Factors Causing to Sales Decrease and Solutions for Service Improvement, A Case Study of TMGS Group Company Limited

Abstract

The objectives of this study were 1) to analyze the factors causing the decrease of sales, net profit, and satisfaction, 2) to present the alternative strategies to increase sale for the organization by using the concepts, the theories, and the tools relating to 7s McKinsey Framework as a means to see through strengths and weakness. The analytical tools that relate to the Five Forces Model were applied to consider the violence of factors in the organization. Additionally, the study exerted those tools in the analysis of the external environment to review opportunity and obstacle, to find the factors outside the organization, and when discovered the true reasons, the results would be demonstrated in the form of cause and effect diagrams to analyze the problems. The data would be processed by SWOT analysis to consider strengths and weaknesses of the organization, opportunity and obstacles outside the organization. The data contained primary data and secondary data collected from the interview with the sample group, utilizing open questions. According to the study, the causes came from 2 main groups of customers which are Premium Group and A group that made a service contract with the organization longer than 4 years and they terminated the contract which led to the loss of income. And then the profit decreased. The 2 alternative organizational strategies consisted of the use of Diversification growth strategy by concentric diversification for existing services that relate to the in-depth risk assessment business in high-low voltage electrical system cooperating with the program owner, and Mixed strategies by sub-contracting with other contractors or contract partners or partner of contract partner to be the substitute of the service jobs that the organization receives from the customers, as an additional income. The key factors to success are good planning, teamwork, and effective follow-up. These will increase income and net profit.