Assignment 4: Letsgo Travel Trailer

Coachman industries, a direct Letsgo competitor has reduced its material cost by more than 60% and labor cost by 78% by using creative engineering and high accuracy analysis. On the other hand, the Letsgo Travel Trailer Company is experiencing challenges with quality, cash flow and a performance review and reward system. This is happening due to lack of integrative planning across different functions. Each functional unit is trying to maximize their own performance, which in turn is hampering the overall performance. The current appraisal and reward system is increasing this isolated and non-cooperative working of the different functional units.

▪ The sales department to improve their sales …show more content…
Coachman Industries is leader in the travel trailer industry and have been doing quite well in reducing their cost of production. In its current state of affairs where each department is looking to achieve its own goals ignoring the overall company objectives, it is very likely that Letsgo will not be able to compete on price in the low price trailer segment. The projections seem to ignore the impact of competition.

4. As the market potential for the low cost trailer market Improve due to growth in number and interest of the retiree segment, the player in the big segment such as Rexhall Industries, Winnebago Industries, Foremost Corporation of America and Thor sales Industries will also jump into the low cost trailer segment and the competition will hot up in this segment. There is no plan or strategy suggested to take care of this aspect.

5. No data about the current price charged by Coachman Industries and other players in the low price trailer segment is provided to understand the cost competitiveness of the Letsgo. It is very difficult to digest the sales growth figures without knowing how much the competitors are charging of their project in same market.

6. Mark, the president of the company, does the projections. He has not taken any feedback or information from the functional units about the validity of the projections. The strategic directions and long term plans