Serengeti Eywear - Management Functions
...clipse. Selecting the proper systems that fit SE's objectives. III. Designing the Structure, Process and Systems that provide context for the operations of the business, so that capabilities increase in areas that permit moving toward strategic objectives. • The General Manager is responsible to design & shape the organization structure that divide the work into activities and further divide the activities into manageable jobs. Group these units and jobs into an organization structure, select people for the management of these units and for the jobs to be done. Groups should be built into highly effective teams. Example: Mustafa has clearly define the organization structure of his company by classifying the work and dividing it into the following departments: Sales, System, Operation, Marketing and Controlling Department. The units of the organization are explicitly defined and its policies, procedures, lines of authority, relationships between departments and goals are clearly stated. • The General Manager is also responsible to design & shape the organization process to manage and organize all related activities. The activities present a stream of relevant, interconnected activities that must be performed in sequence – the right things in the right way- with clearly identified inputs and outputs to produce the desired outcome that deliver value to customers. All the activities in the process work together toward a common goal. People performing different steps of a process must all be aligned around a single purpose, instead of focusing on their individual tasks in isolation. Examples: The operation process is entirely outsourced except lens blanks that manufactured by Corning. The glass is manufactured (melted and shaped) by corning. Grinding and polishing process is done by subcontractors in Japan. Frames and assembly process is done by Partners in Japan, Hong Kong, France, Italy and US. • The General Manager is also responsible to design and shape the organization system. Systems are affecting the behaviour of people on your team in the organization. Sometimes the staffs become victims of the system. They shape behaviour and actions. Therefore, GM's are responsible to design and shape effective system that support the work, maximize staff efficiency and effectiveness, and make it easier for them to do their jobs. The Managers have to design different system such as: system for accounts, budgeting, rewards and punishments, information system, payroll, training, operation, marketing, recruitment system ..etc. Examples Mustafa has designed a system for the quality assurance system and assigned this task to the four manufacturing managers that were stationed in different regions of the world and worked on site with suppliers on daily basis. Mustafa has assigned upgrading the information system at SE to the System Manager in order to meet the needs of staff, customers, country manufacturing managers and suppliers as well as connecting SE with Corning via an electronic mail network. MANAGERS AS DOER IV. Intervening personally where necessary to drive forward and raise the quality of day-to-day business and organizational performance. The job involves learning from the reactions of customers, suppliers, competitors, and other constituencies interested in the corporation. The ethical and intellectual standards, value judgment, personal principles, observation of working hours, approach to people, attention to customers, and consideration of family are the unquestionable and required role model foundation for top management image. He must have the following capabilities: He has a critical influence in his choices of where or when to intervene Driving people to feats to do things that they don't realize they are capable of achieving. Have sufficient analytical skills to be capable of diagnosing both the economic and administrative components of situations. Ability to see patterns in details Ability to develop good judgment by applying their intuition. Creativity, ability to take risk and the ability to integrate. Ability to utilize time effectively. Giving attentions to models and customer satisfaction Ability to sell his ideas to superiors. Good team leader Catalyst for change Disturbance handler Negotiator Ability to motivate people Innovator Ability to communicate Monitoring the environment and taking the right actions to correct deviations. Examples Mustafa constantly monitoring changes in the local and global markets conditions to sustain a competitive advantage. He was travelling all the time and visiting suppliers, knowing his products, sitting with customers, anticipating changes in demand and technologies…etc. Mustafa challenging his staff in order to directing them to the desired goals or objectives. He challenged his manufacturing manager to do a task and she succeeded in that in spite of the hesitation that was expressed at the beginning about her ability to perform the tasks. Case Study: Serengeti Eyewear Case Questions: -What are the issues? How the issues will be resolve?? Issue: Mustafa feared that the new product "Eclipse" might not provide a compelling sales advantage. Options: SE has to avoid product failure by defining clearly the following points before introducing or launching the new product line: Thousands of products introduced in the market each year, and over half of these products failed within the first two years. And even when products do succeed in the eyes of the customer, only 20-30% of them actually make money for the company. Products that achieve both commercial and economic success are truly rare. Therefore, SE is necessary to coordinate research and development, marketing, sales, manufacturing, organizational design, consumer research and human resources, among other functions. Most product failures stem from one or more of the following four pitfalls and SE has to study these reasons and try to avoid them: a. Targeting unprofitable segments b. Misjudging consumer needs c. Not enough focus on competing price-to-value offerings. d. Not enough focus on economic cost To avoid these pitfalls and meet the requirements for the new product success, Mustafa should follow the following step process: First, he should have clear evidence of how economic profit is distributed in their market, and design the new product to gain as large share as possible of that profit. He must have a clear understanding of the needs of the consumers in the segment being targeted. He should have an economic rationale for how and why the product will gain share. And fourth, he ought to ensure that they will deliver the product that can profitably serve the target segment. Whenever the above points were considered, then SE can apply the following marketing approaches to get a compelling sales advantage: a. Normally retailers are selling more than one product for different companies, so we can offer them a reasonable percentage from their sales as a promotional incentive. b. The new product line should be introduced by a well-trained staff that demonstrate the product features in details and must be aware of the new technology of the product to be able to answer all the inquiries instantly. c. Set an effective promotional Ad campaign that will attract the target market. d. The Ad campaign has to demonstrated the following main points: • What we are offering is new. • Why it is better than competitors. • The Ad message should be clear, simple and directed to the target market not just to any one. • Applying different promotional techniques by signing promotional contracts with famous singers, actors, football stars and others to carry on the campaign and using their photos, in addition to distributing free products as part of their campaign for a limited period of time. e. Monitor the results from all media, and in the first weeks and months, they have to be prepared to adjust their campaign to take advantage of what's working best. f. They have to be patient with the customer reaction and have to continue their marketing campaign to achieve their goals. Issue: If Serengeti decided to launch the new product line, then it would put itself on a collision course with RayBan, the industry giant. Options: The management of SE has to do the following before beating RayBan and other competitors: a. First of all, SE should know every thing about their product in details especially its features, functionality, cost, price, value the target segment(s) and the position of the product within the segment. b. Identifying the weaknesses and strengths of the competitors. Once SE knows where the competitor is vulnerable, then it can concentrate on the superior features that it has to offer. c. Determine SE venerable spots. Knowing the weak points of SE will force the company to seek out ways to improves them or compensate for them. If they are subject to improvement then the management can take the extra time and effort necessary to rectify them. If they are not subject to improvement, then the company has its products and find a feature t...