Amedo Business Strategies - Case Study Example

Running head: Amedo business strategy Name: Course: Tutor: Date: 1. Amedo Business Organization (client) 1.1. Overview of Amedo Entrepreneurship firm Amedo is an entrepreneurship manufacturing company that is concerned with manufacturing as well as distribution of household items like cups, plates, microwaves, refrigerators among other items. Given the fact that the company is currently operating in a competitive environment there is need for this company to establish marketing strategies to attract more customer’s over other companies. The director of the firm is responsible for laying down strategies for their course of action in the market which are in line with their growth plan. The manager of the company is responsible for managing all the company’s production processes as well as the overall organizational functions. 1.2 Amedo Business mission “Everything we do is inspired by our enduring mission hence we endeavour to create value and make a difference everywhere we engage through good customer relations as well as manufacture of high quality products”. 1.3 Amedo Business firm aims and objectives The company aims at ensuring that it offers quality products to its customer’s The company aims at ensuring that it achieves its financial targets by maximizing on Profits and minimizing on losses. Due to the competitive nature of the market, the firm intends to achieve its global market growth by acquiring the largest share of the market in the production sector 2. Key Human Resource Requirements 2.1 Basing on baseline information from the human resource department, the company has to almost 150 employees and the findings show that the organization has been has been facing several challenges in the workplace. Due to the scarcity of employees, they sometimes fail to achieve the outlined organizational goals and objectives. This has raised a lot of concerns to the stockholders with a fact that the company may fail to deliver services to their customer’s as required hence easily falling out of the market. Some of the complaints raised by the human resource office within the department include; reports of sexual harassment of the female staffs to the human resource office, bullying of junior staffs and absconding of duties by senior staffs. The company operating in a competitive environment it will be kicked out of market if this trend wasn’t given an early intervention. 2.2 With these allegations, the human resource office therefore decide to select a commission that will look into these allegations for a period of four month and thereafter come up a report on its findings and the resolutions to the findings. The findings comprised of: The commitment of employees towards their service delivery was a major challenge that the company was facing. Employees did not have the desire to commit all their lives to the work due to poor remuneration package as well as motivational programs. The culture mix affected to extreme end the working of employees in various departments within the organization as the employees come from different countries with different cultural backgrounds hence adjusting was a problem to some employees which ends up affecting their daily performance. Since the remuneration package paid by the company to the employees is quiet small some employees who depend on the company for their livelihood find it hard to adjust within the budget constraints as well as tight work deadlines. Potential emergence of knowledge gaps in which employees are resigning from the company to look for better paying companies. The company additionally relies on inexperienced employees which affects the expected returns as well as profits from the firm. The considerations comprised of: Examination of all the employees to find out if they have the necessary requirements for them to adjust to the required direction by the human resource office The commission also be required to look into the future effect of the service delivery to the firm’s customer’s but it will positively consider the remuneration as well as motivational packages to ensure stability of the employees in the organization. 2.3. Human resource findings on other areas affecting the overall organizational performance comprised of: 2.3.1. Poor line management action This was proved by the number of promotions given to the staffs within the firm’s department. Data was gathered on based on the number of appraisals submitted this year compared to other years. Any human resource organization with a vision should never have a better yesterday in their records as long us they are sticking to their mandate. It was evident that only particular employees got promoted from particular departments while others were not. 2.3.2. Poor work performance This was proved by the records on various employees as well as the customer responses to the services offered by the departmental staffs. There is a decimal performance record in the current trends compared to the past performances. The data was collected through interviews with the relevant stakeholders and through focused group discussions and it indicated that most of the employees within the organization currently perform poorly compared to their past performances. This was attributed as a result of various factors both within the organization as well as personal factors. 2.3.3. Frequent Employee Absences Since the remuneration package was quiet small for some employees they considered to work in other companies primarily to make ends meet. As a result of this they skipped going to work which greatly affected the overall organizational service delivery to their clients as well as organizational production processes. There was an increasing trend in employee absenteeism compared to the past years. Most of the clients interviewed gave surprising negative information on the services offered by the departmental staffs. In addition to this, the clients also complained of employees’ absenteeism whenever their services are required by the clients. The human resource thus report a big number of absence cases on a number of staff record in the past six month. Some of them are said to have absconded duties without even notice from the departmental head while their services were needed. 