Successful and Unsuccessful Companies - Essay Example

Successful and Unsuccessful Companies

Part 1: Successful Company: SAS

Overview of SAS

SAS Institute Inc. is an American multinational company which develops and markets a wide range of analytics software, data management and business software and services. With its headquarters in Cary, North Carolina, SAS is currently regarded as one of the most successful companies in the world and market leader in next-generation software development in the field of analytics and management. According to SAS (2015), the company currently serves various markets including banking, automotive, communications, defense, casinos and other high tech sectors. SAS software applications have been implemented in more than 40,000 companies and organizations in various parts of the world.

The history of SAS as a company dates back to 1976 when the company was first founded by North Carolina State University as a project for analyzing agricultural research. Over the years, SAS has expanded its scope and is currently a recognized global manufacturer of systems that integrates the latest storage technology, analysis, and traditional business intelligence applications that allow highlighting knowledge from huge amounts of data (Fishman, 2016).

Profile of the Company

Mission and Vision

In line with the fundamental principles of management namely planning-organizing-leading-controlling (P-O-L-C), the essential mission of the SAS Company has been worked out by the performance management. The main component of performance management is the communication strategy that is needed to convey to each member of the precise and specific purpose of their activity. Based on the P-O-L-C framework, this is an important evidence of effective planning in the company.

Additionally, if we define the key performance indicators of the organization as the company's mission and vision, it is then necessary to link them with the activities of employees (Soti, Shankar & Kaushal, 2010). This will help to relate the objectives and priorities of employees, on the one hand, with the strategic direction, on the other hand, on their way to achieve their ission's goal and vision of the future (Ismail Al-Alawi, Yousif Al-Marzooqi, & Fraidoon Mohammed, 2007). By and large, this is the essence of strategic planning – in conjunction with the organization's strategic objectives to the specific steps that should make everyone in the organization, and to set criteria for assessment of these steps. Thus, it is possible to assume that the SAS Company is in the constant need for a system of key performance indicators for the highest quality performance management. This is a key element of the management P-O-L-C principle of leading.

Strategic Management Plan

The strategic management plan of the SAS Company can be regarded as very effective in terms of cost, but it does not mean that the desired result is achieved at once. This is particularly consistent with the P-O-L-C framework. For example, in terms of planning, the Company’s leaders may very reasonably allocate resources, optimize the performance of administrative procedures, and ensure exceptional efficiency. However, the final positive result in this case is not clear enough, but it may be guaranteed. In this case, it is necessary to talk about an efficient but ineffective plan (Crowley, 2013). The reverse case is to be either regarded: the strategic management plan of the SAS Company can be effective without being efficient. The results of the strategic management plan of the SAS Company can be significant, but the cost of a wasteful and poorly used resources can increase. In this case, there should be a reserve for the optimization resources and administrative procedures (Kreisler Buch & Tolentino, 2006). This will save money and provide better service to the same cost. If the strategic management plan of the SAS Company is effective, this means that, as a result of its implementation the best results at the lowest costs which are sufficient for this purpose will be obtained. There are various approaches to improve the effectiveness and efficiency of processes in the SAS company using the proper strategic management plan.

Organizational Culture

Due to the fact that the company in question is known to be one of the best (!) places to work, it is possible to claim that the organizational culture is the best developed within the company. In addition to this, it is possible to assume that the organizational culture is SAS company makes a great contribution to the productivity of its employees.

Decision-Making Process

In SAS company, the decision making process is to determine the quality of the results of work obtained. To determine whether the results are good, it is necessary to develop a system of meaningful, measurable indicators. These indicators should clearly show the benefits that the program brings to society. Next, it is important to define desired outcomes and then use the resulting value as a base for planning, tracking progress program and management decisions. Indicators, in particular, should provide answers to questions such as whether the program meets the needs and expectations of those to whom it is intended; whether it has changed something in the community, and so on.

