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Contents

Consultancy report 2

Abstract 2

Introduction and firm’s description. 2

ABC’s Organizational model 2

ABC’S threshold point 2

Consultancy contingency and change theory. 3

Contingency theories in relation to effective leadership. 3

Systems Dynamics (Week 3) 3

Section 2- Systems Dynamics (Stocks, Flows, and Feedback Loops) 3

Systems Disciplines (Week 4) 4

Systems Archetypes (Week 5) 5

Archetypes. 5

Networks (Week 6) 6

Complexity (Week 8) 7

Resilience (Week 9) 8

Summary and conclusion (week 10) 10

Summary. 10

Conclusion. 11

References. 11

 


  Consultancy report Abstract

This paper aim at providing a report on the modelling, describing and analysing of ABC Company on the basis of the new developments in leadership and system theory. ABC has a need to improve understanding of the theories in decision making since it has an aim of creating value and determining strategy while increasing its overall efficiency. The report analysis the Material, Information, Energy (MIE) conceptualization system, the consultancy contingency and change theory of ABC Company to enhance its understanding. The analysis thus outlines systems dynamics, disciplines, archetypes and the organisation’s networks that were be quite complex. The report recommends that the management of ABC should open up information flow to increase understanding and overall functionality.

Introduction and firm’s description

            The assemblage of various objects or materials linked together or united by a certain form of interdependence or interactions regularly is what defines a system especially from a business perspective (Schneider et al, 2016). The theory of systems is regarded as interdisciplinary due to its occurrence and application in varied settings including nature, scientific domains and in the society. Narrowing our reasoning on to the management and marketing setting, the theory has mostly adopted the explicitly and implicitly forms which envisions organizations as independent systems which strive to achieve the analysis of the organization’s relationship with its surrounding. Our firm, ABC is consultancy firm with more than a thousand employees and working with the aim of creating value and strategy determinations while at the same time increasing the overall efficiency. ABC has involvements in acquisitions as well as merging, plans for transformation and investments of private equities. Having a very able team of management, ABC firm has its duties carried out efficiently for its profitability and also creating a healthy and conducive environment for its workers.

ABC’s Organizational model

            This is the model of conceptualization resulting from ABC firm system modelling which is aimed and directed to give a description and a representation of the entire ABC firm. Multiple views including planning, analysis, deployment, design, structure, implementation, behavior and both the input and output views. In ABC firm, the managerial team has specific duties assigned to each so that loopholes for failure of the firm are minimized and targeted profits achieved. The system model for the firm shows the various inputs that are required for the efficient and smooth running of the company (Schneider et al, 2016). The outputs or rather what the firm gives as its final products are also indicated with the effect by the surrounding environment being incorporated. For any firm the threshold point must be know from the word go so that only the valid operations will be carried out and within the boundaries that have been set.

 

 

 

Figure 1: A systems model

ABC’S threshold point

            Threshold or the tipping refers to the point beyond which the operations of a business, firm, organization or company become invalid or unnecessary as a result of having deviated from the supposed line of operation or existence (Schneider et al, 2016). The threshold point for our ABC firm will definitely be its bankruptcy. If the firm runs bankrupt, then it will translate into the stopping of the firm’s daily operations and therefore its validity as a consultancy firm will evoked. Violation of the legal formalities that the firm has agreed to can also lead to the termination of the firm.

 Consultancy contingency and change theory

The review of consultancy company’s outcomes, incomes, overall and the approach of contingency company shows that some factors are ignored which are related to the company’s readership. This is supported by the fact that companies are subject to change (Muhammad et al, 2014). They can change to the best or to the worse depending on the leadership organization of such Companies.  For the change of consultant company, the leaders have to change the systems which are existing to cater to the changes which are required which is followed by establish of new values and norms. Management consultancy has got a clear explanation the reason as to why they are most hired. This is simply because of their fresh view based on their daily stand on day to day issues of tipping and terrors in that company. The leadership skills are required for proper client organization in the consultancy company (Muhammad et al, 2014). Sometimes is not important for the consultant company to start or adapt the contexts which are used by the clients in that organization. For any consultancy company that do not follow the contingency theory find themselves having very less projects bring out changes to normal organization of such a company (Muhammad et al, 2014).

Contingency theories in relation to effective leadership

The ABC consultant company finds it important of having this theory which has its regards to the leaders’ effectiveness and how best do they try to improve their inputs for the perfection of the outputs. For the consultancy business company to work effective and well, it must fit the conditions which are put in assumption tom all companies (Muhammad et al, 2014). The ABC Company fit in the fact that for it to be effective working, it should have the structure that fits factors for contingency organizations and its external and internal environment. The models which are used by this ABC organization reflect the rate by which the leaders of organization use their skills to suite the requirements of their employees (Muhammad et al, 2014).

 

Systems Dynamics (Week 3)

Section 2- Systems Dynamics (Stocks, Flows, and Feedback Loops)

As described earlier, ABC is a consultancy firm with a general objective of not only creating strategic dimension and value but also increasing the overall firm’s effectiveness and efficiency. It was also evident in the previous report that ABC has at numerous instances portrayed its interests in merging along with acquisitions and further, it has stipulated plans to transform as well as pursue investments with respect to private equities. To critically conceptualize the operation of ABC, this paper continues to evaluate the functionality of the firm’s executive leadership (Meadows, 2008).

With respect to stocks and associated flows of ABC, some of the posted types of stocks include common stock, preferred stock, along with appreciation. Within the discipline of business and management, stocks are described as a representation of a claim on a respective firm’s earnings and assets. Common stocks are usually the most common types of stocks issued by firms. In an analysis, common stocks or shares portray an individual’s ownership in a given firm as well as the individual’s portion in the firm’s profits. With regards to associated flows, common stocks carry along a significant long term effect with respect to capital growth. That is, when employed, it tends to yield impressive higher return. However, the lucrative returns come along with relatively high costs since common stocks are detailed with most risks. Alternatively, in the event that a firm may liquidate or go bankrupt, this system of stocking disregards compensation of shareholders unless bondholders along with creditors are paid (Investopedia.com, 2016).

From another quarter comes the other type of stock within the ABC organization, known as the preferred stock. These type of stock represents an individual’s ownership level in a firm although he or she has no equal right of voting. In ABC organization, withholding such shares guarantees investors their fixed long term dividend. On the other hand, preferred stock within ABC also carries along the advantage of shareholders being guaranteed their pay despite any event of liquidation or bankruptcy. It is worth noting that employment of preferred stocks by ABC grants them the liberty of purchasing stocks from shareholders based on any reason. In sum, economic experts tend to encourage interested shareholders to view this kind of stock as an intermediate between common shares and bonds (Investopedia.com, 2016).

Economically, feedback loop refers to an instance whereby the output of a certain event or situation within a firm is employed as an input to a new situation. With respect to ABC organization, positive feedback loop is evident from the fact that the firm at several instances has applied the saying success feeds success in its operations. For instance, some of the profits realized by the company have been reinvested into activities that tend have proved to have lucrative outcome. From a general point of view, positive feedback loop can be expounded in terms of how a given country’s population characterized by high income per capita reinvests or utilizes its money in the sense that its expenditure fuels for an increase in income per capita Ft.com, (2016).

Economic experts urge that critical understanding of feedback loops, stocks along with flows significantly boosts the ability of effective decision making within an organization. This is based on the fact that from a system dynamics perspective, flows along with stocks formulate the essential dynamic behaviour as well as the form a portion of feedback loop that in the long run facilitates counterintuitive behaviour (Meadows, 2008).

Systems Disciplines (Week 4)

As defined in the previous report, ABC is a consultancy firm established with an objective of ensuing a strategic dimension efficiently. As much as economic experts urge that ABC is well equipped when it comes to running acquisitions and private entities, it is vital for the organization to prioritize adopting learning disciplines in their executive leadership. In sum, this report focuses on the different types of learning disciplines as well as how each can be effectively adopted by the ABC organization with respect to decision making, management, and the general organization leadership. In addition, this paper alternatively provides a recommendation on how ABC can sufficiently employ each learning discipline (Von Bertalanffy, 1972).

The five learning disciplines are structured in a manner that they employ business practices and tools relevant for sustaining and building an organization’s leadership capability. From Peter Senge’s ideology, they five learning disciplines are structured by; concepts, principles, techniques that activate the disciplines, propositions along with precepts or practices that realign leadership approaches and behaviour (Raines, 2004).

Mental models involve mind-sets, beliefs, assumptions along with values which realign the manner in which individuals conceptualize issues and behave in the organization’s environment. Through adoption of the mental model, application of the inference ladder in building a generally shared understanding can effectively be employed. Systems theory can be described as a learning discipline that enables the organization’s executive to effectively construct inter-relationships that tend to underlie interactions along with complex situations. Alternatively, it effectively equips different teams in the organization with capabilities of unraveling the frequently hidden leverage points and influences (Boulding, 1956).

 Conversely, team learning can be described as a learning discipline that encourages working together in teams. In an analysis, it tends to promote sharing of insights, skills, knowledge as well as experiences. Upon its adoption team members are likely to gain skills such as inquiry skills, reflection, and efficient discussion capabilities.  Peter Senge draws personal mastery as a learning discipline that focuses on reshaping individual’s self-awareness. Self- awareness can be defined as how well individuals tend to know themselves and how their codes of conduct impact others. Personal mastery aids to ensure that behaviors along with change interactions are authentic.  A shared vision is a learning discipline with an objective of prioritizing what teams within a firm need to achieve together (Raines, 2004).

 Some of the common examples of these learning disciplines in ABC consultancy include team learning. Here, the organization has prioritized grouping employees into different work groups assigned to different tasks. Adoption of this discipline has greatly contributed to acquiring the general objective. On the other hand, shared vision is evident in ABC in the sense that, the work groups are equipped with skills on how to collectively achieve the ABC’s intended goal. Personal mastery is well adopted in ABC, in that employees tend to conduct themselves in a manner that encourages admirable interactions within the firm. Also, mental models evident within ABC in the sense that the organization has an admirable culture that positively impacts the way employees conceptualize issues (Raines, 2004).

However, upon effective adoption of each discipline, the ABC’s leadership is likely to be positively influenced, for instance, through shared vision leaders can gain the skills of value alignment and positive visioning that come in handy in stipulating an effective vision. Alternatively, personal mastery equips the management with tools such as refraining and perceptual positions that are significant in enhancing relationship quality. Team learning facilitates decision making with the ability to employ tools like dialogue and action learning in conducting robust discussions and critical reflection. With respect to system theory, it exposes the leadership to advantages of using archetypes and system thinking structures that facilitate situation evaluation. Lastly through mental models, the executive staff more likely to be equipped with capabilities of effectively employing reflective inquiry (Raines, 2004).

Systems Archetypes (Week 5)

Archetypes

According to Peter Senge’s exploration of system archetypes, they can be defined as patterns in which individual’s behavior tend to follow within an organization. Generally, such behavioural patterns often result in undesired consequences. In other terms, system archetypes can be described as a combination of balancing along with reinforcing feedback that keeps reoccurring. Different types of system archetype do exist, however, each of the archetypes tends to be defined by some form of characteristic theme, mental models, behavior patterns or alternatively, effective interventions. Some of the conventionally advocated types of system archetypes include shifting the burden, success limits, drifting goals, underinvestment, and growth, escalation, commons’ tragedy, as well as success to successful (Senge, 2006).

With respect to the organization in context, some of the observed archetypes in ABC include success limits, underinvestment, and growth along with commons’ tragedy. Success limit is an archetype that describes how as much as an effort may generate a positive result, the effort might be exhausted over time resulting in poor performance despite any energies applied. Alternatively, underinvestment and growth depict how growth may approach its limit which is varied by the capacity of investments. However, performance degradation along with demand decline may occur in the event that an organization may opt not to ensure its investments. Commons’ tragedy is another common type of system archetype that encompasses how multiple disciplines within an organization may tend to enjoy benefits of a given resource without evaluating the attached effects of sharing a resource. That is, the event of sharing a common resource among numerous disciplines may result in exhaustion thus propelling for a general organization failure or poor performance (Boulding, 1956).

Each of this applicable system archetype is structured in a manner that they each pinpoint to a certain problem within the organization. For instance, the different archetypes present in ABC consultancy evaluate different problems in the firm. Success limit is well demonstrated by ABC, in that it points out how the firm tends to rely on one effort which in the long run gets exhausted resulting in poor performance despite any changes embraced by the firm. On the other hand, common’s tragedy also referred as the tragedy of the commons, well depicts the problem of resource sharing within ABC. It exemplifies how disciplines within ABC are used to sharing benefits of resources disregarding the fact that the resources may be exhausted eventually thus, resulting in operation failure. Underinvestment and growth type of archetypes also comes in handy in indicating growth and investment incurred difficulties within ABC. Here, this archetype dwells on how the growth of the firm tends to stagnate due to low investments ensured by the company as well as investing in unproductive lines of business or alternatively, not investing due to unfavourable market trends (Senge, 2006).

Based on these indicated problems within ABC, some of the recommendations I advocate for are based on each archetype. For instance, with respect to success limit, I urge the firm to adopt operation methodologies that favour functionality of different efforts at the same time. In that, the firm will refrain from exhausting an effort at a time, and adopt running parallel efforts at the same time. This will see ABC to the helm of better performance. Subsequently, the tragedy of commons can aid ABC in realigning its disciplines in that each discipline will independently rely on its own resource thus, eliminating any huge impacts related to resource exhaustion. In line with growth and investments, I recommend to the firm’s executive to consider acquiring economic experts who will effective guide the firm on how to invest handsomely.

  Networks (Week 6)

Our organization is an entity that has within itself different types of other networks. It is a mixture network of individuals from diverse backgrounds with varied positions. The types of networks that exist in our organization include;

  • Positional and relationship network
  • Network of operating as a team
  • A network of free interaction among employees themselves and employees and their managers.

The main purpose of these networks in the company is to enable transparency and accountability. Positional and relationship structure is a pattern of relationships whose implementation and planning have been consciously done. It is made up of a hierarchy of authority that is formal. It also includes procedures and rules that are targeted to bring about behavioural regulation (Denning, 2004). The key concepts that are part of this network are; formalization, centralization, vertical differentiation and horizontal differentiation.

Formalization refers to the degree of standardizing activities of work and behavior as well as the way the standardization is arrived at. Centralization refers to the extent to which the power of making decision and control is utilized. Vertical differentiation is a vertical dimension of levels of authority that have been well-differentiated. Horizontal differentiation refers to differentiation via specialization (Johnson, 2010).

The network of working as a team is a type of network where there is involvement of high degree of teamwork to accomplish a given task. Though every individual has one title which is unique in its own way, they play different roles as a team. Work teams are very important features of lives of an organization. Both compositional and structural theories are some theories that have been put forward to explain the nature of teamwork in an organization. The compositional theories majorly focus on the personal traits of members of a team while the structural theories focus on how the team members interact with each other.

