Reliant - the Plastic Pic - Strategic Management

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Haynes also acknowledged the importance of the Dealers in promoting the product and with Reliant struggling with cash flow the Dealers carried greater influence and power than perhaps normal, (see power and interest grid – Figure 4). Seeking their opinion was useful in reinforcing relationships to assist with prompt payment. As consumer demand increased Dealers would shift to the left of the grid.[pic 7][pic 8]

Lastly, Haynes was conscious of the need for continuing investor support and endeavoured to keep them up to date on short term initiatives (new sports car, opportunity he perceived with small commercial vans) to ensure their continuing funding.

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Question 3: Why was Haynes initial approach more revolutionary or transformational approach than evolutionary? Despite this, what aspects of Reliant’s past would you continue with into the future?

Corporate transformation was required as Reliant had been in receivership three times in five years, and the company needed to transform itself to meet changing customer demands and increased competition. Furthermore, from the case study we see there were areas of the business Haynes perceived as inefficient (20 staff making the bodies of the car by hand) requiring modular transformation.

These are difficult changes to make and typically take planning and time, something Haynes didn’t have, (along with low cash reserves)! Incumbent staff were cynical and uncertain if this latest manager would succeed when others had failed. While staff were valuable to the firm, they were also used to doing things one way and some were resistant to new ideas.

[pic 9]

These factors required Haynes to take a revolutionary or transformation approach requiring him at times to be coercive in the face of opposition, (chopper guns) and at other times be directive (targets for sales of spare parts) as staff were willing but time was short.[pic 10][pic 11][pic 12][pic 13]

Looking to the future Reliant need to retain the value in their history as a great ‘British’ motor vehicle brand delivering an innovative and unique product. Due to their size Reliant cannot compete with cheap imports or large scale manufacturers, they need to carefully scan the market and look for a gap or niche opportunity allowing them to build on their existing brand value.

Reliant also need to continue understanding the needs of ‘their’ customers in order to retain existing loyalty. This loyalty drives repeat business in the face of public mockery which is no small achievement.

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References

Angwin, D., Cummings, S., & Smith, C. (2011). THE STRATEGY PATHFINDER: CORE CONCEPTS AND LIVE CASES (2ND EDITION). Chichester: Wiley.

BBC News | End of the road for Reliant Robin. (2000, September 27). Retrieved May 25, 2015, from http://news.bbc.co.uk/2/hi/business/945083.stm

Payne, E. (n.d.). Brief History of the Reliant Motor Company. Retrieved May 26, 2015, from http://www.3wheelers.com/reliant/history.html

Reliant - WOW.com. (2015, May 8). Retrieved May 27, 2015, from http://content.wow.com/wiki/Reliant#Post-war_period

SuperOldShows. (2014, June 29). Trouble at the Top - Reliant Motors - YouTube. Retrieved May 24, 2015, from https://www.youtube.com/watch?v=Cm3RgR9-91M