Mangement , Human Resources and Marketing

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Transcript of Mangement , Human Resources and Marketing

1.0 Introduction

Golden Myanmar Group of companies is one of the leading

companies for many industries in Myanmar. Last month, we acquired

Asia Best Link Company (ABL) which head-quarter is located in S-

17, U Chit Maung Housing, West Horse Racing Road, Tamwe, is a

medium size company, had successful in the past, has been in this

industry for four years, yet the reputation drops slowly due to

the internal weaknesses, for the business expansion. ABL was

successful in the past two years since they captured the

customers’ satisfaction by providing the best service in the

industry in the very beginning. Moreover, the customers were

enthusiastic about having the security equipment for their

personal or private belongings. This ABL Company currently has 73

employees and the employees are highly motivated in the early

years of the business first established.

During the budget year (2011-2012), the business gets the

35% of the market share. But in this budget year, the market

share drops form 35% to 20% due to the poor service, customers’

dissatisfaction, less motivated employees and not having the

clear and specific vision, mission, and objectives which are the

essential process in running a business. So we set the new

vision, mission and objective for our organization’s growth. The

chart below shows the market share of the same business in this

industry.

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46%

23%

9%

7%

15%

Market Share

1st competitor2nd competitor3rd competitor4th competitorour organization

2.0 Task 1

2.1 Situational analysis

Mission

-To provide safe, well-maintained and comfortable facilities that

complements and promotes our dynamic environment.

- To provide meaningful protection to members and their families

against contingencies.

- To help people in preventing the risks of everyday life and in

recovering from unexpected loss.

- To protect the life and property of the customers we serve.

- To have a strong and firm relationship with our stakeholders by

building up mutual understanding and trust.

Vision

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Our vision is to be the best and most successful security

company in Yangon and throughout of Myanmar by delivering high

quality and cost competitive products and be the first choice of

customer. And we also aim for facilitating people to live in

better and safety environment in accordance with the changes of

policy, culture and circumstance. Moreover, we aim to expend our

company to International Security School which provides the

bodyguards for President and other VIPs.

Objectives

In order to reach our specific goal, we must achieve our

objectives first.

Strategic Objective

-By the year 2017, we must get 60% of market share.

Tactical Objective

-To increase our sale revenue up to 10% by the end of this year.

Operational Objective

-To persuade 10 or more customers by promoting our high quality

products within a month.

2.2 Organization structure

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Individual

Purchasing

Our old organization structure hierarchy was a bit

complicated due to the tall structure and the long change of

command. In our case, we build flat organization structure to

define our company’s hierarchical alignment and work flow in

order to provide efficient flow of information and control a

broad area with wide span of management. We plan to delegate and

empower authority to employees according to situation so that

they can learn opportunities to do their task and can be self-

directed in their work. As our company is medium-sized one, it is

difficult to report all on-going projects and activities as it

can takes too much time for making decisions in this

hypercompetitive business world.

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BOD

GM

Sales &Marketing

HRManager

CustomerService

Sales

Marketing

Recruitment &

Selection

Finance

Training&

Individual

Salesaccount

Warehousing

FinanceManager

Operation

Accounting

Retail

Wholesales

OnlineMarketin

MarketResearch

Promotion

Stockist

Technical

Logistic

PublicRelatio

In our company, we assign each department manager to

perform quickly and to do efficient decision making process. In

the case of budget related projects, we consider assigning the

site manager (finance) and then reporting back to GM and he will

finalize the decision to eliminate losses. In this way, we can

achieve our company’s reputation with skillful and talented

employees.

2.2.1 Work Specialization

Work Specialization or Division of Labor means a particular

staff or worker is assigned to a particular type of job and the

advantage of specialization is that work can be performed more

efficiently. Also the employees can improve their skills through

repeating same job and thereby it can increase ability and the

company to work in harmony and more efficient way. Our

organization structure illustrates to assign employees to

specialize in a single task which will make our employees to be

professionals in their field.

