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- Strategic Leadership - Case Study Example

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Answer 1 BIC has been a flagship company in the mechanical writing instruments with leadership position in ball point pen products. The company’s major objectives are to mass manufacture and market inexpensive writing products and maintain competitive advantage through significant economy of scale…
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Case Study - Strategic Leadership
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Download file to see previous pages It has been equally focused on all the four main areas which facilitate exploitation of volume opportunities vis-a-vis retail, commercial, advertisement and specialty; and premium market. It has been able to efficiently exploit various marketing tools like prolific advertising on all leading media, attractive packaging, promoting eye-catching displays on point of purchase and lastly becoming proactive participants in trade and consumer promotion campaigns. The company has expanded its market across region and geographical boundaries through effective distribution and supply chain management. Providing a wide range of well differentiated writing product lines which are inexpensive but quality driven has also been part of vital marketing strategy of the company. b. Financial policy The company is goal driven and its budgeting is dependent on the short term and long term goals of the company that it formulates from time to time. At the same time it realizes that as its business expands, more formal financial strategy would need to be evolved for effective delivery of its long term vision and mission. Presently, its financial strategy is mainly focused on three areas: To ensure plant expansion through mortgage loan, short term loan and using cash-in-hand. It believes that its good credit rating would greatly help in acquiring large financial assistance so as to exploit opportunities for acquisition, merger and new product development for maintaining leverage against their rivals in the industry. The company’s compensation policy is focused on the welfare of the workforce. It has offered purchase option of its shares to its workforce. While initially the dividend policy was at the discretion of its owner Mr. Bich, now as a public limited company, it considers that 20-25% of the earning is a good target dividend for its workers which it distributes amongst them as bonus. It also is one of the best pay masters as regards the assets. Thus, satisfied workforce ensures optimal performance that significantly contributes to the profit margin. c. Manufacturing The company has developed highly integrated state of the art manufacturing process that is capable of mass production of quality goods at relatively low cost. The parent company, Societe BIC of France has provided its American counterpart with the machinery, production technology and R&D know how. Quality control norms are strictly followed that considerably reduces cost due to mass production. The company has expanded its plant manufacturing capacities through better technology, benchmarking and regular training of its workers so that it becomes cost effective. d. Human Resource Policy The managerial leadership of the company is highly motivating and labor friendly. Workers’ participation is encouraged during decision making process and development of joint goals that align with long term objectives of the company. They are regularly encouraged to take part in quality control programs and grievances and conflicts are resolved through weekly meetings. The company has not used redundancy in its HR policy and instead has retrained workers for other positions that are linked to increased production. Answer 2 BIC’s strategy is to dominate the market of writing products and increase profits by selling large volume of inexpensive pens through channels that cater to mass market. Answer 3 ...Download file to see next pagesRead More
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