Final Case Exam. Flip Factory, Inc. Case Study Report

Flip Factory, Inc. Case Study Report
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Flip Factory, Inc. Case Study Report
Main Issues
The flip factory has reported an excellent track record in customer maintenance, employee retaining, and improvement in revenue generations. However, the founder, Traviss, has several decisions to make at the moment. Traviss is looking forward to attaining a proper work-life balance (Grogaard, 2016). However, this does not seem to be a reality for her at the moment because she is so much committed to the organization’s work. Additionally, she is yet to decide whether to focus on the organization’s expansion or if it the right time to work on improving the organization’s efficiency and not expand the business anymore (Grogaard, 2016). These challenges are faced by nearly every founder and manager of the corporation. Still, the critical thing to note is which step to make so that the organization can maintain its competitive advantage (Grogaard, 2016). In this section of the Flip Factor’s report, critical issues about the organization are discussed. It is argued that for Flip Factory Inc. to consider itself financially successful, it must achieve revenue growth of forty percent by the year 2016, and the recommendations in this report would help her enjoy an excellent work-life balance and have a prosperous organization.
The first main issue that Flip Factory Inc. must focus on is how it will use the available qualified employees to improve its profitability. Employees form crucial parts of the business, and their involvement in an organization would determine either the success or downfall of the organization (Grogaard, 2016). As witnessed from the case study, Traviss has maintained good relations with her employees, and she, therefore, moves along with them (Grogaard, 2016). The close contact that she had with one of her employees enabled her to sell a portion of the business to her, a move that enabled her to enjoy work-life balance in some sense. However, it is now the time for Traviss to look into the situation more in-depth and find a suitable approach in which she will employ to utilize the skills and expertise of her employees to achieve success. It is, however, essential to note that this might require her to formulate group thinking strategies where every employee brainstorms for the way forward.
On the same concept of using an available workforce to achieve higher profits, Traviss would have to consider motivational approaches. Nevertheless, this would even require her to look deeper into how she would employ both intrinsic and extrinsic motivational approaches to achieve higher profits. However, it would additionally force Travis to include evaluation approaches to help in identifying the extent to which the motivation strategies contribute to organizational profitability. Are there employees who recorded higher productivity after receiving bonuses and work incentives? These and many more would help in finding effective non-expensive ways of motivating the employees without recording huge losses.
In addition to employee motivation, Travis would want to assess how she would delegate duties to the workforce. Even though she is looking for ways to relax more, she must have a better delegation technique so that work can often continue in her presence. This, however, will require better training for the employees so that they can do everything in the absence of their employer. Trusting the employees would, therefore, become the priority for Travis. She will have to determine the threshold of a work well done., by asking a question such as what constitutes good work, can an 80% successful work be considered good? Furthermore, how does the organization ensure that employees maintain better jobs? Such questions would, therefore, require Travis to think broadly to attain higher portability and to ensure that everyone in the organization is satisfied with the organizational operations.
The next pressing issue at Flip Factory Inc. is how the organization will proceed by offering unique reactional activities in the market? Currently, the organization majors on recreational activities with fitness, and it does not face a lot of competition (Grogaard, 2016). Traviss is, therefore, left with a big decision making task on how she will scale up the organization to dominate the recreational industry. As of now, the organization enjoys monopoly powers in the industry, but this does not mean that the organization might face stiff competition in the future (Grogaard, 2016). Several organizations might enter into the market with better strategies to rid Flip Factory Inc. (Grogaard, 2016). out of the market. Travis must, therefore, note that to achieve higher profitability and to maintain dominance in the market, the company must have several alternatives to escape stiff competition and to continue to enjoy more customer base. More actions such as devising a new model of business and making it harder for other companies to enter the market would be a plus for the Flip factory’s success.
On the same concept of availing unique products, the organization would have to encourage creativity and innovation in the workplace. Creativity would, therefore, be used as an organizational tool to outsmart other competitors in the organization. For this to happen, Travis would have to encourage both horizontal and vertical communication and free implementation of good ideas raised by the employees to make the workplace a better place (Grogaard, 2016). Achieving the targeted profitability rate would mean that the organization maintains good relations with the employees and adopt various unique ideas. Innovation would lead to the creation of new lines of products in the market (Grogaard, 2016). More clients would, therefore, choose the organization’s services because of the originality and big difference their products have in terms of quality, price range, and accessibility.
Analysis
Flip factory Inc. has both internal and external business environments. The internal environment of this organization involves factors which influence its operations within the business. First, a component of this environment includes skilled employees currently working in the organization. As evident from the case study, Travis employed her former students who were professional gymnasts and high-level athletes (Grogaard, 2016). She, therefore, selected the most experienced coaches and athletes to join her company. Currently, the organization comprises skilled employees who understand their work roles and are committed than ever to achieve organizational goals. The next internal factor worth mentioning is the organizational culture. Travis created a customer-centric organizational culture. This means that in most of the organization’s operations, Traviss looked forward to meeting the employees’ needs and serving them better. According to this culture, Traviss believed that more customers would troop into the business. Also, the organization encouraged openness and transparency among the employees (Grogaard, 2016). According to Travis, this was an essential way of creating a harmonious workplace and encouraging everyone to participate openly in all business operations.
The next crucial internal factor evident in the Flip factory Inc. refers to organizational structures. The company has well-laid policies that govern the coaches and athletes on what to do. Already, there are designated roles of each employee, and this helps in ensuring improvement in the workflow (Grogaard, 2016). The most qualified employees in each docket are assigned roles that matched their professionalism. Additionally, the organizational rules were not strict to the extent of preventing free association among employees (Grogaard, 2016). Additionally, financial resources form a crucial component of the internal business environment. As evident from the organization case study, Travis has enough financial resources that would help in expanding business operations. These resources might not be sufficient, similar to all other kinds of organizational resources. Traviss, might, however, look for other additional financial resources such as loans to expand their business operations.
External components of the organization include potential competitions in the industry. Even though Flip factory has less competition in the recreational market, there are higher chances for a new entry in the market. More entry into the market would, therefore, translate to higher competition for the available customers. Apart from competitors, consumers also form a crucial part of the organization’s external market. The flip factory has no overall control over the consumers’ tastes and preferences. Changes in technological advancements additionally constitute an external business factor that influences the company’s operations. New companies might enter the market with modern technological advancements. Organizations with improved technological advancements might, therefore, develop better recreational facilities compared to those offered by Flip. Due to this, Flip should, therefore, focus on the appropriate ways to respond to such technological disruptions.
Financial Analysis
Table 1: Financial Analysis.

2012

Net profit margin

2013

Net profit margin

Horizontal Analysis

Revenue






Preschool Program

$140,749

21.41
...