Managing PNR Private Ltd - Essay Example

?Management Project Managing PNR Private Ltd Table of Contents Introduction 3 The company overview 3 Planning 5 SWOT Analysis 5 Three long term goals6 Tactical goals 6 Organizing 6 Leading 6 Controlling 7 References 8 Introduction The business world in the present age is intensely competitive and the best way of achieving desired success in such a world is to properly use the management principles. This simple theory is applicable to each and every organization irrespective of the nature and size of it. Planning, organizing controlling and leading are the four main pillars of effective management. This paper aims to provide a clear picture of the company named PNR Private Ltd. The paper includes an in-dept analysis of the four important aspects of management (planning, organizing controlling and leading) in the context of PNR. It also provides a brief description regarding the products and operations of the company. The company overview PNR Private Ltd has been involved in the business of tyres that are mainly used in two wheelers. It produces tyres for two wheelers especially for the motor cycles. It is been almost seven years that the company is manufacturing and selling tyres. Its main customers include some of the local as well as global two wheeler manufacturers. Furthermore, there is a strong network of dealers that sell the products to the individual customers. In the last year PNR’s annual revenue reached almost $100M. However the company’s performance was badly hit by the recent global financial crisis that rocked most of the developed economies in the world especially the US and UK economy. As the demand of cars and bikes was significantly lowered due to this global crisis, tyre industry was also remarkably affected. Being a part of this industry PNR also experienced a tough time when its annual revenue was gone down by almost 10% in the year 2008-2009. However, with recovery of global economy PNR has also improved its performance. At present the company employs almost 100 individuals. The management of PNR gives significant importance on the quality and innovation of the product. The company’s main objective is to take the customer satisfaction level to a new high that will help the company to meet its annual target of revenue easily on a regular basis. Over the years ‘Innovation’ has been the key to PNR’s success. The company has plans to invest significant amount of resources in the research and development section. A new production plant with state-of-the art technology and advanced research and development facilities is likely to come up in near future. The company’s vision is to become the market leader in two wheeler tyre industry by means of high degree of innovation and customer satisfaction. In PNR it is believed that management is a concept that is neither solely science nor solely arts, but it is a blend of both. In the present business world which is intensely competitive, organizations fail to succeed if they do not focus on innovation, research and development. Today, most of the managerial decisions are taken after conducting extensive marketing as well as financial research. If management is looked at from this perspective then it can be considered as more of science rather than arts. However, on the other hand management is also about art of convincing and communicating with the staffs. According to Basu, “management is getting things done through and with others” (Basu, Business Organisation And Management). This statement reflects that art is an important component of management. The management of PNR admits these facts and believes that management is the combination of both science and art. The next section provides a clear picture of the four important aspects of management i.e. planning, leading, organizing and controlling in the context of PNR. Planning SWOT Analysis SWOT (Strengths, Weaknesses, Threats and Opportunities) Analysis is a strategic tool that is widely used across all the industry. PNR’s main strength is its strong customer base. Despite of being a new player in the industry the company has managed to attract and retain some really good customers in the form of two wheeler manufacturers, dealers as well as end users. Furthermore, it has a reasonably good brand equity which can be improved by investing more resources in marketing and with a strong financial back up it is not a difficult task for the company. Healthy financial condition and strong brand image are two the important strengths for PNR. PNR is a ten years old organization and as a result it does not possess enough experience that would help it in the process of making effective management decisions. Hence, lack of enough experience can be seen as a weakness for the company. It is not a diversified organization in the sense that it only focuses on the two wheeler tyre manufacturing. Being a new company that has presence only in the domestic tyre industry, PNR certainly has the opportunity of becoming an international giant in the global tyre industry. With its present financial strength it has the opportunity of focusing on the developing markets across the world. Furthermore, it can also think of investing in other industries so as to become a diversified business unit. Three major challenges for PNR are competition, cost of raw material and volatile economic condition. Intense competition is perhaps the biggest challenge that this company faces. It has to compete with some of largest companies in the world. Furthermore, as the raw materials are getting more and more costly, the company is facing various challenges in its daily operational process. Global as well as domestic economy also play crucial role in influencing the company’s performance. With the development of economy demand increases and with a volatile economy demand fluctuates frequently. As a result the company faces problem in making its decisions. Three long term goals Three main long term goals for PNR are (i) becoming second largest tyre manufacturer in the country, (ii) producing tyres for cars and (iii) opening a new unit in any one of the developing markets of Asia. Tactical goals Three tactical goals that are likely to be achieved in this fiscal year are (i) increase of sales by 10%, (ii) increase of market share by 10% and (iii) launch of a new marketing campaign. Organizing PNR is comprised of five major functional divisions which are production, administration, marketing, finance and human resource. The US based company is headquartered in Detroit. It has its offices and distribution centers throughout the country. The company is incorporated properly with the concerned authority. Leading This company is led and managed by the leaders who inspire their sub-ordinates by setting up examples. Both transactional as well as transformational leadership styles are followed as one brings stability while the other is crucial when going through a process where a traditional system requires to be changed (Robert N. Lussier, Christopher F. Achua, Leadership: Theory, Application, & Skill Development). Being the chief of this company I have the power of making any decisions that are in favor of the company. However, I am accountable to my shareholders as well as to my customers. As a result I have to make decisions consciously. Being the CEO I need to always remain motivated. I get the motivation from my ‘needs for achievement’. Furthermore, I take motivation from my employees and their everyday lives. A proper reward program is very important for motivating the employees. In this company a performance based program is implemented. In addition to these factors there is another factor which is very important and that is ethics. In PNR ethics are given enough importance in the everyday operations. Controlling Control is very important as without proper control best of best strategies can produce nothing. In PNR main control is in the hands of top and middle level management. Each and every processes regarding administration, production, marketing, finance and HR is properly controlled from these two levels of management. References Basu, Business Organisation And Management, Tata McGraw-Hill Education, 1998 Robert N. Lussier, Christopher F. Achua, Leadership: Theory, Application, & Skill Development. Cengage Learning, 2009 Read More