manager don’t care about the company anyway since they have their own company’s and they steal from this company to help their company grow. Something has to be done to eradicate this behavior, (Peters 3)
Despite the fact that the company has struggled and grown over the years, it should also be noted that there have been some challenges the company still faces. This is the technology based century where every operation is run by computer programs and software, the company has very few high skilled computer literate staff, and most of the operations are done manually. This brings inefficiency and too much time wasting. We need we need to employee a lot of computer gurus to help technology sector. Poor demographic and unfair economic trends are also some of the contributing factors to that slow down company’s profit making margin and slows its growth. Another most important factor that affects the business is political environment or country’s legal system. Some governmental policies sound unfair to our company that makes company sometimes to wish to shift its operations to another country. The Global and socio-cultural environment factors are always fluctuating, sometimes favorable and sometimes not.
Effects of the General Environment Trends on the Local Industry
According to (Berry 3-4) some environmental factors affect the performance and growth of organizations in a local environment. For a company to operate smoothly, it needs favorable conditions both internal and external. Some local industries usually become vulnerable and succumb to environmental factors e.g. weather conditions and unexpected environmental catastrophes like an earthquake.
Analyzing company’s strengths, weaknesses, opportunities, and threats helps to determine what has been affecting the company and can help you also in drawing future expectations.
Our knowledge base is higher than most of our competitors, we few highly skilled labor force that do wonders in terms inventions and innovations. Our good customer relationship is also an added advantage. Unlike most of the companies, good quality products, and perfect marketing strategies have helped us to the large customer base and increase customer loyalty.
Brand power is a big factor in selling; our company is still not as big as our competitors who enjoy monopoly and bigger market share.
Many companies do not offer training, they just employee and rely on employee’s skills that he or she came with. We do hire outside professionals to come and train our staffs occasionally. Unlike our competitors who aim at maximizing sales in the country, our aim is to sell globally.
Most of these big companies that monopolize the industry and cartels normally set prices that are unfavorable in a way that if we set such prices, we will not be making any profit, this, therefore, make our customers shift.
Causes of Action
The company should venture more into activities that bring in more customers e.g. promos and many marketing strategies. Also, we should expand our market base by developing more branches.
We should have a more effective board of directors hired based on qualifications and experience and just picked because they are relatives.
Berry, Tim. “What Is A SWOT Analysis?” B Plans vol 2.no 2 (2011): pg.2-4. Print.
Peters, John. “Leading Change in Complex Organizations”. MIT Management Executive Education vol2.no3 (2017): pg 3. Print.