Organization Study of Pizza Hut - Free Essay Example

Sample details Pages: 13 Words: 3758 Downloads: 5 Date added: 2017/06/26 Category Management Essay Type Case study Did you like this example? Pizza Hut (known as Pizza Hut, Inc.) is an American restaurant chain and international franchise that offers different styles of pizza with other side dishes including pasta, buffalo wings, breadsticks, and garlic bread. Pizza Hut is a subsidiary of Yum! Brands, Inc.( A parent body which has headquarter in Dubai. They provide raw materials and standard for Pizza Hut (Peshawar) to follow and they have a right to seal the business if Pizza Hut doesnt follow their standard). Pizza Hut Pakistan has 40 outlets all over Pakistan and its headquarters are in Lahore and Karachi respectively. History: Pizza Hut was founded in 1958 by brothers Dan and Frank Carney in their hometown of Wichita, Kansas. When a friend suggested opening a pizza parlor, they agreed that the idea could prove successful, and they borrowed $600 from their mother to start a business with partner John Bender. Renting a small building and purchasing secondhand equipment to make pizzas, the Carneys and Bender opened the first Pizza Hut restaurant; on opening night, they gave pizza away to encourage community interest. They chose the name Pizza Hut since the sign they purchased only had enough space for nine characters and spaces. Additional restaurants were opened, with the first franchise unit opening in 1959 in Topeka, Kansas. The original Pizza Hut building was later relocated to the Wichita State University campus. Don’t waste time! Our writers will create an original "Organization Study of Pizza Hut" essay for you Create order (Reference- https://en.wikipedia.org/wiki/Pizza_Hut) Products: Chicken Wings Rs. 120 for 6 Pieces, Rs 225 for 12 Pieces Flaming Wings Rs. 135 for 6 Pieces, Rs. 255 for 12 Pieces. Pizza Hut Platter 2 365 Rs. Bruschetta 195 Rs. Kebab Stuffers 195 Rs. 4 Pieces Pizza Hut Platter 1 365 Rs. BBQ Chicken Spin Rolls 195 Rs Behari Chicken Spin Rolls 195 Rs. (Reference- https://www.pizzahut.net.pk/starters.html) P1: Give a proper definition of Operations Management and discuss the salient features of the definition Operations Management Operations Management is concerned with the production of goods and services. It deals with the management of resources (inputs: machines, raw materials, human skills, etc), and the distribution of finished goods and services (outputs) to the customers. There are two types of business Operations: Manufacturing Companies Services Companies If a company has the potential to produce tangible goods, it is referred to as manufacturing business companies Manufacturing operations deal with goods/tangible products. Example industries: Agriculture, forestry and fishing, Mining, Construction, etc. The companies who do not produce tangible products are referred to as service business companies. Some service operations deal with tangible outputs even though they do not manufacture a product: examples are distributors, mail service, library, etc. Other service operations deal with intangible products. These are pure service operations: examples are financial advice, counseling, e tc Operation manager is the integral part of the organization. He deals with employees directly; he shows the way work should be done in different departments of the organization. He supervises the progress and make sure that each task is completed on time. Operation managers every where are given the largest budget of the organization so that he can utilize them and produce results. He is responsible to arrange supplies of equipments, raw materials, labors etc needed to convert input in to outputs (products). Therefore, operations function plays a significant role in success of businesses Key salient features of this definition are: Products or services must be developed, Materials must be purchased, Facilities must be maintained, Products or services must be distributed, and so on Inputs Operations Function Output Customers (Fig 1.0) M1: In the context of selected business apply the operation management definition given in P1. Explain the salient feature you find in the business being studied? During the interview the regional (Peshawar) manager of Pizza hut, told us that their headquarters are in Lahore and Karachi respectively, where their head operations department is situated. He said that they call their operation manager as a coaching master. According to him as Pizza Hut is a multinational company so it is bound to follow the international standard in Pakistan. The body that provides basic Pizza raw materials, policies and standard is Yum incorporation which is situated in Dubai. According to him, their Coaching master is responsible to follow the Yum standard policies. He receives raw material through ship from Yum, Dubai and then he supplies them to their warehouse in Lahore. This Coaching master has very good relationship with his other branch managers. He make sure that the raw materials required to make pizza are delivered to Pizza hut regional branches in time because the basic rule of Yum is that daily some materials required should be utilized within 12 hours. The remaining materials should be disposed off. He has good relationship with KN and Pepsi because they are needed for daily use and needed to be delivered to each branches. He has created a team culture for each branches of Pizza Hut and assigned a role of team leader to the respective manager of each branches. Then its the managers responsibility that how well he trains his supporting staff in order to achieve the operations objectives. According to the manager of Pizza Hut Peshawar he has 60 supporting workers who work in two shifts. First shift from 9am to 5pm and second shift from 7pm to 3am. He