The AUS Inc. conundrum

Fictional American United States (AUS) Inc an enterprise, formed over 240 years ago, is well known in its field. Over this period of time the enterprise, which has grown into a behemoth, has established a rich history of innovation, scaling and responding to the needs of its customer base. Thanks to its wide sphere of influence and its sometimes controversial methods, it has attracted, in equal measure, awe, respect, admiration, fear and hatred from friends, foes and competitors.

VxCine is the current flagship product of AUS Inc, designed to address the C-19 problem that has vexed researchers and people around the world in recent times. AUS Inc has two main divisions, GOP – responsible for sales and marketing and Dems – responsible for R&D, production and distribution. For Q4 2020 quarter AUS Inc, under stewardship of CEO from GOP division, reported $74 billion in sales and $81 billion in expenses. It’s the biggest loss in AUS history and under pressure from the public a new CEO, from Dems division, assumed leadership role as CEO in January’ 2021.

The unprecedented loss in Q4 2020 was attributed to quality issues with the VxCine product. The aggrieved GOP division has accused the Dems division of stealing a march and getting a raw deal. Per GOP division sources losses can be reversed quickly by budgeting more for sales and marketing and solving quality and production, distribution problems on the fly with emphasis on moving at warp speed. The Dems leadership, on the other hand, have advocated for a more deliberate approach by increasing investment in R&D, streamlining and standardizing production and distribution. Per Dems the problems with VxCine run deep and require both a short-term and long-term approach for restoring AUS to good health. For the short-term, the Dems want to target the highest priority VxCine problems with alacrity which they expect to act as a shot in the arm cutting down the losses and returning back to profitability relatively quickly. For the longer term the Dems’ fix will require a overhaul of production and distribution processes and more spending on R&D to strengthen the offering and ensure consistently high quality product. The Dems contend GOP approach will result in more problems getting reported and resources getting diverted from more important tasks and their own approach will be better for long term health of AUS Inc.

Both approaches have their own merits and drawbacks. Continuing with GOP approach would probably improve the top line while addressing the existing problems could act as a drag on the bottom line. The Dems proposal comes with a hefty price tag involving transformational change with risk of falling short if the plan does not work as expected. Dems say that’s needed for the long term viability and stability of the enterprise. AUS Inc finds itself at the crossroads of history. Remains to be seen how it all works out. The world is watching 🙏

Author: Rajaram 'Raj' Gopalan

Hi All, Welcome to my home in cyberspace! You can call me Raj. Feel free to explore, discuss, comment and most importantly have a good time!

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