Assignment Instructions

The case study link is provided below for the Case Study 2. Read and study the case and complete the questions at the end of the study. Use the case study outline below to assist you with your analysis. Questions should be answered using case study format. Ensure that you adequately explain the problem, describe alternative solutions and justify your recommendation. This exercise should be able to be completed in approximately 3-6 doubled space pages. Attached completed Case Study #2 as a MS Word document in the assignment area of the classroom – Case Study #2.

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Case Study 2
Case Study Outline (See OUTLINE FOR CASE ANALYSIS below)
Grading Rubric

Title Page (APA formatted)
Case Name:
I. Major Facts
(State here the major facts as you see them. Make statements clear and concise for your own understanding as well as for the understanding of the other students and the instructor.)
II. Major Problem
(State here the major problem as you see it. Emphasize the present major problem. You may wish to phrase your statement in the form of a question. In a few cases, there may be more than one major problem. A good problem statement will be concise, usually only one sentence.)
III. Possible Solutions
A. (List here the possible solutions to the major problem. Let your imagination come up with alternative ways to solve the problem.
B. Do not limit yourself to only one or two possible solutions. These solutions should be distinct from each other.
C. However, you may wish to include portions of one solution in another solution, as long as each solution stands alone. Only in this manner will your subsequent choice be definitive.
D. Briefly note advantages and disadvantages of each possible solution.)
IV. Choice and Rationale
(State here your choice, A or B or ___ and the detailed reasons for your choice. You may also state your reasons for not choosing the other alternative solutions.)
V. Implementation
(Prepare a plan to implement your choice)
Appendix (Answer case study questions)
Reference Page (APA formatted)







Case Analysis

Name of the student










Case Analysis

Major Facts

TAM was founded in 1985 by three sisters with a love for excellent tea in Los Angeles. Upon the death of one of the sisters from cancer, Jack Reynolds, their CPA, took over the company. Over the last ten years, the company was doing great with an increasing or growing revenue from $1 million to over $25 million. During this period, TAM enjoyed an envious reputation with an increased market share. However, as the company grew, it faced numerous growing impediments and pains, especially in its supply chain management. Reynolds expanded his procurement sources to include Japan, Sri Lanka, Taiwan to China, and India, the traditional and only suppliers. This extended outsourcing strategy presented multiple shipment problems regarding the size and reliability of the raw materials (Doyle & Bell, 2009). These shipment problems thus translated into numerous issues in the company’s other departments and strategies such as customer relations, product pricing, inventory management, and working milieus affected adversely. To solve this menace, Reynolds contracted EML (Earl Morgan Limited) to provide a more reliable and cheaper outsourcing service provider in the production facility in Cleveland. This decision resulted in the development of a complex supply chain in TAM as it meant shifting from direct imports strategy to selected areas, providing challenges of order definitions and compilations.

Major Problem

TAM’s major problem is Reynold’s overpowering, extreme, and controlling attitude in the company that created exaggerated micromanaging features of all company operations and creating a toxic working or operating environment. A compromised corporate culture, poor stakeholder/customer service and relations, poor inventory management strategies, poor communication, and high prices of products characterize this toxic operating milieu. Traits of major distrust and criticism run throughout the company, with Reynold displaying an autocratic decision-making model, and deprived employee autonomy or innovation. These issues have stifled the company’s innovative and intrapreneurship nature, thus minimizing operating and working efficiency (Doyle & Bell, 2009). TAM also lacks an effective supplier relationship management (SRM), and customers are not purchasing desired product lines due to product mix-ups. TAM faces poor product management, which is explained through low product turnover rates and long lead-time, meaning that ordering must be done in bulk. The presence of excess inventories results in high costs incurred in the storage and warehousing. The compromised corporate culture, autocratic leadership style, and employee distrust present poor communication among departments due to impeded information flow. Lack of information integration and sharing has resulted in almost standalone business functions. For instance, the lack of a system to facilitate information sharing and a defined supply chain have crippled effective forecasting in TAM, making them deviate very far from genuine demand.

Possible Solutions

  1. Re-evaluating and re-defining TAM’s corporate culture, developed from analyzed current norms, established according to desired employee culture, and set achievable objectives. This will help change the hostile working milieu, loosen the tight autocratic grip of Reynold, and loosen the strained employee-boss relationship. It will also help create a democratic or participative style and working environment where employees can share their ideas and opinions (Daft & Marcic, 2016).
  2. TAM can integrate data mining tools that will resolve communication issues and enable effective forecasting aligning with the true demand. This data will be useful to the Sales and Marketing department and the CRM. In the S&M departments, data mining will increase supplier bases where they can make small-unexpected orders. The software will enable the sharing of data among departments and throughout the supply chain network. This information will help in customer segmentation, conducting market research, and branding, thus develop effective and strategic promotions.
  3. Implementing an ERP system for process integration will enable TAM to operate in process-oriented strategies and adopt lean management. These solutions will integrate internal communication, reduce the inventory significantly, product mix-ups, and capitalize on short production lead-time.

