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The Functions of Modern Management
The world of business is constantly changing but the truth is the consumer needs are being subject to the whims of technology or the latest products. Beauty of the sexes has always gravitated towards vanity and sometimes a bit of narcissism. These desires have allowed the beauty industry to grow and to flourish in some of the vast world of economics. Today, some of the top global beauty brands hold over 26% of the market share in the US however; with the constant shifting of the consumer desires that the market change direction from 2013 to 2014 some companies lost their market share. Amour is an established family- owned company with approximately 1400 personnel which will increase to 5000-7000 personnel over the period of two years before the company goes public and enter the market with a strong strategic, operational and tactical plan to be competitive by offering the consumers the complete health and beauty package for the family.
The company needs to stream –line products and correct deficiencies to compete for the market share. In order for us to compete with brands that are household names in the US, we are going to have compared ours to theirs and to improve to become the better product quality and better value based on the price. Our key is to acquiring the market share; we have to be consistent and intentional in pursuing this particular market.
Amour‘s operational plan must be able to deliver the market share to survive in this climate of business. If we are not able to achieve the market share, we will meet the fate of the Colomer Group that loss a major part of their share in the market in 2013. The direction of our company is to design lines that can compete with the brands, who sit on the counters of major discount retailers, and to open doors to elite brands which sit on the counters of major retailers. The structure of the organization below gives each department access to the plans, questions and suggestions to make our company to succeed.
Amour Leadership Chart
CEO: Chief Executive Officer: the position is the top ranking executive to oversee the company direction to make sure the organization is there mission statement and vision for the future profitability.
COO: Chief Operations Officer: the second in command position requires the individual to oversee the company daily operations and being updated by each department to insure that the plans of company are moving forward.
Finance: position requires the individual to maintain financial stability of the company by insuring all assets, cash and liability is done with accuracy.
Human Resource Business Partner: the position is to move the company in a strategic and tactical planning to meet the future obstacles and trends within the marketplace.
Human Resource: the position to do the daily administrative duties, employee training, compensation and benefits, new hires, policy and procedures.
Research and Development- The head of research and development is exploring new alternatives or new improvements of products and services to offer to our consumer.
District General Manager 1(West) - The manager is charge of the West coast of the US to have companies placing orders through his office.
District General Manager 2(Midwest) - The manager is charge of the Midwest of US to have companies placing orders through his office.
District General Manager 3(East) - The manager is charge of East coast of the US to have companies placing orders through his office.
Marketing: The position requires the individual to determine the best method to introduce a product or a service to the consumer.
Advertising: the position is to determine the type of media of introducing the product or the service to the consumer.
Department Managers: the position oversees the different phases of the products or services while in the production.
Manufacturing/ Production: the position requires the employees to operate machinery to make the product or service.
Distribution: The position requires t the products or services are shipped to designated area and the proper number of items is given to the correct invoice.
Organization’s mission, vision and values
Amour is a young, experienced organization with a deep perspective of presenting the world with the love of self by taking care of their bodies and by producing products and services that aide in the caring for self. According M.S. (2013), the core of an organization has inner and outer core to foster success and sustainability in the corporate world. The mission and vision statement of the company is the spirit, philosophy and drive of the organization.
The mission statement defines the purpose and the direction of the company.
Mission statement: To educate every man, woman and child promote the beauty within by offering the latest healthy skin, face and hair care products offered in the market. To promote healthy ideals of caring for the largest organ of the human body the skin and the entire person.
The vision statement articulates the short and long term goals of the company.
Vision statement: To make products and services that are eco-friendly and by using derivatives from minerals and plant based by-products to become the number one natural supplier of health and beauty products to major discount retailers and major retailers.
The values reflect the inner core of the organization because it flows from the mission and vision statement. The values communicate to the public the decision, behavior and action of the company.
Values: Our values are to do no harm to anyone and to insure that all safety regulations are followed under FDA, EPA and to continue to serve our consumers the best products.
Basic Planning Process and the Three Levels of Management
The overall outlook of the company is looking good and in its ability to begin to expand in other regions of the US would need to be explored. The popularity of the products is coming from the age group 18-49 and the expansion of the line would be to target all ages and all demographics.
The diagram of three levels of management would be necessary to broaden the scope of the organization by the use of the first tier of management which is the two top ranking positions in the company; Chief Executive Officer and Chief Operation Officer to plan the entrance into a new market and continue the course of profitability to support the expansion of the company into new regions.
The second tier of management duties is to keep information flowing to their managers, attend meeting, budget and submit reports to top level managers. They are to hire, juggle limited resources, and anticipate the market changes/ever changing technology.
Third tier of management duties are usually front-line supervisors who are buffer between employees and management. The supervisor, team leader or team facilitator is those who translate the goals and the objectives of management to insure that everything is done according company policy. Such performance outcomes include a highly engaged workforce, more productivity, optimal growth levels, customer and shareholder loyalty, community support, enhanced employee quality of work life, and lower employee withdrawal behaviors (Mayfield, Mayfield & Sharbrough, 2015, p.102)
Quality, Productivity, and Profitability
Amour is a company that seeks grade A raw material to make our health and beauty products from the finest quality to create our lines of products and services for our valued customer. Our company has reduced mistakes, continual improvement of quality, mean lower and lower costs. The goal of Amour is to do less reworking in producing the product and to reduce the waste of the raw materials.