2.3.4. Cost of Early Intervention funding and employee compensation claims The special inquiry team also showed data and the information collected from the occupational health and safety office, it proved that the department was also facing severe expenses from the cost of early intervention funding and the increase in workers compensation claims. These claims were recorded due to increase in the number of psychological cases like anxiety and depression among the staffs. The psychological effect among the staffs emanated from the fact that the rate of abusive language, bullying, harassment and undermining was on a high rate at the working place and this and this greatly affected the psychology of the other staffs within the department. Therefore most of the expenses were incurred on diagnosis of the psychologically affected staffs. 3. Options and Recommendations After the findings, the departmental head had to look for look for ways to avert the situation based on the recommendations and options made by the committee of inquiry. The research committee left a number of recommendations and options to the management’s desk optimistic that if the laid recommendations will be thoroughly implemented, the situation at the department will find a tangible solution. 3.1. Option 1- The management should put in place attractive employee incentives In order to retain the employees as well as attain high performance it is necessary that the organization put in place good remuneration packages as well as motivational programs. Through, these programs employees will be motivated to work harder towards meeting the outlined organizational goals and objectives (Michael,pp 23-45). This inturn will enable the firm to earn good returns has boosting the company’s image in the market. 3.2 Option 2- The firm’s management must improve overall workplace environment using the internal means The human resources department will be required to appoint a monitoring team that will carry out the mandate for a period of six month. Among the issues to be monitored are like the daily reporting of staffs on duty. This team is only to make sure that the situation at the workplace improves. This brings us to another vital role of the human resource personnel in the organization. The human resource personnel will have to source for the personnel that will perfectly execute the laid strategies which do comprise among them the induction or refresher courses to staffs aiming at the reduction of absentees at the department, increase in the morals of the staffs and the devotion to the performance or to service delivery. The team should be non partisan or not with any form of discrimination among them. 3.3 Option 3 –The third option laid down by the research team was for the department to get personnel from other performing staffs to come and work with management. This is meant for the exchange of ideas from the other performing department to the management of this team and through this they will be able to improve the provision of an external provider, the departmental management will be able to improve in workplace environment. This can also be done through the provision of tutorials or leadership and management lectures to the management of the department for them to attain a sustainable moral and work ethic record at the department. The induction course can be scheduled and delivered in the four month of monitoring as the selected team also overseas the training sessions to the staffs. Among the suggested training topics include mental health and wellness, the linkage between the importance of good physical health and mental wellness and the importance of being aware of workplace conflict and conflict resolution processes. The research team felt that after this course, all the employees will be able to value their responsibilities and therefore change their commitment thus a thorough commitment to their duties and responsibilities. The provider or the lecturer will be expected to conduct the surveys during the training so that he or she can give the report on the responses of the students or the change noticed among them within a specific period of time. 3.4 Recommendations In the recommendations, the research team endorsed option one. The firm should put in place good incentives for its employees. This will encourage them to work harder towards achieving their own personal set goals as well as expected employee targets. Once this is place employees will struggle to achieve outstanding organizational performances making the company more outstanding than its competitor’s. The firm should stress on the importance of employee responsibility as well as goal achievement. 4. Strategies and Action Plans 4.1 The firm aims at using product differentiation as a strategy towards realizing its global growth. This strategy will enable the company to differentiate its products from those of its competitor’s. To achieve this firm will produce and manufacture distinctive and unique products which are more competitive in the market. 4.2 The organization intents to work on its mandate within the procurement, the ministry involvement and some other policies set by the Australian government and the concerned department. The organization also wishes to meet the set standards of the concerned departments approved cost, capability, the time frame requirements to support the customers and the sponsors of the project. The company together with its financial department and marketing officers will market and offer its products at a low cost than the competing companies. Cost effective strategy will be used especially when the company is carrying out procurement transactions, marketing, production and even distribution. The low-cost approach should be used in a way that it reduces the probability of experiencing pressure in pricing from buyers. If sustained, this will divert the competitors to other areas leading to decrease in price competition. 