Adopting these solutions will revolutionize and rejuvenate TAM, as it will benefit all involved stakeholders, including employees, customers, and suppliers. The major disadvantage is that some employees could face layoffs, as the changes will mostly involve optimization and digitalization.

Choice and Rationale

The most plausible and rational solution to choose is A, as it comprises solutions to the most underlying problem, which includes a productive corporate culture, strategic alignment, and developing a productive working environment with precise goals to achieve. This solution translates into addressing the strategic and TAM’s bottom-line, which is missing in other solutions concentrating on only the bottom-line. A company’s success requires working towards a single vision and shared MVGOs (Mission, Vision, Goals, and Objectives). This is achieved by having and following a shared corporate culture and strategic alignment of the goals with the business models, operations, and activities. Re-evaluating and re-defining TAM’s corporate culture will help create an amicable, engaging, and productive working milieu free from hostility, disunity, or strained relationships. An amicable working condition will create an environment of sharing, increased employee participation, and productivity.

Moreover, strategies on effective supply chain management, M&S departments, customer and supplier relationships will be developed, forming a common ground, and maximized strategy alignment. This solution addresses the main identified problem at the grass root that has paved the way and enabled to development of other issues in TAM. The new corporate culture will help Reynold delegate responsibilities down the supply chain and increase focus in his job and position (Flamholtz & Randle, 2011). Employees in each department will understand the shared and common vision, thus integrating the data mining tools and ERP systems and addressing other identified problems. Employees are assets, drivers, and determinants of corporate success, thus maximizing their productivity and engagement through increased responsibilities, autonomy, and an arena for intrapreneurship boost their morale, improving their performance in solving the problems, working, and reducing turnover rates. Corporate cultures that promote and enhances employee productivity, performance, and behavior, drives possible and successful execution of corporate MVGOs. TAM’s new corporate culture will have a direct linkage and influence in its bottom-line, as it is involved in many business decisions and outcomes (Flamholtz & Randle, 2011).


The implementation plan of this solution will include developing a committee of some employees and the executives to ensure conclusive and comprehensive negotiations and development of an inclusive and diverse corporate culture. Next, the company’s business pre-eminence, subsisting processes, and problems associated will be discussed in addition to developing the ultimate new corporate culture, MVGOs, and strategies. Next, the committee will get a buy-in from the remaining executive, managers, and employees. This will be conducted through thorough communication with the employees. It will enable sensitization and minimize resistance or lack of knowledge. After that, a support and training program will be developed to show the support of employees. The training and support program will foster social connections and relationships among all employees despite their seniority, increase knowledge of the new corporate culture, and foster a climate and culture where employees can discuss their problems and air their opinions. In conclusion, through the implementation of this solution, TAM’s journey to increased productivity, performance, and bottom-line is founded and provided with stable ground and foundation.


  1. TAM can hire a full-time employee instead of working with the current contracted sales employee. The full time should be trained adequately on using integrated technology to improve the flow of information and data.
  2. TAM can focus on compressing or lessening supply chain costs, enhancing customer services, conducting boundless market research, and design products according to customer inclinations.
  3. To improve the company’s inventory management and solve the issues, TAM should improve and integrate in-house and outside communication processes while using small-scale suppliers together with the partnership with EML, as a complementary factor. This will help address the purchase of bulky goods that may result in increased warehousing costs.
  4. TAM can implement a small balance period of probably a week after the convention 30-days deadline. Moreover, the company should train its employees to adhere to the credit policy without any tolerance. In addition, the company should ensure that consumers and suppliers are aware of and adhere to the corporate terms of payments.
  5. TAM should expand its R&D to maximize its innovativeness as stagnation and remaining in already exciting products may impede its growth and success. There is a need to improve its products and develop others, as the market is a vacuum continuously needing the exploitation of opportunities.
  6. TAM needs to see and tailor its workforce as its asset, driver, and determinant of its success. Through adequate training, equipping them with sufficient resources, tools, and skill set, reviewing its recruitment, and hiring processes, the company can harness financial advantages and process efficiencies.






Daft, R. L., & Marcic, D. (2016). Understanding Management. New York: Cengage Learning.

Doyle, B., & Bell, A. H. (2009). Reading the Tea Leaves at Tea and More: Resolving Complex Supply Chain Issues. OSCM Publications, Vol 2(3), pp; 166-170.

Flamholtz, E., & Randle, Y. (2011). Corporate Culture: The Ultimate Strategic Asset. Stanford: Stanford University Press.



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