Husky Injection Molding Systems

I. Current Situation

A. Current performance

Since early 1990s the company, Husky, has been enjoying explosive growth both in terms of revenue and resource expansion. However, the past few years have been marked with major business constraints that have slowed don’t strategized expansion that the company plotted to achieve within the same flame of time.

B. Strategic posture

Husky prides in having visionary leadership that have laid well spelt out strategies to achieve the organization’s goals. With its current market share, the company needs to work from a definite position that should be guided by well defined vision and mission.

Mission statement

“To make a significant contribution to [the company’s] customers’ success”

The company has been running on Robert Schad’s vision since its inception in 1953. Employees are called upon to work towards fulfillment of the same. The initial vision of the founder seems to be still running in line with the current market and organization’s objectives. The mission statement of any organization/company is paramount because the management and employees that will come after the introduction of the company will have to learn how to ride on the same concept, if the mission was wrongly formulated, and then the company might fail to maintain its competitiveness.

Objectives of the company

·         To be the market leader in plastic molds in the global market

·         Provide innovative and sustainable products for their customers

·         To provide financial support to the management and corporation that will aid in the expansion of the company.

·         To introduce competitive concepts that will provide the company with a market lead over its competitors and be able to sustain it.

Most of these objectives were formulated in-line with the company’s growth and marketing goals. They were also defined in such a way that they would complement the mission and vision of the company.

Strategies employed by Husky Injection Molding Systems Ltd

To maintain a competitive and sustainable market, the company has had to revise its strategies. Marketing has changed variously due to changes in either government policies or other standard measures. Currently, the company is employing the following strategies in design, marketing and sales of their products:

Production of cheap goods: the company is involved in a volatile venture and they have thus been forced to produce relative cheaper goods while still maintaining their quality which are compliant with the global standards and requirements.

II. Corporations Governance

Board of Governance

 The current board of directors is composed of the following members:

John Doddridge, he works also with Standard Products Co.

David Beatty O.B.E., he is also associated with Inmet Mining Corporation. This is a subsidiary company of Husky

Eric Russell M.A., L.L.B., L.L.M. Q.C., aged 70 years, Eric works with Husky Injection Molding Systems, Ltd. As a dedicated employee of the company

Elizabeth Schad B.S. Eng., M.B.A. the 51 years old also an employee of Husky Injection Molding Systems, Ltd

David Colcleugh, is a member of the board of directors and also an employee of Accelerents Inc.

Top Management

Founder: Robert Schad, he is also the chairman and an adviser to the technological department

Chief Executive Officer:  John Galt, he also the sitting company President and Non-Independent Director

III. External Environment: Opportunities and Threats

SWOT Analysis is a strategic planning that is used to evaluate strength, weakness, opportunities and threats of a project, SWOT analysis grouped into two pieces of information or two categories.

·         Internal forces – The strengths and weaknesses internal to the organization.

·         External forces – The opportunities and threats presented by the external environment to the organization.

strength includes the strategic advantages over the competitor includes the current performance of the project small, 60-tonne equipment which were brought in such as electronic components, syringes and computer keyboard keys .more than 4000-tonnes of big machines were employed to produce items such as car bumper or used to make multiple item in a single mode in bulky in a single mode. Still to add 8,000-tonnes machines that could produce plastic car bodies in a single piece. The custom prices could range as far as $20,000 for even small, standard machine equipment to $6,000,000 for massive, customized equipment.

The processor used in the project spent $ 19.0 billion on the injection modeling equipment or the machine since 1995.Exibit 1 shows that there was only one breakdown of the market by the completion of the application. In the exhibit 2 segmented the market by the type of the equipment or to where the equipment was purchased

Also I will discuss the strategic posture as per of the strength of the project this include the mission, objective, strategies and policies of the project. Mission the business was to produce the equipment that will satisfy customers’ needs and want in teams of production hence lower production cost hence increases the output.

