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1. What are performance improvement strategies? Provide examples.

2. What is innovation?

3. How are performance improvement strategies and innovation an essential element of competition? Provide examples of organisations to support your arguments.

4. Describe the strategies you would implement to foster creative climate and organisational learning in the workplace. Provide specific examples.

Operational system of A.C. Gilbert

The study is conducted to deliver a proper understanding of constant improvement as well as management of the innovation. This report involves the case study of popular firm named A.C. Gilbert that makes and manufactures toys for kids as well as adults. The study involves many theories as well as management principles that are regarding innovation management and also constant improvement. This study will include the strategy followed by the firm involving both performance as well as sustainability strategies of the firm

The study is on the basis of case study of the firm A.C. Gilbert that deals in the toy industry. The firm makes varieties of toys targeting kids and is also famous for its quality. The study delivers information regarding firm’s strategies as well.

  1. Supply Chain- Supply chain management refers to the process of investigating products to various people linked with production. It is all about moving of the goods and services from supplier to the manufacturer and then to whole seller and to retailer, and lastly from retailers to the consumers. Supply chain is managed in each and every firm to transfer the goods to consumers. Supply chain that was involved in the management of the company A.C. Gilbert included suppliers, manufacturers and the retailers (Abramson and Littman, 2002). 
  1. Operational systems

Operational system used by the firm involves several steps. Operational system refers to those that provide data and information of works undertaken in the firm. The business as well as all its operational systems are effective plus efficient in the firm and ensure achievement of targets set by the firm. Definite activities through which firm could provide operational systems involves-  

Designs-  designing of toys and other goods, which are made by several designers within the firm. All the designs are set as per demands of customer’s and their kids. Gender is also considered while designing these toys.

Planning- it is done for developing the toys and then planning the sales as well as targets and the ways to attain those targets.

Purchasing- steps of buying is involved in firm’s operational system for delivering the entire planning in the acquiring of the raw materials as well as packing of the products from suppliers.

Manufacturing- it involves production as well as packaging of the toys as well as distribution of the same.

Distribution- distribution involves storage as well as management of the firm’s warehouse (Cole, 2002).

  1. Delivery of products and services

Delivery of the products and services are those where proper management of goods and services are undertaken. For this firm A.C Gilbert, the production as well as the service delivery is efficient as well as effective because it provides several factors of completing delivery on time. Management of the firm comprises of planning about distribution of the goods as well as delivery of the same to retailers on time (Fojt, 2009).

Analysis of major systems as well as processes plus sustainability measures and the assessment tools plus techniques-

Analysis of the major systems that are used by the firm is one that performance of the firm can be enhanced with use of such systems as well as processes. As the systems plus processes provided by the firm has properly managed all the resources plus functions and operations efficiently to gain maximum achievement. There exists several sustainability measures as ell as assessment tools and techniques that can be undertaken to assess systems plus the processes of the firm.

  1. Key Result areas- major result areas denote to common areas of diverse roles as well as responsibilities of the firm. The results for crucial performance of several departments are vital to know and understand (Garza-Reyes et al., n.d.). Major areas of result include the outcomes which were conclusion of all roles as well as accountabilities of several departments. It also includes profits attained in the firm A.C. Gilbert.
  2. Key Performance indicators-Main performance indicators refer to those that supply information of the vital performance of several departments. Several indicators of performance in the firm involve the quality of toys as well as satisfaction of customer.
  3. Performance review processes- it involves the review as well as measurement of the performance of the firm. This process of reviewing the performance later offers performance appraisals (Innovation in information technology, 2003). 

Performance and sustainability strategies

Analysis of variances and result areas of performance up to 1966

Quality of goods in the firm involves designing as well as manufacturing of the products. In this year the firm improved its manufacturing of some 50 novel toy lines that also touched some 307 lines within the manufacturing of toys. Designing and manufacturing of the organization in the year 1961 altered from merely boy’s to varieties from the kids in pre-school and also dolls for the girls are between age bracket of 6 to 14. In the year 1962 firm’s manufacturing units also augmented some 50 new lines. 1963 was considered a very poor year in terms of designing and manufacturing because there was simply zero innovation within the toys made by the firm. In 1964, quality of the manufactured toys got declined and also designing got tainted from metal boxes to card boxes. Also the company used brittle as well as weak parts in place of strong and long lasting parts. Year 1965 passed away without any alterations or newness or innovation within the goods or toys. Later in 1966 the firm faced major loss (Quay, 2003).