2.2.2 Chain of Command

The chain of command is an unbroken line of authority that

links all people in an organization. Our organization’s decisions

are usually passed down from top to bottom of the hierarchy that

shows who report to whom. We believe that it makes distinct

authority and responsibility for different tasks.

2.2.3 Span of Management

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The span of management is sometimes called the span of

control. The span of management is the number of employees

reporting to a supervisor. There are two types of span of

control, narrow and wide in business. Our management span is the

wide span as our organization structure is a flat one. It allows

to take little time in coordination with other department or

planning, then makes decision to be more quickly because as there

are fewer levels of management that must relay information down

to the customers.

2.2.3 Centralization and Decentralization

Centralization and decentralization pertain to the

hierarchical level at which decisions are made. We retain

authority for top management in taking major decisions and

framing policies and delegate rest of the authority to the middle

level and lowest level of management. According to our

organization structure, we planned to use both methods. For

purchasing and importing, they are to be centralized since they

are the tasks associate with the financial matter. When it comes

to budget related projects, it is best to be centralized so that

we could be able to eliminate superfluous losses. However, we

decided that other tasks which are not related to financial

matter should be ruled by the GM and the line managers, since

they are fully responsible and has been given authorities for all

the works over their subordinates.

2.2.4 Delegation of Authority (DOA)

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We used to use supervision system long ago. And it was such

a failure for the organization in every way. Our organization

prefers to delegate authority in order to make decisions more

quickly and more effectively. We all know that timing is

everything in this hypercompetitive and rapidly changing market

place. So, DOA becomes essential role to implement all the

operations in time. We insist managers to delegate authority to

lowest possible level. Managers still encourage delegating

authority in spite of many difficulties.

2.3 Importance of Leadership today

Leadership is a process of giving purpose (meaningful

direction) to collective effort, and causing willing effort to be

expended to achieve purpose. (Jacobs and Jacques, 1990)

Leadership is important in implementing successful decisions.

Leadership defined as the ability to influence people towards the

attainment of organizational goals. Only good manager with

brilliant leadership can associate the best opportunities to

become a successful business. There are some differences between

management and leadership in a system of action. (See table1.1)

In our organization, we must emphasize each level of

management carefully to raise the reputation of company. We lead

our organization by spending more time with people, scanning

opportunities, developing a vision and setting goals. We motivate

our employees by creating opportunities to make decisions, to

show their own talent and to have self-confident. Moreover, we do

not need yes-man so we encourage constructive debate and welcome7

big-picture ideas. We use the quiet way touching the minds and

hearts of our staff.

Management Leadership

Planning and budgeting

-Identifying steps to goals

achievement and allocating

resources to achieve those

goals

Setting a direction

-Creating a vision for the

future, along with strategies

for its realization

Organizing and staffing

-Identifying jobs and staffing

requirements, communicating the

plan, and delegating

responsible to job-holders for

carrying it out

Aligning people

-Communicating the vision and

marshaling support; getting

people to believe the

management and empowering them

with a clear sense of

direction, strength and unity

Controlling and problem-solving

-Installing control system to

correct deviations from the

plan, the purpose being to

complete routine jobs

successfully

Motivating people

-Energizing people through

need, fulfillment and

involvement in the process,

including supporting employees’

efforts and recognizing and

rewarding their success. Co-

ordination occurs through

strong networks of informal

relationships

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Table 1.1 Leadership and management as system of action (Kotter,

J.P. (1990) cited in Jeff Gold, Richard Thorpe and Alan Mumford,

5th edition, p.9)

2.4 Organizational Control

Organizational control refers to the systematic process of

regulating organizational activities to make them consistent with

the expectations established in plans, targets, and standards of

performance. We must find the critical degree of control to keep

people motivate and improve creativity. We must also control the

basic processes for allocating financial resources and developing

human resources. We must monitor the quality of imported products

and at the same time, we need to give the best service to

customers. Taking back the feedbacks from customers can help us

in analyzing how to develop the others projects. And also

allotting the reasonable incentives to employees is to achieve

target control level.

