a case study analysis

A Case Study A Case Study AnalysisAnalysis

Business Team 6Business Team 6Tim NeverkovecTim Neverkovec

Julia HernandezJulia Hernandez

Jessica RetaJessica Reta

Phillip GorePhillip Gore

Archer Daniels MidlandArcher Daniels Midland

HistoryHistory

Archer Daniel’s was founded in 1947 by Archibald Daniels and Donald Archer in Altenburg, Missouri.

It incorporated in 1948 as Archer Daniels Midland (ADM) Company when John Midland, a steel tycoon, was made a partner after he became fascinated with Daniels’ and Archer’s idea of a retail store during the economic boom after World War II.

They company is currently headquartered in Altenburg, Missouri and has established more than 300 stores.

Development & Development & GrowthGrowth


Since becoming Archer Daniels Midland Company in 1948, they have succeeded in becoming the front runner in serving suburban marketsThrough their commitment to provide quality customer service and products, they have been able to establish themselves as one of the most admired and successful companies.Apart from their 300 chain stores, they have expanded their services and their number of locations through recent acquisitions. Since the height of the technological takeover of the 1980s, technology has played a large part of ADM’s business strategy helping them stimulate local economic growth by purchasing communications equipment from local vendorsDue to their constant use of technology to help their business strategy, they have been able to significantly increase their inventory over the years.This has also helped them remain competitive in the marketplace.

VisionVision


The vision of Archer Daniels Midland has always been to create a better everyday life for its customers. They envisioned that their clientele would frequent their establishment not because of the low cost of their quality products, but because of sentimental bonds created between ADM and their customers.

MissionMission


Archer Daniels Midland’s mission is to provide the highest quality products and the best service at the lowest cost of ownership.

GoalsGoals


ADM’s goals are categorized in three different ways: Customer service, public service, and international expansion

Customer Service: ADM has succeeded in becoming a reputable company due to their close

relationships with their customers and their success at marketing themselves to potential customers

Public ServiceOne of ADM’s successes include partnering with local vendors to stimulate

local economic growth as well as keeping the public in mind with grants and charities.

International ExpansionAfter successful business in Canada the company plans to expand and

establish new markets within the European and Asian sector.

SWOT AnalysisSWOT AnalysisStrengths:

•Technology plays a key role•Reduces physical labor•Significantly reduces labor costs•Allows for more effective time management

Weakness:

•Compatibility with existing resources•Requires additional training•Technology always changes/improves•Allows for more effective time management

Opportunities:

•Technology advances can create changes within our business•Flexibility to use a variety of providers dependent on need•Expansion in communication network as our business globalizes

Threats:•Viruses / system integrity•Integration resistance•Globalization can reduce quality customer interaction•Server/memory space

Nature of ADM’s Nature of ADM’s Communication ChallengeCommunication Challenge


Company policy dictates the use of local vendors Organizational growth has exceeded the capabilities of existing communication equipment, most notably, the company’s item tracker, the T-100Current local vendors do not provide the more modern upgraded T-1000 item trackerCommunication issues are at the root of our recent lossesThese issues are affecting all four of our major departments; sales, operations, distribution, and customer service

Technology’s Affect on ADM Departments Technology’s Affect on ADM Departments

Disadvantages of T-100 Item Tracker

Advantages of T-1000 Item Tracker

Does not harbor sufficient memory capacity to record vast inventory

Causes merchandise to be lost or misplaced

Increases person-hours worked to rectify ongoing inventory issues.

Presents liability to companywide communications due to incompatibility with other equipment

Caused gaps in items tracked, shipped and received

Has caused recent financial losses incurred during last quarter.

Higher memory content Cost effective Built with ED-209 security firewall

which ensures protection against illicit software viruses

Deemed compatible after being tested at IKEA’s 3 million square foot facility in Fresno and receiving 100% accountability of all items scanned

Received 5 star rating from Better Business Bureau

Product ComparisonProduct Comparison


Technology’s Role in the Technology’s Role in the Communication ChallengeCommunication Challenge

• Three week transition period requiring manual entry• Losses from transition will be short term• Projections for a successful transition include record

breaking expectations for company profits• Funds from expected 24% profit gain can be used by other

departments to make additional purchases from local vendors resulting in an actual increase in ADM’s contribution to the local marketplace

Proposed SolutionProposed Solution


Create an exception to current company policy that will allow us to utilize an international communications vendor that can provide the products necessary to support the increased level of inventory our expanding business requires.

Upgrade our communications network by purchasing the T-1000 item tracker and related software suite.

Modify company standard operating procedures to account for effective changes made by incorporating an upgraded item tracker into our organization's communication network.

Create and implement a training program to ensure full integration occurs in accordance with predetermined benchmarks

Stay on course with organizational goals and continue global expansion.

Continue to partner with vendors to ensure technological updates are made in conjunction with our company’s growth.

Proposed SolutionProposed Solution


2) Purchase T-10002) Purchase T-1000

4) Train Staff4) Train Staff

1) Create Exception 1) Create Exception To Current PolicyTo Current Policy

5) Global Expansion5) Global Expansion 6) Partner with Vendors6) Partner with Vendors

3) Create New Standard 3) Create New Standard Operating ProceduresOperating Procedures

ConclusionConclusion


ADM can no longer afford to operate with substandard equipment. If we continue to employ the use of the T-100; the losses incurred by our communications network will be incalculable. These losses will jeopardize the financial strength of our company, leaving overseas expansion doubtful. While ADM has a proud history of supporting the local economy by utilizing local vendors, the company must make an exception to policy in order to resolve this communication problem. This is the only way ADM can continue to fulfill its mission of providing first-rate service to our customers at affordable costs, while simultaneously achieving our organizational goal of international expansion.

ConclusionConclusion



1) Archer Daniels Midland, (2012). Retrieved July 25, 2012, from http://www.adm.com

2) Thill, John V. & Courtland L. Bovee. (2012) Excellence in Business Communication, Ninth Edition

3) Untitled images retrieved from www.adm.com and the Microsoft Clip Art Gallery

Works CitedWorks Cited

A Case Study A Case Study AnalysisAnalysis

Business Team 6Business Team 6Tim NeverkovekTim Neverkovek

Julia HernandezJulia Hernandez

Jessica RetaJessica Reta

Phillip GorePhillip Gore

a case study analysis

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