Business Internal Assessment: Mucho Mas Company case - Research Paper Example

? Business Internal Assessment Executive Summary Mucho Mas is a small retailer operating in the market of Jordan mainly trading on women’s merchandises. The retailer in Jordan mainly operates based on a single outlet and seven sales people. The retail company in this venture suffers from a serious back draw in which the staffs are found to be highly demotivated to work in order to render productivity. Further the company also suffers from a managerial problem where the two managers of the company tend to differ on leadership issues in regards to managing the affairs of the company. The staffs are found to complain in regards to both salary and recognition issues. Interview taken reflects that the staffs are neither adequately compensated nor they are rendered proper recognition for their work. Thus the company needs to take on effective strategies pertaining to rendering both financial and non-financial incentives and motivators to help the people become adequately productive in the long run. The paper in this connection tends to draw an outline of the firm, its activities and also conducts a primary survey upon a manager and the employees to understand the reasons which demotivated them to work. Further secondary sources like books are used to give theoretical inputs to the paper which would render clarity in understanding the concepts of motivation and in better analyzing the situation of the company. Diagrammatic representation is also given in some areas to enhance the understandability of the issue. Contents Executive Summary 2 Contents 3 Introduction 5 The Business 5 The Employees 5 The Managers 5 Research Question 6 Procedure or Method 6 Main Results and Findings 7 Part A: Interview with Mr. Jihad Saleh 7 Part B: Interview with the Employees 8 Analysis and Discussion 11 Analysis based on McGregor’s Theory X and Y 11 Analysis based on Maslow’s Hierarchy of Needs Theory 12 Analysis through Porter’s Five Forces 13 Analysis through SWOT Analysis 14 Analysis through PEST Analysis 15 Conclusions and Recommendations 15 Bibliography and References 16 Appendices 17 Questionnaire 17 Part A: Interview with Mr. Jihad Saleh 17 Part B: Interview with the Employees 17 Introduction The Business Mucho Mas operating in the Jordanian market is a small retail company trading mainly on women accessories like handbags, and other merchandises including garments both fashionable and traditional and ladies footwear. The small retail company came into operation from the 2010 period and is found to host only a single store in the region. The Employees The retail company based in Jordan operates based on seven employees. These people act as sales persons and are mainly responsible for selling merchandises inside the store. However in terms of knowledge and business experience the people employed in the store are found to share a broad uniformity. They did not reflect any excess knowledge and again were found to lack motivation while rendering duty to the company. The above case reflects a low employee loyalty in the concern. The Managers The retail company, Mucho Mas operating in the region of Jordan is found to be managed by two managers Jihad Saleh and the nephew of Jihad Saleh, Mohammad. These two managers tend to share different leadership traits owing to cultural differences. Jihad Saleh though a Jordanian is found to stay in United States. However, Mohammad is a full term resident of Jordan. On account of the above fact Jihad often tends to reflect a westernized ideal while dealing with in the business which again tends to create a leadership conflict between the two. Difference in perspectives between the two managers further disturbs the business atmosphere of the firm. Research Question The paper proceeds on this account to draw a fundamental research in order to answer three main research questions which can be outlined as follows. These questions would tend to outline the reasons which do not tend to motivate the people to work in a better manner in the concern and also infers suitable remedies for the same. What are the main factors or constraints for which the people in Mucho Mas do not feel motivated to work? What is the retail industry standard in Jordan for motivating the employees to work? What kind of remedies can be better sought to help improve the situation in the firm so as to make the people feel cared for and work in a motivated manner in the concern? Procedure or Method The paper in this connection tends to conduct the research based on both data obtained through primary and secondary research. The primary research is conducted through the designing of a questionnaire. The questionnaire designed would be based in two parts one that concerns the interview with Mr. Jihad Saleh and the other focusing mainly on the people working in the firm. The questions designed would be both open and close ended in that it would endeavor to draw a broad understanding of the problems emanating in the firm. Questions framed would be asked to a sample set of seven people who are the employees in the concern. Another group would be chosen which would consist of the manager cum investor in the concern. The samples chosen would be based on stratified random sampling technique in which each set chosen in a random manner maintains a broad uniformity. In that the questions that would be framed for the first sample consisting of employees would consist of both open and close ended questions. The close ended questions would be prepared based on both dichotomous and multiple scaling techniques. The scaling techniques used would help in the preparation of graphs and charts and thus would help in rendering a pictorial understanding of the inferences drawn. However in that depending entirely on primary research hampers the quality of the research. Depending on primary research reflects gathering a host of unauthentic data sets and also largely investing money and