weekly receives raw materials from their warehouse and from KN. Then he monitors the kitchen work where the raw materials are converted in Pizzas and other dishes. Then he make sure his waiters politely receive the customers and with their orders and try to deliver them as soon as possible. They have also given the facility of take away where customers come and take item with them. And the manager is also responsible for the marketing strategy of the Pizza Hut marketing department to provide free delivery services till 20 km. The points discussed above is relating to the salient features of operation management that is of Products or services must be developed, Materials must be purchased, Facilities must be maintained, Products or services must be distributed, and so on. In Pizza Hut operation manager provides materials and labors services, receive supplies from Yum and supply them to each branches, he is responsible to provide good environment for the customers and his workers and facilities to his customers. The products are then provided to the customers. So in general, in pizza hut operations department in Karachi is responsible for the success of Pizza Hut (Pakistan). P2: How operation management interlinks with other function of given organization. (Finance, Marketing, Administration, Inventory Management etc) Operations management needs to be well integrated with other parts of business. Operations management is one of 3 prime functions of Pizza Hut Finance Marketing Operations Works of 3 primary functions above overlaps each other and all 3 department work together to reach the overall objectives of Pizza Hut. As I said above that operations manager of Pizza Hut is responsible for the following: He is responsible to receive the supplies of raw materials from Yum Dubai so he needs to have good relations with account department (Finance) because for importing Raw material from Yum. Inc he needs money which he can get from the finance departments of Pizza Hut in Karachi. He is responsible to make sure that they keep following the standard policies of Yum Inc. In this situation he needs the help of the administration and the employees if the administration provides incentives to the employees they will be motivated and they will work for the success of Pizza Hut by follow ing the roles of Yum. One of the functions of operation manager is to train his current employees, compensate them. For compensating the employees he needs the help of the Finance department. For this purpose he has promoted team culture every one works together for the success. For supply raw material to the regional branches from their warehouse the operation manager need the help of the stock management of the warehouse to supply the raw material through fast means of transport. For attracting customers for dishes, the operations manager requires a good advertisement of the meals packages from Pizza Hut Marketing Department. As we discussed above that operation management is the integral part of the organization and they are responsible for the success of the every organization but they can not achieve their objectives without the help of Marketing, Finance, Stock management departments of the organization. Therefore the operations management of Pizza Hut needs to hav e good relationship with their marketing, finance, stock departments and the employees of Pizza Hut in order to implement their practices effectively. P3: Analyze the value chain and five performance objective on the given organization. You should give a general description of the value chain and fiver performance objectives in your answer Value Chain of Pizza Hut Secondary Activities Profit Margin Margin Primary Activities Customer Care Manager Operation Department Raw Material Weekly Stock Process Cooking 9am-5pm 7pm-3am Serving Customers Sales Pizza Hut Primary Activities are related to raw materials, weekly stock process, production by orders, and delivery/services and sales. Raw Material: According to the manager of Pizza Hut Peshawar, he said that they receives their raw materials on weekly basis from their warehouse (Lahore). Firstly the raw materials of Pizzas comes to Karachi through ship from Yum incorporation (Dubai) then Karachi branch is responsible for delivering raw materials to Lahore warehouse and finally they send it to Peshawar branch while for soft drinks and chickens they have a contract with fresh vegetables suppliers, Pepsi and KN respectively for delivering them fresh vegetables, soft drinks and chickens on daily basis. Weekly Stock Process: Pizza Hu t has got freezers for keeping the stock on weekly basis because their warehouses are at Lahore and Karachi so its hard for them to order raw materials on daily basis while other things like fresh vegetables, Pepsi and chickens are being ordered on daily basis because they want to utilize fresh chickens, vegetables and so on. And they are buying Masala for a week, because Masala is something which cant get ruin so thats why they buy it for a week. Cooking/Operation: According to the manager of Pizza Hut Peshawar, currently he has got 60 supporting workers who work in two shifts. First shift from 9am to 5pm and second shift from 7pm to 3am so for running pizza hut, they have divided their staff in different categories like there are some waiters who gets an order at hall and some of the waiters are responsible to take orders at take away and receptionist takes an order through telephone calls, so they gives order to operation department through Computer Network and the order passe s to Order Filler then he pass the order to Order Checker and he is passing it to the Cook. When the given ordered gets ready then Cook gives the given ordered Pizzas and etc to Order Filler and he is gives it to Waiter for serving the customer and