Management Strategy

Q1: Evaluate Compass’s strategy and performance with particular reference to the period 2001-2005 (40 marks)

The management strategies based on how the people or the leaders see according to the competition and the need of the entire organization in order to catch up with the recent changes. In the food service, the solution can be easily discovered if the leaders are open in the various interventions and focusing on the area that is not yet over populated by the competitors. The most common target of the entrepreneurs is to keep their existing customers and continue recruiting for the potential customers. In order to make that happen, the strategies that the organization used to strengthen is the customer satisfaction. Because through the customers, the organization can gain profit and measure their effectiveness it is only natural for the leaders to create an appeal to their customers and keep their trust by satisfying or exceeding the products and services according to the taste and preferences of the customers. Surpassing the customer expectation is one of the considered key performance indicator of the business in the market. As an element of a business strategy, the customer satisfaction can intensify the competitiveness in the market. In addition, the mission of the organization in bringing the satisfaction should be according to the approach of the organization by prioritizing the customers. In this way, there is a great concentration on the various demands coming from their existing and potential customers (Gitman and McDaniel, 2005).

Q2: Discuss the alleged bribery case against Compass in the context of business ethics and structure (e.g. global configuration and co-ordination) (30 marks)

Bribery according to the law is a form of corruption that can be direct or indirect according to the provisions of compensation in favor of the employee of an organization. In return, the government employee acts in a manner advantageous to the company or refrains from acting to the company’s disadvantage. Enterprises use bribery to obtain or retain business, receive patronage, or obtain an unwarranted advantage over other businesses. In business ethics, part of the responsibility of the entire organization and their commitment that is enclosed in the core values and principles. The business ethics is also a guideline that the business and their leaders can use in generating sound decisions. This is because the business ethics comprised the standards articulated in law and regulations, internal policy, and procedures. Being honest, working with integrity, respect, and fairness, and aligned according to the principles are the most perceived actions of the organization towards their employees and customers in terms of product quality, health, safety, and efficiency. There are many issues that included in the business ethics coming from the practical to the philosophical views of the organization until to the relationship of the organization with their customers and employees. The organization should keep the welfare of the community and committed to the environment and nourishing the societal values (USDEC, 2004). Enhancing integrity in business transactions and reducing bribery will help the entire organization overcome the part of development problem. Through the specific measures there is a promotion on transparency, accountability and ethics and to effectively deter bribery in business transactions are feasible ways to improve the attractiveness (Wehrlé, 2004).

Q3: Evaluate the opportunities and threats facing Compass both in the US and the UK and recommend and defend suitable strategies for these regions (students may assume that information given in Appendices 1 and 2 is currently valid). (30 marks)

The social threats for the change in healthy foods are not only the main concern of the society, but also the health issues exist in the society (Stewart, 2004). In the late twentieth century, the socio-cultural approach of most fast-food restaurants, like McDonalds, Burger King, Wendy’s, and many others are argued that they can only gave the risk in society such as alienation, waste, low nutritional value, other risks of health problems, and others (Robinson, 2007). The organization can also experience the same threat because of the aim of the society towards the healthy living. Because the society is always looking for a good firm that gives value to their money it is important for the organization to target the best aspirations and what are the needs of the customers. Threats are around the corner that might pose various reactions in the firms and thus, create a long time impression.

References:

Gitman, L; & McDaniel, C., (2005) The Future of Business: The Essentials. Mason, Ohio: South-Western

Robinson, W.I., (2007) Theory and the Rise of Globalization Studies: Theories of Globalization [Online] Available at: http://www.soc.ucsb.edu/faculty/robinson/Assets/pdf/theoriesofglobalization.pdf [Accessed 15 June 2010].

Stewart, G., (2004) Hamburger Wars: Burger King vs. McDonald’s [Online] Available at: http://www.utm.edu/staff/johnston/mktg710/HamburgerWars.ppt [Accessed 15 June 2010].

USDEC (2004) Business Ethics, US Department of Commerce, International Trade Administration [Online] Available at: http://www.trade.gov/goodgovernance/adobe/bem_introduction/glossary.pdf [Accessed 15 June 2010].

