Synergetic Solutions Inc.

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Synergetic Solutions Inc.
“Synergetic Solutions Inc. is a $6 million company in the business of system integration – assembling and reselling leading computers brands. It has 300 employees – mostly in the sales and service departments – working in five locations across the East Coast. Most employees in this trading organization possess only basic computer assembling and troubleshooting skills, while a few higher-skilled individuals operate as the specialists” (University of Phoenix, 2002).
Two years ago, due to stagnation in the system integration market, Harold Redd, Chief Executive Officer investigated the possibilities of adding, designing, building, and implementing complex computer networks into Synergetic as a means to increase revenue. Synergetic has received a contract worth $1.2 million for designing a network and is currently working on contracts worth $5 million.
Redd decided Synergetic should focus on networking designs as a primary source of income and has set a target goal of $12 million total revenue in the next 9 months of which 80% is the goal of network design and building. Redd has invested in 4 engineers to receive training and certification in networking technologies with the end goal of drawing new customers to Synergetic thereby increasing total sales and profits.
Synergetic, facing reduction of revenue, desire to increase profitability, employee dissatisfaction, changes in consumer purchasing patterns, declining market shares due to competition, and changes in technology due to stagnation caused by the current economic conditions. Synergetic is proposing the following plan to change the mainstream business structure from assembly and troubleshooting of computers to designing and building complex computer networks thus keeping up and surpassing current market shareholders. Synergetic identified the reduction in revenue, desire to…...

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