this whole process takes only 15 minutes. Serving Customers: Pizza Hut has different types of waiters which are as follows: Take Away: They take orders from customers and passing the order to operation department through Order Filler and Order Checker respectively after that when the given order gets ready then Order Filler is responsible to deliver the item to take away, for serving those customers who wants to take Pizzas with themselves. Waiters: Pizza Huts waiters take an order and passes it to order filler for delivering Pizzas to customers Sales: There main focus is providing best quality foods within few minutes of given orders to deliver Pizzas in 15 minutes so their fast services along with best quality of Pizzas are generating customer satisfaction which leads towards high profit. Support Activities provides purchased raw materials, and human resources to support the primary activities. Manager: He is the responsible person for providing raw materials from their warehouse (Lahore) on weekly basis and soft drinks, chickens and fresh vegetables are being ordered to their contractor on daily basis and he is keep hanging under the roof of Pizza Hut all around in order to generate profits. Customer Care (Take Away, Waiters, Supplier (Free Home Delivery), Finance Manager and Guards) They are contributing at different levels for increasing the sales which are the following: Take Away: They take orders from customers and passing the order to Operation Department for serving that customer who wants to buy Pizzas on the spot due to which their sale increases. Waiters: At Pizza Hut there are some waiters which work inside the organization and they are responsible to take orders from the customers. Supplier (Free Home Delivery): They are only responsible for delivering Pizzas in order to generate revenue from those customers who gives an order of Pizzas delivery. Finance Manager: In order to keep the record of budget manager himself and a subordinate is holding the responsibility of payment procedures that they have a better financial management. Operation Department (Cooks and Bakers): They are responsible for the process of cooking best quality Pizzas. Five Performance Objectives Quality: Pizza Hut is known by their best of quality pizza in Peshawar. They are buying raw materials from Yum (Dubai), staffs are well-trained and they are using latest equipments which are helping them to serve the customers with best pizzas. Speed: Pizza Hut is delivering pizzas to their customers within 15 minutes. It shows that how much they are efficient in the process of baking pizza with the help of trained staffs and latest technologies. Dependability: As earlier we have discussed that their raw materials are coming from Lahore (warehouses) in order to provide best quality of pizzas but ordering raw materials can make them in trouble because sometimes uncertainty can occur now a days in Peshawar and around Pakistan while if we talk about customers they are more depended on them, as they get orders then they have to deliver the pizzas on time and they are really efficient in delivering pizzas because it takes only 15 minutes right after order. Flexibility: It tends to be effective with the changes of customers taste, design and so on. Pizza Huts major specialty is in Pizza but moreover they have introduced different meals along with pizza and they are offering pizzas in different sizes and packages for their customers which show that they are really trying to satisfy their customers. Cost: Pizza Hut is charging high prizes of their pizzas due to their expensive raw materials, professional staff, monopoly in the market of Pizza at Peshawar, so if they try to have a warehouse here in Peshawar then it will bring changes in their activities like they will not face the problem of raw materials delivery even if any uncertainty happens. M2: Discuss different environmental auditing techniques and how these techniques affecting operation management of given organization. Environmental Auditing Techniques Volume Volume refers to the number of times that an operation has to deliver a service of product. An operation dealing with high volume should be designed to process the demands placed upon it more speedily than the operation meeting lower volume. (2nd Edition, Operations Management in Context by Frank Rowbotham) According to the Manager of Pizza Hut Peshawar, He is the responsible person to check each and everything on daily basis. He is providing raw materials for production department (kitchen) and he is always trying to keep an eye over front desk, hall, waiters, suppliers and distributors (those who do free home delivery). All these works are done by the manager on daily basis and regularly with intend of satisfying customers by delivering their meal orders speedily, in order to provide quick service to them. Variation It describes the patterns of volume demands. If there are many peaks and troughs in demand the situation is said to be one of high variation. The challenge in this case is to design an operation that can provide the correct level of capacity to meet this pattern. Carrying extra capacity in the times of low demand is inherently expensive, involving under-utilization of key resources such as staff, technology and facilities. (2nd Edition, Operations Management in Context by Frank Rowbotham) Changing their work processes and work designs according to change in the taste of customers is a big challenge for Pizza Hut. In the world today customers want changes and want to taste different products and food items. Pizza Hut is specialized in Providing quality pizzas but now in Peshawar new restaurants are opening offering new tastes and dishes which are giving tough time to Pizza Hut and their sales have been affected by it tremendously, keeping in