Case: DRW Technologies Situation Analysis

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Case: DRW Technologies

Situation Analysis
DRW technologies is a defence and aerospace company with 21 manufacturing plants in the
United States (US). In the past three years, several plants of the company have missed their
targets because the company had to absorb the cost under fixed price contracts. Amidst all
these circumstances, the CEO of the company hires Mr. Ed Claiborne as first corporate Vice-
President procurement. The news of his arrival was communicated to the corporate executives
and the plant managers through email and company newsletter. The CEO instructed Claiborne
that his primary goal should be to minimize costs increase profits. Mr. Claiborne decided to
put the new purchasing policy and it required instructions being sent to the procurement
managers of the selected plants. Following this, without interacting with the managers, he
sends a message via email to the procurement managers of all the plants and the message is
met with unexpected results. To his dismay, procurement managers didn’t reply to his email
and was in dilemma to how to counter this problem.

Problem Statement
Ed Claiborne isn’t sure if his message was received clearly and if the plant procurement
managers understood the importance of it. What should he do to ensure the policy is clearly
communicated, understood and followed?
Objectives
To ensure the policy is well communicated and understood.
To make sure the policy is followed.
To receive feedback from the Plant Procurement Managers on the policy.
Criteria
Is the policy well communicated? Have the plant procurement managers taken the policy with
good spirit and understand its importance?
Alternatives Generated
1. Go to each and every DRW plant procurement managers and tell about the new
purchase policy.
2. Send a follow up email seeking reply from the procurement managers
regarding the implementation of the new purchase policy.
3. Set up a video conference with the procurement managers and tell them about the new
purchase policy.
4. A more experienced person in the company should be given the temporary charge as the
Vice President, Procurement and Mr. Claiborne should work under him for a sometime.
Alternative Selected and Course of Action
The best alternative would be a combination of alternatives 2 and 3. It will ensure effective
communication between Mr. Ed Claiborne and the procurement managers and will also help
in implementing the new purchase policy soon. The CEO should draft a follow up mail to
the procurement managers regarding the new purchase policy and also arrange a video
conference to get a better picture about Ed’s idea.

Alternative Selected
Conduct a one-on-one video conference with every Plant Procurement Manager and follow it
up with a detailed email explaining the detailed procedure and the channel through which
they can personally contact you for feedback.

Made By- Mehul Chauhan P40085

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