Sales- Year 1961 saw that sales A.C Gilbert fell from some $1.1 million dollar showing up of $11.5 million. In 1962, sales of the firm were some $10.9 million. This up surged the entire loss with about $600,000. In the subsequent year, which was 1963, sales got down to $10.7 million with an enhancement in the loss to some $200,000. This depicted constant reduction in sales of the firm. In the year 1964, sales of A.C Gilbert exhibited $11.4 million later in the year 1965, firm’s sales was depicted to be $14.9 million. In the year 1966 sales $12.9 million and this provided the firm profits as well as loss.

Profit- Firm did not depict much profit, instead faced major loss since 1961. The firm in year 1961 summed up with profit of some $20,011 that was level performance of the company. Later, the organization stepped in 1962, with a proper loss recorded to be $281,000. Supplementary, in year, 1963 the gains got declined and it moved until 1966. The firm faced several troubles during this phase.

Supply chain-In entire these years ranging from year 1961 to year 1966, firm lost its delivery as well as proper performance of its supply chain. The firm performed good in its supply chain until the year 1962 but with these losses faced and lesser level of innovation and innovation management it misplaced its supply of goods to several retailers as per their demand and later the firm’s demand got affected (Smith, 1991). 

Analysis of major systems and processes

Staff and management performance and/or turnover- Overall turnover of the employees for the firm increased from year 1961. The firm worked within some vital regions of supplying quality toys. The new businessman who bought the business altered many staffs each year. Jack Warther correspondingly altered even top-level management staffs of the firm within the firm (Radley and Chamberlain, 2011).

Evaluation of effectiveness of review strategy as well as improvements needed-

Performance of the firm A.C. Gilbert could be measured with use of 3 performance tools as well as techniques that are explained above. There exist some tools and a technique that has been used by the firm involves the management techniques refining quality and never ending improvement. Constant improvement means continuing efforts of the firm to enhance the business functions and working. This enhances management, services, processes and products in the firm. Supply chain system within A.C Gilbert was effective and useful for the firm’s functions. Use of such systems and tools work for the firm performance A.C Gilbert faced loss of 1.1 million dollar in the year 1961 that led the firm to sell business to popular businessman named Jack Wrather (Irani and Sharp, 1997).

For the ongoing improvement, it is needed by A.C Gilbert to get PDCA cycle. PDCA cycle enhances the performance of the firm as they supply several steps to comprehend the action regarding to the organizations enhancement.  This is even known as the Deming cycle. Steps for perfect quality model inculcates plan, implementation of the plan and also, checking after implementation. There also exist other tools plus techniques for nonstop improvement, which are six-sigma and also total quality management. Ongoing improvement could be effectively attained in the firm by suing proper TQM. Theory of managing TQM supplies management the proper quality as well as people of the firm. Appropriate management of quality can be attained through TQM that improves quality and efficiency of goods and services (Morse, 2004).

Suggestions for enhancement of quality plus maintaining the constant improvement in the firm demand the firm to follow TQM process properly. A.C. Gilbert delivers the development in the firm continuously alongside the assistance of TQM.

Trends in the firm

Trends within a firm refer to constant performance of a firm that is continuing from past years. These years of a firm demand changes that ensure innovation in the working pattern plus the results. In 1950’s the firm did not recognize its trends that were referred to innovation within toys made. To stay in race of the competition trends of the firm has to be stridden with novel market tactic and strategies as well as competencies.

Evaluation of effectiveness of review strategy

Before to the year 1960 A.C. Gilbert trailed few Strengths as well as Weaknesses which are-



The firm followed outstanding market share in and before 1960

Business had no constancy in its trends. Weakness of firm involved non-stability.

Quality of goods was major strength of this firm.

Organization did not have universal nature because of which, the firm was not well prepared for adapting alterations quickly.   

Profits of A.C. Gilbert depicted incessant increase in firm as it had a respectable reputation as well as market share. Customers of the firm were fully satisfied

Standards of customer service were major weakness of firm, as it was not meeting expectations of buyers in terms of goods delivery.

This firm also delivers augmentation within its sales incessantly.