view these environmental affecting factors Pizza Hut has now introduced new items in their meals and are committed to introduce new dishes. They have invested a lot on new technological kitchen equipments in order to compete with competitor and maintain their standards. Variety Variety is the term applied to the number of different types of services or products demanded. High variety environments require different services or products on a frequent basis, whereas low variety demands look for the same output most of the time. An operation facing high variety has to be designed to provide appropriate level of flexibility. This flexibility will be usually expensive compared to the costs of operation designed to cope with low variety. (2nd Edition, Operations Management in Context by Frank Rowbotham) As we have discussed above that people want change in whatever they do or would like to have and as far as pizza Hut is concern it is specialized in pizza coping with high demand is very difficult task for the operation manager of Pizza Hut in Karachi because previously he was providing raw materials for producing Pizzas in each branches of Pizza Hut now with change in demand they will have to introduce new dishes in their menu for that purpose he needs to arrange raw materials, cooks in each branches for these new dishes. Providing quick service to the customer is very important aspect of operation manager so he needs to train his staff to deliver orders on time effectively. Coping with high variety is a more challenging managerial task than dealing with low variety. Customer Contact The customer contact dimension is concerned with how much time the personnel of operation have to spend with their customers. Customers are independent of the operation unlike its staff. The more those customers involved, the greater is challenge to the planning and control of operation manager. (2nd Edition, Operations Management in Context by Frank Rowbotham) The manager who is responsible to control the operations of the Pizza Hut Peshawar branch deals with customers regularly on daily basis. He makes sure that customers are treated fairly in with a fair environment otherwise, customers can be disappointed and they would not want to visit them again which can affect the business. He is always involve with customers and try to deliver their orders quickly. When customers come and while going the manager says welcome and bye from the front desk. In order to satisfy their customers the manager of Pizza Hut spend a lot of time with his supporting staff making sure that every w ork has to be done on time in order to satisfy their customers. D1: Recommend how the studied organization can improve its operation performance on the basis of environmental analysis Pizza Hut has to bring the changes in pizza size, because Pakistani people always prefer and go with a big pizza Pizza Hut has to launch the concept of Eat as much as you can in specific period of time. Obviously, the volume of their customer will be increase, as result they will earn more profit. The Peshawar Pizza Hut has to provide the facilities of parking area for the families. The parking area should provide specious And another problem is in their call centre for order; because their call system is centralized from Karachi. For example if a Peshawar customer call for order ,its call will be connected with Karachi branch and how the Karachi center know about the terrific of Peshawar as result the delivery probably takes much time around 55 minutes and the customer feel unsatisfied. They have to change the centralized call system to local system And there is No information of local delivery system in their website The location of Peshawar Pizza Hut is not best f rom business point of view because it residential area and another point is , as it is far away from Hayatabad and University Town that is their center of attraction as discussed earlier. So the location they are having has both plus and weak points for them as well. The Peshawar Pizza Hut looks very nice from outside (Facade) but they dont take care of cleanliness inside of restaurant which will be having direct impact on customer health. They have to be very careful about cleanliness Overall Pizza Hut should widen their product line by bringing in more items in their menus, e.g. more deserts, which are affordable, and appetizers etc. increasing the serving size especially in the case of salads can become a motivating factor for Pizza Hut. They should delete or omit items which are not in use or not preferred by the consumers such as the thin crust pizza During Ramadan many people face along lines and are unable to utilize the Ramadan deal. For this Pizza Hut should have o ne more outlet in a locality. The Pizza Hut should used the odd number technique i.e. rather than saying a big pizza Rs.900 they should use or say Rs899. This makes the customer think that they are getting a good bargaining In Peshawar the Pizza Hut should open another outlet in the area of Hayatabad, because the people of Hayatabad are very interested with Pizza Huts pizza, but due to their far location, people mostly prefer to go to CHIEF BURGER. Pizza Hut has re-generated its menu and should keep in mind in doing it again and again. They offered new products and should generate and promote their other items such as pastas and spaghettis. Many consumers have complained that Pizza Hut should become a total restaurant that is they should offer different type of desserts at affordable prices. The dessert offered at the moment are either too expensive or are not worth it. A small decrease in the prices of products can attract prospect customers. The reduction can be covere d by the increase in the prices of Drinks, as consumers do not look at the price of sodas when ordering it.