The third network is the network of free interaction among the employees. Interaction with employees is vital as it helps exchange of ideas and information. It is also a way through which the employees get to know each other. Observation is one way through which employees can learn from each other without having to speak to each other. It is the best method of learning from team members as the information obtained is not interfered with in anyway (Newman, 2003).

Each of the above networks has a way to which it can influence decision making in an organization. The network of positional and formal relationship enables the managers to draw a line between different departments in the organization. The top managers make their decisions based on the way the departmental heads work (Newman, 2003). For instance, if a particular department does so well in sales, the organization may decide to give them more of the sale-related work.

A network of team operation can also determine the way an organization’s decision makers decide on different issues. For instance, the management can decide to do away with trainers if they have observed that junior employees can work well through observing what their seniors are doing. Such decisions are only possible if the level of teamwork is high in that organization. Just in the same way, an organization may find it easy to make a decision about abolishing training sessions if they realize that there is a network of free interaction in the company (Denning, 2004).

Complexity (Week 8)

As described from the previous writing, ABC is a consultancy firm that works with a general objective of efficiently ensuring strategic dimension and alternatively, creating intended value. Although economic experts urge that ABC is well facilitated with respect to running private entities and acquisitions, it is significant for the firm to note that, for it to be effectively strategic, it should aim at stimulating controlling regulations. In contrast to device or machine control, organization control is quite complicated in that its control system should at least encompass four distinctive elements. Among them are, communication network, a detector as well as effector and assessor. Generally, an assessor is a technique that is often employed to evaluate the significance of an organization’s current practice by running a comparison to targeted expectations or standards.

In line with organization agents, detectors are conventionally viewed as techniques preferred in evaluating the actual processes in an organization. However, for effective management, managers frequently use detectors to report on every action undertaken. On the other hand, effectors are conventionally defined as devices used to alter behavior in the event that the assessor indicates so. Managers employ the concept of effectors to undertake correlative action. In sum, these agents formulate the control systems of management in that, every management level aims at implementing the organization’s stipulated strategies. To construct on the relationship among this three agents, detectors first detect what is happening with respect to organization processes, then the assessor relates the detected processes with relevant standards. The effector then ensures that the required correlative action is undertaken based on what the detector and assessor evaluated. In brief, these agents relate in the sense that they are interdependent (Nelson, 2005).

            In any organization, the flow of information refers to ideas, facts, opinions or data which are extensively discussed throughout the firm. In other terms, information flow can be pictured as a firm’s blood since it often flows continuously from one level to another. In an analysis of ABC, it is worth noting that information flow is vital for the survival of any organization as aims at collecting critical aspects of data that in one way or another helps the management to evaluate the quality of its processes. Economic experts urge that generally information flow carries the advantage of educating relevant personnel and eventually, improving the outlook of the firm in context. In sum, information flow significantly realigns an individual’s understanding of how an organization operates (Nelson, 2005).

A feedback loop can be described as a pathway or channel that is stimulated by a certain effect that gradually propels for a generation of a synonymous effect.  A positive non-linear feedback is economically pictured as a change that was initially initiated and gradually stimulates an alternative synonymous change. For example, the ice-albedo feedback along with vegetation feedback.

Some of the significant organization processes include the development of new product lines, customer service along with resource allocation. Resource allocation is a vital organization process as it determines the functionality of other processes. Customer service is a process that involves actual interaction between the firm and customer. This process is vital as it helps a firm sell itself to the target market. On the other hand, the new model helps managers to understand organizations as it adequately defines relevant organization modelling determinants. Based on that fact, the management may effectively concur on admirable decisions since they are well equipped with relevant modelling facts. Therefore, for ABC to improve on its general functionality, I recommend to the management to focus on stimulating for open information flow as it enables every personnel to critically understand necessary stakes of the firm (Brownlee, 2007).

Resilience (Week 9)

Organizations are increasingly coping with various challenges that target their subsystems and how well the organization responds to these challenges constitutes its resiliency. For an organization to be described as highly resilient, its systems should be such that its structures and functions should remain intact or degrade gracefully in the wake of challenges (Allenby & Fink, 2005). Like any other organization, the subsystems in ABC Consultancy that are likely to be impacted by the challenges include the economic, environmental, governance, infrastructure and social systems. The resilient component of robustness is concerned with the inherent strength of a system and when analyzed in connection to the economic aspect of ABC consultancy firm, it can be argued that the firm is well poised to withstand economic challenges. More particularly for ABC, major systemic financial failure and chronic fiscal imbalances can be withstood by their systems as there are mechanisms in place to leverage on their profits such as investing in other lucrative activities. As for the governance in ABC, the high resiliency is ensured by the contingency theory as the leader’s effectiveness in steering the company plays an important role in the wake of challenges. Effective communication as well as positive regulatory feedback mechanism is essential attributes of response and recovery components of resilience respectively (World Economic Forum, 2013). Based on this argument, the flow of communication at ABC and existing feedback mechanism increases the likelihood of recovery and response but there is need for an open system of communication to further increase the resiliency.  

The infrastructure component of any firm and ABC in particular is essential in ensuring smooth operation of the systems. An analysis of the resiliency of ABC infrastructure reveals that as much as the system is highly resilient in when looking at the resourcefulness component, it lacks the robustness component of resilience.  The lack of complexity especially in control of regulation systems as shown in ABC complexity hinders the organization efforts in achieving the robustness in its infrastructures in the wake of challenges. Complexity in these systems of an organization that have been incorporated in the design and operational procedures is a sure way of moving towards a more robust infrastructure (Little, 2003). Diversification of the infrastructure is also important and this is one area that ABC firm lacks meaning that these will impact the firm negatively in the event of a challenge as response and recovery may be slow with the existing systems in place.

The environmental and social components are critical in the operation of any organization. This is because there are risks that these components present to the organization such as environmental catastrophes that may impact on the functioning of an organization. The resilient component of redundancy lacks in ABC firm in terms of lack of diversity in its system in dealing with the challenges presented by the aforementioned components. However, based on the organization model of ABC, it is worth noting that the firm is characterized by an adaptive system characteristic with the ability to convert threats into opportunities. Strong resiliency according to the report by World Economic Forum (2013) is achieved when threats can be converted by an organization into opportunities thus tapping into the resourcefulness component of resiliency. The environmental component of ABC consultancy can be described as robust and the robustness characteristic of resiliency is identified through availability of attributes such as adaptive decision making. At ABC, one of the system characteristics identified earlier is based on adaptation. A specific example as it concerns the environment at ABC where competition is an external factor that may affect the operations of the organization. However, the adaptive system allows for cooperation thus in effect turning the threat into an advantage.

Overall, based on the analysis obtained above, ABC as an organization can be described as resilient. This is to say that the system in place as well as the culture cultivated within the organization can be able to withstand disruptions that may threaten the operation of the consultancy firm. Even with the existing challenges to establishing a fully resilient structure within ABC such as lack of robustness in the infrastructural component and lack of open communication systems, majority of the systems, cultural concepts and leadership approach are designed in a way that it is unlikely that risks may bring down the organization. The resourcefulness component and adaptive characteristic of ABC systems is what contributes to its resiliency in the sense that negative impacts are readily turned to positive ones (World Economic Forum, 2013). Since resiliency of an organization is basically concerned with leadership, culture, systems and people, it is important that all these should be resilient and tied towards the same goal. At ABC, the able team of management contributes to the resiliency as far as leadership is concerned. Furthermore, the healthy and conducive environment helps in creating a resilient culture as well as employees who themselves are also resilient individually.

As much as an organization may be considered resilient overall, it is possible that it may be resilient in some aspects but not in others. For instance, basing on the subsystems of an organization, it is possible to find that an organization may be resilient when it comes to the systems in place and not in the people within the organization. For example, the systems of an organization may capture all the characteristics of resiliency such as robustness through regular monitoring, resourcefulness through availability of different options that may come in handy in times of crisis. The same organization however may be faced with issues of employee non-cooperation that may threaten the functioning of the organization. For instance, if the organization culture is one that is not built on trust, it is highly unlikely that resiliency will be established within the members of the organization or rather a resilient culture will not be adopted. This may be true even if other components such as the systems and setting are resilient on their own.

Considering that there are weaknesses in certain subsystems at ABC that may threaten the resiliency of the organization, the executive leadership at ABC would deal with the resiliency analysis to improve on certain areas of operation. This would go a long way in improving the resiliency of the organization. Of particular importance is the need for management to affect an open system of communication to supplement the effective communication and feedback mechanism that are already in place. Secondly, there is need for the management to consider diversifying the systems of the organization and more importantly focus on increasing the robustness of these systems. This could be done by increasing the complexity of the systems since this is an important aspect of increasing robustness and hence resiliency. If the above recommendations are put into consideration, ABC would be in the right direction to further enhance its reputation as a fully resilient organization.

Summary and conclusion (week 10)

Summary

The systems theory can be applied in various fields and has majorly adopted both the implicit and explicit forms which portrays organisations as systems that are independent and which are trying to attain the relationship between the organisation and its environment. The environment of ABC consists of over thousand employees who relates to the firm’s objective of determining strategies and creating value to increase the overall efficiency. The organisation model of ABC results from its system modelling and ensures that the managerial team members are assigned specific duties to minimize loopholes for failure and thereby achieve targeted profits. Threshold connotes the extent beyond which a firm becomes invalid due to its deviation from the set line of operation. The threshold for ABC is the point at which it will become bankrupt and all its operations will cease. Firms are bound to change positively or negatively which makes some factors relating contingency approach to be ignored. Thus, the leadership of ABC have to change the existing systems to accommodate the changes which in turn result to establishment of new values and norms. The consultancy firm are hired to bring in fresh views on the reasons for the company’s errors or failure and such leadership are needed for proper organisation of the client’s company.  The ABC Company finds it necessary to have the contingency theories which regards the leaders’ effectiveness in improving inputs and thus perfect outputs. A company must fit in the conditions that are assumed in other firms.

ABC’s general objective of creating strategic dimensions, value and increasing the firm’s efficiency and effectiveness.  It has on many occasions portrayed interests in acquisition, investment in private equities and has well stipulated transformation plans. The interest in equities include common stock, preferred stock and their appreciation. Stock connotes a representation of a company on its earnings and assets. In regards to system disciplines, it is important that ABC prioritize adopting learning disciplines in executive leadership even if economic experts view it as equipped good enough to run acquisitions and private entities. The learning disciplines that ABC should employ are structured in terms of principles, concepts and techniques of activating the discipline. They also include the practices or precepts that relate the leadership behaviour to approaches adopted. Mental models realign how individuals understand issues and behave in the firm’s environment and their adoption increase the conceptualization of issues. Team learning encourage teamwork through sharing of insights, knowledge, skills and experiences. Concerning the archetypes of the system, they exist in different types with each being described by different themes, behaviour patterns, mental models or effective interventions. The archetypes in ABC consist of success limits, under investments, growth and the firm’s strategy.  The organisation’s networks consist of relational and positional network, network that involve teamwork operations, free interaction network among the employees and their managers. The networks enable accountability and transparency which is their primary intended purpose. Moreover, the ABC has a complicated organisational control as is expected of a company similar objectives. This is seen in the communication network of ABC that is also used as an assessor and effector. ABC also has a resilient element of robustness that make it well poised to handle economic challenges.

Conclusion

 Every organisation has to follow various set strategies for it to be successful. ABC Company has various set models and theories that provide guidelines to stakeholders and give the manner in which it is run thus making it to be highly approached for consultation purpose.  The effectiveness of the company’s strategies of acquisitions and equity investments will be enhance by the application of appropriate systems that ensure that will ensure its notch functionality. This will also lead to success in economical feedback and the general effectiveness in decision making. In addition, the adoption of various learning disciplines positively influences the ABC leadership since it equips individuals with the ability to conceptualisation of issues and thus improved understanding. The firm executive should consider involving the help of economic experts in dealing with systems archetypes since certain behaviour patterns can have a negative impact on the growth and performance of a company. Of more importance is the use of teamwork to deal with the company’s complexities through encouraging open information sharing and thus enable personnel understanding.

References

Muhammad, G., Ibrahim, J., Bhatti, Z., & Waqas, A. (2014). Business intelligence as a knowledge management tool in providing financial consultancy services. American Journal of Information Systems, 2(2), 26-32.

Schneider, A., Wickert, C., & Marti, E. (2016). Reducing complexity by creating complexity:  a systems theory perspective on how organizations respond to their environments. Journal of Management Studies.

Investopedia.com, (2016). Stocks Basics: Different Types of Stocks. Retrieved from            www.investopedia.com/university/stocks/stokes2.asp

Ft.com, (2016). Feedback Loop. Retrieved from http://lexicon.ft.com/term?term=feedback-loop  

Meadows, D. H. (2008). Thinking in Systems: A primer White River Junction, VT: Chelsea               Green.

Boulding, K. E. (1956). General systems theory-the skeleton of science. Management science, 2(3), 197-208.

Von Bertalanffy, L. (1972). The history and status of general systems theory. Academy of       Management Journal, 15(4), 407-426.

Raines, L. (2004). Looking both ways through the windows of Senge’s five disciplines.

Boulding, K. E. (1956). General systems theory-the skeleton of science. Management science, 2(3), 197-208.

Senge, P. M. (2006). The fifth discipline: The art & practice of the learning organization. New York, NY: Doubleday.

Denning, P. J. (2004). Network laws. Communications of the ACM, 47(11), 15–20.

Johnson, S. (2010). Where good ideas come from [Video file]. Retrieved from https://www.ted.com/talks/steven_johnson_where_good_ideas_come_from#_=_.

Newman, M. E. J. (2003). The structure and function of complex networks. SIAM Review, 45(2), 167–256.

Senge, P. M. (2006). The fifth discipline: The art & practice of the learning organization. New York, NY: Doubleday.

Brownlee, J. (2007). Complex adaptive systems. Retrieved from http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.70.7345&rep=rep1&type =pdf.

Nelson, C. (2005). Tagging, aggregation, and social relational models. Proceedings of the 2005 Complexity Science and Educational Research Conference, 31–43. Retrieved from: https://www.academia.edu/Documents/in/Social_Relational Models.

Allenby, B., & Fink, J. (2005). Toward inherently secure and resilient societies. Science, 309(5737), 1034–1036.

Little, R. (2003). Toward more robust infrastructure: Observations on improving the resilience and reliability of critical systems. 36th Annual Hawaii International Conference on System Sciences, 2003. Proceedings of the. doi:10.1109/hicss.2003.1173880

World Economic Forum. (2013). Global risks 2013: Eighth edition. Retrieved from http://www3.weforum.org/docs/WEF_GlobalRisks_Report_2013.pdf.