4.3 The firm intends to use a low cost approach through which it will sell its products comparatively at lower price than its competitors. This primarily aims at giving them an advantage in the market than their competitors. This will help in capturing a niche and leading to an increment of their customer base, which with time may result to a monopoly in the market after attaining economies of scale Products will be sold at a lower price in relation to the manufacturing costs which will be reduced drastically. 5. Service Level Agreement A Service Level Agreement form will be outlined and signed by each and every employee of the firm. This agreement form will outline duties and responsibilities of each employee at various levels. This agreement form will also outline the functions and duties of human resource department 6. Quality Assurance Process The human resource department will ensure that it evaluate the performance of each employee on monthly after which continuous monitoring will be done. Marketing employees will be rewarded according to their efforts to win more customers as well as their promotion. Constant employee monitoring will be implemented in relation to organizational objectives The Human resource manager should organise employee training which should be properly scheduled prior to the training sessions so that it does not seem to be a waste of resource. At the end of the day, the provider will make sure the management and other line managers do fill in the service level agreement forms as a sign of commitment to their work showing their responsibilities and the expectations. Employees will be required to record their reporting time and leaving time primarily to minimize skipping work which will be monitored on daily basis by the overall manager. Lessons on cultural shifts would also be offered to the staffs especially the managerial in regard to the raised allegations like bullying and harassment. The courses will be divided in various headings to fit in the specified time frame to get the expectations of the planned objective. At the end of the exercise, the culture and the behaviour and even the attitude of the staffs towards work will have taken a different dimension thus result in performance. 7. Managing Underperformance The management should ensure that employees in various departments meet the organizational employee expectations. If this not the case the departmental manager should be consulted in relation to the employee in question through open discussions. This will help in the realization of other gaps within the department which will be envisaged and brought use (John & Richard, 23-30). The department can too embrace listening to clients and developing them into an avenue of competitive intelligence, this will too help this company go a step ahead more than their competitors. In this case the customers will be given an opportunity to air their opinions on the company’s operations considering what they like and what they don’t like about the company. A feedback system can be modified to cater for the communication between the clients and the department. In the management of risks, the organization may consider sharing of costs in production across major business producing companies which will greatly accelerate the growth of trade for sometime and it will be accumulated to a particular percent in the organizations’ income. In order to ensure proper management of finances the organizations business actually has to outsource a bookkeeper who actually serves as an accountant too .Given the fact that the organization is still small business it should be associated with less regular costs and also the nature of the business only allows promotional and advertising activities to be done through business cards. Regular capacity building exercises should be encouraged among staffs to enhance or to refresh them. Through such meetings, the staffs an be in position to point out weaknesses and strengths the can help the company achieve greater heights in the competitive market. Also, in the case of underperformances the organization will have to produce something that is unique and much valued by the consumer. This may give a provision for the organization to sell this item at a higher price since it is perceived at a higher value to the customers. The consumer feels that this product is of more value compared to other alternatives and is willing to incur the additional cost. This will happen if the organization reconfigures itself in a way and also performing its activities uniquely. For it to have sustainable differentiation the organization must not produce imitations and must maintain its integrity to its consumers .This leads to reduction of rivalry between the organizations and its competitors and also makes the consumer to be less concerned with price changes. If there exists loyalty to a certain brand in the market, differentiation is the best way to break this barrier. The only risk in this is that during recession consumers may opt for low cost products to save on costs (John & Richard, 23-30). 8. Client Feedback Various questionnaires will be distributed to the customer’s who will evaluate the firm in response to the products, services as well as customer relations from the employees. Customers will be asked to evaluate the firm’s services and behaviour of employees after which necessary measures will be implemented in relation to the feedback. 9. Evaluation Process Organizational market and financial performance will be evaluated quarterly after which different strategies will be implemented basing on the current performance. Achieved goals will be evaluated and non achieved and reasons why they were not achieved will be outlined with strategies to achieve them. References John, Pearce, A & Richard, Robinson. Strategic Management. Formulation, Implementation, and Control. 11th ed. New York: McGraw-hill, 2009:23-30 Michael, Armstrong, A. handbook of Human Resource Management Practice. 10th Ed. London: Kogan Page, 2006:23-45 Read More