Managing Jones Ltds Computer Business - Case Study Example

1 A Comprehensive Report on Managing Jones Ltd’s Computer Business Written by Nick Samuel here) on 9 July 2010 And presented to the Chief Executive Officer (CEO) of Jones Ltd 2 Summary This report details the necessary steps, skills, and management structure needed by Jones Ltd in venturing into the business of Computer procurement and sales/distribution to its existing customers and the new ones. This report takes into consideration the appropriate procedures required to make this business idea successful within a span of 1 year. In the absence of statistical facts from Jones Ltd, this report will be based on the fundamental principle of goal-oriented project management, which demands for implementation of all processes of administration and leadership (Lock, 2007). Project’s Life cycle The Jones Ltd’s project of buying and selling/distributing computers would have similar lifecycle depicted in the diagram below: Market research Purchase of Computers Sales/Distribution Project’s Life Cycle Marketing Documentation of Purchases 3 Organizational Structure The organizational structure for the new building is going to be exactly like the existing one, which comprises of: 1 Project Manager (myself); 1 Assistant Project Manager; 2 Administration Staff; 4 Sales staff; 3 Warehouse Staff; the transportation to and from the building will be contracted to an outside company. The recruitment of the staff will be conducted in a way that only serious and experienced professionals/employees will be finally accepted to become the member of the Computer Section’s team. The essence of this is to prevent a situation of redundancy often caused by unqualified personnel (Levine, 2002). Hence, hiring and coordinating with the appropriately qualified employees would make this project stay within budget and also make it to be successfully executed within any specified time frame. Handling the Project’s Life Cycle Procedures The life cycle of this business, that is, procuring and selling computers by Jones Ltd will be carried out within a year; and with the hope that the expenses on recruiting, management and employees’ motivation would not exceed the allotted budget for the project by the Chief Executive Officer of Jones Ltd. In order to achieve this, the following processes must be carefully executed. 4 (a) Market Research: This is the very first step in all the procedures—it is essential to investigate the kinds of computers that are currently selling well in the markets (Morris & Pinto, 2007). It is also helpful to determine the cost of each computing unit, its functionalities, how useful is it in the market, and how many prospective buyers will be interested in a particular brand that Jones Ltd wishes to market? Or should the company concentrate on all the brands of computers. What sales strategy will be appropriate, and how could the employees be motivated to contribute their best in the project? All these issues will be seriously considered during the research process (Morris & Pinto, 2007). The market research will shed more light on the problems of buying and selling computers; the existing solutions to bypass such problems and the latest use of technology to confront the issues. The research will also be looking at the legal requirements, the environmental impacts of the business and the social responsibility of such a business idea. All these important matters will be considered from the perspectives of both the professionals and the common people, who are going to be future customers or business partners for the successful implementation of the company’s project (Lock, 2007). Likewise, the research will investigate the possibility of cutting the cost of operation with the intention of increasing the company’s profitability within a short-term period of trading. Improved trading systems have been identified as one of the best approaches to let Jones Ltd achieve this important aim of making enough profits that will let the business progress into its second year of operations (Grundy & Brown, 2002). 5 (b) Procurement of Computers: The Project Manager and the Assistant Project Manager will negotiate, discuss and agree on the price of each unit of computer from the suppliers. Several suppliers will be patronized with the hope of working with those that offer competitive pricing regime that will help the company maximize its profitability trend (Heerkens, 2007). Initially, special consideration will be given to computers manufactured by the globally famous brands like HP, Apple and Sony. Other emerging manufacturers of computers will also be patronized: these include but not limited to Fujitsu and so on. The plan is that each computer unit will be targeted at a particular market segment: expensive computers will go to the rich and upper middle-class buyers that are willing and ready to purchase them in cash (since the company will refuse sales on credit in the first year of operation), while cheap computers will be for students, the poor and the unemployed. The procurement will be done in wholesale prices so as to increase the company’s level of profits (Heerkens, 2007). There would be some agreements in the areas of warranties and post-purchase maintenance so that Jones Ltd can save off spending its money on repairing any computers that are perchance discovered to have been damaged during o r immediately after the procurement (Newton, 2009). The kinds of computers bought will depend on the results of market research conducted to detect the customers’ choice; the customers’ desired prices would also play a significant role in determining which of the computers to advertise and market in their areas. 