Causal Togs: A Case Analysis Of The Casual Tog Company

The Root Cause(s) of the problem

The problem that the company is losing their loyal customers and their product is getting returned is either due to the quality of their product or due to their dysfunctional delivery channels. With the increase in the competition in the market, customers have more choice of buying the same product with better quality and getting it delivered in a timely manner. From the case, we can assume timely delivery and quality product are two of the most important criteria for their customers. Causal Togs has been struggling on both of these fronts which have allowed their competition to swoop in and has resulted in the company to lose its loyal customers.

The organisation shows resistance to change and many workers

The present-day business environment is characterized by increasing competitiveness in different industries. The owner Cy is aware of the increasing competition. The company has leased new production plants in seven southern states and one in Arkansas. This investment has put extra pressure on the company to generate revenue and stay in the competition of the market. Economic factors play a crucial role in any investment decisions that are made for taking a gain and better return to the investor. Economic analysis and company performance forecasting are necessary for making investment management (Hiriyappa,2008). There is lack of investment management which has exerted burden over the company to keep getting revenue for current as well as new production plants. If the new plants were set up after examination of organization’s structure and forecast of sales and revenue, then the situation would have been easier. The company mainly depends upon reports by managers who are not communicating well with each other as they are not co-operative. There is an information overload which as barrier to effectively communicate within the organization (Robbins, 2011). They lack the human skills required to be a good manager. They make decision marked by emotional outbursts which means that they are not being rational. For making decisions

It is seen in Casual Togs that they somehow did not give much attention and importance to this section as forecasting responsibility was given to Andy, who in return did this work using his intuition and experience. If Andy’s intuition fails, then the company is left with unwanted stock which ultimately was sold at loss. Intuition is making decisions on the basis of experience, feelings, and accumulated judgment. Such a manager does not rely on systematic and thorough analysis of problem or identification and evaluation of alternatives but instead uses his or her experience and judgment to make a decision. Research shows that managers who use intuition to make decisions show a higher decision-making performance only when it is accompanied by some evidence-based management (chapter 7 “Decision Making”). So, Andy should not only rely on intuition while making this important decision but also use some reasonable evidence that guarantees perfection in