time behind it (Daniel and Gates, 1998, p.110). Thus to avoid the above disadvantages the research procedure probes further to gather data from different secondary sources. Hunting data from secondary sources saves both time and money in that the internet has largely developed helping the people to gain large amount of secondary information. This information derived from secondary sources mainly based on online literature would help the researcher to derive authentic data rendered by experts. The data obtained from these sources would help the researcher in providing a solid background behind carrying out the primary research work mentioned above. Further the use of secondary research also helps the researcher in saving both time and money and thus tends to reduce the research cost (Kumar, 2010, p.164). In the realm of secondary research different types of resources like books, magazines and other internet articles can be used for drawing in potential information to support the primary data sought. Main Results and Findings Part A: Interview with Mr. Jihad Saleh A.1 Mr. Saleh in regards to this question commented that according to his observation the employees working in Mucho Mas mainly worked like robots. They did not reflect any type of initiatives or new endeavors while working in the concern to generate productivity. They being made bound to work under bureaucratic control hampered their interest and dynamism to work in a productive manner in the concern. Thus these employees greatly reflected low amount of motivation in the course of pursuing work in the concern. Mr. Saleh stated in this regard that the company management needs to largely invite these people for arranging team meets which would in turn excite their interest in getting involved in the decision making process. This fact would in turn excite them to work in a better manner and in a motivated fashion in the concern. A.2 Mr. Jihad Saleh in regards to motivating the employees to work in a much productive manner in the retail concern started devising on some strategies. One of the main strategies taken in this account by Mr. Saleh is making opportunities for the employees to visit to Turkey in the course of business. Such business tour enabled by the company was taken to boost up their confidence and interest to work in a much productive fashion in the concern. The region of Turkey is observed to have become one of the prime regions from where products can be imported by the company for trading in its establishments. Thus, Mr. Saleh confided that if the employees on rotation basis can be sent to Turkey for collection of merchandises it can help in both boosting interest in the employees to work in a productive fashion and also help the concern choose the right merchandise. Part B: Interview with the Employees A.1 From the interview taken it is found that from the sample taken of seven employees around six employees in the concern told that they did not feel motivated to work for in the concern. In terms of percentage it stood around 86 percent. However only 1 person out of the total seven employees stated that he felt motivated to work for in the concern. In terms of percentage it stood to around 14 percent. Thus this reflects that the majority of the employees in the concern were totally not motivated to work in the concern. A.2 As per the interview with the seven employees it is found that the retail company helps in taking care of their basic necessities as in providing the minimum wages and also in rendering a secured job climate to the people. The employees owing to the dearth of the fear from getting job less tends to continue working in the concern. However these people feel lack of proper recognition in the course of their rendering services to the concern. A.3 From the interview taken it is found that around 5 employees out of the total sample of seven employees embarked that they were not satisfied with the financial compensation rendered. Only two employees stated that the compensation rendered was just enough for getting a bare living and hence felt satisfied with the package rendered. However both these classes of employees responded that the package rendered did not match the industry standards or that rendered by other retail firms. No amount of incentives was ever rendered to them in the course of their sales initiatives in the concern. A.4 From the interview taken of the seven respondents it is observed that they widely stated that the salary packages offered to them by the company were quite low. A personal survey conducted on their part largely shows that the salary rendered by the small retail firm was below the industry average. This fact largely deters them from rendering any productive pursuits while working in the concern and thereby fails to motivate them to take due initiatives. A.5 In regards to this question it is found that five out of total seven employees stated that the management of the company is not al all collaborative in understanding their requirements or enhancing their position in the concern. They mentioned that the company never encouraged them to work in teams and neither invited them to take company decisions. However only one person in each case of being collaborative or little collaborative supported to the cause. It is because they felt that the business understands their need for a job and thus would protect them in future. Analysis and Discussion The analysis and discussion would proceed on elucidating on the inferences made based on the findings through separate models. The models would include Maslow’s Hierarchy Model, McGregor’s Theory X and Y and other two models like Porter’s Five Forces and PEST and SWOT Analysis. Motivation can be defined as a process of exciting the interest of a person by another to help in achieving the latter’s objective. The objective can be seemingly personal or impersonal or organizational in nature. The process of exciting one’s interest can be better achieved through