Regal Marine – An Analysis Of Managerial Decisions
Task: What are important managerial decisions taken by Regal Marine that have helped boost the company’s growth and regional and national expansion?
It is was in 1967 that the company of Regal Marine was being established in the country of the United State of America. The company deals with the production of luxury performance boats. Most of the stakes and shares of the company are being possessed by a single-family. The company has a reputation for providing its customers with various marine products that beats all other similar products in terms of quality. In terms of wake boats and ski, it has turned to be the topmost company in the domestic market of the United States of America. The company has provided its customers with various types of Wake boats and Malibu ski which amounts up to around 22 varieties. Some of them could be listed as Duniber Trailers, Easytow Trailers, Mercury outboards, Horizon Aluminum, Tabs Plate aluminum, Sterndrives, Easytow Trailers (Regal Marine, 2008).
Application of product life cycle ideology
For the purpose and intention of introducing new and innovative ideas to the customers, the Regal Marine company had implied product life cycle ideology in the system. By implementing the life cycle ideology in the market the company has introduces around 22 variants in its products. Since the models were introduced in the earlier stage, they became obsolete gradually to the consumers. Since the models have arrived at their decline stage, the introduction of new models was considered to be a very important and necessary action. It was by introducing and inputting various designs in the life cycle that were recommended and put forward by the stakeholders like consultants, dealers, and customers.
When the managing board had drafted an appropriate design input, they were being submitted to the styling studio which was being modified and shaped in the CAD machines that have been highly utilized to bring out the plan in a mature form. By using the CAD machines, the whole process of design inputting would get faster.
It was by the alteration made by the recommendation made by the stakeholders on the earlier products that the models have arrived at the current situation. It has been observed by the officials that the ordinary life cycle of every introduced product is around five years. To compensate for the flow of ideas and recommendations of the stakeholders' many alterations have been made in the existing models. The evolution process of every model should be classified into certain stages, which are, introduction, developing, augmenting, and eventually the degradation. In the initial stage of launching the model, the various strategies and tools are being implemented by the company in both its system and the operating market (Product Design at Regal Marine, 2008). Let us discuss each stage of the model which gets launched by the regal marine company.
Before committing the stage of introducing a new model, the management of the regal marine would conduct a series of actions like relevant researches regarding the introduced product both based on a financial and scientific basis. The gradual evaluation is done to check whether the product requires any further improvements in its design and performance. The parameters like a supplier for the introduced product and the potential demand for it in the operative market is being analyzed again for the lucid launch of the new model.
Any instability in the design is being augmented in this stage of development. In this stage, the thorough analysis of the issues in the performance is done by the technicians and the higher officials. The sole aim is to remove the issues raised by the customers and other stakeholders. The feedback provided by the customers plays a large role in the developing stage more than the observations of the technicians.
In this stage, the company would have removed most of the issues and the model would have reached the level of perfection. In this stage, the company would increase the level of production to its maximum and hence the customers get great accessibility to the better product. The company would also try to reap out the high level of profit by implementing innovative cost control measures. This could be considered a major tactic by the company against its rivals.
Degrading or Declining stage
By this stage of the product, the model should have been obsolete for the customers in the market and to sustain its position in the market, the company should introduce a new model with better features. Otherwise, the customers would shift their preference to buy the products of other companies that would eventually make a large financial setback to the concerned company. The major move by the companies in this condition is to remove the models which are not performing financially well in the market from the production line and come up with a more viable product that would suffice the needs of the customers. The best instance of this stage could be taken in stopping the production of Boeing 727 by the aviation company (Operation Management Design of Goods and Service 2001).
Major Competition Strategies
Since every market is being infused by the new entrants, the global market faces a lot of competition. This competition coerces the indulged companies to take some innovative and unique steps so that the company would perform and reap higher profit than that of their competitors. The management of the regal company had also devised out some of the innovative strategies to survive in the highly competitive market of marine products. The company still has to introduce new products frequently with updated and new features so that the customers would be sustained trustworthy towards its brands. If the step is not taken frequently, the new entrants would canvass the existing customers with their models using most modern technologies. For the frequent process of model augmentation, the company encourages honest recommendations from stakeholders and also takes the feedback of the customers very seriously. All the recommendations and the feedback by the respective bodies are selected and analyzed effectively by the board of directors. The relevant improvements that are in accordance with the current trend are all implied on an urgent basis by the higher officials.
