Optima Jva Corporation Simulation Essay example
JVA Corporation Simulation
A proposal to the CEO is: performance, as well as revenue, is reviewed every 6 months. This way it allows, JVA Corp to cut or increase pay every 6 months and review its bottom line. Employees can also benefit by having the opportunity to earn pay raises potentially twice a year, rather than the typical annual reviews.
In order to prevent more loss, I proposed the following ideas to help the revenue to decline; and not to be considered as a permanent solution.. Since JVA Corporation has been in good financial standing & employees were well taken care of prior to economic downturn, any changes to be imposed would be considered drastic. And this does not only affect the employees across the …show more content…
As a global leader producer of wireless technology, JVA Corp has a good working relationships with high technology companies, from small component suppliers to global finished-goods powerhouses. I am proposing to add another revenue earning reverse logistics. Reverse logistics is a process of receiving returned components & products for the purpose of recapturing value or proper disposal. According to Aberdeen Group study, average manufacturer will spend 9% to 15% to total revenue on returns. Improving reverse logistics can help JVA Corporation increase revenue up to 5% of total sales. Effectively managed, however, reverse logistics can enable organizations to find hidden profits, improve customer satisfaction and minimize liabilities. It is common for manufacturing companies, like JVA Corp to have returns or recalls of their products due to a variety of reasons; i.e battery was defective or faulty electronic parts. But minimizing all potential risks from recalled products is a major driver behind the need to develop a comprehensive reverse logistics program. When high technology manufacturers examine the total value of goods returned, hidden profits can be staggering. Re-selling in the secondary market is one of the best destination to resell, refurbished returned & recall cell phones & other electronic products. The average secondary market value for refurbish mobile/cell phones ranges between 35% and 75% of the