Wehrlé, F., (2004) Business Ethics and Anti-Bribery Policies in Selected Middle East and North African Countries [Online] Available at: http://www.oecd.org/dataoecd/56/63/36086689.pdf [Accessed 15 June 2010]

Significant Managing Change in ASDA in Last 5 Years

Introduction

There are many organizations that do not stay for a certain formula of leadership and facilitating the business. The business focus is not only based on one side and cannot make the business be more effective in the market. Such parts of the efforts were set and tapped the entire organization to move for changes and development. If the organization is determined to set new standards in their business affairs, then the propellers have to make sure that all are aligned in the organizational goal.

Organizational Change

The main purpose of organizational change is to propose the concept of campaign the organizational objectives. Most of the executives set the standards in terms of making business and aiming the competitive advantage. But in reality, the executives end their responsibilities in implementing and not in monitoring.

The Development of ASDA

ASDA is the large British grocery which is now owned by Wal-Mart. Back in the years where the firm is in the peril of loss because they have accumulated a number of loans and summed million in debt. The presence of interest is another factor in the ultimate loss where it grew higher. Meanwhile, the company’s share price fell steeply. As part of the solution, the organizational change is welcomed. Therefore, the transformation of work had been a daily responsibility for the company which enables the idea being subject to collaboration in transforming the entire stores. Part of the organizational transformation is focusing on restructuring the company finances.

Factors behind the Organizational Changes of ASDA

One of the most important drivers in promoting the changes is the aim to introduce the new form of service in the idea of delivering the quality service in available budgets. There are cost-cutting of resources and increasing the revenues but still, not helping to provide the sufficient sources for financing and supporting the kind of business. This reason made the authorities to push into an increasing the efficiency on their service. One suggested form in achieving the efficiency is to utilize the advantages by developing the alternative service delivery arrangements. In the event of economic crisis, when the public deficits were high and quickly increasing one of the feasible solutions was the restructuring of public services. The transformation of the organization and the transfer of services to the market is the indication of privatization in which ASDA is a best example.

The idea of market environment was extended that helped the concept of campaign in organizational change. As soon as the ownership right was changed, the immediate need for establishing other market mechanisms and regulations were anticipated. Another factor of ASDA’s push for change is the inefficient operation public service delivery. However, there are changes in the political culture which helped the people to understand and therefore, develop an innovative way in delivering service. As ASDA are continuously developing, the organization becomes widely known in the internal rules and a procedure that is depends on the economic trends or behavior in a country.

Model

The market-based service delivery was clarified in their separation of service provision and production, and through development of intermediate groups of goods and services. This enables the requirements on separating the provider and producer roles in developing, as well as promoting, the transparency of the strong relationship of the firms in the market and to gain the advanced market mechanisms.

Effectiveness and Success

It is believed that an executive should be more associative with the different kind of campaigns to be more effective in changes they made in the chosen course of the organization. The efforts in listening or being open in changes make it more effective and can earn success. Moreover, a successful process of change taps the attention and passion in developing the other areas of needs. With the help of the people who has the ability in facilitating the changes, there is a more advantage in gaining the effective organization. The simplest form of giving attention or focus in the area of responsibility makes the future of an entrepreneurship ne more success.

Conclusion

The idea of ASDA in changing enables the organization to adopt in the series of economic trends and technology innovation. ASDA aims to perform well in the market and the organization believed in the aspect of gaining the competitive advantage and customer loyalty through their service delivery system. The efforts they contributed to make the success be part of their milestone is worth if the executive world will lift the spirits of the workforce. There is at least a close resemblance of the employer-employee relationship in terms of success in a business venture.

Works Consulted:

Hirschhorn, L., 2001. To Create Energy and Momentum for Organizational Change – Launch a Campaign. Harvard Business Review. [Online] Available at: http://www.commonknowledge.org/userimages/article_create_energy_and_momentum.pdf. [Accessed 04 Jan 2010].

Peteri, G., 2005. Alternative Service Delivery. Nemec, J., & Wright, G., 1997. Theory and Practice in Central European Transition. Public Finance. [Online] Available at: http://www.lgidev.com/tl_files/lgid/ASDA.pdf. [Accessed 04 Jan 2010].