Innovation was rated the lowest in the firm

Manufacturing as well as production was seen to be a major strength of firm.

Performance of employee in the firm was decreasing with alterations in organization’s economic position.

Source: (, 2018)

Reputation- This business carried a well reputed name and fame within the industry because of good quality products and no compromise with buyer’s satisfaction. 

Stability- The firm carried a very stable form of business, but later the stability came to an end when the business had to take actions and start being flexible. 

Profit- The firm incurred loss due to its non-innovative and less flexible nature. Traditional dolls and toys for boys were main items sold by the firm. In modern age because of augmenting competition several novel toys entered the industry. This pulled the firm’s strategy back and led towards its loss.

Sales- In 1964, quality of the manufactured toys got declined and also designing got tainted from metal boxes to card boxes. Also the company used brittle as well as weak parts in place of strong and long lasting parts. Year 1965 passed away without any alterations or newness or innovation within the goods or toys. Later in 1966 the firm faced major loss 

Ability to adapt to change- Organization did not have universal nature because of which, the firm was not well prepared for adapting alterations quickly.   

Customer service standards- Standards of customer service were major weakness of firm, as it was not meeting expectations of buyers in terms of goods delivery.

Innovation- The firm was not at all innovative and thereby has to face several difficulties and negative situation within the market

Employee performance- Performance of employees in the firm was decreasing with alterations in organization’s economic position.

Production and manufacturing- Performance of A.C Gilbert was not enhanced and the firm suppressed a loss constantly for 6years. The loss carried a lower value as compared to earlier loss that was depicting uninterrupted improvement within the firm. There exist several activities that Jack Wrather performed within the firm.

There are several opportunities within a firm, which could have actually been an opening to the organization. They can be adaptive nature of the business, innovation or even competition. Innovation is seen as a vital element that can be utilized as a tool to fight competition as well as to cope up with forthcoming trends in the industry of toys. A.C Gilbert worked hard on its regular designs plus pattern targeting to the girls as well as boys. Traditional dolls and toys for boys were main items sold by the firm. In modern age because of augmenting competition several novel toys entered the industry. This pulled the firm’s strategy back and led towards its loss. Entry of novel racecars as well as Barbie dolls also became targets for the kids. The patterns and designs as well as themes of color could have been made additionally attractive by the firm and alterations in its varieties could have been a better option for the business to succeed (, 2018).  


What to achieve

Days required

Analyzing the changes or innovation

Innovative tools and techniques

15 days

Analyzing the innovation made by competitors

To offer new improved quality as well as designs

7 days

Calculating budget needed for innovation

Margins of profit

20 days

Assessing the amount of raw materials needed.

Raw materials

15 days

Communicating the techniques and innovation

Novel technologies as well as designs

10 days

Implementation of the changes

Appropriate execution plus implementation of the innovation

25 days

Suggestions for improvement

There exist several recommendations:

  1. Experts must try to communicate with this firm.
  2. The firm must focus upon changes and flexibilities.
  3. To recover its business as well as with an aim to enhance its profitability this firm must make sure that few novel technologies get installed in their production system.
  4. The firm must look for several available opportunities and must try to grab them. 

The vital considerations on opportunities involves- 

Engineers of the firm should supply the firm all novel and modern technologies to create toys in majorly effective as well as efficient time. They should stipulate several tools and techniques of proper quality management like TQM as well as several other activities of supply chain. The manufacturing as well as production staff should consider several techniques for enhancing the quality of goods like the quality management process and the sales personnel of firm should supply good level of customer satisfaction through delivering products on time plus as well as planning all the team of marketing suitably. HRM plays a vita role in providing the management its proper roles and responsibilities of diverse departments as well as to deliver them all properly managed resources with an aim to gain efficiency plus effectiveness within the business. For this, the HRM team should deliver proper team building as well as resource management. 

The firm should ponder marketing as well as marketing consultants as the most imperative part of the firm. Organization might think several marketing actions that can enhance its sales thereby promoting its goods and services. Innovative marketing crusades as well as appropriate medium selection has to be done for firm’s position in the market position. Even few professionals in advertising could be refereed regarding activities that can enhance sales of the firm. 