 

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To Achieve An Improved Customer Service

Table of Contents

Memo. 2

Business proposal for restaurant to achieve an improved customer service. 3

Background of the problem.. 4

Criterion used. 6

Solutions. 7

Category to category consideration. 11

Conclusion and Recommendation. 13

References. 14

 

 

 

 

 

 

 

Memo

To: Professor Raymond Lacina

From: Xinbo Huang

Subject: Memo of transmittal for achieving an improved customer service

Date: 1st August 2016

In regard to the approval of my research on 7th of July 2016, I have carried through my research and I have evaluated on the need for change in the rendering of customer care services in Empire restaurant. I have analyzed on the different criterions such as time, cost, efficiency and consequences of implementations so as to come up with the best solution for the restaurants.

Based on the findings and the categorical considerations I have concluded that teamwork is the most essential solution that is cost effective and efficient in its implementation and it will help the restaurant to continually improve. I have recommended for management support and motivation system that will help in the implementation of the solution.

 

 

Regards,

Xinbo

Recommendation report

Business proposal for restaurant to achieve an improved customer service

            Executive summary

    Harrisburg has got very few Chinese restaurants few restaurants in the area. Empire restaurant is one of the restaurants that are found in that locality and it offers both the traditional Chinese dishes as well as Japanese sushi. T he restaurants has however been performing so poorly since it has not been offering quality services to their customers and thus making their customers feel unsatisfied and also uncomfortable. This has negatively affected the restaurant's performance and has resulted in the reduction in demand as customers are fewer in numbers. This report will thus present and discuss the major problems facing the restaurant, the background of the problem so as to understand the root cause of the problem thus enhancing proper suggestion of solutions and recommendations. The paper will also discuss several changes that will occur in the organization as the different audiences will be affected by the changes in the entire organization and the different criterions that will be implemented so as to suggest the different solutions to the restaurants’ problems. It will also discuss the different solutions that will involve the changes in the communication skills, the employees’ perceptions and the change in restaurants management. Finally, the paper will evaluate all the solutions provided through comparisons of each solution so as to come up with the best solution that the restaurant will be able to adopt so as to increase their performance. A conclusion will be made from all the proposed solutions and a recommendation will be given at the end of the paper.

Background of the problem

    Empire restaurant is outstanding amongst all the other surrounding Chinese restaurants near it hence it has a potential of doing quite well in the business. However, the restaurant fails to offer best operations that include the customer care services that are offered towards the customers.

The company thus does not offer their customers with the best atmosphere that they can enjoy and be proud of. This has resulted in them losing most of their customers to the other restaurants and thus they are unable to develop, grow and expand. This has also resulted in a loss of their ability to compete with others in the business. There is so much failure attributed by the various human resources such as the customer care service desk, the waiters, the supervisors and the gatekeepers. Some of these staffs fail to use proper communication skills or instance they fail to show interest to the customers even as they speak to them. They fail to use etiquette words and they even forget to introduce themselves even at the arrival of these guests. They are at times discourteous and they use gesture even when they are talking to their customers. The restaurant serves a wide range of customers and especially during extreme weather changes there are so many customers who come in the restaurant for lodging facilities. They are to blame for the poor performance of the restaurant as the customers feel unappreciated and uncomfortable as they believe that the services ought to be better and worth the amount of cash that they pay for the services. There are numerous disagreements between the staffs and the customers due to the poor level of services and the late deliveries and thus resulting in a poor rating of the restaurant and little recommendations from customers to other potential customers. This has slowly led to the customers getting angry to a point of not even coming back to the restaurant. Though the restaurant is offering all the other operations quite professionally such as the availability of quality foods and rooms, the restaurant is failing on this department of customer care services and thus something must be done to rectify this. Therefore, it is important to implement and adopt changes in the operations of the restaurant starting from the human resource improvement so as to be able to achieve their goals and objectives to themselves and to their customers.

Close attention must be paid to these weak internal points that are gradually affecting the business so as to enhance strong personal touch with the customers’ needs and wants while it is fully utilizing its market potential so as to obtain high sales and maximization of profit.

Criterion used

    There are some requirements that are needed when choosing the solutions that will be applied in the restaurant. These criterions will help in the evaluation process where there will be measures that will be used to evaluate them. The criterion to be used for the selection of the solutions in the restaurant involve the time that will be used, management and team support, cost of implementing these solutions effectiveness of these solutions, the capability of the restaurant to solve the problem, the root cause of the problem, value of the customers, consequences of the solutions and the ease of implementation (Cook 2004).

    In this case, the use of customer satisfaction surveys is one of the criteria that can be used so as to determine the type of solution to apply in the restaurant to aid in its improvement. This will enable the restaurant's management to be able to determine what the customers think of the restaurant thus helping the restaurant to be able to change on their services so as to be able to receive good ratings from the survey (Cook 2004). The survey will enhance the restaurant to be able to determine the immediate complaints that need to be corrected first and this will enhance the restaurant to be able to gradually improve their operations. This will thus allow them to be able to k now in which position they are in the market thus allowing them to be able to be able to improve their services so as to be competent in the market.

 

This mainly can be accessed through an online platform where the customers are able to give back their feedback thus allowing the restaurant to be in a position to be able to change their services to suit their needs thus satisfying their needs. This will give a good insight on the restaurants need to make better customer-related decisions.

    The decision matrix is another criterion that can be used by the restaurant o as to evaluate a list of solutions that they need to implement in the business. This is important as it will enhance the restaurant to be able to narrow down its solution options to only one best solution that will enhance the restaurant to achieve its success (Chow et al 2007). Brainstorming as a group of managers in the restaurant with the involvement of the customers will enhance the restaurant to be able to take the best decision on the best solutions to adopt and implement fully. Discussion and refinement of the list of criteria that have been used in the selection of solutions so as to identify some of the criterions that ought to be included in the solutions while the unimportant solutions are not implemented.  Assigning of weight on the different solutions is important as it will help in the selection of the most important criterion. Evaluation of each chosen solution against the criteria is important as it will assist the restaurant management to understand and identify which problem needs to be addressed first (Cook 004).

Solutions

    The way the employees conduct themselves is quite important and this starts from the entrance to the dining experience. The restaurant should, therefore, employ professional employees who are capable of offering quality services to the customers. To reduce the cost of employing all new employees the restaurant should offer training to the employees in the restaurant so as to ensure that they are pro-efficient in their line of work.

This will ensure that they are able to speak fluently and audibly so as to enhance proper communication between them and the customers. They should also be able to express themselves well using the appropriate facial expressions such as smiling to the customers so as to be able to offer them a friendly gesture and a warm welcome. They should be able to greet their customers the moment they arrive at the restaurant and not just saying it but enhancing it through the physical appearance and the body language so as to enable the customer to experience the good customer services. A good integration of words and body language will enable the employee to keep on smiling as the actions have a more impact than the words. The employees should also be able to disrupt appropriately and to use respectful words in their conversations with the customers as they listen intently. They should also be well conversant with the menu of the restaurant so as to enable them to be able to answer any form of question or inquiry that the customers may have. Repetition of words is important so as to ensure that the customers have gotten the menu and the details of the restaurant so as to be able to feel comfortable. Etiquette and fast delivery of services are also quite relevant in the restaurant as this will help reduce any delay that may occur. The restaurant should also ensure that they have a high capability of solving customer related problems including their complaints. This will ensure that the customers are pleased as their problems are solved speedily sand satisfactory. Maintaining of eye contact is important even while apologizing to the customers for the problems that they might have faced in the restaurant. This will ensure that they leave the restaurant happy and satisfied despite their shortcoming.

    The restaurant needs to analyze the problems that they are facing in their organization by getting to know their customers and their needs and collectively understanding all their expectations once they visit the restaurant.

The restaurant ought to be customer centric and in doing this, all the restaurant's services and operations should be geared towards satisfying the needs of the customers.

Analysis process in the restaurant ought to be a daily routine where the manager in charge should ensure that the restaurant’s physical layout so as to be able to view the restaurant as to be able to identify any problem that may have occurred in the restaurant (Han et al 2009). This will enhance the easier flow of vehicles in and out of the restaurant thus ensuring that there s no traffic that may cause a delay in the restaurant. The manager should also ensure that they supervise the internal operations of the restaurant, for instance, they may supervise the way the customers are handled at the entrance from the gate and at the customer care desk. They may use observation method so as to be able to determine whether the hosts and the hostesses are welcoming, helpful and effective and friendly as well. They should also ensure that they visit the tables so as to view how the waiters are operating and serving the customers. Finally, the manager may decide to conduct a survey where he may ask some few customers on the feedback basing on each step of their experience in the restaurant. This will thus enable the manager to identify the areas that need to be improved thus making the atmosphere of the customers to be more relaxed and more comfortable. In doing this, the manager will be able to find solutions to these issues that affect the customer services and if the problem is bigger they can be able to communicate with their superior solutions to be reached (Evans 2016).

    Development of teamwork is another important solution in the restaurant since it will enable all the employees to work together. This will enable them to have shared values as well as collectiveness towards achieving all their objectives. This will enable them to support one another even in times of unexpected occurrences they will be able to perform well since they will have gotten used to pulling all of their resources together.

This will thus require the management to spend considerable time with the workers so as to develop strong team spirit and also they are expected to lead as examples (Evans 2016).

Meetings will, therefore, be part of the restaurant as it will ensure that all the employees are aware of the restaurant’s objectives and it will also allow them to understand how they are supposed to conduct themselves towards attaining these goals (Kusluvan 2003).  They will thus be able to help one another thus appreciating the different employees in varying positions and hence encouraging them to perform well and to participate in satisfying the customer’s needs. Involvement of the employees in the decisions of the restaurant will enable them to feel wanted in the business and thus they will be loyal and committed hence unifying them. This will thus ensure easier coordination of all the personnel’s that are involved in the offering of services to customers (Granberg 2006).

    Follow up is important so as to ensure that the employees are keeping track of the daily operations of the employees. This helps the employees to work together to maintain and achieve the level of service that the customers expect as the managers will be present to witness that all these activities are fulfilled. The wait staff mainly acts as the direct line to the restaurant; hence they should be trained on how to focus on the customers and how to listen carefully to the customers so as to be able to communicate to them effectively. This will also include asking for feedback from the customers and enquiring for areas of improvement and continually appreciating the customers so as to be able to develop the loyal client base. This is because customers are usually happy when they are appreciated and they mostly remain loyal and always refer others to the restaurant thus acting as the best marketing tool that the restaurant can use (Kusluvan 2003).

Category to category consideration

    The time that will be used in the implementation process of all the solutions that are given to improve the restaurant's performance is more. However, the result from the time that will be taken by the operation will be worth that time. Time is a factor to be considered before the implementation and adoption of the solutions and the lesser the time taken in this process the higher the chances of improvement in the restaurant. Training of employees and the employing of new employees, for instance, will take a considerable amount of time to be able to see the changes in the customer service delivery (Evans 2016). However, after the duration, there will be continual improvement in the restaurant and this will enable the restaurant to be competent in the Hampshire region. However, long-term solutions may not be important in the restaurant's customer services since this is a day to day operation and there are emerging issues each and every new day in the industry. It is thus important to adopt those solutions that do not consume much time and those that ensure that the immediate problems are solved or improved.

             Management and team support is another criterion that is important in the selection of problem solution (Evans 2016). Some of these solutions require so much of the managerial support so as to improve the restaurant's performance. However, other solutions require much of team support in the restaurant. In this case, both supports are essential but the team support is the core improvement that is needed in the restaurant setup as it will enhance all the employees to work in unity so as to ensure that the customers’ needs and wants are satisfied.

    The cost of implementing these solutions effectiveness of these solutions is another factor that needs to be evaluated thoroughly before implementing any of the suggested solutions. Any solution that will cause the restaurant to incur a considerably large amount of expenses should be avoided.

However, those that incur small amounts such as teamwork solutions are highly encouraged as they will help the restaurant to save on the cost for more important operations in the restaurant.

    The capability of the restaurant to solve the problem which involves the solving of the root cause of the problem is relevant as it will ensure that the restaurant identifies that the root cause of their problems is the internal sector thus they will be able to re-organize their structure so as to be able to solve the immediate problems.

    The value of the customers is the most important criterion as it will enhance the restaurant to measure the value that they hold for their customers. Basing on the restaurant’s objectives, those solutions that bring about valuing of customers will be given priority while those that are centered on the restaurant itself will have to be ignored for the future (In Khanlari 2015).

    Consequences of the solutions are another criterion that helps in reducing the list of solutions. When there are negative consequences such as the sacking of the old employees who are already familiar with the restaurant's operations will cause other losses to the restaurant. Thus those solutions that have positive influence to the restaurant are the most appropriate ones to be implemented and adopted. 

    The ease of implementation will enable the restaurant to determine which solution is easier and fast to implement. Thus the restaurant will definitely use those solutions that are fast, efficient, Feasible and effective so as to be able to adhere to the customer related problems effectively without having to wait for so long. Complex and unpromising solutions will not be used as they require more time of evaluation and implementation.

 

Conclusion and Recommendation

    Basing on the evaluation from the above section it is quite clear that customer care service is a problem that cannot be ignored as it is negatively affecting the business thus making it difficult for the Empire restaurant business to fail in achieving greater profits. Thus it is important that diverse solutions be implemented in the restaurant so as to solve all these problems so as to continue developing and expanding.

    Therefore team management is one of the solutions that has proven to be cost effective, with reduced time of implementation, effective to all ranks in the restaurant, has considerably great results and it involves just a simple rule of team support. As the employees, managers and the gatekeepers collectively work together, there will be unity amongst them and they will all work towards making their customers’ needs being fulfilled satisfactorily. Role models will be existent among them while coordination will be good hence ensuring those customers are happy. It is thus recommended that the restaurant’s management should offer these employees support that they need acting as role models to them and ensuring that they are happy so that they can be able to transfer that happiness to their customers.

 

References

            Chow, I. H. S., Lau, V. P., Lo, T. W. C., Sha, Z., & Yun, H. (2007). Service quality in restaurant operations in China: Decision-and experiential-oriented perspectives. International Journal of Hospitality Management, 26(3), 698-710.

            Cook, S. (2004). Measuring customer service effectiveness. Burlington, VT: Gower.

Evans, J. R. (2016). Quality and performance excellence: Management, organization, and strategy.

            Granberg, B. J. (2003). Increasing restaurant sales: Boost your sales & profits by selling more appetizers, desserts, & side items. Ocala, Fla: Atlantic Pub. Group.

