Contemporary Management - Assignment Example

Running Head: Contemporary Management Contemporary Management Customer’s Name: Customer’s Course: Tutor’s Name: August 8th, 2012 Introduction This paper seeks to offer a broader understanding of management concepts by looking at the management strategies applied by Coles Retailers in form of a report. To achieve these, discussion will be provided in report on management concepts that are covered by the article as well as highlighting those management concepts that are not in the article. In addition, the paper will describe how I went about finding out management areas (concepts) that are not covered in the article. Moreover, a summary of what I found out through the additional research will be provided. Finally, a reflection of what this means in understanding the management of an organization will be discussed. Discussion 1. Four functions of management (planning, controlling, organizing, and leading) Planning; the outstanding plans in Coles Retailer include the plan to change how it deals with customers and suppliers as well as how managers/executive communicates with other staffs (Sue, 2011) . Furthermore, the organization is planning to increase the number of stores allover Australia with the aim of surpassing its major rival-Woolworths. The organization has a ‘succession plan’ in which training and development of workers are reviewed twice annually (Hannagan, 2007). Finally, the organization has a plan that is known internally as “circle for success.” This plan encapsulates six strategic goals namely; better services, better value, smarter stores, best customer experience, on-shelf availability, and quality fresh food. Controlling; in the organization, control of price, customers’ loyalty, erroneous transactions, employees’ performance, and procurement procedures. To start with, Coles Retailer has lowered their prices for most of the commodities that are in their display shelves so as to attract more customers (Sue, 2011). Though the prices are expected to increase with increase in quality of the product following the introduction of automated ordering system to improve the quality of fresh food, this does not happen. The organization is also controlling the customer loyalty though customer loyalty management programmes (Fred, 2004). Due to increased number of transactions per day, the organization is training its staffs so as to minimize if not eradicate erroneous transaction with can have negative consequences. Again, training and development of the employees is been done so as to increase their productivity through motivation and job satisfaction. Finally, procurement processes are been controlled in order to account for everything that is purchased/ added into the company’s bunch of assets. 2. External environment on organization (economic, sociocultural, political-legal, technology, and natural environmental condition) Some of the external environmental factors are highlighted in the article. This includes the suppliers, competitors, customers and the community at large (Fred, 2004). Suppliers are selected into the company based on what they are supplying. Suppliers are partnering with the organization so as the company can fulfill the organizational strategy. An example is where the organization had to implement the strategy of reducing prices by “pushing supplier with the promise of better returns” however not every supplier concurred with that strategy and they had to part ways. Coles Retailer has over 2 million customers per week and the organization is working to satisfy them individually (Sue, 2011). Though the customer numbers are large, the company provides services and product in a way that the customers are satisfied. One such service is providing many and automated tellers where customer do not wait for long. Moreover, the company has introduced a customer loyalty programme so as to advertise their products to new and old customers. Also, the company has a program of asking customers opinion/ feedback about the products and the services provided. One of the main rival/competitor of Cole Retailer identified in the article is Woolworths that has more store and better services. The management of Cole Retailers are therefore strategizing to open about 20-30 new stores in Australia with the main idea of surpassing the competitor-Woolworths (Sue, 2011). Economically, the organization has planned how to reduce cost of supply as well as been accountable for every transaction by reducing the number of erroneous transaction and finally by changing the procuring/tendering process (Fred, 2004). The company has identified itself with sociocultural issues and implemented a strategy of sponsoring sports. For example, though the company used funding meant for promotion/advertisement, the organization sponsored commonwealth games held in India. Politically/legally, the organization is been affected by either internal or external politics or both (Hannagan, 2007). As the author writes “there was a frustration around the level of politics and bureaucracy that existed within the organization.” This politics ‘confuses’ the company such that employees find it difficult to work in the direction of the strategic plan. Technologically the company is not left behind. One of the major technologies is the implementation of automated ordering system and teller systems. Finally, the organization is known to offer non-organic quality foods to its customers. By so doing the company makes sure environmental sustainability is achieved. 