Modern management Free Essays

If Dollar General wished to raise the prices of an item that was previously priced lower than their competitor, there are a number of steps they should take to maintain control of the process. Perdue has eased the control of prices by building in some slack in the pricing system to allow for raised prices. The first step is precontrol, in this case determination of the appropriate price – i. We will write a custom essay sample on Modern management or any similar topic only for you Order Now e. controlling price changes so that they can raise the price of the product without losing too many sales. This requires analysis of the price elasticity of the item in order to determine how much they can raise the price. The second step is concurrent control – communication of the new price to the stores, which may include provision of new price tags, communication through company channels such as email or generated reports, etc. and monitoring by managers to make sure the price changes are implemented. The third step, of feedback control, is monitoring the price change in order to make sure that the price change did not produce more than the accepted loss of sales as determined in step one.   These steps will allow the stores to implement a higher price on a previously lower-priced product. ‘The CEO should consider the relatively low sales at higher square footage stores to be a symptom of a problem, not a problem in and of itself. Dollar General’s store layouts and inventory assignments are tightly controlled and optimized for maximum efficiency and sales. However, most of their stores are smaller stores, averaging 7,000 square feet or less. This puts the larger stores at a disadvantage because they are carrying a mix of products that may not be optimal for the store size. This means that the lower sales per square foot is a symptom of a non-optimal inventory mix and layout superimposed on a larger store, not a problem in and of itself. While it should be solved, it can be solved indirectly by analyzing the inventory and layout needs of the larger stores rather than directly tackling the lower sales. A discount retailer such as Dollar General should use all three types of control (precontrol, concurrent control and feedback control) when attempting to control shrink. Precontrol can include such measures as establishing shrink management practices, such as careful cash control and cash handling training for employees, stock handling procedures, and security, in order to prevent common anticipated problems. Concurrent control, such as monitoring of security systems and active employee observation, can prevent shrink from shoplifting and excess employee waste. Finally, feedback control in the form of incentives such as bonuses or prizes for stores with low shrink percentages can help to reinforce the precontrol and concurrent control measures taken. Control measures are most effective when all potential routes of control loss are considered and actions are taken at the appropriate level to deal with them. It would not be appropriate or effective for a manager or other controller to attempt to poor cash handling after each incident   – it is more effective to develop policies that mandate teaching employees proper cash handling beforehand. 1. Information quality is the degree to which information represents reality. Information timeliness is the extent to which the receipt of information allows decisions to be made in a timely manner in order to allow the business to benefit from its use. Nike is using the information gained from its information systems to determine its required inventory levels, which are dependent on the projected demand for the product. This means that information quality is important because less than quality information could mean that Nike focuses its manufacturing and distribution efforts in less than optimal areas. The initial implementation of the information system generated more than $100 million in incorrect orders due to lack of information quality. Information timeliness is also important to Nike. Because the information system is tied to the manufacturing and distribution system, the timeliness of the information provided directly impacts the organization’s ability to produce and distribute the appropriate inventory. If the information is not provided in a timely manner, the manufacturing and sales may appear to be reactive rather than proactive, and Nike may miss the top of their demand curve because information was provided too slowly or because the system generated orders too early. 2. The security issues for Nike’s sales forecasting and factory order system include automated threats such as worms, viruses etc, and internal sabotage by disgruntled employees and external breach by either hackers or industrial spies. Automated threats are a threat at any time when a system is connected to the Internet; while it is less common now than in the past, viruses may also be transmitted via infected media such as CD-Rom or removable solid-state media. Internal sabotage by disgruntled employees can also be a problem; in order to mitigate this, permissions and access to the system should be handled on a minimum required basis (each employee should be given only the permissions required to perform his or her job, and permissions should be actively managed as employees move from task to task). Outside breaches by hackers or industrial spies is a concern for Nike because they are a high-profile company in a highly competitive business, making them a tempting target for hackers to try to gather lucrative information from their information systems. 