Prior Ice-creams - Report Example

Prior Ice-creams Introduction Clemency’s Prior Ice-cream being a smaller family business-like firm has thrown light to several issues of miss-management. It follows an informal way of business management where each one engages oneself in other person’s work with very little knowledge of the subject. The employees are concentrating on getting orders rather than following a synchronized method of approach. The report that follows tries to depict the core issues related to marketing, operations, human resource and financial obligations for the firm. Marketing Concerns There has been little concern for marketing of their ice-cream by the firm. In simple words, Susie who was in charge for the marketing department did not really do anything that would mean marketing. As marketing of a good requires planning and strategies to go about and market the goods. Clemency should have opted for professional marketing personnel in order to get hold of the best retailers for the firm. Nobody did ever develop concrete views over these options of business. They simply went out to catch big retailers in order to sell their products. Though, however, Clemency planned up schemes to attract retailers and increase their sales but this had very little effect. She tried out schemes to schemes that had special offers, cut the prices on products and even gave longer periods of credits. A proper planning accompanied by solid strategies should be developed Marketing principles are needed to be followed and planning should lead to obtaining of funds from the market. Though sometimes at startup the firm might be facing some problems but at the end it would be supported by the market in getting further funds to generate business. The strategies for the firm should be to expand their existence and reach to as many as retailers possible. With increased quality of product, Clemency should target not only the retailers but the end-users as well. This process should include strategies for area specific and the general strategies. It should maintain the current position and side by side retain an uncompromised position. Marketing is a practice that enhances creation of customers by promotional and delivering highest quality goods and services. (Marketing Management Functions, n.d) Clemency should also look for methods and proper planning for selling and pricing. Amidst distribution of goods and services, a regular feedback from the customers should be evaluated and implemented accordingly. (Functions and Classification of Marketing Management, 2009) Operations Concerns In fact, the operations performed by Prior ice-creams are not even managed properly to suit the needs of the customers. There have been several complain from different corners regarding her product packaging, labeling and placing of orders. Operation is a process where the inputs available for the company are transformed into finished outputs based on the needs of the customers. The firm lacks the initial resources like the strong customer base and suitable information regarding the market. Moreover, there is no proper planning to focus during the course of action. Employees do not have regular assigned job and tend to indulge themselves in departments. Though Clemency has her own goal in establishing organizational standards and leading the firm to one of the premier ice-cream firms but failed to forward the message to other employees. (McNamara, 2009) As a result there are no distinct goals for the employees other than reaching out to the customers. In order to excel in its operations, Clemency needs to focus on certain aspects like appointing the right person for the right job, concrete decisions are to be taken throughout the product line, the overall distribution processes and supply chain, proper scheduling of jobs assigned, manage inventories and its problems and finally the nature of technology to be used to gain advantage over its rivals. The distribution processes should reflect the efficiency and effectiveness of the firm in terms of their quality control, inventory control and logistics. To make the process of operation more effective Clemency can specifically distinguish the various flavors and quantify accordingly for production, the various design for production and managing the overall process by maintaining the production quotas and accomplishing the standards. It should be able to control the performance level in terms of quantity, quality and on-time delivery. Also there is a need to perform regular updation of the procedures in order to stimuli the overall process of production. (Overview of Operations Management functions, 1999) Human Resources Concerns The main loophole for the failure in several parts of the business is the lack of human resource skills of Clemency. Though it basically a family business after all and everyone was quite happy with the environment but a macro view of the firm would reveal that the firm lacked the features of a big professional organization. Even there were defaults in the core issues like providing the right direction to