Weakness this involves the characters or things that place the business at a disadvantage relative to others this includes internal and external forces I within the business environment that affect the daily operation of the firm in these case,  I will discuss external environment opportunities and threats (SWOT) how natural and physical forces are affecting co-operate in the current world forces of production  the includes commodities  that are used in production of goods and services  they also may also be primary forces of production type labor ,land and capital goods applied to production in the current corporation  it very difficult in deciding which forces is more important that the other forces. However different author argue that “entrepreneurship” is just nothing but a specific kind of human capital and labor and should not be treated separately.

Weather such as Winds and floods

 Happening in different countries carrying and destroying products of corporation s making business to incur very big loses, making even the tourist to vacate from a country which in the long run lowers the source of revenue in a country. The village witnessed the worst ever flash flood in its history on August 16^th 2004. As the recording was recorded 200.4mm of rain fell in just twenty four hours causing a 3m torrent to flow through the village. Over 100 residents were airlifted to safety but there were no fatalities. 116 cars were swept through the village in to the harbor (36 of which have still not been found!) it caused millions of pounds worth of damage to property, businesses and the surrounding vicinity.

Climate, including global temperature sea level and fresh water availability

 global warming cause the water in the sea level to increase its temperature most of the observed temperature rises since the 20^th century are caused by an increase in the production in greenhouse gas emission and human activities such as deforestation  a greater reduction of the sunlight reaching the surface of the earth as a result of increasing atmospheric concentrations of human-made particulates has partially countered the effects of warming induced by greenhouse gases this has a great impact toward he production of agriculture in the corporation s.

Solar phenomena such as sun spots and wind

 Sunspots are basically storms on the sun’s surface made by intensive magnetic activity usually host to solar flares and hot gassy ejections from the sun’s corona. Scientists have confirmed that the number of spots on the sun cycles over time, reaching a peak—the so-called Solar Maximum—every 11 years or so.

Solar wind

Consists of magnetized plasma flares and in some cases is linked to sunspots (Marshall Space Flight Center).it basically eliminates from the main sun which influence galactic rays that may in turn affect atmospheric  phenomena on earth. Scientist can now admin that they have a way to go learning about the phenomena like the sunspots and solowind actually affect the corporation s. Due o the increment in the cost of production in order to protect their investment opportunities. Basically all of this forces have an effect on every part of the earth in that if a particular part of the earth is hit by a physical disaster say flood and is a worldly producer of lets say oil it will have an impact in the sense the prices to produce the same oil in the hit region will actually go up hence increasing the cost of production in the corporation s.

General environmental forces affecting cooperates and industries

I will discuss both biological and ecosystem, How they affect the trend of business, In biological forces they include water, oxygen, carbon dioxide and temperature this forces will results to a down fall of a industry if they lack this is because if an industry uses this forces as their basic need. However if some of these industries emit lots of this gases or emit a lot of temperature will result to forces such as global warming hence residents will be affected too.

Towards the ecosystem, presence of animals such the predators, prey, parasites will always compete with an Ecosystem to survive any of the organism that can directly or indirectly affect the target organism, this are just a list of general forces and will vary depending on the ecosystem and can be expanded on E.g. rainfall= pattern, intensity.

Future impact

This has a future impact where in biological forces less people will live, if these gases are emitted by industries hence killing people and animals at large the number of tourist will go down hence the economy will also be pulled down.

Opportunities

If this environmental forces are put into consideration more industries and corporation will gain maximum profit’s this is because more people will be willing to work without any difficulty hence more industries will be willing to invest.

Economic forces affecting corporation

In the market analysis forces in production like trust, dishonesty or less than completely- honest research will result in a down pull of the corporate

Technical forces

Involves poor technology infrastructure, if the technology is poor say that people will not be in a position to communicate send to receive information will result in a down fall for most of industries however, If there is good technological forces such as the internet and communication equipment will even cause an economy to rise up causing even more people getting employment opportunities.

Political forces

This involve justice and good govern by the government justice include fair and equal treatment in resident of a give country, If a government puts its investment to its people this done basically by development of infrastructure including roads, hospitals and schools and also investing it money towards projects that will assists people and corporation sectors will eventually cause an economy to rise.

