The cutting-off of expenses from operation will mean lesser production costs and thus a chance to decrease prices. The activities or operations will change according in correspondence to changes in target costs. SHC Engineering targets to become more and more efficient in their operations as they implemented changes in the organizational culture. This means that the way things are done in the company changed: from the lowest level to the highest level position. Although the change might only be implemented at one level, the whole organization is subject to be affected as all departments are interconnected.
SHC Engineering Group’s changes came in the form of the improvement of its people. Research and development efforts were doubled to be a foundation on system solutions for their products. The company tries to expand its horizon from the usual services they are offering to some other possible technologies and products that could be introduced to the market by them. And aside from making their prices competitive enough to compete with China Prices, the tradition of providing the ‘best solutions’ for the clients has not been taken for granted.
In fact, their sales department where trained to think “out of the box” and go beyond selling products to creating solutions for their clients. From just selling products, SHC Engineering is now focused on providing solutions. This shift in organizational view changes the way the managers direct their employees. The sales people become more sensitive to the needs of their customers and the remaining support become more supportive and attentive to the problems of clients.
From the simple company with vision of only providing oil, gas and water services, SHC Engineering Group now face the challenge majority of the companies around the globe face. The change which happened due to the rising competition can be evaluated as to be helpful in sustaining the company. If we are to compare, the situation SHC Engineering has is better than some because there were instances when some companies can not sustain their operations and can not compete anymore in the market then went bankrupt if not merged or consolidated with other strong and sustaining companies Read More Here.
Thus it can be concluded that the negative externalities the competition give have been used by SHC Engineering as a challenge. The changes in their organizational culture are made because their earlier traditions can not help them cope up with the dynamic and pressuring competition in the market. The changes may be a shock but they helped them SHC Engineering Group sustain its position in the industry.
