Bayonne Packaging Inc is a company that deals with production of customized packaging for promotional materials, gift food and candy. Bayonne company has been in succesful operation since 1982. Recently there have been changes within the industry that are a challenge for Bayonne. Changes in the market such as the use of the Internet instead of software sales and CDs have brought the company to a new awakening. Bayonne has previously relied on diversification of its products into many markets.
The company needs to focus on specific issues for survival. These include cost, quality and delivery. These are the crucial issues upon which the company is based. The company has a new VP Operations, John Milliken, who is to focus on these issues and give recommendations. The first step he takes is carrying out a tour of the various departments within the company to do a quick evaluation of Bayonne’s performance. Bayonne’s performance may be summarized as unsatisfactory. Based on the net profits that have been realised specifically the October 2011 report, the firm has performed poorly. There has been a drop in the net profit. In terms of the output; the number of pieces in is less than that of pieces out indicating less production hence poor performance.
