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Business Solutions 1 BUSINESS SOLUTIONS

Business Solutions for Matrix Electronics

Renee Xenakis Professor Fuller DECEMBER 10, 2010

Business Solutions 2

TABLE OF CONTENTS Business Solutions...........................................................................................................................1 Business Solutions for Matrix Electronics.......................................................................................1 Renee Xenakis Professor Fuller................................................................................................................................1 December 10, 2010..........................................................................................................................1 TABLE OF CONTENTS.................................................................................................................2 introduction......................................................................................................................................3 executive summary..........................................................................................................................4 Market..............................................................................................................................................4 Summary of Finances......................................................................................................................5 swot analysis....................................................................................................................................5 Mission Statement............................................................................................................................8 Vision Statement..............................................................................................................................8 Recommendations............................................................................................................................8 conclusion........................................................................................................................................9 Table 1...........................................................................................................................................12 Figure 1..........................................................................................................................................13 Figure 2..........................................................................................................................................14 Figure 3..........................................................................................................................................15

Business Solutions 3 INTRODUCTION Matrix Electronics has hired our firm, ACME Business Solutions to perform review of their business structure and strategy. This will also include performing a gap analysis to identify differences between what the customer expects and what they actually receive. This entails identifying the customers expectations, their experiences, perception of management, evaluation the service standards and customer communications. (Reference for Business, 2010) In order for Matrix Electronics to regain their foothold in the community, they are going to need to make sacrifices in order for the company to survive and succeed. With the assistance of a public relations/advertising firm and the restructuring of the company, ACME Business Solutions believes that Matrix Electronics will once again prosper in their industry, regaining their position in the community and gaining back their former customers. After consulting with the owners, Pat and Lynn Reeves, it has been established that the company does not have any formal structure and lacks a mission and vision statement, organizational chart, standard operating procedures, formal training, defined core competencies just to name a few. Pat and Lynn are prepared to dig into their retirement fund in order to save the company and structure it for success, growth and eventually to be sold when they are ready to retire. This will require an analysis of the organization, developing short- and long- term goals, defining the appropriate resources (employees), increasing efficiency

Business Solutions 4 and effectiveness of the business and positioning the company to achieve a 40% increase in the market share over the next three (3) years. (See Figure 2) EXECUTIVE SUMMARY Pat and Lynn Reeves are owners of Matrix Electronics, located in Northern California. They started their business in 2004, with the original goal to be selfemployed and work together. Their passion for what they do motivated their clients to let them continue to push the technology envelope and test their talents. Those satisfied customers turned into lots of referrals. As the years have gone by and the recent setback, they realized that they must reorganize their business so that it can regain their market in the next couple of years and for it to run profitably. MARKET Matrix Electronics provides security and entertainment electronics installations for both commercial and upscale residential customers. With a staff of certified installation technicians, Matrix Electronics are recognized as a reputable organization that stands behind their work. While the big box electronic stores cater to the masses, Matrix Electronics had tapped into a target market, in which they are able to provide attention-to-detail based on the clients needs. Each client, whether commercial or residential, receives personal attention and a satisfaction guaranteed warranty. They are a well-known business in the community, with numerous awards for customer excellence and responsibility for the environment, which they have been featured on many local news stations and in feature magazines, such as Sunset, Better Homes & Gardens, among others.

Business Solutions 5 SUMMARY OF FINANCES Since the start of the company, Matrix Electronics has continued to grow at a rate of 5 to 25% for each year, for its first six years in business. Due to the recent events and negative media coverage, the company has suffered, resulting in a significant loss of clients, forcing it to downsize the company so it can remain afloat. Matrix Electronics needs to focus on areas that will make the most profit. One way is to increase the labor charge for installation and for products that are popular. SWOT ANALYSIS A SWOT analysis was performed to provide information that would assist in best utilizing the companys current resources and capabilities, and what areas needed to be addressed for the company to remain competitive. See Table 1 for the SWOT analysis for Matrix Electronics. It summarizes the key issues from internal and external environment. (Wikipedia, 2010) In order for Matrix Electronics to understand their current structure of their organization, they need to ask the questions, who are we and where are we in relations to the business Strengths and Weaknesses. This is often related to your internal organization. The strengths that Matrix Electronics possesses are their loyalty to their customer base, theyre environmentally conscious, have the financial backing to position the company for success, highly skilled and trained certified installation technicians, have had solid growth for the past six years (until recently). Their weaknesses are in lack of organizational skills, having no defined goals or objectives, no mission or vision statement to define the companys path, no

Business Solutions 6 organizational chart, limited visibility in the market, no policies and procedures, and lack of proper personnel to run efficiently. Analyzing your Opportunities and Threats is taking a look at your external factors such as competitors and opportunities to see the big picture. The opportunities for Matrix Electronics are infinite, if the company utilizes the resources available, such as expanding their product range, creating a consumer electronics division, expand to other regions and eventually globally, take advantage of having a website created so that have more visibility, apply for additional funding to expand, just to name a few. The threats that may hurt Matrix Electronics will be their competition as well as reputation. Fortunately, the owners invested wisely by hiring an public relations/advertising firm to do damage control. It is anticipated that with the companys prior history before the unfortunate event, it is highly likely the company will regain their positive status with the community. As for their competition, Matrix Electronics must make a decision whether they will increase their staff with capable personnel for the various functions in the company, for it to run effective and efficiently. With Lynn trying to manage the finances, sales and advertising, payroll and personnel functions, she is setting herself up for failure. Pat must also take advantage of hiring or promoting within, an installation supervisor or manager. The current product line sold by Matrix Electronics top of the line security equipment and surveillance systems by Logitech, Brinks, Honeywell, DSC and ADT, and high-end entertainment electronics such as Bose, Harmon Kardon, Onkyo, Denon, and Sony.

