Subject Code : BMA583
BMA583 - Employment Relationship - Managing People - Case Study - Business Assessment Answer
Assessment Task:

Case Study: KA Australia
According to its mission statement, KA Australia is a high-growth multimedia company whose aim is to build a world-class, results-oriented organization that markets quality design solutions that best meet the needs of customers. The company is part of a multinational conglomerate with its head office in the United States. First established in Australia in 1997, KA focuses on three key result areas: employee satisfaction, customer satisfaction, and shareholder value. In 2012, KA achieved over $1.6bn in company sales, negotiated a new Enterprise Bargaining Agreement and implemented a computer-based Enterprise Resource Planning (ERP) system to ensure a “flexible and high-performance future”. It had also proudly developed what its management called a Quality Leadership Process which was supposedly used by the company “in every department and at every level from team leaders to directors”. But that year a comparative survey of KA’s multimedia businesses in Australia, Canada, Ireland and the UK concluded that KA Australia was the least productive and profitable of the four operations. The report made it clear that quality assurance and labour costs were areas in which the Australian offices operated at a comparative disadvantage to many of KA’s other operations. Other problems identified included lower standards of training and poorer relationships with suppliers. KA Australia also faces substantial competition, not only from other companies overseas, but also from other KA operations abroad, with growing pressure for improved quality and competitiveness. KA Australia has already lost its export markets in South America to KA’s North American operations and has now also begun to face increased local competition as a Japanese competitor has entered the Australian market and begun to gain more and more market share. Head office in the US consequently decided at the end of 2013 to send one of its more promising managers out to Australia with a license to “fix things up”. The Australian company was then headed by an acting CEO, the general manager of product, who had begun working at KA in 1995 and had risen up through the ranks to become the firm’s chief operating officer. In early 2014 the new North American CEO arrived, an electrical engineer with a Harvard Business School MBA who had previously headed a telecommunications consultancy owned by KA’s US parent. Headquarters in the US had high hopes that he would be as successful at KA as he had been in his previous assignment. The new CEO’s first action was to analyse operations at KA and to look for ways to reduce costs and increase profits. Staffing costs, he decided, could be reduced and processes improved dramatically by installing automated solutions using the latest technology. Staffing arrangements also seemed too inflexible to him, so he ordered that overtime for full-time staff be cut back and more temporary employees be engaged to undertake special projects. Communication also seemed a problem: 

 

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  • Posted on : November 01st, 2018

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