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You are the CEO of a medium-size company that makes window coverings such as blinds and shutters. Your company has a cost advantage in terms of being able to make custom window coverings at costs that are relatively low in the industry. However, the performance of your company has been lackluster. To make needed changes and improve performance, you met with the eight other top managers in your company and charged them with identifying problems and missed opportunities in each of their areas and coming up with action plans to address the problems and take advantage of opportunities.
Once you gave the managers the okay, they were charged with implementing their action plans in a timely fashion and monitoring the effects of their initiatives monthly for the next 8 to 12 months.
You approved each of the managers' action plans, and a year later most of the managers were reporting that their initiatives had been successful in addressing the problems and opportunities they had identified a year ago. However, overall company performance continues to be lackluster and shows no signs of improvement. You are confused and starting to question your leadership capabilities and approach to change. What are you going to do to improve the performance and effectiveness of your company?
The reading assignment describes various cost-based pricing models commonly used in the supply management function. Using the table that follows.
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