It can be concluded that the firm is extremely famous as well as a branded one in area of toys for children. A.C. Gilbert faced severe circumstances as well as economic situations from 1961 to 1966. In 1967 the firm has been shut down because of constant loss. Firm must emphasize on several skills as well as opportunities that could help the firm to attain success within tough rivalry.  

It is all about planning to enhance strategy of the firm. The tactic that can enhance the performance of firm involves vital requirement that is diagnosing opportunities as well as problems for augmenting the level of performance. 

  1. Strategic goals

For accomplishing improvement within the performance firm’s priority must be to recognize its new opportunities as well as some threats and few issues of firm. For A.C. Gilbert, analysis of tactical goals should be taken into consideration and tactical goals of firm are to be properly understood. Firm’s strategic aims and goals refer to the targeted aims and objectives that the firm desires to attain in next fiscal year. Firm’s strategic aims and goals in this year was- 

  • To attain sales of  $20 million in the year 1963.
  • To supply the firm with vast sales as well as maximum level of profit.
  • Replacement of existing staffs 
  • Introduction of more product lines
  • To enhance promotions 
  1. Proposed process and changes in the process

Trends in the firm

Proposed process of the firm refers to steps involving designing, plans, purchases, manufacturing as well as distribution. This process involves steps for which the firm attains processes of making goods and selling them to the market. 

Alterations within planned process might include the supplementary department of marketing as well as advertisement that could be needed for the firm. This procedure might involve designing, plans, procurement, manufacturing plus marketing as well as advertising plus distribution of goods. They provide the entire process that can work efficiently. 

  1. Explanations of enhancing level of performance through the proposal

Novel proposal to the firm will enhance the firm’s performance as well as competitiveness in very effective way as performance of the firm could be improved with proper marketing plus advertising team to attain novel ideas as well as tactics to promote the goods and upsurge the demand for the same. The competitiveness of the goods would enhance in market because of excessive promotions of goods and services can be communicated to customers and their capability to work on the same. 

Performance of this firm could be enhanced using novel proposal. Marketing as well as advertisement department could supply the firm with additional sales plus customer’s that would directly impact profits of this firm. 

  1. KRAs, KPIs, targets

Key result areas are the several results that is assumed to be supplied by the major indicators of performance.

Key performance indicators are main achievement space from which performance achievement could be conveyed.  

Utilities leverage key performance indicators evolve.

The process of translating an idea or concept or invention to a proper product or service which later would create value or for which people are ready to pay. To be said as an innovation, a concept has to be replicable at very economic cost as well as it has to satisfy a certain need. 

How are performance improvement strategies and innovation an essential element of competition? Provide examples of organizations to support your arguments.

The operations of a business and all its functions are complementary to all other vital functional roles of the firm organization, counting financial, technology management, customer management, marketing as well as customer service.  

Performance improvement strategies for A C Gilbert

Management brief and consultation: 

The consultation session might involve briefing about management and its strategies to the team members. It involves procedure of supplying the data and information that are made by manager for enhancing the performance of the firm. All the planned strategies involve extra advertising and marketing department within the development process of the product.

This procedure of firm inculcates changes in the firm with the count of marketing as well as advertisement section. 

The changes and improvement in the strategy includes the addition in the process which is the marketing and the advertisement department which will ensures the promotions of the new toys and enhance the demand for the same (Cheng, et. al., 2012). 

Strategies to implement to foster creative climate and organizational learning in the workplace 

  1. Challenge-Challenging, complex, as well as = interesting tasks plus goals can be assigned to staffs which would spur intrinsic motivation, that is considered a very critical component of creativity.
  2. Flexibility plus risk taking- A general reality of creative endeavors is that they are inherently uncertain. Staffs could be trained to be more flexible and risk takers
  3. Positive supervisor relations-Firm must support new ideas. Supervisors must accept innovations or team leader is critical for the further development and implementation of these ideas. Furthermore, leaders should publicly recognize and reward creative efforts.  

How will ideas be captured?

Creative tools and techniques

Creative tools and techniques to develop the concept and ideas are- 

Relationship marketing- it has to be taken into consideration by the firm to provide pleasing relationship of the firm with its customers. The relation with customers must be considered as the most important part of the firm.  

How will ideas be discussed and explored?