3. Currently Nike targets individual groups of consumers with games and information online that is targeted to their special interests, and provides an IM-based game for soccer fans. There are a number of other uses for the World Wide Web that could help Nike communicate with its customers. They could use online surveying techniques and online feedback forums to enhance their market strategies and improve their products and address customer complaints. They could also utilize the Web as a central platform for their marketing strategy, including running specially designed Web sites for high-profile new products, creating customer contests, games and trivia and building a Nike community around their sites. Nike also has opportunities to create product tie-ins based on the Web. Their IM soccer game is a prototype of a way in which games or custom-branded software can keep the Nike brand in front of their customers all the time. Streaming media allows for music and movie tie-ins delivered via the Web. Nike could also use the Web for internal purposes. For example, an employee recruiting web site could increase the number and quality of their job applicants, as well as provide a prescreening facility for the HR organization. Skillful use of the Web also portrays the image of a technologically savvy and forward-looking company, which is vital to its market viability. How to cite Modern management, Essay examples Modern Management Free Essays Corporate Social Responsibility is the duty of the management of the company to ensure that the welfare of the society is brought about along with promoting the development and wellbeing of the company.   It is the duty of the manager to ensure that both the social interests and the organizational interests are maintained and developed (Cresto, 2006).   However, at the moment, the opinion regarding corporate involvement in social responsibilities is differing. We will write a custom essay sample on Modern Management or any similar topic only for you Order Now    The arguments for and against social responsibility activities by the corporate could be considered. Positive outcomes for the business by performing social responsibility activities:- The good name and the reputation of the company would be promoted as they would perform their duty of maintaining and developing the interests of the society.  As the interests of the society are improved, the social system would improve and this could also be beneficial for the corporate.  The management of the corporate would be more interested in maintaining the interests of the society along with the organization.   Hence, the Human resources that would be a part of the corporate would be of high quality. As the organization would mutually benefit with the society, the ability of the company to grow and survive in that particular society would be higher.   Hence, the corporate could move into identifying and organizing certain long-term plans.   On a long-term basis, the chances of developing sustained profits would be higher if social interests are maintained.  The unemployment rates in the society and the job satisfaction in the company would improve due to the economic growth felt by the corporate presence.  If the consumers are a part of the society, the chances of developing and maintaining relationships with them would be higher.] Negative outcomes for the business by performing social responsibility activities:-  According to Friedman, the chances of the management to indulge in unethical practices are higher so as to make profits that would ensure performance of social responsibilities.They could be a conflict within the management or outside the management for maintaining the goals of the organization or the goals of the society. The corporate would be spending the money of the consumers on maintaining and developing the interests of the society.   This could raise the prices of the goods or services produced by the company.   Consumers may prefer to purchase a product or services from a company that does not have a social benefit policy than a company that does, as the price is more likely to be less. The stakeholders of the corporate and the potential investors may not want to invest in that particular company, as they fear that they would be losing their money on social beneficial activities. The company would be using fewer resources on production (as the financial resources are spending on social interests).   The production would decrease and the chances of having higher amounts of profit would be lowered.   The company’s ability to develop a stronger long-term plan would be less likely. A Multinational corporation (MNC’s) is a company that has its presence felt in more than one nation across the World or does business at the global level.   The term MNC’s was utilized in the 1970’s in the US.   MNC’s usually do not consider national barriers that would restrict business.   Recently, the foreign investment in the US has improved drastically, and the chances of it improving further in the future are realistically high.   The process of a company becoming a multinational occurs in stages. In the first stage, the company merely exports products to foreign nations.   In the second stage, the company develops sales units in the foreign nations.   In the third stage, the company would permit foreign-based companies to make and sell their products and services under the main company’s name.   In the fourth stage, manufacturing units are set up by the company in the foreign nation.   In the fifth step, the management of the company is multi-nationalized in such a way that a corporate decision in the parent company would be affected in the foreign nations.   