'Operational management Essay\r'

'1. Viking stitch Machines ltd, a heroic telephoner, was engaged in manufacturing and marketing nursing home fix machines including electronic models and low priced robotlike models. Sale of domestic stitchery machines was declining each(prenominal) over the solid ground in batch of the increasing popularity of readymade garments produced by companies using industrial sewing machines. At this stage there was a win over in the possession of Viking in 1997, when the CEO resigned and a juvenile CEO took way. Under his leadership, Viking considered the following agency statements for the troupe:\r\na. To develop, produce, market and sell sewing machines and related harvest-times which enhance the joy of imaginative sewing; b. To be consumer driven confederation ensuring growth, profitability and achievement by providing well-made satisfaction to the consumers and our monger partners by unceasingly adding abide by to the Viking brand; c. To be recognize as the lead ing premier sewing machine every last(predicate)iance in the world; and d. To expand our barter by creating train for to a greater extent notional uses of sewing. Which one of the preceding(prenominal) mission statements should the comp all squeeze and wherefore?\r\nAnswer\r\nEvery produceion line had to be managed and operated with a long term seted goal. So, they compulsion to forecast about the upcoming rising of the company and that forecasting should be do in such a bearing so that it can be more effective and efficient for the cheek in the long run. Here, the competitors had already beat the Viking Sewing Machine ltd. So to stay in the competitive market, Viking Sewing Machine ltd should adopt such a constitution so that they can be sustainable in the market. Therefore, in order to be sustainable Viking Sewing Machine ltd should follow the snatch mission statement â€Å"to be a consumer driven company ensuring growth, profitability and success by providing su perior satisfaction to the consumers and our dealer patter and by continuously adding value to the Viking Brand.”\r\nBecause, consumers are the key assets for any company. When consumers leave be satisfied with the product they consider purchased, they themselves go out repeatedly buy the products and they entrust promote the product by themselves to their backing mum persons. Thus the company would gain nigh cherished customers which leave alone help them to be stable in the market. Again, when Viking will contain a good relation to their dealers (supply fibril management is very important for every organization), they will be very successful for working with such a company. They will also be loyal with the company and will do for the progress of the company always.\r\n2. For more than ten years boulder clay 1995, Laboni stores ltd was successfully running a a keep d throw of retail stores selling cosmetics and clamber care products. From 1996, sales were stagn ating and now aft(prenominal) a year had started declining. The general four-in-hand of the company made enquiries from stores in charge at various locations of stores. All of them report that ladies, particularly the younger generation, were found to be highly discriminating about prime(prenominal) of products. Demand for certain branded items widely fluctuated due to movie artists’ preferences shown on the TV. as well as there is a marketed tendency to compare quality with rice. The general managed decided to arrest environmental analysis carried out with a focus on changes in kindly and cultural factors among urban ladies On that innovation he even thought of recommending to the bill of fare of directors a complete change in the product lines to be decided.\r\nDo you conceive of the GM was right in his grasp along regarding environmental scanning? What oppositewise factors in the environment needed analysis? If there was a the whole way change in tastes and preferences of buyers of certain products, is it essential for the company to conquer over to a opposite product line?\r\nAnswer\r\nEvery organization in the world needs to modify their business model in close to context. When the demand for their products starts to decline due to the change in tastes and preferences of their customers and their competitive pressure keep increasing, they should grab a new policy for their company that to be sustaining in the competitive market. Here, considering the above mentioned fact, I would assign that yes, the general manager was right in his approach regarding environmental scanning of the product. Because by scanning the environment, the company would able to admit the actual demand of their products and some other factors which are hampering their market such as the quality of their competitors product, what new demand pull through in the market, what their customer wants, which innovation should they read . As there was a clear c hange in the tastes and preferences of their customers of certain products, the company should switch over to a different product line based on the results they have found from the scanning of the environment.\r\n3. Avik industries ltd was a family owned conglomerate with diversified business activities including consumers’ durables, switchgears, batteries and both toilate and washing soapes. For a number of years the company prospered with growth in volumes and market share. But its performance had transposition in 1999, when the net margins in switchgears, the nearly profitable product, declined from 12 to 11%, opus in consumer durables it had halved to 6%, the batteries business was under pressure, and the ailing soaps variant had just started assisting up. The chief executive of the switchgear unit of measurement observed that the results would have been worse merely for the focus on operational efficiency.\r\nFor years, Avik had been bump off along four division s as self-directed profit centres. Except for HR and finance, either other functions were decentralized. The advantage was that each of the businesses had a strong focus. It also facilitated customer focus. The flipside was that divisions became insular and inward looking. Each division had its own ad budget even disconnected ad agencies. The sales force was pushed to look at short term product promotions in the face of competitive pressure. The equal of sales was rising much faster than rate of growth in sales. It seemed divisional autonomy had been pushed too far shoot down the line.\r\nShould the divisional set up be disbanded? Or, should the divisions be converted into SBUs and spun off into recrudesce companies? Is there any other pick structure possible?\r\nAnswer\r\n decentalisation makes all(prenominal)(a) individual more creative as their stopping points get more valued from the top take of the organization. So they get more encouraged to take all the purposes of the company very carefully as they know that they will be tough well for a better ending in future. Now considering the mentioned fact, my suggestion would be neither the divisional set up should be disbanded nor a single division should be converted in to founder companies.\r\nRather, Avik industries ltd should disbanded their decision of decentralizing their all other departments. I would say that the decentralization would be very better for the company. And altogether, the SBUs must be added into all their disconnected departments. Henceforth, the decentralization will allow all other departments to make their own decision and the SBUs will typeset all the information of the organization from all the separated departments together. Thus, the management board and all others can look for every decision of their organization that had taken in separated departments and would be able to make any correction if they needed in future. So, the decision would mostly come from the top level of the company which will bring the betterment for the company.\r\n'