Essay About Lack Of Management Stabilization And Korvette Company

Korvette Company Case Study
Weaknesses for the Korvette Company played a major role for their downfall in the business world. Lack of management stabilization was a key weakness area for Korvette. Not having a consistent team to manage all the storefronts made it difficult for the company to keep track of sales and the sufficient training needed to operate under the original format. The inability to cope with all the changes and additions to the company also caused the company to struggle. As a company try to grow and expand their business, the proper team must be in place that specialize in key areas they want to expand in. Korvette was not able to contain the proper team to specialize in new business areas. Lack of knowledge in these new areas cause those businesses to shutdown and lose more profit. The inability to cope with the amount of stores opening up in further locations from the original in New York made it very difficult for them to oversee the particular activity that was going on. Weak channels of distribution were very poor and made it difficult for them to transfer merchandise. One key factor they were missing is not having a warehouse. Not having locations to store inventory made it very difficult for managers to try and figure the accurate quantity for each destination as they grew in unfamiliar areas. This leads to being over stocked with product that causes the expenses to outweigh the profit. The lack of organization is very present in this case. Opening up a store every seven weeks was done with lack of patience and a very unorthodox fashion. Not being able to manage funds accurately and putting a proper team in order, it shows the lack of leadership of Ferkauf and the minimum effort he put in place to create a successful team. Not taking a situation as serious thinking that all problems will heal on its own wasn’t a wise business for Ferkauf. Affirmative action was needed to be taken but those characteristics were not present for Ferkauf. Lack of investment in the proper training, resources, and strong workforce made it hard for the company to complete such demanded tasks. This goes to show you the lack of ambition Ferkauf had when making business decisions for the company. Ferkauf wanted to be a successful company but wasn’t willing to put in the proper man power to achieve what hasn’t been accomplished before. His goals shattered as Korvette grew beyond his control leaving him with no other options but to look