Little Tikes Commercial Play Systems (LTCPS): Strengths and Opportunities of LTCPS
The brand name Little Tikes from the Rubbermaid Inc. drew its strength from the fact that the company acquired the industry leader, Los Angeles-based Omni. This meant that the company would take less time to market Little Tikes Commercial Play Systems in Los Angeles because barriers to entry into the market were reduced after the acquisition.
Market research indicated that the brand name Little Likes was a trusted brand among day care and children’s service providers, a key strength for Little Tikes Commercial Play Systems. Little Tikes Commercial Play Systems was already a brand tested effectively in others market hence the marketing strategies used to promote the brand would be used in any other market since the difference of playing needs of children across the globe are similar.
The strengths of Little Tikes Commercial Play Systems would also be drawn from the strengths of the manufacturing company, Rubbermaid Inc. The company is one of the most admired companies in America from its brand dominance and innovation.
The main strength and opportunity of Rubbermaid is the fact that the company possesses immense economic resources which enabled it to acquire other major players in the industry to emerge the world leader in the market. Most of the product components used in the market was mainly styled plastics, an area of specialization by Rubbermaid.
According to Little Tikes Commercial, an opportunity existed for the company to return strong profits and an increased sales growth if the company standardized product lines, integrated manufacturing processes and slashed non-value-added processes.
Is the decision to delegate the operation of Commercial Play Division to the Consumer Division of Little Likes right?
NO. This kind of decision was the worst a company with market dominance such as Little Tikes Commercial, to make. Despite the fact that the initiatives seemed reasonable in view of market dominance of the components units, the Little Tikes Commercial Play Systems initiatives overlooked other important issues which constitute to the success of an organization.
The decision was very wrong because it did not factor other market forces such as consumer preferences, Little Tikes Commercial Play Systems employees and the rest of independent representatives around the globe. The move was bound to fail since the initiatives did not consider important performance factors at each unit level and through the market segments.
The separation of top management at Little Tikes Commercial Play Systems from the commercial play market in order to integrate it to Kemper by Rubbermaid was a wrong move. This is because Kemper and team failed to understand the dynamics of the consumer lines and used most of valuable time trying to correct the slide of Little Tikes market share on the consumer side of the business though the commercial market had the potential to accommodate their initiatives. This approach by the management resulted in defection of key personnel to other competitors of Little Tikes Commercial Play Systems (LTCPS).
Little Tikes Commercial Play Systems Organization
Creating a horizontal organization for Little Tikes Commercial Play Systems between Rubbermaid Corporate and the four commercial play units in reference to communication which is the key factor to the organization success would yield maximum results. Any organization that does not uphold high regard to communication is bound to fail as is the case for Rubbermaid in relation to Little Tikes brand.
It is clear that Little Tikes Commercial Play Systems faces critical communication issues if the president of the company hardly gets time to avail himself in a meeting. Holding discussions to benefit an organization via a telephone and facsimile it is a serious joke from the management. Therefore, for Kemper to avoid being caught in such a situation again, it is advisable for the management of Rubbermaid to create a horizontal organization.
For effectiveness of the horizontal organization, it is important to consider the following elements:
Organize around cross-functional core processes.
Make teams, not individuals, the cornerstone of organizational design and performance.
Integrate with customers and suppliers.
Decrease hierarchy by eliminating non-value-added work and by giving team members the authority to make decisions.
Build a corporate culture of openness, cooperation, and collaboration, a culture that focuses on continuous performance improvement and values employee empowerment, responsibility, and well-being.
Empower people by giving them the tools, skills, motivation and authority they need.
Measure for end-of-process performance objectives as well as customer satisfaction, employee satisfaction, and financial contribution.
Redesign functional departments for Little Tikes Commercial Play Systems (LTCPS)