Determining Your Perfect Position

Organizational behavior – An Open Perspective

The organizational behavior is concerned with all aspects of how organizations influence the behavior of individuals and how individuals in turn influence organizations with a unique mission of applying the concepts of behavioral sciences to the pressing problems of management, and, more generally, to administrative theory and practice (Iyer, 2003). The aim is to maximize the capabilities and efficiency of every person, including the system, which works under the umbrella of an organization. As the broad approach in the problems about the organizational behavior, there is always be the uncertainty and uncontrollable internal and external environment that affects the performance of the organization. The problems presented should e taken for analytical reasons in answering various issues.

Leadership in Organization

There is no accepted definition of leadership but it is considered as a complex phenomenon that touches on many other important organizational, social, and personal processed. The leadership process depends on the influence, whereby people are inspired to work to achieve the corporate goal, not through the coercion but in motivation. Much more, leadership appears to be like an inherited power where everybody is following without any questions.

An ideal leader has the following traits such as having the strong drive for responsibility; focus on completing the allotted task, and with vigor and persistence in pursuit of goals. Other than that, an effective leader can solve the problems in unique ways but with appropriate judgment and basis and he is willing to accept the consequences all his decisions and actions. A leader should also the ability to influence the behavior of others and the capacity to establish a strong system (Bolden, 2004).

Situational Leadership = Participative

Most studies concluded that there is no right leadership style that will fit for every manager under all circumstances. Therefore, there is a development of situational theories to indicate that the style to be used is dependent upon the situation, the people, the task, the organization, and the other environmental variables. Accordingly, the managers who are relationship oriented do better in all other situations and exhibit more participative style of leadership (Bolden, 2004).

Leaders under the participative style need to become increasingly adaptable in the issues of uncertainty and managing complexity. The qualities of openness, empathy, integrity and self-awareness became a priority and more participative leadership style whereby the leader not only involves colleagues, but listens, is responsive to feedback and delegates responsibility (Bolden, 2004). Encourages the staff to be a part of the decision making and keeps the staff informed about everything that affects their work and shares in decision making as well as problem solving responsibilities.

Strengths and Weakness

The participative style of leadership is focused in the highly competent employees or workers. If the organizational meet the undesirable employees or the people who do not care in participating, there is a great chance that the leadership style is not that effective in implementing operational changes or resolving the individual or group problems.

The leadership style is effective in the following situations as the leader wants to keep staff informed about matters that affect them. They provide opportunities for staff to develop a high sense of personal growth and job satisfaction. In addition, the organization can easily adapt to the changes through the encouragement, team building and participation

Comparison of Theories of Leadership

Different leaders are holding different assumptions and demonstrate different approaches to leadership. In the past studies, the Theory X leaders preferring an autocratic style and Theory Y leaders prefer a participative style (Bolden, 2004).

In autocratic leadership, usually the basis of this model is power with a managerial orientation of authority. The employees in turn are oriented towards obedience and dependence on the boss. Although the employee need that is met in subsistence still the performance result is minimal. This leadership style can deal with different kinds of problems and challenges that he can clearly identify the goals that will lead the business to its success. In addition, a leader also allows the employees to figure the best way to achieve the said goals. Here, the leader informs the employees that what they should do and how should they accomplish the task.

But in foreign countries, organizations place high value on the importance of participative decision-making and prefer to have independence and autonomy in their job. Most people prefer the relationship-oriented leadership style because there is a room for communication and the employees can manage their own career growth (Yu and Miller, 2005). Therefore, there is a high concern for the idea of team management that refers to the participation of the employees and production – which is the most effective type of leadership behavior (Bolden, 2004).

Conclusion

The study of organization and the behavior of the human being can readily open another kind of system perspective. There are factors to be considered in analyzing the organizational behavior such as the human sentiments and attitudes. Certain outcomes can be experience like for example in the side of a manager. He/she can use the knowledge gain in organizational behavior by conceptualizing every framework, able to understand the individual skills, and seeking experience needed to facilitate effective performance in the workplace.

References:

Bolden, R., (2004). “What is Leadership?” Research Report Center for Leadership Studies. Accessed 14 Jan 2010, from http://www.scribd.com/doc/15263673/What-is-leadership.

Iyer, M., (2003). “Organizational Behavior – Defining the Field”: A Book Review on Organizational Behavior of W. Jack Duncan. HR Folks International. Accessed 14 Jan 2010, from http://www.hrfolks.com/articles/orgn%20mgmt/organizational%20behavior.pdf

Yu, H., & Miller, P., (2005). “Leadership Style, the X Generation and Baby Boomers Compared in Different Cultural Contexts.” Leadership & Organization Development Journal, Vol. 26, No. 1.