Film Review Of Twilight - 988 Words

Film Analysis of Twilight This report is a presentation of an evaluation of the first Twilight film, Twilight, which came out in 2008. This film depicts many family concepts, values, and relationships that were covered in the textbook, Public and Private Families: An Introduction, seventh edition, written by Andrew J. Cherlin. The main purpose of this film analysis is to address the different types of relationships, family values, and family concepts in this film. In this film there are multiple concepts that have been discussed in the textbook, Public and Private Families: An Introduction. Externalities, public family, private family, created kinship, breadwinner-homemaker family, self-identity, reflexivity, and assortative marriage are just a few key concepts in this film. Twilight is a film based on the novel written by Stephanie Meyer. Twilight is a series of both romance novels and films. This film analysis will be focused on the first film released in 2008. During this analysis, the concepts of the Cull en family will be discussed. There will be definitions of concepts and how they diverged into the film. Scenes and characters will be addressed in this analysis as well. In this paper, it is expected that one learns the different type of family structures, concepts, and family values in the film with a focus on the Cullen family. This essay is prepared with the purpose of recognizing and being able to identify the concepts of a family. This film is based on a veryShow MoreRelatedTwilight: A Waste of Time and Money Essay example1043 Words   |  5 PagesIn 2008, Twilight debuted in theaters across the county racking in a whopping $69,637,740 in just the first weekend alone (imdb, 2008). Directed by Catherine Hardwicke, Twilight is a movie based on the first in a series of four best-selling novels by Stephenie Meyer. 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The Advantages and Disadvantages of a Computer free essay sample

Computers help us develop Computers help us find out and analyze any kind of information. It makes us think, thus, evolve. Develop this idea in your essay on the advantages and disadvantages of a computer. We will write a custom essay sample on The Advantages and Disadvantages of a Computer or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Computers help us talk to people from all over the world With the help of computers and the Internet, we can talk to people from different countries, and even see them. So, is it not an essential argument about computers to present in the essay on the advantages and disadvantages of a computer? The essay on the advantages and disadvantages of a computer: Computers have a harmful impact on people’s health The most hazardous part of any computer is its screen. Due to it, users can get 2 types of radiation: X-ray and electromagnetic radiation. Both types influence health and our eyesight in particular. Develop this idea in your essay on the advantages and disadvantages of a computer. Computers make people addicted Do you know that the Chinese scientists consider the Internet and computer addiction to be a serious psychological problem? They actually do, and you can include this fact into your essay on the advantages and disadvantages of a computer. When talking about such computer addiction in your essay on the advantages and disadvantages of a computer, present the â€Å"symptoms† of this addiction. Computers hamper people’s development in real life We do not read printed books anymore, since we can listen to audio books or read books online. We spend less time with our beloved people, since we would rather talk to someone online. If you know what we are talking about, you will have no difficulties when developing this idea in your essay on the advantages and disadvantages of a computer.

OHMs Law and Circuits

Abstract The purpose is to understand Ohm’s law and simple series circuit that has resistors and diodes. This simple circuit leads to establishment of relationship between voltage, current, and resistance in various devious. Data obtained after performing the experiment are inserted in a graph with a view of deducing whether data fit. To execute this experiment, ammeter, voltmeter, resistors, and diodes are required. A series connection is then done and values obtained by reading measuring devices.Advertising We will write a custom report sample on OHM’s Law and Circuits specifically for you for only $16.05 $11/page Learn More Theory It is essential to note that circuits, regardless of whether they have resistors, contain some form of resistance. Voltage drop across a resistor in a simple series circuit is usually equal to the voltage supplied into the circuit from the source. Contrary to voltage that reduces in the circuit, current is not affected. This means that current before a resistor is the same as current after the resistor. To obtain current in the circuit, voltage applied and circuit resistance is measured and the result used to find current using ohm’s law given by: V=IR. When conducting the experiment, there is need to note that ammeters have internal resistance. Total resistance under such a scenario, both internal resistance and circuit resistance are added together i.e. RTotal=Rcircuit+Rammeter. In view of the fact that internal resistance is very small and negligible, it can be ignored. However, a parallel connection tempers with current flow owing to the reason that small value of internal resistance results in high current flow in the circuit. On the other hand, voltmeters are connected parallel to the load since their resistance is high thus will not temper with the circuit. If connected in series, circuit resistance is increased consequently lowering current flow in the entire circuit. Ohmic resistors assume a linear graph when a graph of voltage vs current is plotted. Conversely, data obtained from non-ohmic resistors are exponential in nature. In non-ohmic resistors, resistance change in response to applied current. Under certain range of temperatures, ohmic resistors behave like non-ohmic. When a diode is included in a circuit, forward or reverse bias, current is allowed to flow in only a single direction. Essentially, a reverse bias connection will allow current to flow only when large voltage is applied. Procedure The first step was to set voltmeter at 200-volt DCV range and ammeter at 200 DCMA range. After connecting the circuit as shown by the left circuit in figure 1 below, voltage drop across the resistor was adjusted to one volt. The corresponding current was recorded. This procedure was repeated at an interval of one volt until ten data points. Using the data obtained, voltage in volts Vs current in amperes was plotted. Through calculation, the slope or grad ient