            Han, H., & Ryu, K. (2009). The roles of the physical environment, price perception, and customer satisfaction in determining customer loyalty in the restaurant industry. Journal of Hospitality & Tourism Research, 33(4), 487-510.

            In Khanlari, A. (2015). Strategic customer relationship management in the age of social media.

            Kusluvan, S. (2003). Managing employee attitudes and behaviors in the tourism and hospitality industry. New York: Nova Science Publishers.

3481 Words  12 Pages

Amazon

Amazon's Mission Statement
Amazon.com has had a clear focus and a solitary mission since it began. Founder Jeff Bezos has publicly referred to the Amazon.com mission statement as the guiding force behind his leadership decisions many times in the company's 18-year history. It can be concluded that the success of Amazon.com as the top Internet retailing company in the world is due at least in part to their unwavering commitment to this mission and the daily execution of it. The mission and vision of Amazon.com is...

"Our vision is to be earth's most customer centric company; to build a place where people can come to find and discover anything they might want to buy online."

Amazon's 2001 Positioning Statement (when it almost exclusively sold books)
For World Wide Web users who enjoy books, Amazon.com is a retail bookseller that provides instant access to over 1.1 million books. Unlike traditional book retailers, Amazon.com provides a combination of extraordinary convenience, low prices, and comprehensive selection.

For World Wide Web users who enjoy books, Amazon.com is a retail bookseller that provides instant access to over 1.1 million books. Unlike traditional book retailers, Amazon.com provides a combination of extraordinary convenience, low prices, and comprehensive selection.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Use the provided information, as well as your own research, to assess one (1) of the stated brands (Alfa Romeo, Amazon, or Google) by completing the questions below. At the end of the worksheet, be sure to develop a new positioning statement and motto for the brand you selected. Submit the completed template in the Week 4 assignment submission link.

 

Name:

Professor’s Name:

Course Title:

Date:

Company/Brand Selected (Alfa Romeo, Amazon, or Google):

 

  1. Target Customers/Users

Who are the target customers for the company/brand?

Amazon clientele is quite vast as it targets any person that is interested in purchasing online books, food, jewelry, toys, software, video games, consumer electronics, video and mp3 downloads? Streaming and cloud infrastructure.  This means that the target market is students, parents, teenagers, home owners and even companies. The company is an all rounded company, and offers the basic commodities to the consumers.

 

How could/does the company reach its customers/users? What methods and media might and/or does the company use to reach the customers/users?

Amazon.com is an internet based company, their website is their gateway to their consumers. The amazon attracts approximately 130 million people one month. All their products can easily be accessible by anyone who visits their website.

 

 

 

 

 

What would grab the customers’/users’ attention? Define the customers/users according to their demographics and psychographic information (e.g., age, gender, income, education, lifestyle, values, etc). How do they want to be perceived?

The most eye-catching thing about amazon is their time efficient quality services. The company offers safety and security to their customers thus making their shopping experience much more reliable. For a customer seeking quality products, low prices and great customer service Amazon is the way to go. The target market ranges from 15 and above years as they are able to shop freely with their debit cards. Most customers are literate since one must be able to use a computer in order to shop.

 

What do these target customers’ value?

  • Quality products
  • On time delivery
  • Low affordable prices
  • One-stop shopping experience
  • Reliable customer care services

 

  1. Competitors

Who are the brand’s competitors?

  1. Physical world retailers, catalog retailers, publishers, vendors, distributors
  2. Other online e-commerce sites
  3. Companies that provide e-commerce services

 

What product category does the brand fit into?

E-commerce

 

What frame of reference will customers use in making a choice to use/purchase this brand/service? What other brands/companies might customers compare this brand to?

The best efficient online shopping experience is frame that customers have when they visit amazon. Other brand that people might compare to include eBay and Google

 

  1. USP (Unique Selling Proposition)

How is this brand/company better than its competitors? What is the brand’s USP (Unique Selling Proposition?

The all roundedness of amazon. Amazon offers a shopping experience like no other since they offer quality goods. Since there are numerous products under one company a buyer is able to shop at a click all the requirements on might have. This is time saving thus much more efficient.

 

What is the brand’s uniqueness?

Price standardization

 

What is the competitive advantage of the brand? How is it different from other competing brands?

Since the prices are fair clients don’t have to look at other sites for better prices. The customers do not have to waste time bargaining or waiting for auction biddings. This is a just shop kind of market where the customer is able to access any item they require as compared to other brands where there are multiple products but are less efficient.

 

Does the brand have any attributes or benefits that dominate competitors?

Secure and privatized shopping experience that secures customers privacy.

 

  1. Positioning Statement & Motto

Develop a new positioning statement and motto for the brand you selected. Below is an example of BMW’s positioning statement and motto.

  • BMW Positioning statement: The brand for discerning customers of sports cars (target customers) who want an exhilarating experience (USP).
  • BMW Motto: BMW is the ultimate driving machine.

[Insert response]

. positioning statement: Trusted. Innovative. Inspired.

. motto: Pay less for more.

 

876 Words  3 Pages

Discussion Topic: Spartan Stores, Inc. SWOT Analysis

Strengths

  • The organization exhibits an effective product line that is distributed through retail and distribution business segments (SWOT Analysis, 2012). In Michigan markets where the organization operates, it is recorded that these two business segments hold either first or second position with regard to market share.
  • Spartan Stores Inc. has a unique product market positioning that satisfies the demands of the target market (SWOT Analysis, 2012). Products offered by both retail and distribution segments are divided into national and private brands that offer different ingredients with regard to the preferences of the customers targeted.

Weaknesses   

  • Stiff competition is one of the major weaknesses endured by Spartan Stores Inc (SWOT Analysis, 2012). For example in Michigan and Indiana which are the major operation areas for this company, there is growing competition from retailing and distribution organizations such as Wal-Mart, Meijer and K-Mart among others.

Opportunities

  • Effective operation and economies of scale

Rapid growth that Spartan Stores Inc. has been experiencing since the foundation date has contributed significantly to its economies of scale (SWOT Analysis, 2012). The rapid growth has been promoted by the effective operation of the company through the two business segments that it uses to offer its products to the potential customers.

  • Increasing demand on private labeled brands

Since Spartan Stores Inc. offers both national and private labeled brands, increase in demand for private brands by the customers is one of the significant opportunities for the organization (SWOT Analysis, 2012). One of the reasons why there is a considerable increase in private label brands is that they are relatively cheaper than national products.

  • Increasing health concerns among the customers

It is factual that healthy eating is becoming one of the major concerns by the contemporary society (SWOT Analysis, 2012). As a result, the increasing concern on health is likely to increase the demand for grocery which is one of the major products offered by Spartan Stores Inc.

Threats

  1. Decreasing purchasing habit by the customers

Citing from the economic crisis that U.S economy endured back in 2008, the purchasing habit of the consumers across the country was affected significantly (SWOT Analysis, 2012). This can be cited from the fact that the employment rate remained low where consumption expenditure grew with a slower pace at 1.7% after the economic recession.  

  1. Expensive healthcare benefits for the employees

It is factual that most of the companies in the contemporary business market have been affected significantly by the increasing healthcare benefit for their employees (SWOT Analysis, 2012). In 2011, the benefits increased by 3.5% which placed a heavy burden to employers. Thus, Spartan Stores Inc. is one of the companies that fall under the group of organizations affected by increasing healthcare benefits.

  1. Expensive labor costs

According to the U.S department of labor, the minimum wage rate accrued up to $7.25 per hour in 2010 which continues to increase up to date reaching up to $7.40 per hour (SWOT Analysis, 2012). As a result, this has affected the overall profit margin of the companies.      

 Reference

SWOT Analysis. (2012). Spartan Stores, Inc. SWOT Analysis, 1-9. Retrieved from Business Source Complete database.

528 Words  1 Pages

            Transportation and Distribution Management

            DNR Process Solutions Pte Limited

            Introduction

            Report Overview

            This report will aim at analyzing the effectiveness of the three major transportation management aspects which include carrier selection, incoterms selection consideration and carrier relationship management. This report will, therefore, describe in regard to the transportation and distribution strategy that is utilized by DNR Process solutions Pte Limited which is well popularly recognized as DNR. Additionally, the significance of the transportation and distribution management will additionally be addressed in details.  The current modes of transportation strategy utilized by DNR will additionally be discussed in the report as well as the analyses in order to assist the corporation in achieving an effective and efficient distribution and transportation management. The most effective strategy for transportation and distribution options for DNR is recommended in order to deliver products on the stated time as well as save costs.  This is based on the fact that customer relation management helps in achieving business effectiveness and this must thus be achieved with reduced expenses.

            Company Background

DNR is headquartered in Singapore and its presence is in Indonesia, India, Vietnam, Malaysia, Philippines and the corporation’s services are globally offered (DNR, 2016). DNR process solutions Pte limited is a trusted company provider for customized industrial automation and IT solutions for gas and oil, waste and water, fats and oils, chemical specialty, pharmaceutical, semiconductors and food industries.  The corporation, therefore, enables the achievement of efficiency in the significant improvement operations as well as products marketing by the utilization of actual time data and customized procedure automation solutions in fresh and existing plants. DNR provides the clients with innovative and optimized solutions which are provided with the lowest cost of ownership in delivering higher ROI.  The company’s mission is to provide world-class integrated automation process and solutions for IT by utilizing leading edge sensors, information technologies, control and communications in order to manage assets with efficacy and also to develop value for consumers (DNR, 2016).  The competitors include Genmark automation limited, ATS automation and Skymech engineering and automation Pte limited.  The strategies utilized include advertising, developed customer relation and increased market location in developing its market base thus increasing its efficiency.

            Incoterms Selection Consideration

            Several given terms are provided for the consumers indicating the responsibilities towards the services which are provided such as price (Ward, & Peppard, 2016).  Therefore if there is no insurance that is provided in the given product purchase terms then this means that the transport insurance is fully responsible for both the seller and the buyer in reference to the owner of the cargo at the provided transport period (Ward, & Peppard, 2016).  In DNR normally it is no unique request from the consumers as the inciter is fully utilized for the shipment process.   Under the contract, the seller is fully responsible for carriage arrangement of insurance transit as well as the goods and the cost of the arrangement is incorporated fully in their price of the contract.  This is done in order o ensure that the consumer or the buyer  does not have to worry about  freight rates  fluctuations of the stated insurance premiums that are involved in transportation after the  products purchase. 

The DNR as the seller, therefore, obtains the leading bills and the associated insurance policy and then delivers them to the consumers alongside with the price invoice and this, therefore, helps the consumer in paying on documents receipts.  Since DNR is a consumer-centric organization, it is the full responsibilities of the organization to ensure and take full responsibility in taking the associated risks thus deliver the products to the mentioned destination in the contract.  This, therefore, assist the corporation in maintaining god relationships with its consumers as it helps in building loyalty (Khan, & Zsidisin, 2011).  Additionally, the consumers are able to trust the company because the company observes time and the states needs of the corporation in order to meet the contract criteria.  Additionally based on the needs of the corporation the company is able to select its distributors based on the needs of its consumers as well as the requirements that the contract holds (Khan, & Zsidisin, 2011).

            The FOB trade term is utilized by the DNR Company if the procedure and policy of the country of destination are challenging to handle. This helps in creating a better understanding between the buyers the seller as well as the transporters.  FOB, therefore, implies that the DNR as the seller should, therefore, deliver the goods and then pass the rail of the ship at the mentioned shipment port (Rushton, Croucher, & Baker, 2014). This thus implies that the DNR consumer is entitled to barring all the involved risks as well as costs if losses occur or even when the products are damaged from that situation.  Therefore the corporation holds no needs in taking risks as it arranges the schedules of goods transportation and distribution based on the instructions provided by the consumers. Based on the increased cost that the company incurs during transportation the incoterms utilized should consider cost efficiency (Ross, 2015). The corporation should ensure that it takes responsibility for all the involved risks, takes as well as duties and share them with the transport providers. This will help in reducing cost and earning loyalty from consumer’s to increased satisfaction (Eyob, & Tetteh, 2012). 

            Carrier Selection Criteria

            There are distinct transportation modes in which products and services can be moved from the manufacturer to the consumers.  The modes, therefore, include rail, air, water, cable, and space and pipeline transportation.  Every mode, therefore, holds its individualized and unique features, it benefits as well as setbacks (Jacoby, 2010).

            Presently DNR utilizes air transportation, sea and road transport modes which are thus determined by the urgency of the products and services delivery as well as the stated requirements by the consumers. As the control and instrumentation for tank management is a major part of DNR services and most of the corporation’s consumers are mainly based in southeastern parts of Asia (Margaritis, Anagnostopoulou, Tromaras, & Boile, 2016).  DNR, therefore, purchases the instruments and then delivers them to the consumers for their plant's installation. The corporation mainly utilizes sea as well as  road transport  because  of the large sizes and heaviness of the gods like  cable drums  control panels as well as devices to be utilized in the field.  Trucking is thus utilized for shorter transport distances such as Malaysia as well as the provision of services which are characterized as the door to door.  Moreover, this is associated with the lower time of transit as compared to other available modes of transportation as well as the high flexibility in regards to plans changes and well as transport tasks (Christopher, 2016). The limited volumes transport for every truck as well as traffic jams leads to delays while transporting goods to the consumer’s site.  Seat transportation is thus utilized for the delivery of products to consumers whose location is distantly located (Christopher, 2016).              Mostly this mode of transportation utilizes containers which vary based on different sizes.  In this form of transportation the goods are packed into distinct containers in order to fill the containers as required.  The idea of sea transportation for DNR Corporation is to transport bulky and heavy products. If the service is additionally required expertises are sent to the consumer site based on the three modes of transportation that the company utilizes depending on distance as well as urgency.  Despite sea transportation lead time being longer the cost of transportation is low in comparison to the different modes of transport. The mode thus necessitates a packaging need in order to prevent the occurrence of damages that are influenced by weather (Waters, 2011).

            Air mode of transport, on the other hand, is utilized for light products as well as products that are expensive.  This is additionally utilized in situations where the consumers require the products to be delivered within the shortest time period. This form of transportation is the quickest thus DNR does not utilize it frequently because of the higher costs of transportation associated         (Monczka, Handfield,  Giunipero, & Patterson, 2015). At times the mode may be associated with delays of flights as well as cancellation due to weather changes and other risks sources.  DNR is recommended to select carriers based on the cost of transportation, goods features as well as customer’s requirement.  This should involve observing the needs of the consumers as well as the goods features.  This is intended to save time as well as the associated costs in order to reduce expenditures.

            Transportation is the major element for the DNR Corporation in as it is based on its ability to deliver services products as well as the developed promises to its customers (Wensveen, 2016).   Therefore in order for the corporation to achieve  an effective transportation strategy and transporters selection criteria that are effective  in management of transport and distribution,  it is necessitated to develop  a more concise, clear and a well-targeted articulation of their target consumers segments, operations as well as suppliers. The developed strategy should thus recognize the needs of the consumers, the goals of the organization, the selection modes as well as the relationship of the carriers (Donselaar, & Sharman, 2013).