In the last stage, the ownership of the company is multi-nationalized. Two companies that are US-based MNC’s include General Electric and IBM.   General Electric had sales of $ 129, 853 million in the year 2001 (Listed by Forbes Global).   The portion of foreign sales was about 33 % and the net profits were about $ 12, 735 million.   It has $ 437, 006 million as assets and it market value is about 406, 525 million $.   The enterprise value of the company is about 613, 268 million $.   IBM has sales of about $ 88, 396 million in the year, and its foreign sales is about 58 % of the total sales.   Its net profit of about $ 8, 093 million, and its total assets is about 88, 349 million $.   It has a market value of about 167, 206 million dollars and the enterprise value is about 194, 097 million $ (Cresto, 2006). Two foreign investors MNC’s that have invested in the US include Daimler Chrysler AG (from Germany) which is an automobile company and ING Group (from Netherlands) which offers financial services.   Daimler Chrysler AG had a total revenue of 86, 071 million $ in the year 2001 in the US, and its total assets in the US was more than 82, 000 million $ in the US.   The ING Group had revenue of about 14, 997 million $ in the year 2001 in the US and its net income was about 442 million US $ (Cresto, 2006). References: Cresto, S. C. and Cresto, S. T. (2006). Chapter 3: Corporate Social Responsibility and Business Ethics, Modern Management, (10th ed), New Jersey: Upper Saddle River, pp. 50-76. Cresto, S. C. and Cresto, S. T. (2006). Chapter 2: Modern Management Challenges, Modern Management, (10th ed), New Jersey: Upper Saddle River, pp. 80-102. Cresto, S. C. and Cresto, S. T. (2006). Chapter 2: Modern Management Challenges, Modern Management, (10th ed), New Jersey: Upper Saddle River, pp. 106-111. How to cite Modern Management, Essay examples Modern management Free Essays 1. Organizational resources are the prime variables that ultimately translate into the cumulative compilation of production output. It can be stated that production is the final result that is instrumented by several processes that make up the basic procedure of the production unit. We will write a custom essay sample on Modern management or any similar topic only for you Order Now The term ‘organizational resource’ can be enumerated as a compilation of different aspects that include variables like personnel, motivation, cost of raw materials, supply chain management, knowledge management, material processing and market forecast analysis. All these together ensure the success of the ultimate quality and quantity of the production along with the favorable pricing per unit for the produced output. Thus it could be mentioned that the relation between the organizational resources and the production is inseparable and vital for the health of the industry. For an industry to obtain favorable conditions in the market it is necessary to formulate a strategy that would enable the organization to keep every aspect of the units involved in a well passed manner. The purchase of material would ensure that the value is obtained out of the purchase while the supply chain would ensure that there is no wastage of materials and the materials are presented to the processing unit in proper time. The same principals are true with the processing units too. The efficiency level of the personnel involved along with their motivation level ensures the best possible production out of the initial possesses involved. Thus it could be stated that organizational resources and production relation is vital and inseparable for any organization and the ultimate success of an organization is ensured by this relation. (Lamb, 2004) 2. The aspects of managerial effectiveness and efficiency are interrelated and are highly potent if applied in a well formulated manner. Any industry survives on the potential of the strategy that is taken and implemented by the management of that industry. As a result the prime factor that should be instigated in the organizational operational activities is the proper and smooth transaction of managerial effectiveness and efficiency into an enhanced and even relationship. The relationship between managerial effectiveness and efficiency is vital for an organization because for any industry effective personnel at suitable position are a primal factor for success. A person might be very efficient at formulation and modeling strategy. But the same person might not be an effective administrator. That is way it becomes important to position the best person possible at position where the efficiency could be yielded at maximum. Thus relation between managerial effectiveness and efficiency becomes an object of prime concern for any organization. It can be stated that by the term managerial effectiveness it is understood as the positional utility of a personnel whereas by the term efficiency it is reflected that the potential of the positional utility is utilized in full.   To compile and relate these two important variables it is important to evaluate the human resource structure at its maximum to yield the utmost possible result. The success and failure of an organization largely depends on such a formulation and practical implementation of the human resource department at its highest extent. The managerial effectiveness and efficiency is the keystone of success and the competitive advantage of an organization is dependent on such important organizational factors or variables. (King, 2001) References: King, H; (2001); Management Principals Today; HBT Brooks Ltd Lamb, Davis; (2004); Cult to Culture: The Development of Civilization on the Strategic Strata; National Book Trust. How to cite Modern management, Essay examples