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:
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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