Business Solutions 7 In order to be competitive in the market place the company needs to follow a competitive strategy. Matrix Electronics should consider the following: 1. Market Penetration - Remain in current market/product area, increase market share or leverage existing competencies to improve competitive advantage, (eg: product enhancement and better marketing, promotions), 2. Market & Product development Market Development Identify new market segments (such as DIY Do It Yourself home kits) Identify new uses for current products Geographical market expansion Regional - National - International

Product Development Substantial changes to current products Analysis identifies opportunities for new products Development/acquisition of new technology

Projected growth plans for Matrix Electronics, shows they will be able to achieve a 40% market share increase by 2013. Matrix Electronics will need to hire additional

Business Solutions 8 staff to manage the different departments, which are currently being managed solely by Lynn, as Pat manages the installation technicians. Pat would be able to relieve Lynn of Sales and Marketing by either promoting or hiring within the company, someone to manage the installation technicians. Pat needs to stand back and manage the company instead of being onsite for all jobs. Before a strategy could be determined, we had to look at the current organizational structure of the company. (See Figure 1) This structure clearly shows that Lynn is handling way too many functions in order to be efficient and effective. This is a recipe for disaster. It may have worked for the past six years but due to the current reduction in staff, this will put even more of a burden on her, possibly resulting in unnecessary damage. Matrix Electronics did not have a mission or vision statement, so both were created to reflect the position of the company. Mission and Vision statements should be reviewed periodically to ensure that the company is following in the direction it sets. MISSION STATEMENT To provide our customers with state-of-the-art security and entertainment electronics, with. We continue to change based on the needs of our customers and the community. VISION STATEMENT By 2013, Matrix Electronics will expand its business to other geographic locations and eventually, globally. RECOMMENDATIONS ACME Business Solutions recommends that Matrix Electronics first and foremost develop Policies and Procedures. This is also known as the Employees Manual

Business Solutions 9 (Handbook), which is a guideline that defines what the organization expects of their employees as well as provides to the employees what they can expect of the organization. (eHow.com, 2010) The policies and procedures should contain information on state and federal laws regarding employment, health benefits, At-Will policy (termination without any reason by either the employer or the employee), Mission Statement, paydays, bonuses (if applicable), PTO (Paid Time Off), employee conduct, dress code, etc. It is basically the companys bible of how they want to run their business in an ethical manner that benefits both the company and its employees. Another suggestion is for Matrix Electronics to perform background checks on all potential new hires, since they will be entering businesses and/or residential homes. It would be a good idea to invest in liability insurance. In order to have high-quality service, all installation technicians should be certified and bonded and adhere to a Code of Conduct for ethics. More research and development should be performed on streamlining the installation process, new technologies, wireless, etc. CONCLUSION By following these recommendations, Matrix Electronics will have the potential to survive and thrive in the global market today. It is up to management to implement and carry through these changes to lead toward the three year projected plan. Matrix Electronics will have potential to achieve this profitability through its core competencies and its vision. Matrix Electronics main core competencies are the immediate service it offers to the customers, their highly trained and certified installation technicias, its

Business Solutions 10 outstanding customer service, and its wealth of valuable customer information. Each of these competencies contributes to the overall vision of becoming a customer-focused company that Matrix Electronics has established. If the management seriously considers the information we have provided, Matrix Electronics has the potential to better itself in their current geographical location and eventually in the global market.

Business Solutions 11 References eHow Contributor. 2010. How to write policies and procedures for your business. Retrieved from http://www.ehow.com/how_15568_write-policies-procedures.html (viewed on December 8, 2010) Lewis, P.S., Goodman, S.H., Fandt, P.M., and Michlitsch, J.F. (2007). Management: Challenges for tomorrows leaders. Mason, OH: Thomson/South-Western Referenceforbusiness.com. (2010). Gap Analysis. Retrieved from http://www.referenceforbusiness.com/management/Ex-Gov/Gap-Analysis.html (viewed on December 9, 2010) Wikipedia.com. (December 10, 2010). SWOT analysis. Retrieved from http://en.wikipedia.org/wiki/SWOT_analysis (viewed on December 10, 2010)

Business Solutions 12 TABLE 1 Results Matrix Electronics current position in the market. Strengths
Customer service Environmentally-conscious Financial strength Human capital Solid growth for past 6 years Business longevity Technical skills Expansion of product range Expand geographically and globally Explore new markets Market penetration Branch out to other geographic locations Create chains or franchises Apply for funding Develop website Weaknesses Vulnerability Not organized employees

No defined goals or objectives No organizational structure Limited visibility no website Lack of proper staffing to run efficiently Competitors with positive image in the community Global reach Rivalry within the Industry Competitions lower costs

Opportunities

Threats

Business Solutions 13 FIGURE 1

Business Solutions 14 FIGURE 2

P rojected Growth at 40%over 3 years


$ 0 0 ,0 0 0 9 ,0 0 0 .0 $ 0 0 ,0 0 0 8 ,0 0 0 .0 $ 0 0 ,0 0 0 7 ,0 0 0 .0 $ 0 0 ,0 0 0 6 ,0 0 0 .0 $ 0 0 ,0 0 0 5 ,0 0 0 .0 $ 0 0 ,0 0 0 4 ,0 0 0 .0 $ 0 0 ,0 0 0 3 ,0 0 0 .0 $ 0 0 ,0 0 0 2 ,0 0 0 .0 $ 0 0 ,0 0 0 1 ,0 0 0 .0 $ .0 0 0

R esidential C m om ercial

2011

2012

2013

Business Solutions 15 FIGURE 3

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