QUESTION $6$

$(20$ Marks$)$

Review the case study provided below and answer the following questions.

Mountainview Engineering $($ME$),$ a leading firm in the precision machinery industry in East Africa, is grappling with a series of complex decisions that have far$-$reaching implications for its future. Renowned for its innovative engineering solutions, ME seeks to align its strategic, administrative, and operational choices to maintain its competitive edge and financial stability.

ME's Mission: To lead the precision machinery industry in East Africa by delivering innovative engineering solutions that enhance productivity, efficiency, and sustainability for our clients, while cultivating a culture of excellence and continuous improvement.

ME's Vision: To transform the global precision machinery landscape through cutting$-$edge technology and strategic innovation, establishing Mountainview Engineering as the premier partner in advancing industrial capabilities and shaping the future of engineering.

ME is evaluating several critical decisions across its strategic, administrative, and operational domains. The company is considering a substantial investment in Research and Development $($R&D$)$ to create a next$-$generation machinery line that could revolutionize the industry. This would require reallocating resources and shifting focus towards advanced technology. In addition, ME is dealing with operational inefficiencies caused by outdated administrative procedures and is contemplating implementing a new enterprise resource planning $($ERP$)$ system to enhance efficiency and streamline operations. The company is also addressing supply chain disruptions affecting production schedules, and the operations

team is exploring strategies to improve inventory management and strengthen supplier relationships to alleviate these issues.

The above case study was synthesised by the examiner.

REQUIRED:

$6\mathrm{.}1.$ Based on the strategic decision to invest in R&D for developing a new machinery line, critically

$(7$ Marks$)$

discuss how this decision aligns with ME's long$-$term goals and vision. In your discussion, highlight the potential impacts on the company's competitive position, financial resources, and market positioning.

$6\mathrm{.}2.$ Examine ME's operational decision to enhance inventory management and improve supplier

$(6$ Marks$)$

relationships in response to supply chain disruptions. As part of your discussion, specify potential strategies for achieving these improvements and their expected outcomes.

$6\mathrm{.}3.$ Evaluate ME's decision to implement a new ERP system to address operational inefficiencies and

$(7$ Marks$)$ discuss the potential benefits and challenges associated with this administrative change. In your discussion, consider the potential impact on organisational structure, employee training, and overall performance.