3.0 Task 2

3.1 Market Analysis

Nowadays, in Yangon, people are getting to understand how

security items can protect their property and family and can

prevent from dangerous and accidental conditions. Utilizing the

security equipment at home or other building is trendy among the

sophisticated people. Because of these facts, security business

is booming in these days. So, our marketing department analyzed

the market using the SWOT analysis.

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Strengths Weaknesses

- Exported products with the best

quality.

- Best customer service and

satisfaction.

- Giving the longest warranty

period among the competitors.

- Suppliers have good image in

whole world wide.

- Small amount of market share.

- Unstable foreign currency.

- New product line.

Opportunities Threats

- Increasing number of crime

- Security projects for private

schools, colleges, supermarkets,

hypermarkets, hospitals, hotels,

business industry projects,

governmental projects and others.

- Technology advanced and

innovation.

- Some competitors are

importing illegitimacy products

with low price.

- External changes.( Policy,

politic, tax, etc.)

Our company has small amount of market share unlike the

other competitor companies. Therefore, marketing becomes the key

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of the company's upcoming successful business to achieve the 60%

of market share and it depends on the needs of the customers.

Marketing Objectives

- To get 60% of market share and be one of the top three best company within 5 years.

- To increase 5% of sales revenue in every 6 months.

- To become the most trusted company in products and service.

- To improve agreement with main suppliers.

3.2 Market Segmentation

The safety is becoming necessity for humans. In our time,

the crimes are increasing days by days. Therefore, we imported

the security such as walk-through, walkie-talkie, mine detector,

CCTV, recorder, camera, security accessories, video camera and

stun gun from Thailand, Korea, Taiwan and Japan. We also retail

qualified local police use like whistles, stun gun, and rubber

rod etc. According to the research we made, we found the market

which consists of many types of customers and needs in every

segments. Our market research department analyzed the market with

three options, geographic, demographic and behavioral.

Geographic Demographic Behavioral

- Yangon

- Mandalay

- Nay Pyi

Taw

- Authorized person

- Higher income

level

- No gender

differentiation

- Sophisticate

- Vigilant

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3.3 Market Targeting

Then our marketing department decided to target the entire

public sectors throughout the country. In Yangon, there are so

many businesses than the other cities in Myanmar as it is the

commercial city of our country. According to that, our target

customers will be the authorized adult. Furthermore, our

company’s business location is in the city center which has many

major businesses and catches the people’s eyes, plus there are no

competitors around us. So, we infer that the customer in the city

center will definitely buy our high quality products which has

fair price. As our target market is all the public sectors, we

first plan to persuade the Hotels, Supermarkets, Hypermarkets,

Private schools, Universities, Banks, Stadiums and also

governmental buildings such as hospitals, schools, police station

and ministries etc. to give us the projects.

3.4 Market Positioning

A company must decide which market segments to be served,

how it will differentiate its market offering for each targeted

segment and has to position its products to occupy a clear,

distinctive and desirable place relative to competing products in

the minds of target consumers. We have to position ourselves in

the region of high price and high quality as our target customers

have high income level. Since the products are imported from

reliable suppliers like Japan and Korea which are gaining

attention for the advanced technology, are highly reputable

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company already, the raw materials they use are the quality items

of great worth. Our products’ price is a bit higher than that of

competitors’. And the quality control of our suppliers’ is

trustworthy.

Figure

3.4 Marketing Mix

Marketing is about projecting the right product at the right

price in the right way to the right customers. This is how the

value is added. Bringing a product to a market involves balancing

several key ingredients. This is called the marketing mix: the

4Ps of product, price, promotion and place. Every offering will

need a slightly different mix of these factors, depending on the

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High Quality

Low Price

High Price

Low Quality

product itself, the target audience and the market. Depending

upon marketing plans and industry, marketing managers have to

make various approaches to achieve goals by using that 4Ps.

3.4.1 Product

A product must deliver value to customers in the target

market by meeting customer requirements. Our high quality

products are,

Gate automation and Access control

Automatic Barriers

Traffic control

CCTV and relative equipments

Businesses demand profits and millions of people around the world

want a safe and secure place to live, work and play. Security

drawbacks lead to loss of millions of money and deaths. ABL aims

to provide a “safe and sound” environment for people around the

world. It seeks to improve workplace efficiency, prevent

criminal offenses, and deliver safety and security.