Lead sessions

  1. Group recommendations

Group recommendations are needed for opportunities and projects. This work has to be assigned to the several sections within the firm. Team of sales would make sure that firm’s sales; production as well as team of manufacturing ensures proper quality of goods made by the firm. Team of marketing as well as team of advertisement will make sure that augmentation takes place in the demand plus the promotional tactics.  

How will risks be evaluated?

A.C. Gilbert should consider proper strategy for analyzing risk, which involves 4 steps-

Mapping the strategy-

A.C. Gilbert should map as well as define main aims and goals plus mission and vision of firm to supply all the achievement needed by the business. Economic perspective this firm also needs to be considered.

Recognition of the risk- Second step is to recognize all the major risks linked with all novel tactics and strategies. Identification of such risk has to be considered on basis of buyer perspective, growth perspectives as well as process perspectives.

Measuring the risks- Immediately after risk identification assessment of risk is to be done by the firm. Here the organization must assess risk as well as analyze the affect of such risks upon the firm. Such evaluation will lead to steps like mitigation of risks, avoidance of risks, transferring the risks as well as accepting the risk.

Designing of system for risk control – it will involve diagnostic controls and boundary controls as well as internal control

  1. Problems in implication of new strategy
  2. Enhancement in the level of competition
  3. Additional cost might be incurred
  4. Reduction in the profits of the firm
  5. Complexity can be increased in the processes.

Implementation plan

continuous improvement process plan.

Examining aspects of the new process:

Production manager in the company is planning for implementation of a new process with an aim to enhance its productivity, reduce the wastage as well as to augment firm’s sustainability. It would even provide the decrease in the errors. Manager must allocate an expert in each product line. Number of experts needs to be increased within the firm. Next aim of the manager must be to lessen the rate of staff turnover. To attain this level of skill amongst staffs is to be amended and augmented.

Team talk- Major plan the manager might enhance productivity thereby reducing errors that would openly affect firm’s performance. Main plan is to divide the number of workers in 5 different teams. Specialty teams can be formed in which staffs will be placed under specialist within the specific work. Target has to provide to each team. To totally enhance this process as well as for proper implementation of the plan, all production lines of the firm has to be closed for some 48 hours while the training of staffs will be carried on.

Action plan for transition





Implementation of the process

Implementation of the novel process

Maintenance of proper working situations

30 days

Enhancement of sustainability

To allocate some new experts on duty

Optimum use of resources

10 days

Reduction of negative affect on people

Reduction of errors

Improvement of process

30 days





Implementation of the process

To implement the communication system

Improvement of the process

20 days

Enhancement of sustainability

Improve the communication within the firm

Improvement of process

10 days

Reduction of negative affect on people

To improve all activities of communication

Improvement of the process

20 days

Communication plan 

Contingency plans

The likely problems, that can take place while implementation, can be reduction of errors and supply of system set up for communication. Implementation of plans could deliver reduction of the errors as well as enhancement within its plans for communication (Irani and Sharp, 1997). 

Aimed at contingency plans, firm need to consider two activities that bears risk. Lessening of the errors should be coped up with proper as well as nonstop training of staffs. The staffs must be trained correctly for original application of the process with an aim to diminish errors. The professional might improve errors but would never eliminate this. It can be one done only with help of the training needs of staffs and workers.  

Issues that can take place in coming 8 weeks of the implementation are-

  1. Decrease in the firm’s productivity by 8%
  2. Increase in the wastage by 10%
  3. Increment in delays by 10%
  4. Few staffs can even resign
  5. Staffs can also complain regarding the difficulties they might face in handling new machines
  6. Fewer training might provides some amount of unprofessionalism.
  7. Staffs can get easily tired due to long shifts of working. 


From this study, it can be concluded that the firm requires appropriate management of its resources plus other facet. The firm named A.C. Gilbert should have considered several points to supply the proper management of branded goods and services it provide. The firm needs to be more flexible with changing market trend and altering technologies in order to maintain its position in the market. Improper allocation of the firm’s resources as well as inappropriate management of firm and its staff reduced its productivity as well as sales. Constant improvement plus innovations has to be avoided by this firm later resulted in tough situations. This business faced harsh circumstances and economic loss conditions from 1961 to 1966. These were result of ignore and non flexible nature of the organization. The firm need to emphasize on several skills as well as opportunities that can help the firm attain success and exist as well as maintain its position in this tough competing market.  


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