As mentioned above in this article, the company management of regal marine would take the data provided by the customers and the stakeholders very seriously and thus arrive at the decision of augmenting the certain model (Kotler, 2002). The system of the Regal Marine is being installed with high duty and most modern technology computers, with the help of which it augments the designs and technologies of the existing model. Possessing the most modern technologies in Information Technology would turn out to be a very handy tool in the global market for marine products.
Upper hand Regal Marine had attained by applying Computer added technology
While the other companies utilize the traditional method of drafting, the company of regal marine has implemented the Computer Added Technology (CAD) in its system and thus have facilitated the efficiency and speed in the whole process. The technology of CAD is very effective and powerful which would make it sure that every qualitative component is being implemented in the new model. The design testing could be effectively done by the CAD thus ensuring the high pace of productivity in the manufacturing unit. The CAD has turned out to be a very handy tool for the regal marine institute and has been crucial in maintaining its position in the global market.
Enhanced level of quality in the introduced product.
It has been observed by the officials in the higher position of the regal marine that the aggregate productivity of the company has been increased by the implementation of CAD software in the operations, manufacturing, and designing section of the company. When the company had used the traditional method of drafting, the issue of lagging performance was always been a hindrance to its targets.
Cheap cost in production
No matter what would be the terminal goal of an organization. It is the production cost incurred in the company which majorly decides whether the company would survive further in the market. If the cost of production would get higher in the market, even the existence of the company would get affected. The installment of the CAD software would eliminate the need for workers and thus thereby reducing the whole expense of the procedure. In practice, the procedure has been very profitable and effective for the company.
High access to the crucial database
If the data regarding any matter or operation is available at the tip of your finger, then it would provide an upper hand in analyzing the situation and taking appropriate actions. Even if there is a slight variation in any of the crucial parameters, it could be analyzed very early using the computer technologies installed in the system of the company. The database quality and access have been increased in the company of regal marine after installing the technology of regal marine. The quality and instant access to the database has increased the efficiency and profit of the company. The loophole in the traditional mode of drafting has been revealed by this incident and thus have provided a very good upper hand in the global market.
Shorter design time
The effort and the time which should have been expended to the task would have reduced to a very evident level. The designing of any particular thing was made very oversimplified by the implication of CAD technology in the system. The deadline for designing a particular framework for a particular design has been successfully attained in most of the cases because of the application of CAD software. In earlier times, the deadline was not being met by the officials since the framework was being designed using conventional mode (Operations Management Design of Goods and Service, 2001).
The major goals of designing have been achieved by the system of regal marine in a timely manner after the implication of CAD in the process. The officials in the regal marine institute have created a lot of innovative ways to utilize the remaining time. If the company was still using the conventional method of drafting the design, then the innovative implication of the strategy wouldn’t have been possible for the officials of the regal marine company.
It has been evident from this report on the regal marine company that the implication of modern and viable technologies have the potential to change the productivity and the speed of the processes in a very dynamic and positive manner. Because of the implementation of CAD software, the company had been very successful in introducing various updated models in a very frequent manner. This has played a crucial role in the company to sustain its position in the global market. The company has been also able to meet the increasing demand for the products because of the augmented style of production. All the commendations of the stakeholders and the feedback of the customers were included in the product on a timely basis because of the upper hand gained by implementing CAD in the operative system of the regal marine company. As mentioned earlier, the use of CAD has been turning out to be a strategic advantage for the company which has made the company empowered to achieve the previously set targets and thereby pushing the financial condition of the institute to further heights.
Kotler, P. (2002). Marketing Management (11th revised edition). New York: Prentice Hall. Operations Management Design of Goods and Service. (2001). Retrieved July 30, 2008 http://web.njit.edu/~jerry/OM/ch05.ppt#66
Product Design at Regal Marine. (2008). Retrieved July 30, 2008 from http://www.lotsofessays.com/viewpaper/1712438.html
Regal Marine (2008). Retrieved July 30, 2008 from http://www.regalmarine.com.au/about-us.htm