the employees and this is evident from the fact that the plans Clemency had in her mind about the future of Prior Ice-Cream was not forwarded to the employees in setting up their short-term goals. The employees moreover seeing growth in the business asked for salary hike. This is an example that they were unaware of the future plans and the reasons why Clemency was not interested in raising the pay-scale of the employees. In order to change the order of business, Clemency has to lift up certain areas to improve employee performance, skills and their satisfaction level. (Key Benefits, n.d) Though there were persons positioned for different activities but in course of action this gets mixed up. They should be given proper training, compensation paid should be neatly formulated, and other benefits should also be drafted properly. Employees can individually set up training classes discussing the various parameters of the business. This would help them to motivate each other to perform harder and learn the required skills. (Nature of Work, n.d) Financial Actions The company’s long-term borrowing is 42% in comparison to the total capital employed. (Case Study) The firm has sufficient of assets in order to meet its liabilities in the market. Current ratio of 2 is much on the higher side than expected from such a firm. (Case Study) Again the firm has current assets less inventories of 0.5 lower than current ratio. (Case Study) Hence, it is clearly indicates that the firm’s assets are dependent on its stock. (Loth, 2009) It is generally due to the fact that Clemency thinks they should maintain a healthy level of inventories in order to deliver the customers as and when required. The firm also experienced a dip in its net profit margin (NPM) of 2% (12%). (Case Study) In comparison to its competitors Prior Ice-cream did lag behind. This dip in the NPM is generally due to the pricing strategy due to rise in the prices of milk. Also to accompany is the increase in volume of the products. (Net Profit Margin, 2009) The initial concern for the firm is to perform proper assessment of their needs and account them in the books. It should look for the options available in the market in order to invest enhanced capital. It should plan its resources and invest in the supply chain network in order to get further more opportunities. (Financial Management, n.d) Conclusions Clemency had been targeting a long-term benefit for the firm and its employees. But due to lack of leadership skills and an informal environment within the firm Clemency never did she feel the need to express her views regarding her policies. Moreover, the above report has deliberately tried to explain the reasons and the prescribed possible solutions to the problems. To get access of the supermarkets in England Clemency needs to develop the firm and bring about variety in the products to attract more customers. The staffs are required to shift their focus on to the organizational goal for long-term benefits then looking for short terms. They should provide focus on the strengths of the company to acquire more orders and expanding thereby. Reference: 1. Overview of Operations Management functions, 1999. Introduction to Operations Management. Carlson School of Management Employer Education Services. EES- A unit of the Industrial Relations Center. Retrieved from: http://www.jpcmediallc.com/acrobat/managment.pdf (Accessed on August 8, 2009) 2. Functions and Classification of Marketing Management, 2009. Management – Hub.com. Retrieved from: http://www.management-hub.com/marketing-management-roles-functions.html (Accessed on August 8, 2009) 3. Marketing Management Functions, n.d. ESCAP: Guidelines for Development of Railway Marketing Systems and Procedures. Chapter 7. Retrieved from: http://www.unescap.org/ttdw/Publications/TIS_pubs/pub_1872/marketing-chap7.pdf (Accessed on August 8, 2009) 4. McNamara, C. (2009). Operations Management. Free Management Library. Retrieved from: http://managementhelp.org/ops_mgnt/ops_mgnt.htm (Accessed on August 8, 2009) 5. Nature of Work, n.d. Human Resources, Training and Relations Managers and Specialists. Occupational Outlook Handbook, 2008-09 Edition. Retrieved from: http://www.bls.gov/oco/ocos021.htm (Accessed on August 8, 2009) 6. Key Benefits, n.d. Human Resource Management – International digest. ISSN: 0967-0734. Retrieved from: http://info.emeraldinsight.com/products/journals/journals.htm?id=hrmid (Accessed on August 8, 2009) 7. Financial Management, n.d. Economy Watch. Economy, Investment and Finance Reports. Retrieved from: http://www.economywatch.com/finance/financial-management.html (Accessed on August 8, 2009) 8. Net Profit Margin, 2009. About.com: Investing for Beginners. Retrieved from: http://beginnersinvest.about.com/cs/investinglessons/l/blnetprofitmarg.htm (Accessed on August 8, 2009) 9. Loth, R. (2009). Liquidity Measurement Ratios: Quick Ratio. Investopedia: A Forbes Digital Company. Retrieved from: http://www.investopedia.com/university/ratios/liquidity-measurement/ratio2.asp (Accessed on August 8, 2009) 10. Case Study: Prior Ice-creams Read More