3.4.2 Price

Pricing that corresponds to the market can contribute to the

success of the products and services. And it not only attracts

customers' attention but also brings image. It also corresponds

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to the product. Therefore, we must focus on exploring customers

in order to set appropriate to the level of needs being

satisfied. We are planning to analyze how competitors price their

products and if those prices are still within the purchase need.

Our prices are very competitive, providing value for the

customer’s investment. We use standard methods of setting the

price via thorough evaluation of product demand, volume of

demand, and competitors’ prices. Price is one of the major

factors when consumers purchase products. We do not wholly

believe in lowering the price, just so to sell our products,

although it works sometimes. We value maintaining a competitive

price and we believe in other factors, such as quality, support

and service. To accommodate customers who have financial

concerns, we have developed several methods of payment such as

leasing, installments, discounts, and demo-to-buy strategies.

3.4.3 Place

ABL is currently headquartered in Yangon. Rising instances

of security breaches and acceptance of surveillance cameras in

the public sector in the Yangon have increased the demand for

safety and security products, thus making the Yangon one of the

major markets for surveillance solutions. This is a critical

factor for our business’ success.

Instant and nearby access to customers will be beneficial

because it would provide:

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solid immediate product and technical support and

consultation

faster transaction processing and product deliveries

convenient and cost-effective business operations

ABL has plan to set our three outlets in our target markets,

Yangon, two outlets in Mandalay and one in Nay Pyi taw for

wholesale. We will use indirect distribution channels like

agents. We will retail our products to the lower Myanmar from

Yangon and for upper Myanmar; we will retail our products from

Mandalay. The showroom in Nay Pyi Taw will mainly focus on

governmental projects.

3.4.4 Promotion

ABL products will be promoted via print, online, aggressive

below-the-line marketing tools and a variety of other advertising

media. Please see details below:

Print

Quarterly Broadsheet and Magazine Advertisements

Annual Direct Mail

Press Releases

Word of Mouth

Online

Website + E-commerce Websites

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Search Engine Optimization, monthly Web mails,

Newsletters, Paid Advertising and B2B Online Trading

Press Releases

Trade Shows (at least 2 of the major safety and security

trade shows)

Dealer Promotions

o Incentives

o Discounts

Business Partnerships

Direct selling from regional outlets

On top of these promotional methods, we also plan to create

new business cards, new product presentations, case studies of

safety and security requirements in vertical markets, and an

online product demonstration.

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4.0 Task 3

4.1 Human Resource Management

Efficient human resources management would help an

organization in attracting and retaining the best people, in

imposing self-commitment, motivating the people in performing

their jobs and in maximizing the human resource contribution for

achievement of its goals. We have set the goals and objective of

our HR department depends on our organization’s goals.

4.2 Goals and Objectives of Human Resource Department

-To have the good relationship with entire departments within the

organization

- To increase the employees’ satisfaction

- To plan the business in accordance with our organization’s

Missions, Visions and objectives.

- To keep the company in track leading to goal.

4.3 Reasons for High Turnover Rate

Human resource is the primary foundation in running a

business; without them the business would never be successful. It

is very difficult to retain the employees since the needs of the

employees are changing every day and we need to provide some

services to meet their satisfaction. If the employees are not

satisfied with their jobs, the rate of turnover will be higher.

The high turnover rate can have a severe impact not only on the

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company’s reputation but also on the prospect of company

financially and emotionally.

Our ABL Company’s turnover rate is increasing apparently

since last year, comparing to the other competitors. So our HR

department makes a research on the causes of high turnover. It is

turn out that the causes are the lack of career opportunities and

challenges, dissatisfaction of job scope and conflict with the

management. The most important point is that our employees became

lowly motivated since they think that there are no career

prospects for their self-improvement. And the second most

important thing is the payment for some employees are low

comparing to their tasks and responsibilities. So they want to

negotiate over the salary and compensation.