6 (c ) Documentation of Purchases: The administration will be motivated to inspect, record and manage the documentation of every computer purchase undertaken by Jones Ltd so as to prevent a circumstance whereby incomplete documentation would lead to improper accounting that could undermine the integrity of the company (Callahan et al., 2007). Project management accounting requires that proper entry of the computers bought are made into the books so as to make the process of accounting easy and compatible with the laid-down principle of accountability and social responsibility (Kerzner, 2009). (d ) Marketing: Different marketing strategies would be applied in order to command a greater portion of the already congested markets. As a seasoned Project Manager, I will utilize the following marketing strategies: (i) Internet Marketing—this mode of marketing is the cheapest and could reach a wider audience or targeted customers in a very short period of time. (ii) Direct Marketing—this involves sending direct mail orders to prospective customers to encourage them to purchase the computers. (iii) Referral marketing—this involves giving any bonuses to any customers that will introduce their partners or friends to the company so as to buy new computers from the company. (iv) Compact marketing—which involves using all the marketing processes highlighted above to market the computers to the people that would need them (Parkinson et al., 2009). 7 (e) Sales/Distribution: A network of sales/distribution channels would be employed to reach many potential customers—this may include lateral or horizontal distribution as indicated below (Grundy & Brown, 2002). Horizontal Distribution Company Customers Lateral Distribution Company Direct buyers Last Consumers It is imperative that the Sales people and the warehouse employees be trained in the right way to handle this challenge. They would be motivated to carry out their function without actually compromising the goals and objectives of Jones Ltd. Periodical training will be conducted to constantly remind them about the necessity of satisfying the customers’ desires or expectation, By doing this, it is possible to keep the same customers for a long period of time. Sales and distribution must be carried out in a way that it would be compatible with environmental requirements and demonstrate enviable social responsibility. 8 Project Manager’s Skills For the purpose of successfully carrying out this project, I will utilize the following skills expected of an astute Project Manager: (i) Personal Skill: This requires that I demonstrate an outstanding leadership trait of proactively managing the people involved in the project. I am expected to lead by example and motivate the personnel that would be used in all the procedures required in this business (Newton, 2009). I will demonstrate positive attitude towards the personnel and be considerate in my expectations and approach. (ii) Technical Skill: I possess a Master’s degree in Computer Sciences and an Master in Business Administration (MBA). I have worked for two computer firms and successfully handled their sales/marketing department for years. I have expertise in managing employees dealing with computers’ acquisition and sales/distribution. Hence, I totally understand the technical requirements of this assignment, and I am ready to identify the areas where technical solutions are needed and appoint the right persons to handle these challenges (Schwalbe, 2009). (iii) Management Skill: With many years of professional experience in management, I will plan, initiate and organize the project by recruiting the most qualified employees to be part of my team. I will work hard to motivate the employees to do their best and contribute meaningfully to the success of the project. By doing, the project will be able to meet the budget and expectation of the CEO (Kerzner, 2009). 9 Conclusion and recommendation The procedures highlighted above are necessary for managing the project of establishing a computer section of Jones Ltd. Most importantly, efforts will be placed on the areas of motivating the employees to meet the goals of the company which include but not limited to high profitability, good quality of service, sustenance of the brand image and so on. These great attributes could only be achieved through the implementation of all organizational processes, which include high-quality recruitment, constant training of the employees, and ensuring accountability that would make Jones Ltd a prominent company dealing in computers in a market that has already been oversaturated with many players and competitive rivals. For Jones Ltd to continue to control this market of computer buyers, the company needs to periodically enlighten its employees the importance of being committed to the objectives of the company, which include the satisfaction of customers, accountability, and the drive to be cost-efficient in all its operations. References Callahan, K.R., Stetz, G.S., & Brooks, L.M. (2007). Project management accounting: budgeting, tracking, and reporting costs and profitability. London: John Wiley and Sons. Grundy, T., & Brown, L. (2002). Strategic project management: creating organizational breakthroughs.Florence, KY: Cengage Learning EMEA. Heerkens, G.R. (2007). Project management: 24 steps to help you master any project. New York: McGraw-Hill Professional. Levine, H.A. (2002). Practical project management: tips, tactics, and tools. London: John Wiley and Sons. Lock, D. (2007). Project management. 9th edn. London: Gower Publishing Ltd. Kerzner, H. (2009). Project management: a systems approach to planning, scheduling, and controlling. 10 edn. London: John Wiley and Sons. Morris, P., & Pinto, J.K. (2007). The Wiley guide to project organization & project management competencies. London: John Wiley and Sons. Newton, R. (2009). The project manager: mastering the art of delivery.2nd edn. London: Financial Times/Prentice Hall. Parkinson, L., Housden, M., & McKee, F. (2009). CIM coursebook: project management in marketing. London: Butterworth-Heinemann. Schwalbe, K. (2009). Information technology project management. 6th edn. Florence, KY: Cengage Learning. Read More