The Chief Operations Officer (COO), Essay Example

Our competitors have been working hard at the development and manufacturing of plastic containers at a low cost.  For too long, we have been complacent and have neglected the research and development (R&D) of “up-and-coming” technology.  While our metal containers are top-quality and fill a much-needed market niche, it is a smart decision to expand our options and to branch out into other areas.

Senior Management Team

The members of our Senior Management team will make significant contributions to our company’s future.  The chief operations officer (COO)will manage daily activities regarding marketing, sales, production, and personnel.  They will then organize this information and provide me with feedback.  The chief financial officer (CFO) will handle the money, monitor exependiture costs, and create budgets and financing strategies.  He/she will report directly to me the financial information concerning our company.  The chief technology officer (CTO) will be extremely important, as he/she will function as the company’s leading engineer and assess the company’s technology needs.  He/she will head the new focus on the R&D of manufacturing plastic containers, and continuuing to manufacture top quality metal containers.  The chief information officer (CIO) will be responsible for managing the Information Technology (IT) department and ensuring that the technology runs smoothly within the company.Even though this company may be currently on a low budget, it is essential to have both a CTO and a CIO because each field needs to be specialized. Thechief marketing officer (CMO) will be responsible for learning what makes our metal and future plastic containers unique, and will advertise our products so our company is the most desirable to consumers.

With all of the financial requirements, our company will need to make sure that our employees are compensated for their efforts.  The director of human resources will be responsible forimplementing formal recruiting strategies, maintaining a low turnover rate, training at manufacturing containers of other materials in addition to metal,  promotions, and managingour employee benefits packages.  The chief legal affairs (CLA) will be the head attorney of our legal department.  He/she will oversee all legal issuesconcerning the company.

Questions to Explore

The senior management team will need to address many questions. We must first analyze how much more desirable plastic containers are to metal containers on the market?  What are the benefits of producing plastic containers? We would then have to evaluate if it would be more beneficial to focusing our resources into marketing and improving the quality of metal containers, or to incorporate containers made of plastic and potentially other materials? The incorporation of plastic containers would most likely be advantageous regarding competition, but it will require more training, more research, and the additional recruitment of more employees. Would the revenue created by plastic containers compensate for the additional costs? If our company did incorporate plastic containers, how could we market both the metal and plastic containers so our company could dominate the market? Are there any other materials which our company could produce to increase ourdiversity in the market?

Problems Facing our Organization

Our company is currently facing many problems. First, our complacency has allowed our market share to slip from second to fourth place. This has given one of our global competitors the opportunity to produce a product that may completely subsitute plastic for metal containers. If we decided to manufacture plastic containers in addition to metal containers, could we afford the cost of research, training, and the development ofnew materials?We currently have no R&D program to explore the development of plastic containers; it would be wise to implement one. Another problem is that our competition is undercutting us and selling plastic containers at prices lower than we can afford.

Funds must be generated, but to cut costs from our employees’ wages would be unwise. Our employees are experienced, and our low turnover shows that they are loyal. Our company must maintain its integrity. We must keep our employees happy and still deliver a quality product, be it plastic or metal containers.

Strategies to Solve Problems

We must explore the R&D of plastic containers. If plastic is the new wave of the future, we cannot afford to be left behind.Our CTO can assemble a team of top engineers to estimate the procedures and materials necessary to produce plastic containers. Our director of marketing can find ways to promote both our metal containers and our plastic containers. Our CFO will then assemble a presentation of the estimated costs of this major leap forward.

There is no reason to abandon our current products, as we have a strong client-base. We can also use R&D to make our metal containers even better.  While other companies are only producing plastic containers, our company can produce metal and plastic containers.

We have exceptional relationships with our employees. We must make sure that we take care of them and keep them happy; this will create an environment more conducive to learning and higher production. We want to be a company known for its integrity and human resources will be essential in how we can best train current employees and recruit new employees with the lowest cost.Our director of marketing may be able to use this to our advantage; we can be known as the company that cares.

Another avenue we could explore is to extend our resources to the R&D of manufacturing glass containers.  The more diverse our products, the greater number of consumers we will be able to reach.  Each material has its advantages, and if we capitalize on all three, we can dominate the market and not have to reduce our costs.

One way that we could advertise our products without trying to compete with our competitor’s reduced price, is to associate a certain “high-class” lifestyle with our brand.  We could follow Newell’s example and offer a “Good,” “Better,” and “Best” option for our containers.  That way, customers could choose between our quality products, no matter what their income is. Our “good” containers can sell for a more reasonable price to accommodate lower-income customers. Our “better” containers can sell for a more moderate price to accommodate our customers with a middle-class income. The “best” containers, would be the most expensive, but would target customers who have a higher income.  Bottom line: no matter what our customers’ financial situation, our company has an option for each. By using Newell’s marketing tactics, and by offering a greater variety of materials for containers, our company can dominate the shelf space in retail stores.

Conclusion

The production of plastic containers by our global competitors should be seen as an opportunity to expand our company. We were “resting on our laurels” and it showed in the drop in market share. If we incorporate plastic containers, and potentially glass containers, we may be able to dominate the market.   In addition, by the strategic promotion of our products and standing by our motto of integrity, we will not have to cut costs or produce less than excellent products. Even though it will be an investment to expand our market, our increase in profits will make up for it in the end.