Amours, “business strategy is to increase profit on a specific product or service, projects should focus on reducing quality costs by reducing or eliminating errors and eliminating non-value-added activities or waste” (Smith, 2010, p.14). Quality is the focus of the company to insure that it meets the customers’ satisfaction. The ability to eliminate waste means the company’s bottom line is not affected. The overall production of the product has been decreased based on the cycle of time because of quality and less errors. Employees have shown they have the commitment and productivity to produce the finest quality of our leading brands by exceeding production time’s tables.
Human Resource Planning Activities and the Overall Organizational Strategy
Amour is capable of expanding and could do it within the two year window before going public however; the focus is to establish the company is financially sound and has the capability to maneuver through the changes of the business world. The relationship between HR and Amour is to insure there is enough human capital to move forward in the plans to expand the company however, the overall strategy is to have the combined sources of financial and human capital to grasp the market share.
According to Melbourne & Andrews (1996), a firm’s capability is their human resource strategy that can or should change in order to continue to the match the business strategy of the company. Human Resource needs to recruit and to select individuals who have the capability to fit the culture of the organization. Employee development through goal setting techniques has been introduced by several prominent companies and to target candidates that are highly motivated instead of looking for a specific skill or training. The outcome of the selection process has been favorable to have individuals who are able to be challenged to perform at optimal levels.
Philosophy of Management and Structure of the Organization
A key factor is creating a harmonious or motivating work environment is the leadership or the management’s ability to lead, attitude and behavior. Manager’s ability to inspire subordinates to do their best is the reflection of his/her work ethic or beliefs and direct ability to do his/her job. The behavior of an effective leader is to have energy and direction because the energy is part of the function of motivation which inspires the followers and direction allows them to know where they are going and ( goal oriented) point they are trying to reach satisfaction.
Constraint Management(CM)philosophy proposed that the ultimate goal of a for-profit organization is to make money (and not save money or reduce cost) without violating certain necessary conditions, such as bringing competitive goods and services to the market and providing a satisfying work environment to employees. CM employs global operational measures (throughput, inventory, and operating expenses), based on throughput accounting. It also highlights a process of ongoing improvement, emphasizing constraint identification and management as the key to focusing limited resources on the weakest link to optimize the company as a whole(Adams, Gupta &Raho,2007,p.35-36).
Steps of Control and Types of Controls
According to Plunkett (2013), the function of management is to set the performance standards, communicate the objectives to the workforce, identify the superior processes, and acquire the necessary devices to complete the finish products. The risk manager checks the dimensions of the product to insure the accuracy of the batch that will affect the organization’s bottom line.
The control process is being able to measure performance based on standards that are quantitative or qualitative designs that are able to measure people, money, products and processes by internal guidelines of the company, being able to measure performance based on recent readings by comparing measured performance to established standards, and being able to make corrections in the process of producing the product.
If controls are not monitored, the production of the product may not still within the time table and the loss may be severe. Amour has invested in the latest equipment to insure there are not faulty mechanical problems during the process however; the only thing is if the operator doesn’t monitor the mixture then that will be the problem.
Quality control will check the mixture before sending the batch to be packaged and labeled to be sent out to distribution. Once the mixture is tested to meet standards then the compound is ready to move to the next phase of the processing.
The three types of controls: feed forward, concurrent controls, and feedback controls. The control of feed forward is controls to insure the there are no defects and products are not deviating from the standard for example; the ratio of the compound per 10000 to complete the formula. Concurrent controls operate with the system to make corrections. Feedback allows the system to send information to the operator to check if controls are doing what they are supposed to do.
Amour has an effective control system because the new equipment has signals to let the operator know the compound is mixed correctly and it has notification to stop mixing if the mixture is not to specifications. The automatic signal allows the operator/ the management to make corrections before the loss of the compound which is equivalent to the money loss for the incorrect formula.
Controls within the organization allows the management to monitor each batch of compound by having readings based on the original batch given to by R&D. Monitoring the preparation of the compound is the key by the operator but with the extra signals of the machines and the stop mechanism once it is not mixing properly.
Amour is using feed forward and concurrent information to insure the process is working according to the standard because feedback controls are slow getting information to management which could be a very expensive loss. Managers and operator need to be monitoring the correct amount of compound to produce the product. Amour has an integration of more than three methodologies of Six Sigma; Lean & Toc has proven to be more effective in producing the product with fewer defects.
Amour is committed to keeping cost down by insuring and eliminating unnecessary processes by being consistent in meeting our deadlines. The financial and marketing are the subsystems of Amour and it is the means of securing the market share by staying within projected budget. The overall condition of the company’s financial state is very good with fewer liabilities and more assets will allow us the means to capture the share of the market.
In conclusion, the operational plan at Amour will allow us the different options to secure the market share in the US and the international market by utilizing the systems that are in place to cut back on waste and improper conditions in the workplace. Management and employees are dedicated in opening the doors for our business to expand. The increase sales in our brand have provided us the opportunity to move in an aggressive manner to gain the proposed shares.
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