3. Organizational culture (innovation, aggressiveness, people oriented) people oriented in the article ((casual and permanent job)) Coles has taken steps to ensure that its employees have job security by ensuring that casual employees have been greatly reduces. By doing this, it will ensure that employment of more permanent people in the stores will increase the rate of being consistent in their work, there will be a wide base of knowledge, there will be more trust from the employees and finally the gap created between the employer and employees will be reduced (Sue, 2011). More than half of the working team in the organization has been made permanent and there is now an assurance that casual workers will be having to the least twenty four hours working in a month. With this implementation, the rate of absenteeism has greatly reduced causing a fall in the rate of employee turnover. Coles has taken measures on how the employees can be made to center their interest on the customers they serve (Mitchell, 2011). This has been effective through staff development where staff is trained twice a year. This has reaped benefits because the sales have increased over the years. To ensure that there is motivation; Coles has come up with a scorecard that evaluates the involvement and engagement in their staff. They are ranked and this boosts the morale towards work as long as it is restricted within the cultural goals. 4. Open system In the open system, staff has been encouraged to openly interact with the customers. In doing so, the customers can confide in them the taste, preference and any other suggestion that may improve on the services offered. Coles developed this initiative to ensure that better yet quality products were offered and this would boost better customer experiences (Mitchell, 2011). This was even made better by improving on the systems that were used to serve the customers. With the introduction of automated systems, it ensured that time spent in buying decreased hence more buyers in the stores. The involvement of suppliers in the branding process of products increased the efficiency in procurement process because this saved on costs incurred because it was being shared. 5. 5 tiers of Maslow’s hierarchy of need. Using Maslow’s hierarchy of need, Coles identifies physiological needs where every customer requires food. In this case Coles offers best value quality fresh foods that are in the shelf any time. Also, the prices of the food is affordable hence available to all (Mitchell, 2011). Coles focuses on security where there is job security in the organization. This is made possible where the employees are made permanent. Management concepts not covered in the article are 1. Critical success factors that Coles needs to excel 2. The concept of decentralization as the article does not show whether the changes at Coles dispersed power across the organization. 3. The enterprise modeling concept is also absent as the article does not discuss the business domain of Coles, its business processes and use of information technology. 4. The concept of management science is also lacking as the article does not show how Coles has used mathematical and analytical methods to improve decision making at the organization 5. The concept of non-linear management is also missing as the article does not show its application in improving the performance of the retail chain (Redman & Wilkinson, 2009). 6. The concept of business reengineering is also missing in the article as it does not show whether or how Coles changed it complete business processes. 7. The article does not also explain how Coles has been able to manage its risk or hasn’t managed risk Researching the Concepts missing in the Article To find information about the concepts of managements I obtained the company’s annual reports for the period 2008-2012. I also obtained information about the concepts from scholarly articles on management. Summary of Additional research The concepts missing from the articles are important for a business seeking to turn around its business process (Redman & Wilkinson, 2009). By identifying the critical success factors needed to enhance their operations Coles were able to realize competitive advantage for their business. Secondly, Coles was able to establish its business domain and redesign its business process while integrating information technology to reduce order processing time and queues by using enterprise modeling concept. Thirdly, Coles has used management science to motivate its workers as it has been established incentives like those offered to top management help improve satisfaction of employees at Coles (Grant, 2011). The retailer also uses lean management by making sure it does not engage in any wasteful practices that are not aligned to the organizational goals. Coles has also employed several risk management strategies including establishing supplier alliances that reduce their exposure to price volatility on the supply end. Additionally, Coles also reengineered most of its business processes to improve efficiency in the firm. However, Coles has not implemented a decentralization approach of its organizational structure and it remains a hierarchical organization (Redman & Wilkinson, 2009). Reflection on the understanding of Management through newspaper articles/ conclusion Business newspaper articles can help a student in management understand contemporary issues in the field of management. Newspaper articles enlighten practitioners and students in the field of management on the practices that managers are currently using and the management concepts they apply to their practice to make their firms successful (Grant, 2011). Thus, newspaper articles are a rich source of academic material for students seeking better understanding of management.   References Fred, D (2004) .Strategic Management: Concepts and Cases. New Jersey: Prentice Hall Grant, R. M. (2011). Contemporary strategic management: an Australasian perspective / Robert Grant ... [et al.]. Milton, Qld: John Wiley & Sons Australia. Hannagan, T (2007) .Management: Concepts and Practices. New Jersey: Prentice Hall Hitt, M., Ireland, D & Hoskisson, R (2006) .Strategic Management Concepts. Boston: South-Western College Pub Redman, T., & Wilkinson, A. (2009). Contemporary human resource management: text and cases / [edited by] Tom Redman, Adrian Wilkinson. Harlow, England; New York: Financial Times/Prentice Hall, 2009. Sue, M (October, 2011) .The Team behind One of the Country’s Largest Corporate Revivals Learned a Thing or Two Fixing the Wobbles on the Coles Supermarket Trolley: Its Investors are impressed, but there’s more to be done to Catch up to the Big Rival. Shift Read More