Through dubious purchasing practices, and the joint venture bearing all the costs, and with no particular concern on Good Fortune’s part on the purchasing issue, what challenges are Parker facing and how is he going to unilaterally change the purchasing practices to sustain and keep up the costs to make this joint venture a profitable business?
Parker should analyze annual reports, company statements and also compare with the other companies’ reports to figure out the financial viability of Good Fortune’s HVAC business or Parker must hire a financial expert who could dig into Good Fortune’s financial statements and help him publish the results.
GFS needs to restructure their marketing department, develop a new HR department, and follow rapidly emerging forces of globalization compelling the firm to market beyond the borders of their home country making International Marketing highly significant and an integral part of a firm's marketing strategy.
Purchasing is often treated as the poor relation compared to other functions within organizations - despite the fact that it has real and significant potential to improve business profit – so Parker should make sure that Good Fortune provide responsive procurement to obtain high quality goods and services that is streamline and automate the purchasing process.
Steve could hire the services of The ICC Commercial Crime Services (CCS), a specialised division of the International Chamber of Commerce. As a specialised bureau within CCS, the Financial Investigation Bureau (FIB) conducts enquiries and investigations into matters associated with financial investigation, money laundering, fraud and suspect documents.
There was training and development required in this level; however, outsourcing could be a better alternative to an expensive technician, so Parker would have to catch the latest information and communication technologies and can outsource any kind of project to a best off-shore team that can give him what he expects or hire human resources from a best outsourcing firm that have expertise in various needed domains and execute things in the way he wants.
The late entrance of the compressor forced price reduction and led to competitors solidifying their positions; if Steve could not control the product’s marketing strategies, he would have to suffer the forcible price reductions. Steve Parker should implement careful marketing strategies to ensure profit maximization. Steve should also re-operate a new HR department and control all HR policies.
Steve Parker must ensure executive management enforcement of purchasing deadlines and procedure and clear the idea that effective purchasing processes ensure that high-quality supplies, equipment and services are purchased at the best price, in the right quantity, from the right source and in accordance with local and state purchasing guidelines. These criteria must be met without sacrificing quality and timeliness.