KeepWarm ground source is widely growing company dealing with the heat pumps and heating systems. The heating systems and heat pump being developed by the company are getting good response from the market as they are environment friendly and energy saving. UK's one of the business tycoons known as Global Domestic Energy GDE took over KeepWarm. After this business was hand over to GDE many managerial changes took place in the organization. The operation of the development of the business is running as it used to run before it was hand over to GDE. The sales and marketing department of the company is manage under one director. Here lies a defect in the system.
The marketing and sales are two principal pillars for any system and these must be operated and governed separately rather than held under one director. The company lacks in targeting the particular customers that lies under the marketing department. This presents a problem because the company produces products for the domestic customers and these customers generally know the specification of the products. When it comes to the commercial and public sector companies then they require a product depending upon their specifications. This requires a direct interaction between the customer and the manufacturer. So marketing and the sales department must be operated separately. There was a single store that catered the procurement of both manufacturing and product development. Due to so much load on a single store the store that at the time when any department required urgent procurement than in that conditions store of unable to meet the requirements of the departments.
Keeping in this view the product development department started it own procurement for their projects. Rajesh Mehta was looking after the manufacturing of domestic products were as Paul Knott was looking after the project development department. CEO of the company Tony Black thinks that the separate procurement for the project and development department was ineffective and less efficient than they should be. CEO has concerns regarding the increasing procurement costs of the project and development depart, and he thinks that if Rajesh take over this department the cost can reduce. However, the CEO does not point out this issue rather he raised the issue to make procurement more effective. To make the procurement more effective CEO asked the software department to investigate this problem and make some technical solution for this problem.
Key considerations for acquiring new system
The case study shows that there are two departments that need a new system for their better performance and growth of the company. The first system is sales and marketing that needed to be governed separately. A new system of operations for marketing should be developed separately for better growth and expansion of the business. However it is a fact that marketing and sales are directly related to each other. Because when the marketing of the products and services provided by the company is ...