Socio culture forces

Corporation social culture and responsibility, also be called corporate citizenship, corporate responsibility, or responsible business, this actually means conducting business ethically, and it operation within a corporation in a way that treats internal and external stakeholders ethically, improves the human development, and the society and it environment.

This forces are similar to other regions since all driving forcers towards establishment of a corporation or an industry are not hindered with this factors will result in rising down fall of a corporation if they are not put into consideration.

Corporate resources

Marketing strategies

The company, Husky, has employed a strict marketing and sales protocol. With a well established department, the company emphases on timely delivery of the products to specific markets around the world. The underlying marketing objectives are;

·         To forecast on long term market requirements

·         Distinguish the key marketing structures

·         Evaluating the market value opportunities

·         Quantifying customers needs and establish the market potential

The company has developed a chain of distribution of their products and specific terminals and storages that ensure there is a constant flow of their products throughout the world without creating unprecedented shortages that may be injurious to the company’s overall market in the long run.

The particular objectives, strategies and organization’s goals have been aligned with the marketing ones. Although environmental factors have been difficult to comply with, the organization through the research and development department have been working on products that are more environmental friendly. At the same time they have tried to maintain a considerable inventory that enables them to continue with their business in cases of unforeseen environmental catastrophes. The company has been able to maintain its market through consistency and innovation.

Currently, the company’s major market is in Europe and America, in fact about 65 percent of their products is absorbed directed into this market. The rest, about 35%, is delivered to the other market that is considered to be the lower market. The company however, has been trying to expand their overall marketing but their moves have been limited by the conscious idea of losing their current market through non strategized expansion.

From their products history, it can be noted that the demand for molding machines is also affected by the availability of other complementary products e.g. in 1995 the demand of molding machines dropped drastically following a shortage of an important resin that is used in the production of plastic containers. During the company’s lowest spell, the management was faced with a unique challenge of either holding onto its traditional markets or risk maintaining the entire market if the company became insolvent.

Most products that are manufactured by Husky have longer products cycles. Although, most of the products are difficult to trace on the product lifecycle, they can well be traced in the maturity stage. Currently, no product undergoes the introduction and growth levels because they are almost always redesigns of existing products that are driven into the market through media enlightening of their customers.

The market for Husky products majorly; equipment manufacturers, resin makers, and processors were at its peak during the 1990s but has been stabilizing over time. The main market influences have been presence of other complementary products, raw materials availability and competition from other companies.

However, the company has been hiring both young and experienced staff members to competently compete with their rivals and find unique ways of defeating their challenges. Currently, Husky stands out as a comfortable developer, manufacturer and seller of mold machines and services.

2. Finance

The company is jointly owned by family members and major employee. The family of Robert Schad owns about 65 percent of the shares while the elite employee hold about 25% the other part is owned by Komatsu Company of Japan.  The financial objectives of the company are mostly derived from their budget and other estimate but not specific stratified policies laid by the management. However, the finances of the company are centrally managed by the finance department which determines how the finances are allocated but of course with the guidance of the board of governance and other management quarters.

For many container processors, the capital required to acquire molding machines is substantial and consequently, many of them reduce their capital investments in the machines. With most of the machine makers focusing on the higher markets of Europe and America, making sales in the sub Saharan region and other third world countries has been affte

3. Research and Development

The company has been evolving their products to comply with the market requirements for a few decades now. Husky has an R&D objective; working towards customer’s satisfaction. Although, the objective is ambiguous, its relevance has stayed put as more innovative products are derived from the labs every financial year.

The company has revolutionized their machines to increase efficiency. With an increased demand for their products since 1990s, the company has been adjusting its production over the years and one way has been through introduction of the newest technologies in molding. Husky’s has grown to be the major producer of molding machines that are used in most parts of the world. The technological development have been as a result of calls from governments and other stakeholders to develop machines that are more environmental friendly and that can use less power and also have a larger output. 

