Week 6 Analysis

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Date Submitted: 06/09/2012 02:00 PM

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3. General growing pains of the company (Companies not ready to invest in themselves)

The managing bodies of CanGo are content with what the company has achieved in the past and are confidently looking at the future and ways to expand operations for growth. The company politics are such that employees do not dwell on past projects or proudly reminisce about a job well done. One thing that is a worry is how short-term their corporate philosophy is. However, the general direction which heads are facing is forward and in a very optimistic way, which is good. Some team members are looking to expansion as a means of growth while others see it as a way to appeal better to investors. The common driver of all members in the meetings though, is profit and personal pay rather than the well-being of the company or the development of a competitive advantage towards sustainable growth. The underlying problem is that it takes existing capital for the company to expand operations, add personnel, develop these new operations into a profitable entity and in turn grow. Resources are scarce and thus must be allocated with maximum benefit of every penny spent in mind. The fact that CanGo still has sandwiches provided in their meetings is a bit of a luxury considering how the company is not the most affluent. Their aspirations of growth require new employees but scarce resources force them to assign additional duties to exceptional performers already on payroll. Care has to be taken to not over exert existing employees. An employee who is running an excellent operation in one part of the company will have diminishing performance if assigned to another development project. A good balance has to be found so that the new assignment does not hinder exceptional performance elsewhere.