Smith and White Corporation is one among the two strongest competitions of the Able Corporations in the tool industry. As a major competition of the leading tool distributor, Swift and White Corporation has an actual edge in terms of marketing issues. This particular factor of their business operations have gained them the reputation that they are now enjoying in their own industry.
However, as strong as their organization may seem, facing business challenges may not be at all that much of an easy task to deal with. To know the different sections of development that this organization is particularly taking into consideration, it would be helpful to examine the organization’s competence based on a SWOT analysis on the scale of their business operations disposition to the public.
- Products are released on moderate quality in comparison with those that were produced for the ABLE CORPORATIONS distribution.
- Everything is centralized when it comes to business operations, especially on the route system distributions of the products that are released by the organization to the market.
- The marketing approach in terms of media advertising is unified on all the products. Through this process, the media presentations do not only serve as marketing approach, they also serve as trademark for the organization’s products released in the market. Because of this, it becomes much easier for the consumers to remember the trademark of S&W whenever they visit the market for tool search.
- Because of the strong marketing approach, the price level of the products of the said organization could also be leveled high since the marketing approach has been proven affective for the product distribution.
- Although the marketing approach is effective, it has been noticeably enduring to know that the price of the expense accounts of the production process of the organization of S&W is also relatively high. This is not simply because of the process itself, but because of the fact that the corporation’s operational factories for the production are located in highly urbanized areas. It is undeniable that the cost of labor in those areas is relatively high as well. This results to a much harder-to –deal-with rate of expenditure when it comes to labor cost allotment.
- It is highly noticeable that the e-commerce industry is a booming custom in business today. However, as easy as it is already has become to invest in the said system of business, S&W Corporation has not found a way to actually get into the system yet.
- What is “in” in the tool industry today? The cordless factor. It is actually the production of tools that are cordless. S&W, as one among the pioneers of the industry however faces a dilemma in actually being able to jump into the band wagon of cordless products yet. Mostly, their produced tools are more of the traditional electrically socket connected ones.
- As part of the corporation’s weakness is that of its involvement in the production of cordless tools. It could be noted that this particular factor of the company’s weak spot could serve as the very reason for further development of the system. Their approach to marketing and press releases is already strong. The quality scale of their products is also at an average rate. It would be much helpful to team up those advancements with the increasing reputation factor that innovating tool designs could offer the corporation.
It is undeniable that the market is always looking for something that is new, something that would not only suit their needs as users of the tools but also would increase their satisfaction as the users of the products. To be able to answer the said need, it would be very helpful for the organization to take all necessary measures needed for development of product quality and competence for the sake of the users’ benefits.
- The corporation is also having problems with their connection with their outside distributors. Although the system of command is obviously centralized, it is undeniable that because of the huge number of members of the organization, getting to the needs of the other members one by one as the products are distributed is not that easy to deal with.
This opens an opportunity for the entire corporation to open up into a new approach of system operations control. The idea is to continue the centralization of the control while stretching out the command efficiently to other branches of concern. It should also be noted that it is not only the commands that needed to be passed on through, but the matter of encouragement as well as motivation to the outside human labor working for the corporation’s advancement should also be implied in strong pursuance.
- For S&W, there is only one particular major threat that may cause the organization’s system to falter in operation. The fact that there are huge numbers of other branches of the corporation from the main headquarters of the organization, the corporation is in dire need of changing its control system simply because of the fact that it cannot easily follow through the changes of the market as immediate as needed because of the complication of communication processes.
STRATEGY NAME (1): ON PRODUCTION ISSUES
It is indeed a natural need for organizations to continue researching for something new for the sake of production improvement. It is undeniable that this process of development involves a certain measure of research practices and innovative ideas on the part of the production operations. On this particular fact, it should be noted that along with the researches comes a considerable amount of expenses. This is where the matter of balancing values comes in. Through the balanced views of the different values, the importance on balancing the cost of research and actual implementation of the innovation of the products becomes an aspect of higher concern for the administration of the corporation.
Developing this procedure may need the administration’s ability of assisting the operators as well as the researchers of the system in trying to collaborate their ideas to actually come up with a considerable result for the production operation’s improvement on the part of the release of their products in the market.