Currently, they have developed hot runner that consume lesser power, are automated and have smaller profiles than the previous brands. The company also designs systems that are utilizes lesser space while still using the most modern injecting and packing technologies. The management, led by Mr. Robert Schad has been in the forefront in facilitating the research and development department. In the wake increasing environmental consciousness crusade, the company has been encouraging its customers and other members of the society to recycle their waste product and also dispose their wastes in the most appropriate ways. The company has been leading from the front especially when it comes to recycling of plastic materials.

4. Operations and Logistics

The company being privately owned doesn’t employ a lot of logistics and protocols. Most of the members of the management are family members and thus decisions are not very difficult to arrive at. This and the fact that the founder, Robert Schad is also a member of the managing team give Husky an opportunity to make difficult decisions faster than many other institutions and organizations. This however, might be a major point of weakness as any organization’s need for independent think need not be emphasized. The main advantage that has allowed the company to match other successful companies around the globe is the availability of independent departmental heads that have not been rooted to the main family in the organization.

The company has professional members of the governing board eg Director of Sales; LHOIST NORTH AMERICA has improved their market presence in this region as an independent member. There also 3Secretaries in Halifax that guide the executive on the ground matters. For some time now Husky has been using JIT- Just in Time approach of inventory control since 1980s, but with the emergence of new markets that are more scattered; the company has been called upon to maintain a large inventory than they have ever done. The nature of their goods and the number of machineries they have had to ship has also standardized the number of machines to be stocked. A strict inventory procedure however has been maintained on their raw materials.

5. Human Resource Management

The company’s objectives on human resource are guided by one line defined in their portfolio; to provide financial support to the management and corporation that will aid in the expansion of the company. The objective of the company has been to protect their employees from external influences by providing them with the best incentives possible. Like many other large companies, Husky has an elaborate human resource department. Mr. Dirk Schlimm, who is also the vice president of the company, is the human resource manager. Under his management, dirk has ensured than all service men are protected under insurance policies; both accident and health. Employees’ families and welfare has been his core drivers as the department’s head.

The company has stratified basic training units for its employees; employees before being deployed to various sites are trained on accident management, equipment handling, first Aid and other soft but necessary skills.

The company has not been experiencing employees’ strikes. The human resource department has been working with the employees to listen and work on their grievances; some of the issues that have been smothered out are discrimination, whether racial, age, sex or educational based discrimination the company has tried to reduces the cases. Most of the grievances that have been raised in the near past have been based on health issues of the employees’. Salaries and discrimination have been catered for adequately.

Most of the works that are performed by the subordinate members of staff in Husky involve engineering skills. Employees are required to have adequate skills on molding machinery handling, properties of materials evaluations, ferromatic and sidel operations.

Many machinery manufacturer and assembling companies share experiences and their competitiveness have been based on different fronts which has left out human resource as an important competing tool. Most of the companies perform considerably well when it comes to employees’ welfare.

Husky has doesn’t is not affected greatly by policies made by regional or governments around the world this has chiefly because most of their products are made in their Bolton factory, the only point of interest that has been drooling the company is the environmental concerns. Environmental calls will continue to be sounded in the company’s direction because the company deals in products whose output has been blamed for environmental degradation.

The company has outsources, previously, the financial department to SEO Valley. Employees are currently hired by the company directed.

6. Information Technology

Although the part played by the ICT in the growth of the company cannot be down paled, is part in the production of their brands has been very little. Husky, however has utilized the ICT in marketing of their products to a significant level. In the rise of internet marketing that has been vibrant in the past five years the company has been adjusting their strategies to encompass the current trend.  However, the importance of the ICT as a marketing tool is still at its inception and will need to be reworked with time especially with emergence of new trends. The companies missions seems to be all rounded although they need to be adjusted to inquire more from ICT means of production and marketing.

Gradually the company has been adjusting their data management systems and cloud computing has been slowly creeping with the past few months. The company has also equipped most of its department with digital login in portals that ensure employees’ registers are maintained automatically. Most of the services and analysis in the company have also been brought to the current level of IT.

