Aspects of Organizational History
Establishment of the Company
It is a professional audio organization that is located in Washington, D.C. The company was established in 1988 when it was known as Mackie Designs. It followed the success of two companies known as Audio Control and TAPCO, where it concentrated its efforts in producing a high-quality mixer. The company’s first product to be made was LM 1602 by Mackie Greg, which he placed on his bedroom in Washington, D.C. It operates in the United States, China, and Canada. It was previously referred to as Mackie Designs Corporation. However, the current name was established in 2003 to ensure a difference with the Mackie company, a mixing console producer. From 2003-2018, it has produced and distributed various instruments of music and pro-audio products (LOUD audio LLC, n.d.).
Growth of Loud
After four years of establishment, the company experienced significant growth, as there was an increased sale from 3.8-64 million dollars (Shu & Slaker, 2015). The increased sales imply that the organization could set up a proper factory, producing CR 1604 mixers. The new form of mixers provides various features and could be sold at a competitive price because of its multiple applications. As a result, there was the sale of thousands of CR 1604 mixers in the next half a decade. It accounted for more than forty-eight percent of the company’s total revenue in the same period.
More than 100% of its increased revenue implied that it started relocating its factories and expanding annually. In 1994, the company established a three thousand squire foot factory. After a year, it sold a 100,000th mixer (Olswang et al., 2015). These significant achievements established a ninety thousand square foot factory and started the production of automated assembly machines. These were essential in ensuring an increased production and improvement of quality, which increased sales. With the production of eight mixers, the company entered into the initial public stock exchange.
Diversification/acquisitions
In 1996, it started producing active audio monitors & power amps, while also increasing large format mixers. In 1996, it started making a digital-8 recording mixer, which became the company’s first digital mixer (Loud technologies – Crunchbase company profile & funding, n.d.). After two years, it started expanding beyond its established brand and acquired Radio Cine Forniture, which was then powered by the company’s loudspeaker after one year. In 2000, there was the acquisition of Eastern Acoustic Works. After a year, the company’s primary revenue source was from speakers’ sales (55% of its revenue). The company experienced share losses. As such, Sun Capital Company acquired sixty-five percent of the company, delisting it from NASDAQ. Greg quit the company, only offering advisory services when required. As such, it started outsourcing for its products. In the same year, the company was renamed LOUD Technologies to differentiate it from the previous brand. The company’s acquisition by Transom Capital in 2017, where its name was also changed to Loud Audio. The current brands mainly focused on their Mackie business.
Resources Controlled by Loud
Since its rebranding, the company has been working to make loudspeakers, amps, audio software, music software, orchestral music instruments, guitars, and commercial audio systems to ensure revenue and sustainability. In doing so, it has acquired various brands like Crate, Alvarez, AMPEG, TAPCO, Martin Audio, Mackie, and many more that have become under the ownership of the company. Besides, the company is controlling the Eastern Acoustic Works, which is also a maker of loudspeakers. There has been useful in generating profits for the company and, thus, financial muscle to continue expanding. The products are sold through retailers and sound contractors in China, the United States, and Canada (Rogers et al., 2015). The current owner of the company is Sun Mackie, which is a private organization under Sun Capital.
Number of Employees and the Locations
The number of employees found in the company is five hundred and thirty-three. At the top position, there is the CEO of the company, Alex Nelson. The organization has employed engineers, marketers, and distributors. This group of employees enables the company to produce its products and distribute them in the United States, Canada, and China. As such, they are based on the three countries. The products currently being distributed include sound reinforcement systems, recorders, and analog/digital mixers. The primary distribution channel used by the company include retailers, contractors, and e-commerce platforms.
Business Operations
The company is in the audio industry, where it is involved in the production of loudspeakers, amplifiers, analog/digital mixers, sound reinforcement systems, and guitars. Thee has been helpful to the musicians, enabling them to bring music to the masses.
Primary customers and suppliers
The primary customers seeking the products of the company include musicians. As evident from its mission, the company provides musicians with instruments and technologies, enabling them to bring music to the public. It has combined more than one hundred sound channels to make audio systems, amps, software, guitars, loudspeakers, etc. to enable the musicians to achieve the goal of entertaining the public (Lang, 2015). The company started outsourcing for raw materials from foreign companies to reduce costs.
Basic Business Model
The company is employing the distribution-based business model. It has established distribution channels through retailers to supply its products in the United States, China, and Canada. Since the rebranding of business in 2017, it has been able to sell its products through brokers, contractors, and retailers. The primary goal of using the channel is not to worry about how its products will reach the customer. It depends on the retailers, contractors, and e-commerce systems to ensure that it can bring customers. The model has also been useful in distributing products to the end-users, ensuring that they can meet customers’ demands in the three regions. It is an efficient and most direct-cost effective way of doing business. The model is simple to use, as there are no detailed logistics, warehousing, and storage problems.