            Carrier Relationship Management

            In the recent business world, most corporations are utilizing outsourcing in managing carrier’s selection.  This helps as it involves the utilization of a specified carrier instead of utilization of a privatized fillet (Bala, 2014).  DNR is one of the many companies that utilize outsourcing for goods delivery as it holds no specified internally located logistic department.  Through the transportation function being outsourced this reduces the worry need in regard  to truck,  maintenance, prices  as well as purchases moreover the documentations  freight  which involves  import , export documents and other  documents that are related to freighting are not a necessity.  The strategy of carrier management holds different advantages such as the capability to change and develop services of logistics without the present limitation.  This additionally helps DNR in increasing customer’s satisfaction as the corporation is customer centric and the involved risks are shared with those that provide the services without involving the buyers.  This helps the corporation in saving expenditures as the burden is reduced highly (Bala, 2014).  Additionally, the corporation is able to benefit because the burden and leverage expertise has to comply with all the regulations of the government like the brokerage of customs.

             However, the corporation is faced with various issues due to the use of outsourcing in managing carriers.  While the services of outsourcing like processing of payroll and preparation of taxes the providers are able to view confidential information about DNR. This, therefore, threatens the security of the organization as confidentiality is not maintained.  It becomes challenging for the organization to manage their services providers in comparison to the challenges that are involved while managing internal processing within the organization itself.  The corporation is thus disadvantaged because it holds less control over the services that it has outsourced (Herrmann, Rogers, Gebhard, & Hartmann, 2015).   This results in poor communication, delayed services as well as poor quality in managing the process.  Additionally, the outsourcing process is expensive as the outsourced services in DNR Corporation are those that involve air freight transportation.  Because of the convenient of this mode of transportation, it is thus associated with higher costs thus the company incurs more.  They are generally expensive in comparison to other providers of transportation services as they guarantee goods safety and cargo tracking can be achieved easily through the internet (Stapleton, Pande, & O'Brien, 2014).

            DNR is thus recommended to develop contracts that are long-term with logistics corporations as a third party. This is to that the shipment of heavy and large items n made effective.   In building a long-term relationship this will help the company in acquiring discounts for the charges of transportation thus making a communication become easier for shipment planning (Cavusgil, Knight, & Riesenberger, 2013).  This will enable the organization to be able to handle goods with ease and in an effective way. This is mainly because unloading and loading of goods will be handled in proper ways as most of the goods are large, valuable and heavy. DNR should additionally base on the following aspects when opting for a third party. This includes worldwide accessibility, service level, flexibility, cost,   security management level, the lead time for delivery as well as the financial condition (Cavusgil, Knight, & Riesenberger, 2013).

            Conclusion

            Transport and distribution management is critical in supply chain and logistics effectiveness in a corporation.  This is mainly because it is crucial in impacting the key issues throughout the   global chain of supply as well as logistics distribution.  In order to meet the requirements of the supply chain which are dynamic the corporation must adopt an effective strategy. The strategy is required to be responsive in regard to the demands of costs as well as services delivery of the company and the consumers. DNR Corporation holds an effective distribution and effective strategy which ensures that the customers are able to achieve satisfaction. This is mainly influenced by the fact that the corporation is a consumer-centric organization which puts the needs of the customers before its own interest. This helps in maintaining a good customer relationship.  The effectiveness of the corporation can thus be proven by the fact that it incoterms helps in ensuring that the consumers do not have to worry about the goods delivery as the corporation takes full responsibility.  Additionally it has accomplished to build a huge market segment through the developed customer loyalty. Its strategy of carrier selection and carrier management has been crucial in contributing to transportation and distribution management being success. 

 

 

 

 

 

            References

            Bala, K. (2014). Supply chain management: Some issues and challenges-A Review. International Journal of Current Engineering and Technology, 4(2), 947-953.

            Cavusgil, S. T., Knight, G. A., & Riesenberger, J. R. (2013). A framework for international business. Pearson.

            Christopher, M. (2016). Logistics & supply chain management. Pearson Higher Ed.

            DNR. (2016). DNR Process Solutions: Plant & Process Automation Consultants. Retrieved from http://www.dnrps.com/

            Eyob, E., & Tetteh, E. (2012). Customer-oriented global supply chains: Concepts for effective management. Hershey, PA: Information Science Reference.

            Herrmann, S., Rogers, H., Gebhard, M., & Hartmann, E. (2015). Co-creating value in the automotive supply chain: an RFID application for processing finished vehicles. Production Planning & Control, 26(12), 981-993.

Jacoby, D. (2010). Guide To Supply Chain Management. London: Profile.

            Khan, O., & Zsidisin, G. A. (2011). Handbook for supply chain risk management: Case studies, effective practices, and emerging trends. Ft. Lauderdale, FL: J. Ross Pub.

            Margaritis, D., Anagnostopoulou, A., Tromaras, A., & Boile, M. (2016). Research in Transportation Business & Management.

            Monczka, R. M., Handfield, R. B., Giunipero, L. C., & Patterson, J. L. (2015). Purchasing and supply chain management. Cengage Learning.

            Ross, D. F. (2015). Distribution planning and control: Managing in the era of supply chain management.

            Rushton, A., Croucher, P., & Baker, P. (2014). The handbook of logistics and distribution management: Understanding the supply chain. Kogan Page Publishers.

Stapleton, D. M., Pande, V., & O'Brien, D. (2014). EXW, FOB or FCA? Choosing the Right INCOTERM and Why it Matters to Maritime Shippers. Journal of Transportation Law, Logistics, and Policy, 81(3), 227.

            van Donselaar, K., & Sharman, G. (2013). An innovative survey in the transportation and distribution sector. International Journal of Physical Distribution & Logistics Management.

            Ward, J., & Peppard, J. (2016). The Strategic Management of Information Systems: Building a Digital Strategy. John Wiley & Sons.

Waters, C. D. J. (2011). Supply chain risk management: Vulnerability and resilience in logistics. London: Kogan Page.

Wensveen, J. G. (2016). Air transportation: A management perspective. Routledge.

 

2604 Words  9 Pages

Toyota Company

            This is one of the global automobile manufacturers company. It is ranked in the top three globally. The organization has a distinctive business model which allows them to do well in the business and to be competent amongst their competitors. The company’s business model utilizes the differentiated strategy which is an incorporated low cost. This type of strategy involves finding of the lowest cost of operations inclusive of an exclusive niche that separates the company from competition. This business model reflects the company’s future strategies and expectations including the unknown and the known challenges that the company may encounter. With this kind of model, the company has moved into being more of customer centric and thus all their efforts are geared towards satisfying customers’ needs.

            Brand management is one of the marketing strategies that the company is using in maintaining its brands in Indonesia, Thailand, and Philippines as well as in Malaysia. This has assisted the company to be customer centric. The company also arranges for partnerships with local wellbeing of increasing loyalty to the business. The company attains their inputs from all the countries to which they manage their brands and hence they are able to interdepend on one another and hence are able to ship the inputs at different tariff rates from the different countries.  Media affiliation management is another form of market strategy that the company implies so as to advertise and promote their products to the consumers thus they are able to lessen the gap between the company and the customers. Thus potential customers can be able to connect to the company through the use of media such as through their website and blogs. The company also implies the use of just in time method while manufacturing their products with an aim of producing products that the consumers want in its strong markets.

This is essential as the customers’ information is integrated in the manufacturing process and this helps in reduction of wastages. Expansion market strategy has enhanced the company to focus on moving towards the new cultures where thy have been able to improve on their interest so as to meet the demands that requires success. Quality management in the company enhances the employees’ participation thus empowering them to produce quality goods (Monden 2013). Distinguishing through the market information strategy has enhanced the employees to continue being innovative while they use the information system so as to help in the setting of prices for the products (Dess et al 2014).

            Monitoring of the strategies in the company involves the determining of the elements to measure in the company where the company identifies the people who will be in charge of designing, implementing and reporting. This has enabled the company to engage the stakeholders in the process thus enhancing them to understand their perspectives and feedback is integrated hence enabling close evaluation of the company’s strategic plan (Monden 2013). Establishment of standards is another monitoring element for example, Toyota company Sets of targets to monitor and control the strategic plan. Monitoring is also carried out by measuring of the actual performance for instance; Auditing is used in the company on a regular basis so as to ensure that the company is attaining its objectives. Use of reference point in the company is another control activity that ensures that the company is able to gauge its operations basing on the future goals.

            The best evaluation process used in the company entails the measurement of performance basing on communication, employees commitment, time and finances. This enables the company to realize some of its strengths that add up to the company’s fundamental competencies that enhance the company to face their competitors even in the future.

The company therefore advocates for committed leadership that would help the company to attain its strategic plan (Sinofsky et al 2010).

The ethical goal of the company is to be true and fair in their presentations and to comply with the country’s law and morals. Also they aim at maintaining high level of honesty, uprightness, expertise and ethical conduct. The core responsibility of the company is to foresee the future needs and to proactively take steps that are of benefit to the consumers as well as the society. The company’s cooperate social responsibility is to ensure that there is proper management of waste.

            The Triple Bottom Line is used by the company as it ensures that the main value of sustainability have become convincing in the business world because of the greater long-term productivity. The adoption of the TBL system in Toyota has enhanced the understanding of the certain standards that are developed by both the internal and external forces and this has enabled the company to expand their information beyond the financial data thus enabling them to understand their impacts of the company on the society and the environmental measures that ought to be taken to enhance sustainability and safety of the society.

 

 

 

 

 

 

 

References

                Dess, G. G., Lumpkin, G. T., Eisner, A. B., & McNamara, G. (2014). STRATEGIC MANAGEMENT

                Monden, Y. (2013). Management of service businesses in Japan. Singapore: World Scientific.

                Sinofsky, S., & Iansiti, M. (2010). One strategy: Organization, planning, and decision making. Hoboken, N.J: Wiley.

867 Words  3 Pages

Transportation and Distribution Management

Introduction

The aim of this paper is to discuss the various aspects of transportation management of Wilmar International Company with key focus on selection consideration for incoterms, criteria for carrier selection and how the company manages its relationship with carriers. Incoterms refers to commercial terms or rules that are widely used internationally for transaction and procurement processes. Transportation management is an essential element of Wilmer which ensure smooth distribution of many tonnes of products to large number of customers the world over. Therefore, the paper provides recommendations on the right incoterms for the company, appropriate selection criteria for carriers and how the right relationship with those carriers is built.

Company overview

Wilmar International Limited is an agribusiness firm with headquarters in headquartered in Singapore and is one of the major listed companies in relations to market capitalisation in Singapore. The firm’s business activities involve cultivation of palm oil, crushing of oil seeds, manufacturing of biodiesel and fertiliser and processing of grain. The core strategy of Wilmer international involves a resilient agribusiness model that is integrated. It covers, entirely, the value chain comprising of various agricultural commodities from the initial processing to branding, distribution and merchandising of broad range of those products. The company’s market spurns from China, Indonesia, and India, and about 50 more countries the world over (Wilmar International, 2016). This market is maintained by the Wilmar’s portfolio of agricultural processed products that are of high quality and the consumer- packed commodities dictate a leading target market share. Despite the large market share, Wilmar faces stiff competition from local firms such as Golden Agri-business and First Resources and international companies such as Archer Daniels Midland Company, Cargill and Indofood Agri. The company has a wide distribution network globally that covers most of the countries where its products are sold and has recently embarked on strategic investments and large acquisitions (Wilmar International, 2011).

Incoterm selection

Transport and distribution management should be a core agenda for the success of any business activities of organisation. It should be a major strategy to be applied by management to respond to a highly competitive environment globally since the traditional supply chains and models are becoming complex as they get oriented towards responding to customer needs (Hien et. al 2009). There is thus a need for every organisation to select a transportation mode that is very effective and reliable. This because the transportation function is closely integrated into other functions of the firms which include manufacturing, purchasing, marketing and distribution of the company’s products (Rushton et. al 2001).  The distribution channels is a very important aspect of Wilmar International since the companies depends on its effectiveness to reach the wide range of market. The company manufactures products whose market spurns across the globe thus, and thus has to rely on a distribution firm that has enough capacity to effectively ensure delivery of products to manufacturing sites as well as distributing of manufactured and processed products to target market. The capacity should be in terms of information technology, warehousing and material handling, freight and transportation and other support services.

It is important that the company apply the appropriate incoterms for its transaction since they will ensure standardization of practices in the contract and in so doing any disputes that may arise will be averted (British Chambers of Commerce, 2012). The company has to ensure that the incoterms selected are in harmony with other contracts of carriage, load capacity and insurance. Of more importance is the capacity if the organisation selected to have the required capacity handle all the material products produced by the company. The capacity has to involve the multimodal transport which has opened the door for the company to minimise any cost and risk of theft and damage. Thus the company’s preference for containerization would give an upper hand in the selection process since the containers be used for different modes of transport. The Wilmar International has to apply the Cost and Freight and Cost Insurance and Freight under any contract, where a multimodal bill of landing is used.  These will ensure the transportation company takes responsibility for the safety of the Wilmar’s products during the transportation process. The CFR application is strategic since it ensures that the selected company has the capacity to arrange for the transportation of the products from the factory to the destined port. This ensures that the company does not bear the cost of the charges at the destination point (International Labour of Commerce, 2010). CIF ensures that Wilmar International is absolved of any risk in shipping of the products which are not under its control. Moreover, the incoterms include the Full Container Load which is a door to door model which makes sure that the containers used are sealed at the products origin and opened only at the destination which provides a high security and very minimal handling (International Labour of Commerce, 2010). These incoterms were the main considerations that were used to choosing Raffles Shipping Corporation as an essential part of Wilmar International.

Carrier Selection Criteria

The selection of any mode of transport involve the organisation to assess its transportation needs and requirements so as to ensure that there is no hitch in the distribution process (Premeaux, 2007). This involves the appropriate mode of transport that will ensure that the company is able to achieve its goal of efficiency in export operation and effectiveness in terms of cost. The process of selection should also consider whether the company handles the logistics itself or aim at outsourcing the services (Chew et. al 2011). Wilmer’s products are mostly transported through shipping, while there are lesser loads transported through rail and road.  The company’s products are normally bulky and of great weight which necessities the use of shipping mode of transport. Moreover, the products are mostly not perishable so the shipping mode is very appropriate. The shipping mode is very cost effective since the large volumes of products allow for cost reduction since consignments can be consolidated by freight forwarder (Perlman et. al 2009).