Although the research procedures is nothing that is new in the field of tool industry, it is undeniable that the said process of improvement has been proven as an appropriate approach for progress in the part of increasing one tool corporations’ edge in the industry. The competition gets tougher and is won by the one that is able to come up with the new ideas and the most convenient tools for the consumers.
STRATEGY NAME (2): OUTSOURCING PROCEDURES
It has been noted earlier that one of the major problems of the organization is posted upon the fact the labor costs that they are paying for are relatively high. To think, the truth is that there are other options that could be considered on the part of the quality of the outcome performance of the people ho are hired to work for the production operations of the corporation. This is the reason why the strategy of outsourcing is further applied for the advancement of the operations of S&W.
Outsourcing may involve the allocation of the other branches towards the other areas which are less urbanized. Allowing training schedules for the newly hired employees is also a part of the suggestion whereas the people are empowered to perform in a level of quality close to that of the quality of the employees from the urbanized areas. Through this, although the employees are changed, the quality is retained and the cost of labor lessened to a more reasonable expense rate.
Through the use of further improvement on the part of human motivation through the centralized operation as per used by the organization at present, the empowerment of the employees through the outsourcing procedures could be further applied for organizational progress.
As noted earlier, it is undeniable that through this, the cost of labor is expected to be lessened while the quality of the products is maintained or further yet improved for the sake of organizational progress.
STRATEGY NAME (3): CREATING OPERATING SYSTEMS BASED ON INTERNET CONNECTIONS
Because of the fact that the organization is involved in a strong industry that is also involved in tight competitions, it is undeniable that immediate branching out of the main headquarters of operations should be needed. In the case of S&W, it could be noted that one particular problem that arises along the way is the creation of the centralized system of communication that could be used to centralize the operation systems as well.
Through this, the internet operations could be of great help. Through being interconnected through e-commerce, the different branches of the corporation would have better chances of communicating changes and advances with each other. With this advancement in effect, the possibility of outsourcing labor from less urbanized areas is strengthened further.
The training of the employees and the administrators as well in using the internet systems could well improve the procedure as well as improve the competence of the staff to communicate through the said system. The introduction of the said system would not only intend to increase the communicability procedures of the organization but would also heighten the possibility of larger scope of marketing on the part of the extension of the market served by the corporation.
PART 2: MAKATUME Corporation
BACKGROUND OF THE BUSINESS
Makatume is one of the most powerful organizations outside America that is making a great name in the filed of professional tools production and distribution in an international scale. As of now, it is controlling at least 50% of the Japanese market and is also the second larger player in the tool industry of the United States. However, although it has a strong approach in the market in being an early bloomer in the industry, it could be observed that this situation has both served as an advantage and as a disadvantage on the part of the operation of the corporation as a business entity in the tools industry. How is this possible?
- It has a dominant share of market at least 70% of the professional cordless market, which has recently become the trend in the tools industry.
- It has become one of the best organization presenting the Japanese industry with the wireless gadgets that are used to assist the industries in the said country that handles major tool development.
- Being early introduced in the industry, the organization now faces the challenge of dealing with lower cost products in competition with the other pioneers of the industry.
- Being among the highly innovative organizations in the industry, Makatume holds a certain reputation. On the other hand, this particular situation makes it possible for them to face the question of whether they are to release a particular innovation immediately after being researched or they are to hide the developments first before releasing results for the sake of competition edges.
- Being a highly innovative organization, it is undeniable that the organization is facing an opportunity of being first in introducing new wave trends in the industry. But along with this opportunity is the challenge of knowing the right time to release decisions for the market practicality and the organization’s edge from other competitors in the industry.
- One threat is actually being new in the industry and having all the possible edges in the competition. With this threat in vision, it could be observed that the corporation needs to take necessary steps to apply effective decision making.
STRATEGY APPROACH 1: Creation of a Better System of Decision Making
In this process, the involvement of the management is to be highly considered strongly by the organization. Commonly, in the course of developing the administrative process and effectivity of the company, manager’s personal evaluation are being consider in the approach of analyzing the ability and performance of each personnel.
