Operational management Essay

1. Viking Sewing Machines ltd, a large play a foresighted, was engaged in manufacturing and marketing household sewing railcars including electronic models and low priced mechanical models. deal of domestic sewing machines was declining on the whole over the instauration in image of the increasing popularity of ready do garments produced by companies using industrial sewing machines. At this stage thither was a convert in the ownership of Viking in 1997, when the chief operating officer resigned and a new CEO took charge. Under his leadership, Viking considered the weding mission statements for the partnershipa. To develop, produce, market and sell sewing machines and related products which enhance the joy of imaginative sewing b. To be consumer driven phoner ensuring growth, profitability and success by providing superior satisfaction to the consumers and our dealer partners by continuously adding value to the Viking stag c. To be recognized as the leading premier sewing machine caller-up in the world and d. To expand our business by creating inquire for more(prenominal) creative uses of sewing. Which one of the above mission statements should the beau monde lard and why?AnswerE actually business had to be managed and operated with a long term fortuneed goal. So, they need to forecast about the upcoming future of the company and that forecasting should be done in such a way so that it send away be more effective and efficient for the presidency 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 policy so that they can be sustainable in the market. Therefore, in order to be sustainable Viking Sewing Machine ltd should follow the second mission statement to be a consumer driven company ensuring growth, profitability and success by providing superior satisfaction to the consumers and our dealer splash and by continuously adding value to the Viking Brand.Because, consumers are the key as establishs for every company. When consumers exit be satisfied with the product they experience purchased, they themselves leave behind repeatedly corrupt the products and they will promote the product by themselves to their close persons. Thus the company would gain some valued guests which will help them to be fixed in the market. Again, when Viking willmaintain a good relation to their dealers (supply set up management is very important for every organization), they will be very glad for working with such a company. They will also be loyal with the company and will do for the betterment of the company always.2. For more than ten years till 1995, Laboni stores ltd was successfully running a a number of retail stores selling cosmetics and skin care products. From 1996, sales were stagnating and like a shot after a year had started declining. The oecumenic private instructor of the company made enquiries fr om stores in charge at various locations of stores. All of them reported that ladies, oddly the younger generation, were found to be highly discriminating about cream of products. Demand for certain branded items widely fluctuated due to movie artists preferences shown on the TV. Also at that place is a marketed tendency to equate quality with rice. The general managed decided to have milieual analysis carried out with a digest on changes in social and cultural factors among urban ladies On that base of operations he even thought of recommending to the board of directors a complete change in the product lines to be decided.Do you think the GM was slump in his approach regarding environmental examine? What former(a) factors in the environment needed analysis? If there was a clear change in tastes and preferences of buyers of certain products, is it essential for the company to bedevil over to a incompatible product line?AnswerEvery organization in the world needs to modify their business model in some context. When the use up for their products starts to decline due to the change in tastes and preferences of their customers and their competitive pressure detainment increasing, they should grab a new policy for their company just to be sustaining in the competitive market. Here, considering the above mentioned fact, I would say 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 crawl in the actual withdraw of their products and some early(a) factors which are hampering their market such as the quality of their competitors product, what new demand exist inthe market, what their customer wants, which innovation should they bring . As there was a clear change 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 scan ning of the environment.3. Avik industries ltd was a family owned conglomerate with modify 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 setback in 1999, when the net margins in switchgears, the most profitable product, declined from 12 to 11%, piece of music in consumer durables it had halved to 6%, the batteries business was under pressure, and the ailing soaps surgical incision had just started looking up. The chief executive of the switchgear unit observed that the results would have been worse but for the focus on operational efficiency.For years, Avik had been organized along four divisions as independent profit centres. Except for HR and finance, all 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 reckon even uncaring ad agencies. The sales force was pushed to look at short term product promotions in the face of competitive pressure. The speak to of sales was rising much faster than rate of growth in sales. It seemed divisional autonomy had been pushed too far down the line.Should the divisional set up be disbanded? Or, should the divisions be converted into SBUs and spun off into separate companies? Is there any other alternative structure possible?Answer decentalisation makes all individual more creative as their finishs get more valued from the top level of the organization. So they get more promote to take all the decisions of the company very carefully as they know that they will be treated well for a better decision in future. Nowconsidering the mentioned fact, my suggestion would be neither the divisional set up should be disbanded nor a single division should be converted in to separate companies.Rather,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 separated departments. Henceforth, the decentralization will allow all other departments to make their own decision and the SBUs will put all the teaching 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.