Principles Of Ethics

The principles of ethics – as well as the organizational culture of the SAS Company – are strictly followed by the directors of the organization. This is determined by the fact that the governing set has a conviction that the proper attitude to the employees is equal to the productivity and quality of the personnel work. Consistent with the management principle of control in the P-O-L-C framework, the conditions which secure the ethics within the company are very strict and are aimed at fair treatment of the employees' work.

Human Resources Usage Strategies

When concerning the human resource usage strategies within the SAS company, it is necessary to regard the frequency tabulation. It directly affects the ability to make advance in improving the strategic management plan of the SAS company. For example, the results, which let down once a year, will never work as effectively as the results of the quarterly or, better yet, by month. The advantage of regular debriefing is that leaders can actively adjust the course of the program, understanding where there are at the moment and what goes, and take action against the identified problems (Cawood, 2008). A proactive approach lets get back on track before the problems will grow, and thus improves efficiency.

Conclusion

Based on its application of the fundamental principles of management of planning-organizing-leading-controlling (P-O-L-C), it is arguable that SAS Institute Inc. is a fairly successful company. For example, company has effectively utilized the fundamental principles of management to ensure optimal performance in a number of key areas such as organizational communication, human resource management and decision making strategies. In order to effectively take advantage of methodologies and effectiveness of SAS company procedures which are necessary to introduce modern information systems performance management, which allow for a continuous and objective monitoring of ongoing processes, predict outcomes and simulate scenarios for the situation. The existing positive experience of implementing SAS company products' solutions in many organizations in different countries around the world suggests that the management efficiency of state organs, the efficient delivery of government programs and projects is a real and solvable problem.

Part 2: Unsuccessful Company: Motorola

Profile of the Company

In today's economy, the problem of quality is the most important factor in increasing the level of life, economic, social and environmental security. Quality characterizes the efficiency of the organization's activities, from the development strategy, including the organization of production, marketing, etc. The most important component of any quality system is the quality of products or services. The essence of the product quality presupposes the degree, to which a set of inherent characteristics fulfills the requirements for the products. Indicators of the product quality are represented by the quantitative characteristics of one or more properties of the product within its quality according to regulatory document, viewed in relation to certain conditions of its creation and use or consumption. Control of the quality of products provides a solution to a number of organizational and methodological problems. This information is important to concern when it comes to determining the factors of unsuccessful strategies of the Motorola Company.

Modern quality management is based on the practical experience of leading experts and

the results of studies of major foreign corporations. In order to summarize the quality management system, there has been allocated a number of principles, the key one of which is the customer orientation (Kaplan, 2016). This principle is based on the fact that, as organizations depend on their customers, they should understand their present and future needs, meet customer requirements and strive to exceed their expectations. The implementation of the principle of “Lead’ under the P-O-L-C framework provides unity of purpose and direction of the organization.

Director creates and maintains such internal environment of the organization in which employees decide the challenges they face. This is the director who formulates strategy organization, on the basis of which set the goal of quality; monitoring and analysis achieve these goals. Quality performance of any functions depends entirely on professionalism, energy, dedication and high sense of responsibility of the head of the people working with him. The involvement of the employees at all levels of the Motorola company. This means that the development of the quality management system is to be able to use the ability of people directly employed in the organizational processes and their experience. The basis of this principle in the quality management system is usually well-formed staff incentive system, providing both financial incentives and moral aspects and psychological climate in the team. Process approach allows to see the entire chain produced by the process as a whole, which ensures its control and to achieve the desired result.

The systems approach involves identifying, understanding and managing all the interrelated processes as a system. A systematic approach is reflected in the effectiveness and efficiency of the Motorola organization in achieving its objectives. Continual improvement of the organization of activity is generally regarded as immutable goal the quality management system.