incorporation of financial or non-financial incentives. These incentives in turn enhance the excitement of the person to accomplish the desired task (Kumar, 2008, p.12). Analysis based on McGregor’s Theory X and Y Further analysis can be made through McGregor’s Theory X and Y where in theory X managers are held to be such persons who think their employees to be lazy, lacking ambition and thereby would be satisfied with minimum requirements as a fixed salary and job security. On the contrary the category Y managers are such who tend to make their workers self dependent and thereby tends to enhance self confidence. These managers honor the creative pursuits of their employees and invite them in company meetings where decisions are taken (Bagad, 2008, p.158). From the findings it is clear that managers in Mucho Mas belong to the X category that renders emphasis on fixed salary and job security. Analysis based on Maslow’s Hierarchy of Needs Theory The hierarchy of needs theory as given by Abraham Maslow depicts a pyramid of different needs that arises in due course in an individual as one’s consciousness develops. The pyramid starts with the basic physiological or body needs. As one moves along the pyramid the needs leave the physical body and enter the mental state where one desires love, security and high esteem to dwell in the society. Finally in the apex position the person would question his position in regards to the organization as a whole. The pyramid can be depicted as follows. Figure 1: Hiearchy of Needs (Source: Slater and Bremmer, 2003, p.58) In regards to this it is found that for Mucho Mas the employees are satisfied with the physiological and safety needs in that they earn basic wages and job security. However they are seemingly dissatisfied in regards to the issue of recognizing them for their work and hence share a low self esteem. This also hampers their sense of belongingness to the work and concern. Analysis through Porter’s Five Forces The Porter’s Five Forces Model reflects the competitive position of the company in regards to the industry as a whole. The competitive position of the company is analyzed in respect to the bargaining potential of the consumers and suppliers, the threat imposed by existing and new competitors and the existence of substitute products. It can be diagrammatically represented as follows. Figure 2 (Source: Stahl and Grisby, 1997, p.145) Mucho Mas tends to offer the best quality of products at reasonable prices to the consumers. Thus it tends to counter the bargaining potential of the buyers. The company maintains an adequate supply chain of products from Turkey. However the firm faces stiff competition in the market from existing retailers. Entry costs being high discourage the entry of new competitors in the industry. Rival players also pose a threat through production of substitute products. Analysis through SWOT Analysis The SWOT acronym for strength, weakness, opportunity and threat matrix can be used effectively for analyzing the position of Mucho Mas in Jordan. Strength Imports quality products from Turkey Sets Reasonable and Fair Price Renders wide variety to the consumers Weakness Operates based on a single store Staff not motivated to work Suffers from low brand recognition Opportunity Can widely motivate its employees Can expand by opening up new outlets Threat Suffers from stiff competition High import duties levied by the government Low motivated staff can render low sales and revenues Analysis through PEST Analysis The PEST Analysis helps to analyze the company’s position in respect of political, economic, social and technological factors. In terms of political and economic factors the government of Jordan tends to render high import duty on products making it hard for the company to import products from Turkey. The Jordanian society is gradually developing to incorporate westernized culture. Thus retail hubs are slowly developing in there. Conclusions and Recommendations Mucho Mas, a retail company operating in the Jordan market suffers largely owing to its demotivated staff profile engaged in sales. The paper reflects that the employees are not encouraged to take decisions or in taking innovative actions and thereby get demotivated in the work sphere. Thus the company must take proper strategies both financial and non-financial in order to motivate the staffs to work in a productive fashion for the company. Bibliography and References Kumar, S. (2008). Entrepreneurship Development. New Age International. Bagad, V. (2008). Management & Finance. Technical Publications. Slater, A., and Bremmer, J. (2003). An introduction to developmental psychology. Wiley-Blackwell. Stahl, M., and Grisby, D. (1997). Strategic management: total quality and global competition. John Wiley & Sons. Kumar, R. (2010). Research Methodology: A Step-by-Step Guide for Beginners. SAGE Publications Ltd. McDaniel, C., and Gates, R. (1998). Marketing research essentials. Taylor & Francis. Appendices Questionnaire Part A: Interview with Mr. Jihad Saleh Q.1 What do you feel the reasons which fails to motivate the employees to work in a productive manner in the concern? Q.2 What kind of strategies are you planning to take to take on such account so as to match the industry standards? Part B: Interview with the Employees Q.1 How much motivation do you feel while tending to work in the concern? A.1 (a) Highly Motivated (b) Motivated (c) Not Motivated Q.2 What kind of benefits are rendered to you which in turn motivates you to work productively in the concern? Q.3 Are you satisfied enough with the amount of salary rendered to you by the concern? A.4 (a) Very Satisfied (b) Satisfied (c) Not Satisfied Q.4 Have you compared your salary with other workers involved in the retail industry in Jordan? What is your opinion? Q.5 How do you feel about the quality of work environment in the company? A.5 (a) Very Collaborative (b) Collaborative (c) Little Collaborative (d) Not at all collaborative Read More