The criteria applied by this company touches on the carrier’s organisation structure, professional reputation, communication, pricing and financial stability. The carrier’s organisational structure should ensure that there is point-of- contact that is specifically dedicated to Wilmer International. Such a structure ensures that there are carrier’s representatives who can respond to the company’s concerns and one who has authority to make important decisions on carrier’s behalf. The carrier should be a very active member-in-good-standing in international, national, regional and local trade or various industry groups. In addition, the carrier should manage to provide a current list of its customers to the company. This provides an opportunity for the company to enquire about the carrier’s performance from those customers. The financial information of the carrier should be available for the company to assess its ability to carry out large business responsibilities that regards to insurance and other financial risks that may arise in the distribution process (Meixell & Norbis, 2007).The company will be able to assess the past and present performance which it will use to determine the carrier’s ability to continue staying in business and the financial capability that will enable it make vital improvements on capital. The carrier should also have a pricing structure that is not exaggerated so that it is in-line with other providers of the transport services. Thus the company looks into the recent rating and flexibility in pricing in relation to length of the contract and volume of the products involved. The selection criteria also includes the information technology application of the carrier which will ensure efficiency in billing, communications and documentation of data. This technology should also ensure efficiency in inspection procedures so as to comply with any policies set by the regulatory authorities (Kapoor & Kansal, 2003). The carrier should also be operating the right fleet size and enough equipment and of the appropriate type in the vessels the company requires. This should go hand in hand with the experience of handling the cargo similar to the company’s products and have measures that will prevent mixing of products with others to prevent contamination.

Carrier Relationship Management

As business operation expands in response to increasing market demand, there is a need to have a holistic transport management which will provide the ability to strategic planning, consolidation and optimization of all the transportation that include outbound, inbound, international and domestic (DING , 2012). This is done while considering the cost and restraint in the real world. In order to achieve this, organisation should ensure that the relationships it has with its customer brings value to both itself and the carrier so as to have a win- win situation (Jang. ,2006).Wilmer international transportation needs revolve around positive relationship with any carrier so as together it can be able to achieve its desired goals. These goals involve lower spend on transportation, maximizing the utilization of the transportation assets and at the same time optimizing the number of containers on shipment.  The company also aims at ensuring that there is increased cost accuracy relating to charges from the carriers and improving the management of these charges.  The company also desires to have its delivery made on time so as to attain a high level of customer service. This is possible if responsiveness and agility of supply chain is enhance through a good relationship with the carriers. Just as the company tailors its programs to fit its business strategy of satisfying customer needs, it should also do the same for the select carriers. This should be done by viewing the carriers as partners to Wilmar International and therefore, teams whose main role is to diligently handle carrier relationship should be established.  However such a relationship should be based on rules that driven towards the fulfilment of the contract requirements. As such, the relationship team should strive to establish a relationship that focuses on transparency especially where the need for contract changes arises.

A collaborative attitude should be developed through improved communication with the company’s carrier partners so that avenues for discussing mater relating to transparency issues are created (Lambert et. al 2008). Lack of transparency can bring down any effort to collaborate in building business relationship that is well intentioned and value generating to the parties involved. The relationship can also be created through involvement of both parties in most aspects of pricing and charging. This will ensure that the appropriate rates are used, whether they are their own rates or international rate. A positive relationship will ensure that the company brings down the cost involved in transportation while at the same time ensuring on time delivery of products to the target locations (Handfield, 2002).  The company’s teams of carrier relationship should also pursue a long-term relationship, and endeavour to maintain it. This will ensure a sustainable relationship with the carrier partners which will align the company’s needs and the carrier’s needs (Lambert et. al 2008).  By so doing the company will be able to offer the best options for the carriers while at the same time reaping big from the dedication of the carrier to offer the best transport services.

Conclusion

The effectiveness in transportation management is closely linked with the distribution needs of the any organisation. The selection process of the appropriate carrier, however, bears the overall responsibility of determining whether Wilmar International will meet its transportation needs and requirements. This ensures that the company maintains it strategic goal of maintaining an integrated agribusiness model that is robust. The choice of the appropriate incoterms ensures that the company partners with a carrier that has the capacity to sustain its transportation needs while at the same time ensuring that the standards are maintained in any contract. This is where the company will be able to focus on the needs of the consumers which it must satisfy through proper distribution of its products to target market. However, the company should have selection criteria that is oriented towards its own needs so that any company selected has the ability to meet them at reasonable cost and quality. Such a criteria should focus on the carrier’s performance both past and present especially in terms of experience with similar type of cargo of the company’s products. The, company’s needs be meet properly if a win-win relationship is established with carriers so that to avert any hitch to the distribution process.

Reference

Wilmar International, (2016). Integrated Business Model. Retrieved from: http://www.wilmar-international.com/our-business/integrated-business-model/

Wilmar International, (2011) .Sustainable growth. Annual report.34-48

British Chambers of Commerce, (2012). International Trade Manual. Routledge.209-214.

Hien, N., Laporte, G., Roy, J. (2009).Business Environment Factors, Incoterms Selection and Export Performance. Operations and supply chain management.64-75.

Rushton, A., Oxley, J., Croucher, P., & Cranfield School of Management, (2001).The handbook of logistics and distribution management. London: K. Page. 349-350.

International Labour of Commerce, (2010). Incoterms 2010: ICC official rules for the interpretation of trade terms.

Chew, E. P., Lee, L. H., & Tang, L. C. (2011). Advances in maritime logistics and supply chain systems. Singapore: World Scientific. 93-95

Kapoor, S. K., & Kansal, P. (2003). Basics of distribution management: A logistical approach. New Delhi: Prentice-Hall of India. 81-87

Premeaux, S. (2007).Motor Carriers and Shippers’ Perceptions of the Carrier Choice Decision. Journal of the Transportation Research Forum, Vol. 46(3). 5-12

Perlman Y, Raz T and Moshka, L. (2009). Key Factors in Selecting an International Freight Forwarding Company. The open Transportation Journal. 3, 29-34  

Meixell, M., Norbis, M. (2007).A review of the transportation mode choice and carrier selection literature. Int J Logist Manag. https://www.researchgate.net/publication/235261215_A_review_of_the_transportation_mode_choice_and_carrier_selection_literature_Int_J_Logist_Manag

 DING J. (2012).Assessment of Customer Relationship Management for Global Shipping Carrier-based Logistics Service Providers in Taiwan: An Empirical WSEAS Transactions on systems. Vol.11 (6).198-201.

Jang. H. (2006).Relationship management in international supply chains involving maritime transport.215-219. http://www.werc.org/assets/1/workflow_staging/Publications/598.PDF

Lambert, D. M., & Supply Chain Management Institute. (2008). Supply chain management: Processes, partnerships, performance. Sarasota, Fla: Supply Chain Management Institute.

Handfield, R. (2002). Redesigning your supply chain: Strategies for success. Prentice Hall.15-17

 

 

 

 

 

2345 Words  8 Pages

ING Insurance Asia/Pacific

ING was a global company which offered financial services from the origin of Dutch.  It was one of the twenty top largest financial institutions internationally as it was ranked among the top 20 companies in Europe.  The company offered asset management, insurance, and banking services in more than fifty nations with approximately one hundred and twenty thousand employees. The company operated in the banking along with insurance services business organization lines for both product and regions groups (Ivey, 2006).

ING is involved in both retail and wholesale services of banking internationally.  It was the first corporation to successful enters into the insurance market in nations such as Taiwan, South Korea, and Japan.  Kemp Jacques has become the recent CEO of the ING insurance subdivision of Pacific/Asia and is, therefore, trying to prepare the corporation for future operations. Both pacific and the Asian market is major insurance opportunities for ING. This is because in India and china there is a huge investment market.  The influence of the corporation is because it enters into those markets that are characterized with minimal regulations this providing ease in market entry.  Two distinct Asian and pacific market factors are associated with economic development in Asia nations (Ivey, 2006). This is mainly because economic development increases the households per capital thus increasing the insurance effectiveness. Kemp was involved in a size up from a distinct meeting with functional and senior managers to focus on the need of developing communication and develop a delegated power.

            Kemp’s leadership principles were based on leadership trait-based approach.  This form of leadership is described by the integration patterns of individual traits which are crucial in reflecting individual’s differences changes ranges. The leadership approach is based on consistent as well as leadership success.  Leadership success is described as the general influence that a leader holds on a performance group, satisfaction as well as the general effectiveness.  According to Kemp functional leaders are expected to hold more direct engagement with their particular units of a business.  The leader should additionally be able to develop and define essential measures of performance (Ivey, 2006).  ING would, therefore, utilize this form of leadership trait in creating a clearer mission as well as a vision that is accurate.  This would, therefore, permit the distinct branches of Pacific/Asia ING regions to gain a more developed understanding based on the major objectives.

 

 

            Reference

Ivey, R. (2006). ING Insurance Asia/Pacific. Ivey Management Services Copyright. Pdf

 

408 Words  1 Pages

Evolution of Business Report

Introduction

Business managers more often than not they face challenges that are as a result of evolving the business. The economic factors are primary constituents of the entire business environment. Innovation causes dynamic changes due to the structural shift in the economy that causes a greater integration of the business. Market forces are a determinant factor to the prices which has led to increased productivity in a business setting. Business operations are affected by the integration of the economies and the market size of the business. Market orientations in open economies are subject to business fluctuations and numerous uncertainties that pose a greater risk. In a dynamic evolving business environment managers need to adopt various strategies and managerial practices In order to make them survive in the market and grow with time.

Leadership and innovations

Innovation has been moved back and forth over time. As a result of innovations, globalization has been able to destroy the geographical territories and the market barriers that have for a long time been hindering managers and the business from achieving the overall potential (Sinofsky & Iansiti, 2010). This has also been hindering the employees from having creative ideas that can help the business as a result of a routine work environment. Innovation has brought fresh value to the business environment as all the business stakeholders have been able to great ideas that help the business in its operations. The stakeholders include the suppliers, the employees, customers, partners and other parties. Innovation has been regarded as a core driver that has driven growth, valuation and exemplary performance in the business (Sinofsky & Iansiti, 2010).

Senior executives see innovation as the key and the most important way for any business to accelerate into the global business environment in today’s world. Strategic thinkers have moved away from the old and the traditional way of service and product specialization (Sinofsky & Iansiti, 2010). They have found new ways in business operations, distributions, models and value chain and effective functions of the management through innovation. Generally, executives are disappointed by their ability to encourage innovation as they are not so confident in the decisions to make (Chuwiruch, Jhundra & Boonlua, 2015). This explains the difference between risk averse and risk takers managers. To build an organization with innovation as the central role results to frustrating moments to the executive managers as there are mimics to the approaches used been considered ineffective by the successful practitioners. Sustaining innovation is even harder due to its significant impact on the financial levels of an organization.

Diversity metrics, measurement, and evaluation

At times business fails to manage diversity successfully which results in economic suffering and social consequences. By failing to manage diversity at workplaces low morale, harassment, discrimination and low employees’ turnover is experienced (Daft & Marcic, 2006).  This results in poor results and low productivity in an organization. When the individuals are marginalized or they are even isolated to poor innovation ideas from the employees as a result of unconducive and unfriendly working conditions. The business is also at a risk that may arise from legal lawsuits from the employees who may seek compensation from the company. These challenges affect the overall objective of the organization creating less or no room for innovation (Daft & Marcic, 2006). By having an effective diversity at workplace there is a chance for the employees to be effective and productive in their work. This makes more employees remain in the organization creating massive numbers of employees with better skills due to the experienced gained over time. A working environment that is inclusive can simply be considered as good business.

Managing diversity will enhance success since it goes beyond adding value as it encourages human development which takes globalization into consideration. Managing diversity helps leaders recognize any social and business opportunity that leads to growth and productivity a time and money is properly invested (Scheel, Rigotti  & Mohr, 2014). As a result of diversity, there has been an increase in competition which results in multiple benefits such as increased adaptability, a variety of viewpoints, diverse collection of experience and skill and more efficient execution (Daft & Marcic, 2006). Using metrics to assess how well an organization is performing on diversity helps in evaluating its impact on the organization performance.

Implementing new technology

Technological change in an organization outlines the challenges faced by the management than in project administration. However, managers are responsible for leading a technical innovation as a routine in order to equip themselves better and gain the necessary education and experience required in innovation development. Managers should be able to manage the challenges they face as a result of technology in order to facilitate absorption of new technologies into the organization and hence be efficient (Daft & Marcic, 2006).

Technology has dramatically shaped the current status of different workplaces over the decades. Due to technological advancement employees have been able to interact in the global markets which have facilitated and created grounds for ideas exchange. Thoughts have been widely shared which has increased their knowledge levels will has been used to transform the business (Hughes, 2012). The new technology influx has generally made personal lives of the employees and the managers more convenient that has led to an increase in growth exponentially. Facility managers and resources leaders have been facing challenges due to the rapid changes and especially due to its vulnerability at the workplaces (Scheel, Rigotti  & Mohr, 2014). By embracing technology business profitability has increased due to the technological tools used.  These tools have facilitated management of the business as the leaders are able to remain relevant ad up-to-date through the effective use of the technology.

The organizational workforce has been able to be efficient and there have been increased productivity in the modern workplace. This is because management time has been properly optimized and numerous efforts have been put together to lightened everyday tasks. Technology has allowed employees to focus and emphasize on important things such as been creative and precise that have facilitated innovation. Clients expectations have also changed as a result of technology since everybody has been connected on a constant basis (Scheel, Rigotti  & Mohr, 2014).  Technology has increased collaboration due to the level of communication as people can be it, employees, co-workers, and leaders anytime any place. Communication has become more flexible as employees have become more engaged that has boosted innovation to a whole new level. Technology has led to improved cost management that has encouraged productivity hence increased profitability (Hughes, 2012). Businesses are more protected as a result technology. There has been minimally compromised situation of security to the business that has embraced technology. This has created safe havens that have created more grounds for innovative technology due to the security measures that has protected the sensitive information of the organizations. Technology has the access to information only to the right people as informational leaks are prevented (Hughes, 2012).

Inclusive and supportive work environment

It is important for businesses to recognize the importance of the inclusion and the diverse workforce at the work place. Despite the challenges in the organization talent management practices have an importance connection to the principle and corporate performance (Powell, 2011). Diversity includes a mixture of clients and different cultures that are crucial elements in today’s global market. Diversity pays off well as there is increased creativity and productivity that has created new attitudes, skills, language, understanding, processes and new solutions to problems that is considered difficult (Hughes, 2012). Managing diversity has created an important insight into the business operations as there are stronger community and customer’s loyalty, innovation and better employee’s recruitment and retention.

