Strategy to Overcome Organizational Challenges

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Strategy to Overcome Organizational Challenges
The primary purpose and objective of a business are to maximize the output and revenues, according to Eliyahu M. Goldratt. I am an employee at Simba cement, a corporate company which deals with the production of cement. The company's activities took place normally, but sales didn’t meet the operating costs. Additionally, the production unit was marred with a lot of wastages and sub-standard output. Market competition has been stiff for those years with a range of most customers shifting from our company to other companies. The company manager has been experiencing pressure from company owners to either put things in order or be dismissed from the job. Consequently, with a view that workers were the leading cause of the company’s losses, the manager put pressure on his subordinates to perform.
Every department was put under pressure, with the sales and marketing unit being tasked to make more sales in time. Being part of the marketing team, we try our best to ensure our product sells well in the market. In the market, customers complain a lot about the quality of our product. The say on compering with cement from other companies its quality is very low as a result many don’t prefer it. I took the initiative to give feedback to the management for quality improvement. The manager receives the information and directs the blame to the production team, demanding immediate action on the quality. With this inattention, the production unit writes to the manager, attaching the low-quality output to machinery operating for the last ten years in a raw. They request modern machines, which in return was facilitated. After the purchase of new machinery, the complaints kept growing more and more.
It is until this time when I come across the book; The Goal by Elihu M. Goldratt. On reading it, I find many managerial skills and operational skills that make a business a success. I use the knowledge of the book to advise the manager on what might be potentially going wrong. I start by discussing with the manager what the primary goal of the company was. We agree the business’s main objective is to create more revenue and profits for its owners, with the understanding from the book that regardless of the type of business carried out; profit maximization should be at the top of its objectives (Goldratt et al., 2006). With the idea that the organization's primary purpose is to make profits, I advise him that the company’s main concentration should be shifted to those activities that enable it to achieve this goal. Activities that do not lead to revenue and profits are nun-productive and should not pay much attention to the company to start moving towards the primary goal.
According to Goldratt, a company must maximize cash flow, return on investment, and net profits. Increasing revenues for a product whose customers have developed a cognitive dissonance was the main challennge. In the book, the author discusses three main components that should be addressed to maximize profits: throughput, inventory, and operating costs. Throughput, which is the rate at which we generated money, needed to be anal...