of the graph indicated resistance of a resistor. Advertising Looking for report on natural sciences? Let's see if we can help you! Get your first paper with 15% OFF Learn More Figure 1: Circuit with 100-ohm resistor and a bulb The second connection was done using a bulb as shown in figure 2 below. Starting with a voltage of one volt, voltage was adjusted until 20 points had been recorded. In each data point, corresponding resistance was calculated. Voltage Vs Current was also plotted and slope at each point calculated. Figure 2: circuit with a bulb The third step was a circuit connection with a forward biased diode included as shown in figure 3. Voltage was applied starting with 0.1 volts and increased at an interval of 0.1 volts. Figure 3: Forward biased diodeAdvertising We will write a custom report sample on OHM’s Law and Circuits specifically for you for only $16.05 $11/page Learn More The fourth circuit connection was a reverse diode shown in figure 4 below. Applied voltage was varied at an interval of 2 volts starting with 1 volt. Ten data points were recorded to aid in analysis. Figure 4: Reverse biased diode circuit This report on OHM’s Law and Circuits was written and submitted by user Galilea B. to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

Candides Concluding Remarks

Marketing Project Essay Example

Marketing Project Essay Example Marketing Project Essay Marketing Project Essay Executive Summary Wentworth Industrial Cleaning Supplies is an organization whose potential is currently clouded by their lack of competitive strategy. Through analysis of their current situation, several key issues were identified: * Market Research is ineffective and unimplemented * Product line ignores majority of market * Roles of key personnel are illogical and inefficient * Relations with distributors are hostile and unsustainable * Profits and growth is stagnant in an advancing industry * Communication mechanism is fragmented After evaluation of the alternative courses WICS has for consideration, recommendations to address and rectify each issue were chosen. Through assigning specific tasks to the marketing department and enabling a communication mechanism along the personnel chain, objectives and opportunities can be shared. By making strategic role changes to the territorial and area managers, redundancies can be eliminated and the goal of developing and maintaining a unified network can be achieved. Through the addition of a big-tickets sales team and the outsourcing of economy chemical for use in private labels, WICS can gain a larger market share and sustain increased profits for years to come. In combination, these actions provide the basis for the development of a large-scale, well-branded organization with responsiveness to growth and opportunities in the market. Issues with Current Operations Market Research WICS lacks the marketing insight to target clients appropriately. As a solely premium brand, market research is crucial to customer perception and increasing the 40% share of customers willing to pay premium prices for WICS products. Moreover, new lines or line extensions are difficult to launch when there is no market research. In an evidently growing industry, the inability to provide an appealing value proposition to 60% of the customers has caused WICS to halt sales growth and struggle to keep its current market share. Furthermore, the justified frustrations of the area managers cannot be resolved until WICS is able to give them appropriate job descriptions and requirements contingent on the nature and changing behaviour the industry derived from market research. Product Line â€Å"Only 8 percent of customers describe their experience as superior, yet 80 prevent of companies believe the experience they provide is indeed superior† Roger J. Best Current Segments Opportunity for Growth Distributors claim â€Å"WICS products are basically no better than anyone else. This is a dangerous mentality when they are currently responsible for actively promoting and marketing WICS products. Their products, priced in the premium category, are reliant on promotion to build a strong perceived value. Furthermore, only 40% of consumers are willing to pay premium prices, leaving 60% of end users uninterested in WICS. This presents a unique marketing challenge for WICS- the need to expand to reach a greater s hare of the market while upholding their image as a premium manufacturer. Role Distribution For managers, a lack of job autonomy creates a feeling of resentment towards superiors and inhibits productivity. (Quote OB Book). Furthermore, the current incentive program stresses disproportionate selling techniques by placing heavy emphasis on hunting at the expense of neglecting farming attained accounts. This focus on hunting new accounts has resulted in acquiring unprofitable accounts that do not allocate a sufficient amount of their total purchases to WICS products. It is expensive and frustrating for distributors to maintain these clients, and they ultimately add little value to the corporation. Finally, the allocation of area manager duties (exhibit 6) results in low productivity by emphasizing ineffective selling techniques and needlessly excessive time spent on demonstrations Communication Discrepancies Internal communication is crucial for any functioning business competing in any industry. The marketing vice president de-motivates his staff members by projecting low confidence in their abilities and using threatening tactics to scare employees into scrambling to do their work for the sake of maintaining their jobs (OB BOOK). Moreover, SSDs feel neglected in the sense that they lack direct communication to management level WICS employees and/or the ability to relay their concerns/recommendations via area managers. Distributor Relations The perceived subjection to â€Å"pressure tactics† and the lack of belief in WICS products amongst distributors is an ongoing promotional issue that must be immediately addressed. As well, the combination of WICS current high minimum buy-ins and lack of communication between SSDs and management level WICS staff has yielded an environment retardant to growth for WICS products. WICS’ refusal to grow geographically with its respective SSDs is limiting both to SSD relations and company growth. Requiring SSDs to beta test WICS products is detrimental to both WICS brand image and once again, SSD relations. Because the products currently require timely demonstrations, high sales costs for SSDs have occurred. Recommendations Additional Duties for Territorial Managers The territory managers will be responsible for hunting new distributor clients that would work with WICS and assigning them to an area manager. The territory manager will allocate the new distributor to a manager in