This concept is mainly because of the assumption and the common view that the manager knows critically the ability and performance of each of his or her personnels as he or she directly handles them in accordance to their administrative hierarchy. All of the employees and staff under the administrative jurisdiction of a specific manager answer all to him or her thus viewing personally their performance. Thus, the opinion and evaluation of the manger regarding the performance of each personnel is indeed regarded to be significant to the administrative development.
Because of the said reasons, manager’s personal evaluation and review of the performance of each individual plays a significant role in the aspect of employment stability of the involved personnels. Concerning this idea, the manager’s performance review can significantly affect the company to the employee to the extent that this evaluation can result to sanction and even termination. However, there is one critically aspect to be addressed in this concept mainly influencing the extent of the degree of reliability of the manager’s evaluation in reviewing the performance of certain employees. It must be specifically noted that there are scenarios and situation where the manger’s evaluation is significantly irrelevant and that personal reviews are subject to inaccuracy.
Concerning the said idea, the concept of the reliability and influence of the manager’s personal review on the employee’s performance is subjected to numerous problems. One of which is that the degree of the relation and hierarchy must be considered whether the employee work as a direct subordinate of the manager thus making his or her evaluation to be significant as the manager can personally and directly observe the employees performance. In this scenario, to avoid making faulty and inaccurate evaluation, the closest officer-in–charge must be the one to be consulted to review the involved employee’s performance.
Another common and possible problem is that the evaluator’s scope of jurisdiction is too wide for his or her observation. In this scenario, every manager has their own limitations concerning their observation range and it is very likely that they knowledge of the most distant employees in their range is indeed only minimal making their opinion to be irrelevant for basis. With this problem, it is very much advisable to keep the evaluation review to be within small division in the employee’s population. Solicitation of recommendations and opinions must only be applicable to manager and their direct employee with only minimal subject to keep the perspective of the observer close and critical for each individual.
Another specific complication that commonly manifest in the aspect of manager’s evaluation is the fallacy and improbability of the human nature making it susceptible to flaws of personal opinion. In this concept, personal views like problems between the manager and subject employee can tarnish the evaluation of the former making the evaluation review to be flawed of personal nature. Manager can actually degrade their opinions to promote the sanction and even termination of the employee because he or she hates the said employee.
Thus, historical details must also be considered in weighing the relevance of the evaluation and review of the manager as they can influence the opinion of the evaluator. Another problem is that personal relationship mainly the ones involves with family ties and intimacy can also influence the reliability of the performance evaluation of managers as they tend to prioritize the relationship ties above the purpose of the evaluation. In this aspect, managers tend to conceal the negative comments and lavishly incorporate positive reviews for the promotion of their related subordinates.
Thus, in the scenario that the company will solicit manager’s evaluation, personal relationship must also be considered to prevent it form influencing the reliability of the review. Designation of evaluators to their corresponding subject must be clear from any relationship ties and family affiliation.
Another critical problem that has possibility to occur in the aspect of manager’s evaluation is the tendency for employees to perform well during only the said period when their manager’s are observing them. With this, employees will only tighten their performance during observation period and will slack-off when the period is done thus compromising the consistency of the evaluation. To prevent his from happening, evaluation reports must be kept confidential allowing only involved individuals access to the information regarding its period of effectivity and current subject personnel. This will promote the concept that employees must be consistently performing well in their tasks and responsibilities.
Thus, the approach of performance evaluation by manager of the employees under their jurisdiction is indeed an effective means to improve their company’s performance and develop their service effectivity and efficiency. With this approach, the administration can actually determine their weakness and strengths in their employees through the aid of reliable evaluation reports illustrating the performance of the employees, which will reflect the company’s performance.
However, in implementing this approach, certain guidelines must also be followed to promote the reliability of each evaluation report thus promoting the effectiveness of the decision that will be based upon the said reviews. With these, significant decision can be made that will enhance the efficiency and effectiveness of the actual performance of the company.
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McDavid, James C. & Hawthorn, Laura R. L. (2005). Program Evaluation and Performance Measurement: An Introduction to Practice. Sage Publications, Inc. California, USA. ISBN-10: 1412906687.
Shepard, Glenn (2005). How to Make Performance Evaluations Really Work: A Step-by-Step Guide Complete With Sample Words, Phrases, Forms, and Pitfalls to Avoid. Wiley. New Jersey, USA. ISBN-10: 0471739634.