2009 2010 2011 20120

5

10

15

20

25

30

Turnover Rate

Turnover Rate

Figure 4.1 Increasing turnover rate of our company

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Turn over ratios for a company vary from year to year, a

general range can be possessed by analyzing the figure above over

a few consecutive years. This graph shows the increasing rate of

turnover within our organization, based on the facts which are

filed by the HR department.

4.4 Strategic planning to overcome the causes of turnover

After analyzing the causes of high turnover rate, we resolve

to carry out each basic function of HR practically to overcome

the causes of turnover.

4.4.1 Performance Appraisal (PA)

After analyzing the causes of high turnover rate, we decide

to perform the performance appraisal. Performance appraisal (PA)

is a formal system of review and evaluation of individual or team

task performance. Performing the PA is according to the

organization hierarchy. We plan to use downward appraisal and

peer-peer appraisal method by grading the employees regardless of

the risks like bias.

4.4.2 Recruitment and Selection

We planned to do recruiting, both internal and external,

according to our outcome from PA. For some positions, we are

planning to recruit internally by identifying current employees

who are capable for the open position. We should reconsider the

past or quit employees to reemploy. In this way we can eliminate

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the risks and the cost of hiring the new employees. Since our

company had the good reputation, we have the chance to fine and

the right person with potential and for the right post from the

labor market. (See appendix 1.)

4.4.3 Training and Development

Training is most demanded as most of the work scopes are

concern with customers’ relation. For the entry or operational

level employees, we suppose that training like attitude training,

Foreign Languages training and Advanced IT training are more

favorable in order to impart self-esteem and motivation toward

them, regardless of the cost. We will outsource the training like

foreign language training which will be attended by the nominated

employees who have to relate with the foreign countries. The HRD

will take care of other trainings base on the fact that either it

should be taken care of line managers or the professionals from

each field. For the managerial level, developmental training like

Leadership and Management development, Strategic Planning

development, IQ EQ development will be provided as we infer that

there may be some problems with their leadership ability.

Moreover, our employees are sponsored for external training

programs for enhancing their knowledge including seminars and

work shop organized by our foreign supplier companies.

4.4.4 Compensation and Reward

According to our company’s Rules and Regulations, we would

consider the compensation and reward. Yet basis pay systems like

incentives, health insurance and pension are provided as the21

Labor Law. For the annual bonus, it will be according to the

total net profit of the organization and their performance. And

also for our employees’ pleasure, our organization will provide

trips for each and every department every two years. We also plan

to bestow the “staff of the month” for each department every

month according to core competency. Furthermore, starting from

this year, our company is going to hold “Annual Award Ceremony”

once a year and we will reward the most outstanding and best

performed employees throughout the whole year.

As non-financial compensation we plan to give them complete

trust in firm’s highly visible management. Our operation time is

fixed, yet we consider the employees’ work-life balance. We make

sure to give empowerment and autonomy for their improvement. As

for leave, we decide giving a month for the annual leave.

As our company’s past failure was because of the lowly

motivated employees, we will draw our employees’ concentration as

we sustain not only on their emotional improvement but also on

their physical needs by using win-win strategy. 

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Conclusion

In sum, after analyzing the causes of downturn crisis, we

make plan to change the management structure, marketing

strategies and human resources practices in every way. After we

managed to change the business functions, we can assure that we

can not only overcome the downturn crisis but also to be able to

reclaim the leading position in our security services market. And

we also hope that our organization will do well with the new

organizational plan and new operational system.

After doing analytical report on ABL Company, the skill of

being able to use management functions, the concepts of STP and

marketing mix, various HR functions and written communication

skills are significantly improved. In order to write this

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assignment, the MIC text book and some books are used as

references as well as internet. In addition, it can be said that

working cooperatively in group is essential and we did know the

unity of the teamwork and co-operation. We get loads of

experiences and knowledge beyond our expectation while doing this

assignment. Consequently, we would to express our gratitude

towards all lecturers, friends and the group members who has been

involved in this assignment.

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