Optimize Your Design Firms Performance: Enzos Crossroads at APEX Studios

Abstract

MGMT 475 Fall 2022 Module 1: Case 1 APEX Studios: Enzo at a Crossroads Points; Due no later than 8 am Monday 9/12 Submit in Sakai Assignments folder for Case 1 Read the following case thoughtfully. Your task is to understand and make a recommendation to address the primary problem facing the firm. That is, what is the issue and its ROOT CAUSE that needs to be addressed – and how - to improve performance? Part of the objective of this first assignment is to get you in the habit of CAREFULLY reading and following instructions. So – do that. Get clear on your assignment and what the ‘end’ should look like. Work on developing this habit of knowing exactly what you are to do and by when – begin with the end in mind. Your submission is to be a Word document answering the following questions/tasks. Don’t write more than is needed to answer the specific task or question. You can, where relevant, use bullet points/lists rather than paragraphs. The quality of your words matters, not the quantity (length). 1. What seems to be wrong with the firm’s economic performance? 2. What do you believe is the main cause of that effect (the performance problem)? (*try to apply the five why’s and problem solving techniques here*) 3. Describe three alternative ways Enzo might address that underlying cause to improve performance. 4. Describe your recommendation to Enzo using good argument structure. (You may not have data to support your argument, but use good logic and reasoning to support your argument) Put your name on your paper with “CASE 1”. Copy each of the four tasks above. Provide your answer under each. Do not write a large single report; answer the specific tasks above individually. It was April 5th and Enzo had just finished his work to process payroll and finalize the accounting for March’s business. It had been another disappointing month for Enzo and his small graphics design company. He opened APEX Studios nearly two years ago, and while he had been profitable since the beginning, he was still not making enough money for the venture to produce a sustained level of income he needed to support his family. He’d left his well-paid corporate job to be an entrepreneur and though he did not expect this business to make him rich, he had confidence that it could be developed to produce an adequate income and give him the freedom of being his own boss. Every month-end, however, he anguished over the disappointing income statement. The business was earning enough that he could take a salary that paid the bills but there was nothing left for his boy’s college fund, for retirement savings, or to invest back into the business. Enzo knew graphic design. He had been a lead designer for the city’s top design firm for over six years. When he was passed over for a promotion to design supervisor, he decided it was time for him to go be his own boss. He had saved enough to invest in the necessary production equipment, computers, and office essentials to open his business. The space requirements were not much, so rent was reasonable. From the very start, Enzo had business and it had grown quite a bit over the first six months. But it took a while for Enzo to figure out efficient operations, how to negotiate and price jobs effectively, and to interview, hire, and train new employees. The second year had some good momentum. Enzo felt he had made some positive moves to streamline the business, control inventory, and negotiate good prices from his vendors. He was very careful with selecting the best value in materials needed for client projects and he was diligent with pricing jobs and working to negotiate such that his profitability was acceptable. He had reorganized how the materials inventory was stored, and where, to simplify the work of his production crew when they needed to find specific materials or work-in-progress. He had also spent a good amount of time learning the production equipment and then training his two operations staff to reduce waste, produce quality work, and keep on top of the project schedules and deadlines. As his employees increased their knowledge and ability to work without supervision, Enzo had tried to spend more time developing additional business with his best clients, dropping by...