Risk Asset Management

Literature Review

The asset market liquidity risk became a perplexed subject and term in the market of liquidity and risk. The measurement of the risks underlies in different definition in the academic literature as well as in professional contexts. There are vast of case studies that attempts to find answer in the risk assessment and risk management. Usually, management are focused more on the basic material industries and optimizing the yield on managing the cycle of the business. To do such intervention, there is a need in a development in the management of the team that possesses the new skills, such as managing the risks which share the expectations in the growth, return, and continuous cashflow.

The challenge that the management is currently facing can be only overcome if there is a present inter-functional teams that are mainly trained in handling the business problems. In a holistic view, an approach to the capital management requires the values in the optimization, risk management, and growth (Carvalho, et al., 1996).

Most of the studies are focused on the theoretical aspects of asset liquidity and approaches in the market liquidity risk for individual trading and securities. Therefore, it was emphasized to have thoughts on the asset market/liquidity risk management. The review on the literature generalized the theoretical modeling underpinning and handles the same perspective in market and liquidity risks and how the two integrate in the domain of the business. The components of the risk management are correlated in most cases and having the components. First component is the attribute to impact in the adverse in price movement. Meanwhile, the second characteristic is focused on the risk of variation in terms of transaction costs that may arise from the bidding, merging, and acquisitions.

There are two suggested models that should be applied in the asset market/ liquidity risks. First is the re-engineered and robust liquidity model that can produce realistic asset market liquidity losses during the unwinding period of the business. The main concept of the model is to adjust the liquidity and valuing the risks particularly in trading positions. The second model is related to the transactions cost of liquidation due to bid-ask and includes the improved technique that tackles the issue of bid-ask spread volatility. Both models comprise the new approach in the impact of the time-varying volatility and the contribution on the overall asset market/liquidity risk.

There are various techniques being applied and adapted by the management in the asset market/ liquidity risks and the effectiveness of the techniques depend on the amount of implementation, timing, and the weight of the risk. Most important part of the technique is handling, assessing and managing the kind of risk present in the organization. As a result, there is an increase tradability of assets in emerging markets and re-examination of the current market and liquidity risk management techniques. It can also help the balance of the position and focus of the business (Janabi, 2009).

There is also a need for commitment in managing the risk and preparing for the impact of it. It is hard for the individuals outside the organization to measure the applied management and assessing the market growth. There is more to see in the acquisitions of trust and asset management field as well as its credibility. Previous studies reveal the analysis to cover the life insurance of the companies; big brokers or dealers who sell annuities for years are paid for the most of asset management products. And insurance products are expensive but the security is still hard to measure (Streeter, 2008).

The great advantage of an organization that has the right person on risk management is to gather the ability to speed up the risk management process. The ability to process faster allows the more in-depth analysis and strategic planning and at the same time avoiding the drastic actions. Identifying all the probably risk enables the company to process and accommodate the risks than the traditional way. Therefore, there is a major difference and be very beneficial to the situation facing the organization in a more detailed way (ARM, 2007). In addition, the organization can save the number of workforce and the costs that might set on the record. Managing the risk with a few people is certainly advantageous and the organization can act in the small group because it is easier to handle. Only, they have to gather the right people to accommodate their needs.

References:

ARM, 2007. Strategic Though Group Risk Management Case Study. Active Risk Management. [Online] Available at: http://www.strategicthought.com/Assets/Downloadablefile/Essent-ARM-Case-Study-EU-21Jun07-15332.pdf. [Accessed 22 Jan 2010].

Carvalho, E., Gurlit, W., Mareels, S., Stein, E., & Rudmann, S., 1996. Current Research: Asset Management in Basic Materials. The McKinsey Quarterly, No. 2

Janabi, M., 2009. Asset Market Liquidity Risk Management: A Generalized Theoretical Modeling Approach for Trading and Fund Management Portfolios. [Online] Available at: http://mpra.ub.uni-muenchen.de/19498/1/Liquidity_Risk_Management-QMF_2009.pdf. [Accessed 22 Jan 2010].

Streeter, B., 2008. Do Fee-Based Services Have an Edge? Two Analysts Give Views on What Created value in the World of Trust and Asset Management. ABA Banking Journal, Vol. 100, No. 6.