Diversity has included diverse talents and brought them together in the working environment. This has facilitated setting of common and realistic goals that has ignited loyalty and increase in productivity. Diverse minds have come together who have helped in coming up with a more effective solution to problems by a way of thinking. Outside employees are attracted due to the competitive edge and the retention of talent in an organization (Powell, 2011). Management of diversity has also created a sense of belonging as employees feel more appreciated. This makes the employees free as they are able to come up with innovative ideas that have led to innovation. By applying proper diversity together with management strategies not only money is saved but litigation expenses eliminated which make the business focus on the core objective of the business. Diversity has helped in building synergy between the groups in a work environment that has helped in bringing new attributes to the individuals resulting in great profits for the whole team. Diversity has also increased the market share of the organization due to customer’s satisfaction creating huge demands for their products (Hughes, 2012).

Diversity as a competitive advantage

Economic globalization has made many companies embrace workforce diversity due to the numerous benefits and the opportunity it creates. These establishments have helped the organization be a competitive edge. A diverse workforce has yielded tangible and intangible benefits for the whole organization and its stakeholders. There has also been a greater reach of business due to the diversification of the workforce (Powell, 2011).  There has been accommodation in the workplace that has allowed people together with individuals with disabilities contribute their unique talents to the workforce. The diverse workforce has resulted in an inexpensive change that has led to improved lighting that has made the work environment more comfortable, accessible and effective for the employees. Through a positive environment, there has been the motivation that has led to increased satisfaction to both the employees and the customers. There has been a broader perspective that has facilitated innovation providing the clients and the employees with increased value (Powell, 2011).

Through diversity, there has been a great opportunity that has led to the improvement of marketing and great customer’s service through the accommodation of the diverse group. Employees are also treated right and they are rewarded on the merits of fairness and productivity. Talents have been nature that has increasingly facilitated more creative ideas to the employees (Powell, 2011). The environment created by managing diversity has yield positive reports as the organization has been able to become more eligible to government tenders and contracts. The organization has been able to generate more public goodwill due to the enhanced corporate image. There is also effective management due to improved employee’s creativity that has helped in problem-solving through the diverse perspectives (Hughes, 2012).

Conclusion

Innovation has no best practice explanation to cultivate it. Many leaders should encourage their employees by highlighting the importance of innovation. Management fundamentals such as discipline should focus on the building blocks that drive innovation. There is the need to formally integrate with the strategic management plans in order to ensure there is a proper growth of the business towards innovation. Executives should also make an effort of using the existing talents from their employees without having to implement unruly changes in the programs that run the business by making conditions and room for dynamic innovation that will help the business networks emerge in a better way and enhance their flourishing. Taking explicit steps the executive managers should be in the first line fostering an innovative culture in the working environment that should be based on the trust among employees. There is the need to understand that the ideas will be valued and an employee should feel free to express their ideas as they will be appreciated. Managers should also embrace a channel of a combined workforce that will help in identifying of risks collectively in order to salvage the business. With such a working environment it will be more effective in sustaining innovation compared to monetary innovations.

Recommendations

Senior executives and leaders should more involve leading and managing innovation. This is because they will be in a better position to integrate. This will show a top priority in the company core process due to the strategic leadership agenda put in place. A top-down initiative of the leaders will show a strong indication to the employees. This indicates that they will achieve more that the short-term organizational goals. Motivational factors such as rewarding exemplary work should be put in place to encourage employees to have and come up with more creative ideas. Defining the king of innovative to drive the innovation to the business will be of substantial help as more information can be gathered. Setting targets for innovation and performance metrics will help in establishing the decision to make.

In order to sphere head innovation in an organization, there is the need to have successful management that embraces diversity at the work place. Addressing the challenges and the obstacles that cause an organization in failing to achieve diversity will help in eliminating the inconveniences that the organization faces. Developing proper work plans that will achieve diversity is a paramount duty that the leaders should take. The plans should be realistic, inclusive and quantifiable in order to achieve diversity in an organization that will help attain innovation. Managers should also be risk takers as they should consider the benefits that innovation will bring to the organization rather than the challenges they face. There should be a utilization of diversity training that will help shape the diversity policy through fostering of attitudes to help in successful business innovations.

 

 

 

 

 

 

 

Reference

Chuwiruch, N., Jhundra-Indra, P., & Boonlua, S. (2015). MARKETING INNOVATION STRATEGY AND MARKETING PERFORMANCE: A CONCEPTUAL FRAMEWORK. Allied Academies International Conference: Proceedings Of The Academy Of Marketing Studies (AMS), 20(2), 82-93.

Daft, R. L., & Marcic, D. (2006). Understanding management. Mason, Ohio: Thomson/South-Western.

Hughes, C. (2012). Valuing people and technology in the workplace: A competitive advantage framework. Hershey, PA: Information Science Reference.

Powell, G. N. (2011). Managing a diverse workforce: Learning activities. Thousand Oaks, Calif: SAGE.

Scheel, T., Rigotti, T., & Mohr, G. (2014). Training and Performance of a Diverse Workforce. Human Resource Management, 53(5), 749-772. doi:10.1002/hrm.21583

Sinofsky, S., & Iansiti, M. (2010). One strategy: Organization, planning, and decision making. Hoboken, N.J: Wiley.

2345 Words  8 Pages

Employees Training and Talent Management

The CLO of a company has several duties in the company including the role of ensuring that he or she understands the business challenges. It is also a duty for them to deal in developing career models and ensure there are programs to get-up-and-go to deep heights of proficient skills. They also are obliged to identify the cultural gaps in the workforce and fill them to develop the culture of knowledge sharing and learning (Tamar, 2010). It is also their duty to ensure that they revolutionize the L&D infrastructure to build architectures foe informal learning.

Majorly the CLO has the duties above where all this duties call for one critical part which is taking accountability for workforces communications. There is a great positive effect that come with having a CLO who is passionate about people. There is the most important way in which CLO’s should conduct their business for example through stories drives innovation and learning effectively (Tamar, 2010). This is a key act towards the success of the business because it for success also depends on how well the employees are willing to work for the company. It gives the employees the urge to feel the company’s success as their success and even work towards themselves adopting the values of the company and feel fit. In this case it all depends on the CLO’s way of operation in uniting and harmonizing the activities of the employees.

It should be noted that the success of a business is not solely dependent on the production and sale of quality goods and services. There is the talent management part which when taken into consideration has a hand in improvement for currently it has become involved in the overall business strategy (Oakes, & Galagan, 2011). Therefore funding it more translates to its improvement hence overall business improvement. Similarly this talent management introduces new strategic goals using the employees’ lifecycle model to streamline the leadership and hiring succession process. This is very effective for it gives room for the company to retain the top talent they already have hence increasing productivity.

References

Tamar, E,. (2010)  http://www.bersin.com/blog/post/2010/11/todays-chief-learning-officer--tamar-elkeles---a-clo-of-the-decade.aspx

Top of Form

Oakes, K., & Galagan, P. (2011). The executive guide to integrated talent management. Alexandria, Va: ASTD Press.

Bottom of Form

 

383 Words  1 Pages

            Transportation and Distribution Management

            DNR Process Solutions Pte Limited

            Introduction

            Report Overview

            This report will aim at analyzing the effectiveness of the three major transportation management aspects which include carrier selection, incoterms selection consideration and carrier relationship management. This report will, therefore, describe in regard to the transportation and distribution strategy that is utilized by DNR Process solutions Pte Limited which is well popularly recognized as DNR. Additionally, the significance of the transportation and distribution management will additionally be addressed in details.  The current modes of transportation strategy utilized by DNR will additionally be discussed in the report as well as the analyses in order to assist the corporation in achieving an effective and efficient distribution and transportation management. The most effective strategy for transportation and distribution options for DNR is recommended in order to deliver products on the stated time as well as save costs.  This is based on the fact that customer relation management helps in achieving business effectiveness and this must thus be achieved with reduced expenses.

            Company Background

DNR is headquartered in Singapore and its presence is in Indonesia, India, Vietnam, Malaysia, Philippines and the corporation’s services are globally offered (DNR, 2016). DNR process solutions Pte limited is a trusted company provider for customized industrial automation and IT solutions for gas and oil, waste and water, fats and oils, chemical specialty, pharmaceutical, semiconductors and food industries.  The corporation, therefore, enables the achievement of efficiency in the significant improvement operations as well as products marketing by the utilization of actual time data and customized procedure automation solutions in fresh and existing plants. DNR provides the clients with innovative and optimized solutions which are provided with the lowest cost of ownership in delivering higher ROI.  The company’s mission is to provide world-class integrated automation process and solutions for IT by utilizing leading edge sensors, information technologies, control and communications in order to manage assets with efficacy and also to develop value for consumers (DNR, 2016).  The competitors include Genmark automation limited, ATS automation and Skymech engineering and automation Pte limited.  The strategies utilized include advertising, developed customer relation and increased market location in developing its market base thus increasing its efficiency.

            Incoterms Selection Consideration

            Several given terms are provided for the consumers indicating the responsibilities towards the services which are provided such as price (Ward, & Peppard, 2016).  Therefore if there is no insurance that is provided in the given product purchase terms then this means that the transport insurance is fully responsible for both the seller and the buyer in reference to the owner of the cargo at the provided transport period (Ward, & Peppard, 2016).  In DNR normally it is no unique request from the consumers as the inciter is fully utilized for the shipment process.   Under the contract, the seller is fully responsible for carriage arrangement of insurance transit as well as the goods and the cost of the arrangement is incorporated fully in their price of the contract.  This is done in order o ensure that the consumer or the buyer  does not have to worry about  freight rates  fluctuations of the stated insurance premiums that are involved in transportation after the  products purchase. 

The DNR as the seller, therefore, obtains the leading bills and the associated insurance policy and then delivers them to the consumers alongside with the price invoice and this, therefore, helps the consumer in paying on documents receipts.  Since DNR is a consumer-centric organization, it is the full responsibilities of the organization to ensure and take full responsibility in taking the associated risks thus deliver the products to the mentioned destination in the contract.  This, therefore, assist the corporation in maintaining god relationships with its consumers as it helps in building loyalty (Khan, & Zsidisin, 2011).  Additionally, the consumers are able to trust the company because the company observes time and the states needs of the corporation in order to meet the contract criteria.  Additionally based on the needs of the corporation the company is able to select its distributors based on the needs of its consumers as well as the requirements that the contract holds (Khan, & Zsidisin, 2011).

            The FOB trade term is utilized by the DNR Company if the procedure and policy of the country of destination are challenging to handle. This helps in creating a better understanding between the buyers the seller as well as the transporters.  FOB, therefore, implies that the DNR as the seller should, therefore, deliver the goods and then pass the rail of the ship at the mentioned shipment port (Rushton, Croucher, & Baker, 2014). This thus implies that the DNR consumer is entitled to barring all the involved risks as well as costs if losses occur or even when the products are damaged from that situation.  Therefore the corporation holds no needs in taking risks as it arranges the schedules of goods transportation and distribution based on the instructions provided by the consumers. Based on the increased cost that the company incurs during transportation the incoterms utilized should consider cost efficiency (Ross, 2015). The corporation should ensure that it takes responsibility for all the involved risks, takes as well as duties and share them with the transport providers. This will help in reducing cost and earning loyalty from consumer’s to increased satisfaction (Eyob, & Tetteh, 2012). 

            Carrier Selection Criteria

            There are distinct transportation modes in which products and services can be moved from the manufacturer to the consumers.  The modes, therefore, include rail, air, water, cable, and space and pipeline transportation.  Every mode, therefore, holds its individualized and unique features, it benefits as well as setbacks (Jacoby, 2010).

            Presently DNR utilizes air transportation, sea and road transport modes which are thus determined by the urgency of the products and services delivery as well as the stated requirements by the consumers. As the control and instrumentation for tank management is a major part of DNR services and most of the corporation’s consumers are mainly based in southeastern parts of Asia (Margaritis, Anagnostopoulou, Tromaras, & Boile, 2016).  DNR, therefore, purchases the instruments and then delivers them to the consumers for their plant's installation. The corporation mainly utilizes sea as well as  road transport  because  of the large sizes and heaviness of the gods like  cable drums  control panels as well as devices to be utilized in the field.  Trucking is thus utilized for shorter transport distances such as Malaysia as well as the provision of services which are characterized as the door to door.  Moreover, this is associated with the lower time of transit as compared to other available modes of transportation as well as the high flexibility in regards to plans changes and well as transport tasks (Christopher, 2016). The limited volumes transport for every truck as well as traffic jams leads to delays while transporting goods to the consumer’s site.  Seat transportation is thus utilized for the delivery of products to consumers whose location is distantly located (Christopher, 2016).              Mostly this mode of transportation utilizes containers which vary based on different sizes.  In this form of transportation the goods are packed into distinct containers in order to fill the containers as required.  The idea of sea transportation for DNR Corporation is to transport bulky and heavy products. If the service is additionally required expertises are sent to the consumer site based on the three modes of transportation that the company utilizes depending on distance as well as urgency.  Despite sea transportation lead time being longer the cost of transportation is low in comparison to the different modes of transport. The mode thus necessitates a packaging need in order to prevent the occurrence of damages that are influenced by weather (Waters, 2011).

            Air mode of transport, on the other hand, is utilized for light products as well as products that are expensive.  This is additionally utilized in situations where the consumers require the products to be delivered within the shortest time period. This form of transportation is the quickest thus DNR does not utilize it frequently because of the higher costs of transportation associated         (Monczka, Handfield,  Giunipero, & Patterson, 2015). At times the mode may be associated with delays of flights as well as cancellation due to weather changes and other risks sources.  DNR is recommended to select carriers based on the cost of transportation, goods features as well as customer’s requirement.  This should involve observing the needs of the consumers as well as the goods features.  This is intended to save time as well as the associated costs in order to reduce expenditures.

            Transportation is the major element for the DNR Corporation in as it is based on its ability to deliver services products as well as the developed promises to its customers (Wensveen, 2016).   Therefore in order for the corporation to achieve  an effective transportation strategy and transporters selection criteria that are effective  in management of transport and distribution,  it is necessitated to develop  a more concise, clear and a well-targeted articulation of their target consumers segments, operations as well as suppliers. The developed strategy should thus recognize the needs of the consumers, the goals of the organization, the selection modes as well as the relationship of the carriers (Donselaar, & Sharman, 2013).

            Carrier Relationship Management

            In the recent business world, most corporations are utilizing outsourcing in managing carrier’s selection.  This helps as it involves the utilization of a specified carrier instead of utilization of a privatized fillet (Bala, 2014).  DNR is one of the many companies that utilize outsourcing for goods delivery as it holds no specified internally located logistic department.  Through the transportation function being outsourced this reduces the worry need in regard  to truck,  maintenance, prices  as well as purchases moreover the documentations  freight  which involves  import , export documents and other  documents that are related to freighting are not a necessity.  The strategy of carrier management holds different advantages such as the capability to change and develop services of logistics without the present limitation.  This additionally helps DNR in increasing customer’s satisfaction as the corporation is customer centric and the involved risks are shared with those that provide the services without involving the buyers.  This helps the corporation in saving expenditures as the burden is reduced highly (Bala, 2014).  Additionally, the corporation is able to benefit because the burden and leverage expertise has to comply with all the regulations of the government like the brokerage of customs.

