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Jimi Henrich owns a custom acoustic guitar manufacturing company: Jimi’s Jammers. He designs custom guitars to the specific requirements of the individual customer.  His guitars range in price from $6500 to the most expensive one, a solid gold model, for $35,000.  Jimi desires to become the Rolls Royce of the guitar world.  Currently, Jimi has a small but growing clientele. So elite is his company that he has no need to advertise as he has gained most of his customers by word of mouth. Jimi suspects that there is a bigger global market for his product. Anxious to expand the business and make the plant more active, Jimi is exploring ways to gain additional orders through product and process innovation.  The end product must continue to carry the Henrich reputation for its attention to detail, personal design, and quick turnaround. Jimi demands his employees produce the revolver with these ideas in mind and never to give in to the temptation to lower the quality of the guitar.

Jimi is intrigued by a recent client order inquiry.  George Harrison, a wealthy and avid guitar collector, wishes Jimi to design and create a replica of two of his favorite guitarist’s instruments that while traditional in design, is computer generated, plastic, and collapsible.  The guitar would be fully functional and be identical to the musician’s favorite instruments.  Preliminary research suggests that the lead time to get the project up and running would be 25 months. The project would cost 1 million dollars and take 2 months to produce.  Jimi recognizes that the project would require the hiring of highly trained software computer personnel, the purchase of computer hardware and printers as well as diverting existing staff to the project.  All of these requirements must be done while existing client orders are maintained and completed.  Harrison is willing to pay 2 times his investment for the plans if the project is only done for him.  Should Jimi wish to keep the plans and produce the guitars for Jimi’s Jammers, Harrison will pay 1.25 million dollars giving Jammer’s exclusive rights to the plans.   Research further reveals that the project may have a small market globally with a possible charge of $55,000 per guitar.  Jimi is sure; however, that the unique quality and design of the replicas will secure his reputation in the guitar community as a custom innovator.  He has decided to pursue this order and keep the plans.

Learning Activity 1 – Theme 1

As mentioned last week, the planning process begins with an environmental scan of the business and its relationship to vision and mission statements. Using the expanded case study about Jimi Henrich (above), use the SWOT tool to complete a business environmental scan.

Initial responses should be no less than 500 words and reference classroom material. Initial responses are due by Thursday and responses to at least two classmates are due by Sunday. 

Learning Activity 2 – Theme 2 

In the planning phase, managers create a detailed action plan aimed at the organizational goals.  Strategic management, or what you will learn as strategizing, is what an organization will do or not do to achieve the goals and objectives that lead to meeting the stated mission and vision. Using the vision, mission, and SWOT analysis for Jimi Henrich scenario complete the following:

  • Create three long term goals and objectives for the business (2 years forward);
  • Create three medium term (operational) goals and objectives for the business (usually accomplished within the year);
  • Create three short term (day, week, month) goals and objectives for the business; and
  • Create at least three contingency goals in the event the current strategy would fail.

Initial responses should be no less than 500 words and reference classroom material. Initial responses are due by Thursday and responses to at least two classmates are due by Sunday. 

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