The principle of making decisions based on facts is built around the fact that all significant changes in the organization are carried out on the basis of analysis of incoming information and evidence. The adoption of effective solutions can only be based on objective in-house performance. The implementation of the principle of mutually beneficial relationships with suppliers in Motorola can improve the ability of both to create value for the customer, while building a relationship with each other on a mutually beneficial basis. It is very important to pay attention to international standards in 9000 quality management ISO: 2000. These standards are used to assess the organization's ability to meet customer requirements, regulations and own requirements. They are designed to provide a predictable and stable level of quality products and services. The generally accepted basic principles of quality management defined by ISO 9000: 2000, are able to provide a direct correlation of the strategy with the objective basis of these standards. In any case, these strategies could have been applied long before in order to make the company be adrift in the cruel world of business.

Management Plan Recommendations

The base concept of Motorola is known to minimize the number of mismatches at 1 million possible, i.e. the highest level of quality is achieved at the level of 3, 4 defects per 1 million products. With regard to the concept of industrial enterprise, Motorola should be considered as a management philosophy, which focuses on the elimination of the marriage by the analysis of the results of measurements and optimization on this basis, the internal processes of the enterprise. In this case it is advisable to carry out a quantitative measurement and monitoring of indicators of quality control at every stage of the process that will allow time to identify and minimize the number of discrepancies (of marriages). The use of this approach ensures quality control through the whole chain of service provision. Along with this, it is possible to propose other numerous recommendations.

Thus, first and foremost, the Motorola Company is supposed to be engaged into the the concept of leadership system. It involves the formation and long-term development of the leadership of the core managers, who can most effectively and responsibly implement new projects and implement breakthrough transformation. The scale and complexity of the quality management system tasks for the implementation of an industrial plant requires the creation of conditions for increasing the share of employees with leadership qualities, who are (or would hypothetically be) able to work most dynamic, creative, able to create and organize work teams for specific projects. Bases of formation and leadership development system in an industrial plant can be laid during the project cascade training in the field of quality management and leadership of employees. In the future, the work on creation and development of leadership technologies, creation of conditions for targeted training and self-development leaders to be recognized as one of the promising areas of long-term development of the company's employees.

The second recommendation which is expected to have been applied by Motorola Company is the concept of Total Quality Management. This approach is to be based on a methodological basis of international standards ISO 9000: 2000. A key feature of the concept is a comprehensive approach to quality and the use of quality management tools in all functional areas of activity. This concept could provide the company of Motorola with an liability for the quality of works and services, with the participation of all structural units of the organization to work on their improvement, the introduction of production and management methods to 'embed' the quality of products (Anderson, 2016) . When taking any administrative decisions on industrial enterprise, the directors should (and are strongly expected to) consider issues of quality, ensuring on this basis, the implementation of a systematic approach to quality management. The result of the use of international experience in the implementation of the quality management system should be to improve the efficiency of financial and economic activity of an industrial enterprise on the basis of continuous improvement of business processes, and increase customer satisfaction, which in turn leads to the formation of a dynamic organization that responds flexibly to customer requests.

Conclusion

In conclusion, Motorola has not effectively employed the fundamental principles of management to optimize its organizational performance. For example, the current management planning practices such as lack of clear communication channels have to some extent hindered the ability of the organization to optimally carry out its duties. The introduction of a quality management system in the Motorola company in the industrial activity of the enterprise creates necessary conditions for the effective use of in-house tools and strategic planning. The quality management system through the use and adaptation of international experience to the specific local conditions would lead to industrial enterprises' advantages, such as,

• Compliance of service and product expectations and customer requirements for quality, safety, accessibility and range;
• Compliance projected in the company's business processes with modern architecture regulations and requirements of the target level of quality;
• A clear division of functions for operations and internal customers of service providers:

for manufacturing operations resulting quality of the work performed is its acceptance of a particular employee on their own responsibility, and for the sphere of management of the results of performance of the functions are executable, and effective decision-making;

• Use of all the technological operations of the input control the quality of products and services provided by external partners and subdivisions of the enterprise;
• Motivation of employees for quality performance of its functions, the development of initiative, innovation and dissemination of full disclosure of the creative potential of each.