             However, the corporation is faced with various issues due to the use of outsourcing in managing carriers.  While the services of outsourcing like processing of payroll and preparation of taxes the providers are able to view confidential information about DNR. This, therefore, threatens the security of the organization as confidentiality is not maintained.  It becomes challenging for the organization to manage their services providers in comparison to the challenges that are involved while managing internal processing within the organization itself.  The corporation is thus disadvantaged because it holds less control over the services that it has outsourced (Herrmann, Rogers, Gebhard, & Hartmann, 2015).   This results in poor communication, delayed services as well as poor quality in managing the process.  Additionally, the outsourcing process is expensive as the outsourced services in DNR Corporation are those that involve air freight transportation.  Because of the convenient of this mode of transportation, it is thus associated with higher costs thus the company incurs more.  They are generally expensive in comparison to other providers of transportation services as they guarantee goods safety and cargo tracking can be achieved easily through the internet (Stapleton, Pande, & O'Brien, 2014).

            DNR is thus recommended to develop contracts that are long-term with logistics corporations as a third party. This is to that the shipment of heavy and large items n made effective.   In building a long-term relationship this will help the company in acquiring discounts for the charges of transportation thus making a communication become easier for shipment planning (Cavusgil, Knight, & Riesenberger, 2013).  This will enable the organization to be able to handle goods with ease and in an effective way. This is mainly because unloading and loading of goods will be handled in proper ways as most of the goods are large, valuable and heavy. DNR should additionally base on the following aspects when opting for a third party. This includes worldwide accessibility, service level, flexibility, cost,   security management level, the lead time for delivery as well as the financial condition (Cavusgil, Knight, & Riesenberger, 2013).

            Conclusion

            Transport and distribution management is critical in supply chain and logistics effectiveness in a corporation.  This is mainly because it is crucial in impacting the key issues throughout the   global chain of supply as well as logistics distribution.  In order to meet the requirements of the supply chain which are dynamic the corporation must adopt an effective strategy. The strategy is required to be responsive in regard to the demands of costs as well as services delivery of the company and the consumers. DNR Corporation holds an effective distribution and effective strategy which ensures that the customers are able to achieve satisfaction. This is mainly influenced by the fact that the corporation is a consumer-centric organization which puts the needs of the customers before its own interest. This helps in maintaining a good customer relationship.  The effectiveness of the corporation can thus be proven by the fact that it incoterms helps in ensuring that the consumers do not have to worry about the goods delivery as the corporation takes full responsibility.  Additionally it has accomplished to build a huge market segment through the developed customer loyalty. Its strategy of carrier selection and carrier management has been crucial in contributing to transportation and distribution management being success. 

 

 

 

 

 

            References

            Bala, K. (2014). Supply chain management: Some issues and challenges-A Review. International Journal of Current Engineering and Technology, 4(2), 947-953.

            Cavusgil, S. T., Knight, G. A., & Riesenberger, J. R. (2013). A framework for international business. Pearson.

            Christopher, M. (2016). Logistics & supply chain management. Pearson Higher Ed.

            DNR. (2016). DNR Process Solutions: Plant & Process Automation Consultants. Retrieved from http://www.dnrps.com/

            Eyob, E., & Tetteh, E. (2012). Customer-oriented global supply chains: Concepts for effective management. Hershey, PA: Information Science Reference.

            Herrmann, S., Rogers, H., Gebhard, M., & Hartmann, E. (2015). Co-creating value in the automotive supply chain: an RFID application for processing finished vehicles. Production Planning & Control, 26(12), 981-993.

Jacoby, D. (2010). Guide To Supply Chain Management. London: Profile.

            Khan, O., & Zsidisin, G. A. (2011). Handbook for supply chain risk management: Case studies, effective practices, and emerging trends. Ft. Lauderdale, FL: J. Ross Pub.

            Margaritis, D., Anagnostopoulou, A., Tromaras, A., & Boile, M. (2016). Research in Transportation Business & Management.

            Monczka, R. M., Handfield, R. B., Giunipero, L. C., & Patterson, J. L. (2015). Purchasing and supply chain management. Cengage Learning.

            Ross, D. F. (2015). Distribution planning and control: Managing in the era of supply chain management.

            Rushton, A., Croucher, P., & Baker, P. (2014). The handbook of logistics and distribution management: Understanding the supply chain. Kogan Page Publishers.

Stapleton, D. M., Pande, V., & O'Brien, D. (2014). EXW, FOB or FCA? Choosing the Right INCOTERM and Why it Matters to Maritime Shippers. Journal of Transportation Law, Logistics, and Policy, 81(3), 227.

            van Donselaar, K., & Sharman, G. (2013). An innovative survey in the transportation and distribution sector. International Journal of Physical Distribution & Logistics Management.

            Ward, J., & Peppard, J. (2016). The Strategic Management of Information Systems: Building a Digital Strategy. John Wiley & Sons.

Waters, C. D. J. (2011). Supply chain risk management: Vulnerability and resilience in logistics. London: Kogan Page.

Wensveen, J. G. (2016). Air transportation: A management perspective. Routledge.

 

2604 Words  9 Pages

Transportation and Distribution Management

Introduction

Report overview

            This report will base its argument on the efficiency of three elements of carriage that involves incoterms choice consideration, carrier assortment criteria and transporter relationship management. Supply chain management is one of the important aspects in Felda Group Company that needs to be managed well so as to ensure that all the operations that involve the transportation in the company are effective. This paper will therefore analyze the effectiveness of the transportation ability, transportation objectives of the organization and some of the recommendations that can be implemented in the company so as to enhance continual improvement and development.

            Company background

            Felda Group Company is one of the global largest companies that is involved in the production of the crude palm oil and operates the oil palm plantation. The company is incorporated in Malaysia and is a private company and it primarily operates under the profit-making division of Federal Land Development Authority (Hai 2002). The business’s vision is to be the prominent worldwide expanded cohesive agri-business and its aim is to globally set a pace as they lead in creating value through the human capital. Also their mission is to champion in their locally invested culture and to build an integrated value chain as well as cultivating diversification in products and in geography. Their values are respect, partnership, integrity, dynamism and enthusiasm. Their operations are in more than ten states across Asia, Europe and also ion North America (Belai et al 2011).

Their strategy is to continually improve on their operations such as the reduction in cost in their operations so as to offer services and quality products that will enable them to be competent among their competitors. Competition is one of the great challenges that they are facing as they are trying to become the largest plantation corporation worldwide hence they have to continually improve on their strategies so as to be able to compete effectively with their competitors (Ramasamy et al 2005).

            Carrier Selection Criteria

            Transportation is one of the key elements for the felda group company as it enhances the supply of goods to their customers and hence a proper and efficient transportation strategy is quite relevant as it requires a clear articulation of the targeted consumer segments suppliers and carriers (Lawrence 2005). There are several different modes of carriage that are used in the transportation of products as they are being moved from one place to another. All these modes are quite relevant as they have unique qualities and also some unique setbacks (Meixell et al 2008).

            Currently the Felda group company uses the road and sea mode of carriage and this selection of the carrier are dependent on the urgency of the delivery and the consumers’ requirements. The arrangement and the control of the tank farm management is part of the felda group company’s services. . There is the easy access to the raw materials from the multiple processing companies that are strategically located in Malaysia and Indonesia. However, the products that are manufactured by the company are relatively bulky hence the modes of transportation that are frequently used include the shipping and road transportation (Meixell et al 2008).

            Shipping is basically used in the transportation of the company’s products to longer distances that is the distant customers (Kapoor et al 2003). The merchandising team in the company therefore arranges for regular shipping programs through the use of bulk vessels and tankers that are used to deliver the bulk oils to their customers located in China, India, Africa, USA and Middle East. This carriage mode of transportation is essential as it enables the transportation of the products using containers that are different in size hence meeting the varying customers’ specification. However, the delivery leads time is quite longer than the other modes and the transportation cost is comparatively low as compared to the other means of transportation. This mode also includes the use of better packaging requirements that prevent the destruction of the goods (Meixell et al 2008). Hemat Marine Company has an experience in the formation of a shipping company with the Felda Company through a joint venture. This joint venture shipping corporation owns some handy size tankers and bulkers that play a route from the Malaysian as well as the rest of the Asian ports that are geographically located in the Middle East, Far East and also in the European Union Ports (Kok et al 2003). The outbound cargo from the Malaysian port transports palm oils from the felda company in Malaysia. There is also the use of pipelines that are responsible for the transportation of the felda company products through the deep water jetty that is located at the Kuatan port whose coverage is RM35 MIL.

            Trucking is also another frequently used mode of transportation as it involves the transportation of goods to shorter distances for instance the delivery of products locally that is within Malaysia. This allows the door to door services within the business as the trucks and Lorries are able to make several stop overs to make deliveries to their customers. This selection of carriage has a lower transit time as compared to the other modes and is highly flexible in relation to transport job and the altered plans (Lambert et al 2001).

It is therefore recommended that the company ought to find more trucks and ships with more containers that would enhance the company to transfer their palm crude oil products all over the world without restrictions. This will enable them to expand their company as the supply chain will be diversified to m any regions (Mentzer et al 2000). The company will also be able to deliver goods at an appropriate time to the customers basing on the customers specification and thus satisfying the needs of the customers (Global value chains 2011). The use of the information technology in the supply chain process is recommended due to the globalization in the world and in doing this the company will be able to globalize its supply (Kamarulzaman 2002).

            Incoterms Selection Consideration

            Incoterms refers to the international Commercial Terms. These terms are primarily recognized as internationally accepted standard trade terms that are used in the sale agreements. There are different incoterms that deals with three aspects that is who is responsible for making the payments of the insurance, tax and duties  for the transportation facilities, who is responsible for the transportation  services as included in the price and where should the products be picked from to their destination (Besson et al 2015).

            The company uses the Ex works incoterm where  they make the goods available to the consumers at their destinations while the company and the consumer are both responsible for the risks, the transportation costs as well as taxes and duties and they mainly use this term in their process of quoting their price. They also use the free carrier term where the company gives the products which are cleared for exportation to the consumer’s carrier at a stated location.

The consumer is responsible for the delivery of the goods from the specified locality to the actual final destination (Besson et al 2015). The company uses this incoterm in cases where the containers are being transported using more than one, mode of transportation.

The carriage paid to incoterm is used by the company as they pay the transportation fee for the delivery of the goods to the specified destination. The responsibility is then shifted to the consumer the moment the products are passed to the first carrier. The company also implements the use of the carriage and insurance paid where they are responsible for the payment of the insurance and the transportation fee to the customers’ specified destination where the responsibility is transferred from the company to the customer (Besson et al 2015). This is commonly used in the company as it is involved in the transportation by use of containers by more than one mode of transportation. Cost insurance and freight where the company is responsible for payment of insurance and the cost of transporting the goods to the stated port. They are also responsible for the risks that are involved in loading of the goods onto the ship.

            It is therefore recommended that the company should actually implement the incoterms that favors the customers so as to meet their goal of customer centric system. This therefore calls for the company to take full responsibility on the cost of insurance, taxes and duties and carriage and this will help attract more customers into the business (Christopher et al 2016). For instance the company needs to re-modify the FOB term that states that the customers should be fully responsible for the risks and all the costs (Besson et al 2015).

 

 

 

            Carrier Relationship Management

            In most cases most of the companies use third party to outsource for the delivery facilities. Outsourcing transportation therefore involves the use of a common carrier rather than using the company’s own private taskforce.

This may also include use of the goods in transit forwarder instead of the in-house group for the purpose of exporting of products (Moreira et al 2015).

            Felda Company is one of the organizations which use the outsourcing facilities so as to outsource for the transportation of their products since there is no separate internal logistic department. It is through this outsourcing transportation system to the third party logistic company that the company is able to be at peace with the gas prices, truck size, truck maintenance, purchasing of new vehicles or trucks. Moreover, the freight documentation is not necessarily required to be prepared by the company. There are numerous strengths that accrue from this kind of business such as the increase in the opportunities where the company is able to receive more discounts. The company is also able to make changes and improve on the logistics services without the current challenges. The company is also able to increase the customers’ satisfaction through the delivery of the goods to the customers’ doorstep. The company is also able to share risks with the service provider hence in case of any loss or damage of the goods the company will not undergo too much loss (Turner 2011).

            Felda Company should have a long term agreement with the third party logistics organization so as to allow more shipment of bulky as well as heavy items to other nations. Through the establishment of the long-term relationship with the carriers, the company will be able to get more discounts for the delivery charges.

It will also be easy to communicate for the planning of the delivery services (Moreira et al 2015).  The company will also be in a position to have the knowledge on how well to handle the products for loading and offloading due to the value of the products and their heavy and bulky nature.

 The company should therefore base their selection of the third party company on the service proficiency, global accessibility, flexibility for the urgent products, financial status to determine whether the company can meet the long-term relationship, favorable cost and short delivery time. This will, enhance the signing of a good contract and a good relationship with the carriers (Moreira et al 2015).

            Conclusion

            It is quite clear that transportation is a serious issue to logistics and in the supply chain management effectiveness. It influences throughout the main issues of logistics efficiency and the worldwide supply chain. Hence to attain the dynamic requirements of the supply chain the company must have a dynamic plan. It is also essential to be responsive both in terms of services to customers and to the cost demands of the company’s customers. The success of the company also relies on the strategies that are used in the company as the sale of the produced goods and the acquiring of the raw materials depends, on the efficiency of the company’s supply chain management. Felda Company has thus proved to be a company that has a good and effective supply chain management through their transportation management department that is responsible for the distribution of the palm crude oils in the company.  The selection and the carrier management being part of the sub-division of the supply chain management needs to be organized effectively so as to enhance the success of the supply chain.

References

            Belai, A., Boakye, D., Vrakas, J., & Wasswa, H. (2011). The Malaysian Palm Oil Cluster Final Report. Microeconomics of Competitiveness, 22.

            Besson, J., Mitasiunas, A., & Ragaisis, S. (2015). Export Process Capability Assessment Model. Applied Computer Systems, 17(1), 60-67.

      Christopher, M. (2016). Logistics & supply chain management. Pearson Higher Ed.

            Global value chains. Linking local producers from developing countries to international markets. (2011). Amsterdam: Amsterdam University Press.

            Hai, T. C. (2002). The palm oil industry in Malaysia. WWF, Malaysia.

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