Buckman Laboratories International, Inc. Company

Buckman Laboratories International, Inc.

Company History

Buckman Laboratories had been founded in 1945 by Dr. Stanley Buckman. During the 50s, the company already had customers from the leather, paint, coatings or plastics industries. Internationalization followed during the 70s, with sales and manufacturing companies in South Africa, Brazil and Australia.

Key Management

Robert Buckman is the CEO and chairman of the company, following his father's death. His goal is to turn Buckman Laboratories into a global company and to ensure management changes adapted to the new times. Aimed to create a customer-driven company, he expanded the sales force.

Competitive Environment

Competition became a serious cause for concern for the company during the 90s, many of them much larger than Buckman Laboratories. In terms of knowledge management, I don't think we have enough information to discuss the competitive environment.

External Environment would refer here to a factor that plays an important role in a knowledge management system: the technological factor. Advancement in technology made it possible to implement network connection and full time access, from any part of the world. Additionally, the 90s technological changes brought about further improvements.

5. Problem Identification

The most important problem that Bob keenly identified related to the reliability of information and trust in a virtual world. Given the fact that the network was all about information, providing, sharing and managing information, if this was unreliable, then everything else would not work.

The second problem refers to the costs that K'Netix brought about. Even if the system had been a success, there was already an ascending cost trend, if we mention the $90,000 per months spent. Finally, the drop in forum usage should be a third issue to debate.

6. 1) the key element of K'Netix was that any employer within the company could have instant access to information and to the company's entire network from any place in the world. Additionally, the platform was designed for people who were not computer experts, with an easily accessible interface. Finally, the platform created a large forum within the company, where everyone could post questions and answers.

2) the case study presents a success story for a company that successfully implemented such a knowledge management system. So, in my opinion, the most important thing that needs to be understood and applied is that information needs to have two essential attributes in order to be valuable: it needs to be viable and it needs to be accessible.

3) Senior management, given their visionary and strategic planning role, should probably regard this as an investment for the future, when information acquired and spread today brings a future gain.

4) the knowledge management system is clearly part of a strategic plan, since it is designed as a long-term project meant to create long-term sustainable value.

7. Alternative Options

Unfortunately, the most important problem of all does not have a practical option. In general, information should be verified. In a network like the one at Buckman, this is however impossible and we have to be concerned about the fast pace with which information propagates itself. I would propose, in this sense, a group of highly informed moderators working on the forum that would be able to double check any information provided, with constant reports as to the number of false information, etc. (because if this number is high, then we would probably have no use for the forum anymore).

The drop in forum usage is, in my opinion, a temporary concern. I agree with the fact that it comes from getting used with the new system. As for the cost issue, the 90s have definitely been the age of information. Information costs money and is the most valuable asset. As such, the cost increase is fully justified.

8. Optimal solution

The optimal solution is mainly concerned with how to act against false information spreading on the forum and into the company. As I have mentioned previously, the moderator solution may prove viable.

On the other hand, the knowledge management system that was implemented was in full concordance with the company's mission and its new goal to invert the pyramid and an increased accent on the consumer. K'Netix facilitated this customer-sales person relationship, because the company could be much easier "tuned into the customers"

1. History of L.L.Bean

The company's history goes way back to 1912, when the founder of the company started business. This subsequently grew during the 20th century to reach over $120 million in 1980. Figures continued to grow during the 80s, with an increasingly large amounts of catalogues sent to customers around the country.

2. Key management

Leon Gorman was hired within his grandfather's company in 1961 and had brought a series of prosperous novelties for the company in the subsequent years, like increasing advertising and free catalogues. Currently, Gorman is attempting to find solutions for several key issues related to the company's future growth and development.

William T. End is the company's marketing director, hired in 1975 as a representative of the new management wave (he has a degree from Harvard Business School). He was the artist of several important changes that came to increase catalogue sales.

3. Competitive situation

Eddie Bauer was the most important competitor for L.L. Bean on the outdoor products and sports equipment. Data had showed that Bauer was the first substitute choice for Bean's customers and it had a strong presence in the Pacific.

Talbots was a strong competitor on the specific women's appareil segment. Using a 64-pages catalogues, the company commercialized brands such as Ciao or Robert Scott. Overall, L.L. Bean has a competitive advantage over competitors through its low prices.

4. External Environment

There are three categories of external factors worth discussing: socioeconomic factors, external factors and competitive factors. In terms of socioeconomic factors, the company's business was affected by the growing of elderly population, people who stayed more at home and were predisposed to prefer mail orders. Additionally, more women had joined the workforce and found less time to spend in traditional stores.

The rise in gasoline prices during the 70s provided the mail order alternative for many customers. Further more, low data processing costs remained a general positive characteristics for the industry.

Unsatisfactory service in stores and the inconvenient store hours, among several competitive factors meant that people preferred using mail orders rather than shopping at a store.

5. Problem Identification

Gorman developed a comprising list of problems and issues for the company to deal with. The first problem related to future growth within the company. In any business, applicable here as well, one can use several methods, such as acquisitions, business diversification, increased sales, etc. Each methodology provided its own set of separate problems. In the case of acquisitions, the company would have to find ways to integrate the newly arrived and create positive synergies. On the other hand, could one increase sales without giving up on quality? Finally, a serious problem related to managing the company as a family-owned business. Would this be achievable during the economic conditions of the 80s?

6. 1) the company had managed to create a solid base of customers by providing cheap and high quality services. Relying on the initial strong financial structure that the company's founder had left, the successors were able to build upon that and implement some new managerial ideas during the 70s, which proved highly profitable.

2) the mail order business had obviously been a success for the company, in terms of financial revenues, brand awareness, etc. Undeniably, it had continued to bring high profits for the company and consistent growth rates. On the other hand, in my opinion, the mail order business is beginning to come to a certain saturation level for L.L.Bean. The figures speak for themselves and I am not sure that the mail order business can continue to produce high figures in the future.

7. Alternative solutions

The company needs to decide on one of several methods that will ensure future growth in the future. This includes acquisitions in the same business, business diversification by starting something else as well, finding some non-mail order options, such as international expansion, etc.

Additionally, the company needs to decide whether it will remain family-owned or turn to public management. Third of all, solutions for increasing sales should be either giving up quality or maintaining quality and improving productivity.

8. Optimal solution

In my opinion, the best and least risky solution is to turn to some of the non-mail options. I would strongly suggest, for example, the retail sales option, as there is a steady growth in this area, as figures have shown. Additionally, the company should remain family-owned, because it is something closely linked to the overall image of the company and it goes back to the very beginnings. As for quality, this shouldn't be discussed: the company has built its fortune relying on excellent services.

1. We should best refer to two major environmental issues that may have affected Australian papers Manufacturers and analyze how strategic planning was adjusted to these new methods. These two major issues are deforestation and chemical treatment of paper.

APM was the largest private forest plantation owner in Australia and, as such, showed the Australian public an increasing interest in forest preservation and forest management. Strategic planning involved in this case comprised research and studies on tree-breeding, as well as a long-term plan meant to balance demand and supply of wood and trees, a plan that included consistent regrowth programs.

The environmentalists, however, feared "monocultures," which meant that one variety of trees was used persistently and this action did not provide the positive effects that natural diversity had, especially in terms of disease resistance, etc.