The information technology department has been expanding in size both members and the gripe of technology applied over the years. Under the leadership of Steve Lee, the IT department has employed new technologist that are more dedicated to bringing most of the services either internal or external to the most current technologies.

Information Technology has the potential of revamping the current working environment in the company, but its utilization has been at the minimum. Most of the services that utilize IT in Husky are value additional services but with time the company is expected to adjust the trend upwards and use the technology even in production.

V. Analysis of strategic Factors (SWOT)

A.  Situation analysis

There are number of factors affecting the corporate in the current and future both the internal and external factors, In external factors I will discuss the natural physical environmental factor and societal factors in brief, natural environmental factor are factors that will affect the corporate  either positively or negatively toward the development of a cooperate, factors such as climate, weather and solar phenomena will affect current and future operation of an industry if the weather, climate and solar phenomena favors a cooperate in it daily operation the consequence is that it will cause increase in performance in the future whereas if negatively affect the industry also will cause down fall in the future to conclude both the internal factor and the external factors affection the cooperate will always have an impact in the future running of the industry.

In the societal factors include the factor that will improve and disapprove the viability of a corporate say factors such as politics, technology, socio culture and economy will determine with the internal factors and how the corporate will improve or interact with this factors towards the development of it operation, All of this factors will positively or negatively affect a business depending on how the business (SWOT) looks like.

Internal environment

Strength and weakness (SWOT)

Corporate structure at present represents a grouping of different position and departments within a given organization where together they can facilitate running of an organization. As you know corporate are governed and created by law of a state where in different states there exits different laws designed to establish an entity as a separate entity having Its own privilege different from those of it members. There exit different corporate earlier ones were establish by the charter if that country cooperate are essentially immoral and can “die “ or  “live” or even shareholder voluntarily dissolving the cooperation themselves,

In teams of decision making centralized on one group are basically made by the directors and the stakeholders of a given corporate upon any decision made must go through the board of directors for it to be functional, decision such as the amount of shares to sell to the public can not be make by an individual but go through a panel of board of directors for it to be effective in the future.

Basically cooperate have a combination on the bases of functions, projects and geography where for cooperate each director has his own role in the daily operation and each director is situated geographically toward his responsibility in cooperate, a director is responsible for action performed on every decision made in the cooperation industry.

Structures are clearly understood by every person in the cooperation where everyone is responsible for action one answers to in the cooperation one a right is violated in industry there are penalties for them.

For example a branch economics in a given cooperate is well concerned with recourse allocation as well as investment recourse management acquisition. Simply there department are similar even in the other cooperation since it is obvious that the department of finance take care of business money matters and the related markets.

B. Review of Missions and objectives

Although many factors of production have changed, the company’s objectives have remained relevant. However, they need to be adjusted to accommodate emergence of IT as a major instrument in production and to also comply with the current global environmental calls. Because of the objectives are still relevant and specific, the company should and to the current objectives two more objectives that defines the changes that have occurred since the objectives were plotted. The mission statement of the company being the main driver of the company should not be altered but should be reinforced by the introduction of the two objectives.

With the addition of the a few more lines to the current objective the company will show that they are aware of the current global problems resulting from products that the company is making and most importantly, that the company is willing to do something about the effects to the environment. Aligning their products with the IT most recent technology will enable the company to compete with its rivals effectively.

VI. Strategic alternatives and Recommended Strategies

The company is already competing actively amongst other molding machine manufacturers, but adjustments made to its strategies and objectives will provide it with a lead against its rivals. It can be reckoned that most of the companies have not fully adjusted their production system, marketing and sales in line with the present Technology. Although their market share might be secure with their current strategies, making a leap in the same market might present another great challenge.

The company should employ social media in their daily marketing. The company has utilized the volatile social media but to a very low level. With social media, the company can communicate their messages, tips on machines use, keeping the environment clean and other lessons to their audience around the world.

The company should also outsource some of its departments. Departments such as human resource can better be run by another party who is not a part of Husky. The advantage of this is that the responsibility borne by the company and the risks of employees’ boycott is diverted to other quarters. The disadvantage it will present is loss of employee loyalty.