accordance with the ratio that we have in place: 1 Territory Manager: Area Managers – 4:1 Area Manager: SSD’s 2-4:1, based on size of SSD 1 Territory Managers: Area Manager – 4:1 4 2-4 Teea Manager – 4:1 Maintaining this ratio will allow territory managers to operate more effectively. Reallocation of Area Managers’ Duties Currently, the Area Managers’ roles and expectations are outdated and ineffective. Their duties need to be reallocated to give more autonomy to the Area Managers when hunting new clients. In this way, they can use their discretion when choosing which methods they prefer to use with their clients, based on their skills and what they feel is most effective. We propose they no longer push the demonstrations onto the SSDs, and instead offer sample Kits that the SSDs would give out to customers to sample the product before making their buying decision. Consequently, the Area Manager will cut this time in half and instead give information sessions for SSD staff about the DIY Sample Kits, negotiate lowering margins, and implement new products. Another 20% of the Area Managers’ time will be spent on the relationship with the SSD’s. Creating and Motivating Personnel Network WICS’ distributor network will be more interactive, fostering communication amongst all three key players- SSD’s, Territorial and Area managers. The Area managers will visit distributors on a weekly basis to receive feedback, address concerns, and discuss routine business logistics. In addition, distributors will receive a bi-monthly visit from their allocated territory manager, who will ensure that any feedback on the effectiveness of the area manager is heard and acted upon. Similarly, there will be weekly communication between territory managers and area managers. This will allow any corporate objectives to be reached, and to share ideas on tactics for reaching sales goal. The evaluation of the SSD’s roles will be done by area managers, with autonomy to create and execute incentive programs within a given budget. Although area managers will have the ability to identify the measurement tactics and rewards for managers, the general incentive drivers will be determined based on sales goals by the marketing department and manager. This will allow the company to emphasize sales of particular products, balance goals for growth with those of customer maintenance, and deliver a customizable incentive program to distributors that will ensure a strong partnership. For Area Managers, incentive programs will be designed and measured by Territorial managers. In a similar fashion to the distributor incentive structure, this method will allow WICS to balance their need for resonant, customized rewards with their efforts to align progress with corporate objectives. Drivers for measuring area manager success may include looking at feedback from SSD’s to evaluate communication and negotiation skills, looking at results in efforts to attract new customers, and evaluating their ability to foster an effective and profitable network through working with their subordinates and superiors on the WICS personnel chain. As area managers are a key link between WICS management and their front-line sales force, it will be essential to harness the competitive nature of the individuals working as area managers through recognition and reward. As a result, winners of incentives and titles will be well-publicized with the corporation, and the objectives by which measurement and designation of winners are achieved will be constantly re-evaluated to ensure that it is meaningful. Providing Raw Materials for Private Labels Only 40% of end users are willing to pay premium prices leaving the majority of customers within the janitorial cleaning supplies industry unaddressed by WICS. In order to maintain active growth, WICS needs to address the unserved 60% of the market. There are two typical ways to approach this problem ) create economy product lines 2) create a flanker brand The first solution not only poses the problem of diluting WICS premium brand image, but also presents the problem of cannibalization. The second approach, although separating WICS from the name of its economy brand, still faces strong opposition as SSDs will be hesitant to hold products that are directly competitive with their private labels. A more innovat ive and successful approach is to being providing SSDs with competitive incentives to sign over their private label outsourcing to WICS. In doing so, WICS will promise to match or provide SSDs a lower price for the raw core materials required to create their private labels. WICS will not pursue/take over any private label outsourcing activities if the prospects prove to be unprofitable, however it will strive to reap economies of scale in the production their raw chemicals, and to strengthen their vested interest in the market segments by sharing in the growth and profitability of the economy lines of the distributors. Hunting and Farming Tactics for Market Share Development WICS will be most successful in its business development efforts if it targets customers using the most successful tactics. For new, high-end customers willing to pay premium prices, tactics such as spotters, use of personal network, research and cold-calling can be used. This will allow WICS to identify potential large-contract clients and either reach out to them via connections or cold-call and pitch their value proposition. Examples of events in which WICS can capitalize on the need for industrial cleaning products include: * Sporting Events- 1992-1996 is the most concentrated time in history for the Olympic games- with two games in 1992, and two more in 1994 and 1996, WICS has the opportunity to capture huge contracts and expand into other sporting event clients * Airlines- in 1992 alone, 86 new airlines were launched. WICS should aim to approach start-up companies in travel and high-growth tech segments for potential contracts * Malls- with Mall of America opening in 1992, WICS should capitalize on the opportunity to develop a sales pitch aligned specifically with the needs of retail malls. Through the sale of chemicals to distributors private labels, Wentworth now holds a vested interest in 100% of the industry. As a result, they have the opportunity to pair with SSDs to farm current customers and pitch a full-package contract in which the SSD private line and WICS products cover all the needs of the client. Special Sales Force Big Ticket Clients With the aforementioned large-scale contract opportunities, WICS needs to devote highly effective salespeople specifically to the attainment of big-ticket sales. The strategy behind acquiring such â€Å"big-ticket† clients involves partnership with market leaders from the other three segments in the institutional maintenance