Market Issues With Marston Gardens - Essay Example

Marston Gardens --- Market Issues and Recommendations Marketing has been defined as a management process responsible for identifying, anticipating and satisfying customer requirements and profitability (CIM, 2010). With this understanding, it can be seen that no marketing activity exist in Marston Garden Centers. Alice who is supposedly in charge of marketing is not performing marketing functions, rather only a part of marketing – creation of awareness through adverts. Even at that, there are no modern methods of advertising; bill boards and special sales information are the only form of adverts to the exclusion of the internet. Meanwhile research has shown that 70% of Americans rely on the internet for information (people-press.org, 2008). Having said that, it follows that any business that wishes to succeed and grow must employ and use the internet. Again, market issues can also be noticed in the distribution and source of stock. There is neither provision for stocks to be transported and delivered to buyers; nor expert advice on plant placing, nurturing, watering and manure. Also while the interest of Alice is on environmental issues are commendable, but environmental issues are basically social responsibility, and if a company can’t be responsible to its staff, it can not afford responsibility to the greater environment. Having customers aged 55 and over is not a good thing. This simply means that when this group retires off, no younger generation is available to replace them (Manhaimer, 2010). Alice should develop a good relationship with youths by developing marketing promotions and adverts specially targeted at this market niche. Apart from replacing the aging population, youths also influence the buying decisions of their families. Also the low stock turnover indicates poor management and marketing functions (Chukwudire, 2010). Greater attention should be paid to improve the situation. Human Resources Issues and recommended solution The human resources issues are highly interconnected with one leading to the other, a chain effect. First workers are not properly selected; the interview process is completely ignored, posing several problems for the organization (Chua, 2010). Employees are hired without being sure they can do the job, want to do it, and can actually fit in. These lapses create motivational problems which would have been avoided if proper interviews were properly carried out. The leadership style is identified as Patriarchal, which comes with domination, authoritarianism, and absolute power (Kanyaro, 2006). In this kind of relationship, the final answer is vested in one person who is considered beyond question, individual initiative, participation are frowned upon, initiatives are killed before they can be manifested (Nwachukwu, 1988). This has adverse effects and works to increase labor turnover, high employee turnover, which is costly in terms of training cost, and time required to gain proficiency on the job. As a solution, the leadership style has to be changed, employee both senior and junior staff should be regarded as people with needs; job enrichment and enlargement strategies should be incorporated in job design to ensure employees are properly motivated. Training programs should be initiated to adequately prepare employee to perform their jobs. The selection process to be thrown open to all qualified, both internal staff and those from outside the organization. Operational Issues and recommended solution The operational issues facing the Marston Garden Centers include Ross who really wants to manage a Centre, and his dad who only wants him to be in charge of finance, lack of effective stock control, with the resultant effects of funds that should be earning interest or profit being tied down in stocks. This outcome was necessitated by lack of IT infrastructure that would guarantee efficient and effective stock control. Lack of customer service staff, better trained to handle client issues. Misuse of managerial time as Steve spends time answering day to day matters instead of delegating to others (subordinates) and creating time to deal with more pressing issues. All the enumerated problems have without doubt hampered the operational efficiency of Martson Garden Centre. First, Ross is a square peg in a round hole (Scott, 2005). When he wishes to manage a Centre but was given finance department, job satisfaction does not exist; thereby his efficiency is highly hampered. Stock control should be introduced. The rate of 3 times is not good at all; 10 times would be normal and good. Customer service should be paramount, for customers mean money and success. Delegation of authority should be introduced so that routine job are handled by subordinates instead of Mr. Garson being everywhere at the same time. All these recommendations will enhance operational efficiency. Financial Issues and Recommended Solutions Ratios are used to analyze the liquidity and profitability of an enterprise. According to Chukwudire (2010) ratio analysis is an instrument for analyzing accounting information of company in order to be able to make prediction for the future. The current ratio of 2 means that the company has current assets worth $2 to cover every $1 in current liabilities. This is real good as it shows the company to be in very good financial position to meet current liabilities as the fall due. The Acid test ratio of 0.24 is not good. It means without selling its stocks, the creditors can’t get paid, therefore, valuable cash discounts are lost. Also, creditors might shy away from offering short term trade credit. The Net profit margin shows that the ability of the firm to withstand adverse economic conditions. The 2% shows that the company can not absorb shocks in its external environment. It has to endeavor to increase profits and reduce operating expenses. The gearing ratio of 18% means 18% of the funds are contributed by way of borrowed funds. Gearing ratio are industry specific (bizcovering.com, 2010). Industry standards determine the perfect ratio. Although it is expected that Martson Gardening Centre is not capital intensive industry, so a lower gearing ratio would be much better. Conclusion Finally certain issues should be addressed. Top on the list is succession. Ross and Alice, should be given greater responsibilities, and if possible made a partner in the business, so that their commitment is more complete. The ideas adopted by Mr. Steve are anachronistic in today’s environment. Every business should have a web presence, even mum and pop stores; the leadership styles of Mr. Martson is not helping the business, the adopting of a participative leadership style will go a long way in achieving great results. The employee turnover can be attributed to lack of training and motivation and complete absence of interview and screening program. If all the problems mentioned in the write up are carefully followed, the fortunes of the company will certainly be turned around. The idea of selling to the bigger company does not arise, since the company is not in any risk of being foreclosed, or declared bankrupt by any of its creditors, besides, it is not in the market for additional funds for investments. Works Cited bizcovering.com (2010) Gearing Ratio. Available at http://bizcovering.com/accounting/gearing-ratio/ Chua, S. (2010)The Importance Of Interviews. Available at http://ezinearticles.com/?The-Importance-Of-Interviews&id=1007205 Chukwudire, U (2010) Essentials of Business Finance. Nigeria: Ugovin Books. CIM (2010). Definition of Marketing. Available at http://www.cim.co.uk/resources/understandingmarket/definitionmkting.aspx Kanyoro, M. (2006) Challenges To Women’s Leadership Speech in honour of YWCA of Salt Lake 100 years celebration July, 13. Manhaimer, E. (2010). The Importance of the Young Consumer Market. Available at http://www.9to6.com/2010/08/the-importance-of-the-young-consumer-market/ Nwachukwu, C. C. (1988) Personnel Administration in Nigeria. Port Harcourt, Nigeria: University of Port Harcourt Press. People-press.org (2008) Internet Overtakes Newspapers As News Outlet. December 22. Available at Scott, G. G (2005). A Survival Guide for Working with Bad Bosses: Dealing with Bullies, Idiots, Back-stabbers, and Other Managers from Hell, p. 153. Read More