Mission and Vision Statement
The mission of the company is to offer help to musicians to bring music to the masses. It has the vision to become the best known multi-channel mixing console, as it aims to combine more than one hundred sound channels. As a result, the company has been working since its rebranding to make loudspeakers, amps, audio software, music software, orchestral music instruments, guitars, and commercial audio systems, as an essential way of ensuring that this goal has been attained. For this goal to be achieved, the organization relies on suppliers to provide materials useful in producing the mentioned items.
Description to Stakeholders
The employees headed by Alex Nelson, the company’s CEO, are the first group of stakeholders, enabling its operation. As a result, they see the production and distribution of their products. Secondly, retailers and contractors play a critical role in distributing products in the United States, China, and Canada. As such, they enable the company to generate revenue. Besides, the suppliers also form an essential group of stakeholders because they provide raw materials to ensure financial musical products. Over the years, the company has made various acquisitions of companies like Mackie, Martin Audio, Crate Company, TAPCO, Alvarez, and AMPEG. Besides, it has acquired EAW, which is involved in the production of loudspeakers. The organization is also affiliated with the Sun Mackie, which is a private company. As a result, these play a critical role in the operations of the business. The government of the three nations is also a crucial stakeholder that has to be considered. They have different tax policies and business laws that require the company to operate in the regions to abide by. While selling its products, the company is expected to pay taxes to the three countries, making them a significant stakeholder. The last group of stakeholders includes customers where the organization has ensured the production of high-quality analog and digital mixers distributed in the three countries. It has a large customer base, which generates revenue for its operations and ensures its sustainability.
Loud Culture
The company has established an adhocracy culture, where it has created an innovative environment allowing employees to take chances and become creators. These have ensured agility, as the employees are working to improve the organization. It has also concentrated on improving its customer base, where there it is acquiring new firms. In addition to audio systems production, the organization is acquiring new companies like Mackie, Martin Audio, Crate Company, TAPCO, Alvarez, AMPEG, and EAW. It has been a useful strategy in increasing its customer base while also ensuring that it generates revenue. It will be an essential strategy in ensuring sustainability even though it experienced losses in 2003.
Ways through which Culture Influence Behaviors
The culture developed by the company affects the behaviors of employees. It has been essential in promoting motivating, learning individuals, involving communication, and ensuring that they make informed decisions for the business’s improvement.
Ways through which culture shape the Stakeholder’s Opinion of the Company
The organization’s ability to acquire new firms has changed its image among the stakeholders, as it creates a reputation by becoming a significant player among the competitors. It has increased its customer base. The organization’s performance as a result of its expansionist policy has improved performance and increased the returns.
The things that the company does best/Aspects of the Company that doesn’t do well
The things that go well for the company include the use of retailers and contractors charged with selling their products. As such, it is a cost-effective way of transporting their products. However, it causes a challenge for the company as there is no customer contact, and there may be opportunistic behaviors by the retailers/contractors. The organization has also involved e-marketing, which has enabled it to sell its products via the internet. Besides, the increased rate of acquiring new companies and expanding its customer base is a significant achievement. Hence, there is a need for the company to increase its marketing efforts.
Trends Affecting the Company
Currently, audio companies have started exploring their potential through audio branding. It is because there is an increased number of brands that are competing with the LOUD Company. The increased competition is a threat to the company, as it may reduce its profits. Secondly, companies have increased online marketing use, creating LOUD’s need to do the same. Besides, e-commerce is also growing, as companies have been using them to sell their products to customers (5 predictions for the future of audio marketing, n.d.). It is an opportunity for the business to increase its marketing share all over the globe.
References
Five predictions for the future of audio marketing. (n.d.). CMO.adobe.com. https://cmo.adobe.com/articles/2019/2/5-predictions-for-the-future-of-audio-in-2019.html#gs.i0yjae
Lang, J. P. (2015). U.S. Patent No. 9,031,244. Washington, DC: U.S. Patent and Trademark Office.
LOUD Audio LLC. (n.d.). Bloomberg.com. https://www.bloomberg.com/profile/company/1618290D:US
Loud technologies – Crunchbase company profile & funding. (n.d.). Crunchbase. https://www.crunchbase.com/organization/loud-technologies
Olswang, B. S., Humphrey, J. M., Frederick, F. L., O’neill, N. P., Jordan, G. C., Swendseid, K., & Boudreau, J. P. (2015). U.S. Patent Application No. 29/457,080.
Rogers, G., Clark, R., Williamson, M., Davies, C., Wrigley, J., Money, A., … & Cook, D. (2015). U.S. Patent Application No. 29/511,382.
Shu, X., & Slaker, V. (2015). U.S. Patent Application No. 29/443,767.