chemical market (EXHIBIT 1). Through partnership, it becomes possible to offer such big clients with massive cleaning requirements in every segment with relatively cheap product bundles. Product bundles are able to be priced as low as necessary to entice clients to pursue them exclusively because of economies of scale. Market research would determine viable market leaders that suit WICS brand image to be pursued by WICS Special Sales Force. The Special Sales Force would initially comprise of two management- level staff members (SEE NEW ORG. CHART) who strictly work towards pursuing the logistics of â€Å"big-ticket† clients. This number can expand as WICS grows contracts and profitability in new sales segments. Further advantages of creating product bundles with the other three respective segments in the institutional maintenance chemical market is utilizing partners as spotters. Spotter perks involves exchanging market research, customer information, and referring prospective customers. Furthermore, some big tickets clients may present unprecedented marketing opportunities for WICS. For example, if the product bundles are successful in attaining most of the purchasing of one or both of the Olympic games, WICS could always offer further discounts in exchange for soft advertising such product placement. Implementation of Strategic Recommendations: * Within the next 6 months: The measures taken during the next six months are going to lay the groundwork for WICS to become more efficient, reduce costs, forge better relations with SSDs and staff, and increase market share. Firstly, area and territory managers need to be retrained into their new roles with in the company. This training needs to be carefully implemented, and WICS needs to ensure that the staff are happy with the changes and behind the revamped corporate strategy. Once staff understand their new roles, the infrastructure and products must be ready. The chemical products need to be available for sale as soon as possible for the area managers to start sales. Area managers need to get to work on private label sales as quickly as they can in order to begin penetrating the market. As well, the do-it-yourself kits need to be made and sent out to distributors so that customers can begin testing WICS products without the distributors and area managers having to worry about the timely demonstrations. With the new roles in place, the feedback mechanism will immediately begin so that the distributors begin to feel the shift in customer focus that WICS will be adopting. With the increased support from all WICS staff, and the lower cost of sale, this will motivate the distributors to push WICS products more, without the pressure from area managers, and will grow market share and sales for WICS. * Long term goals: As adoption rates of WICS raw chemicals increase, the company should work towards an objective of serving products in 100% of the industrial cleaning market’s segments. This will be achieved by a combination of increased sales in the WICS line, representing 75% of the market, and the addition of private label products which serve the remaining 25%. This goal should be attained within the next three years, and the mechanism for its realization is the ability of area managers to negotiate and finalize outsourcing contracts with their distributors.

Case Study on Proctor and Gamble Example | Topics and Well Written Essays - 750 words

On Proctor and Gamble - Case Study Example Survey should be conducted on the international level, thus a firm should be hired specially to implement the survey. The interrogation will allow to reveal the countries, where the company has a chance to gain more profit. As it is stated, the company increased its research and development budget: â€Å"P&G invested nearly $2 billion in research & development in 2010, which was nearly 50 percent more than their closest competitor† (Badal).This will allow the organization to improve technological background and use the information technologies to make its working process more efficient. 2. The main weakness of the Proctor & Gamble is turnaround time. The company needs too much time to develop products and to get them to the market. This often leads to profits reduction. As it was mentioned above, the company increased research and development budget as well as created new strategies to make the processes more efficient. In order to have competitive advantage, it is essential t o successfully implement these strategies. All the company’s staff should be involved in this implementation. Company also has many strong points, such as high quality of its products as well as innovation. The main thing is to work more efficiently and make products reach the customers faster. The success factors should be approached from the critical point of view that will benefit the company as will make all the managers and employees focused on the same goals. It is also essential for the company to improve customer service to be able to answer customer’s questions at any time. Given that all these points adjusted, the company will have competitive advantage. 3. If to look at the tables provided in the case study, Proctor & Gamble has competitive advantage, thus the company has high potential to stay successful in future and even to increase its revenues. The company’s mission is very promising: â€Å"We will provide branded products and services of superi or quality and value that improve the lives of the world's consumers, now and for generations to come. As a result, consumers will reward us with leadership sales, profit and value creation, allowing our people, our shareholders, and the communities in which we live and work to prosper† (Badal). The main goals of the company are to increase sales, innovated product lines, reach more customers. Organization is going to â€Å"focus on and serve price-conscious consumers with lowerpriced products, offering superior performance compared to competing products† (Badal). Proctor & Gamble aims at entering new markets and focusing on consumer’s needs. Like any other company, Proctor & Gamble also has a number of weaknesses, but it is going to improve the situation with its turnaround time and communication with the customers. If these points are adjusted, the company will continue thriving. 4. In order to keep the competitive advantage the company must innovate. It is imp ortant not only to create innovation strategy, but also to find the ways of its successful implementation. In order to do that it is necessary to involve all the people, who are working in the organization in the process to make the product reach the customers efficiently. It is essential to remember that it is not as organization that innovates, it is the employees, who find new solutions. It is