A. The first 4 years of Company D was rough in some areas but improved throughout the years. The image rating was one major weakness in the company. Image rating stuck around 41 to 70 for the first 4 years of operating. With each year the rating increased little by little slowly to compensate or help the company. The image rating slowly climbing helped the company by showing the customers the organization is up for making improvements in order to gain their loyalty to by the products. Another weakness in the company was the reject shoes. Company D had over 2000 pairs of rejected shoes each year for the first 4 years of operation. This hurt the brand at first but helped the company learn to make improvements to machines to decrease rejects. Once improvements started on the machines the less rejects the company saw. If I were to do it all over again, I would have started making improvements after the first year of several rejects like I saw.
B. The last 4 years with Company D was eventful, there were several lessons to learn with corporate responsibility and S/Q ratings as well as how to raise the image rating. Company D’s biggest resource strength for the last 4 years was corporate responsibility. The organization decided to use green footwear for the shoes, as well as recycled boxes for shipping. Daily Durable decided to spend $1000 each plant towards energy initiatives in order to save energy and reduce pollution. Charity donations of 10% of operating profit increased the company’s image rating. The highest amount given was in year 16 with a total of $5,484. Ethics training and workforce diversity training was offered to all employees for all 4 years to help employees understand the laws and they know the company is being fair during hiring processes and training opportunities. With the efforts in corporate social responsibility, Daily Durable earned a 2nd place award for corporate responsibility at least 2 years in a row. Daily Durable focused on corporate social responsibility during the simulation to increase and improve the company’s image rating so they could attract great employees as well as loyal customers.
B1. Daily Durable’s resource strength is corporate social responsibility for the last 4 years of the simulation. I will use the following 4 tests to analyze how powerful it was.
1. Is the resource competitively valuable?
2. Is the resource rare or something rivals lack?
3. Is the resource hard to copy?
4. Can the resource be overcome by different types of resources and capabilities, are there any good substitutions for the resource? Corporate social responsibility was very competitively valuable because most of the companies were using several aspects of corporate social responsibility. This helped the company achieve better customer satisfaction and increased profits. Corporate responsibility passed this test for sure by achieving higher customer propositions. Corporate social responsibility is not rare therefore fails test 2. All companies integrated certain aspects of corporate social responsibility into their strategy with 3 companies competing for the corporate responsibility award. Corporate social responsibility is not hard to copy, therefore any company can follow in Daily Durable’s footsteps to achieve high corporate responsibility by putting more money towards it. Daily Durable also used marketing expenses to help along with corporate social responsibility and make it a little less rare and harder to copy. Daily Durable did not pass this test but only because most of the other companies decided to focus on social responsibility too.
C. With Daily Durable just starting up, we will use the adhocracy culture which has external focus and values flexibility with all the changes coming with a new business. With this the employees can take charge and experiment in new ways to manufacture shoes. Organizational culture within any and all organization is important to keep everything running smoothly. All organizations needs to choose a culture based on their strategy to run the company. The organization needs to choose based on what they are trying to focus on for the short and long term whether it be customer service, profits, market sharing, or even efficiency. As CEO of Daily Durable shoes, I want to focus on growth and cutting edge products while allowing the employees help with creating the shoes. If the employees get to give their input on products, they will work smarter and feel as they are part of the company. The company will adapt to the changes in business by offering training to employees and reward employees for excellent work and creativity.
The management team will have different responsibilities but much of the same as well. Upper management such as CEO, CFO, COO, etc. will oversee the entire company and how the company is doing as a whole. This management will keep in contact with plant management to understand and know what is going on in each facility. Middle management like the plant managers and human resource manager would oversee their plants individually and make sure all employees are taken care of. This management will take care of providing training opportunities for employees and make sure there is diversity at the work place. Lower management are the department managers in each plant. These managers have the responsibility for making schedules for their department’s employees and authorizing time off for them. Team norms I would put into place are to encourage all employees to do their best work by offering rewards. One way to reward employees would be to offer any employee that doesn’t miss a day of work in a 6 month period a paid day off of their choice. Another team norm would be that, if a department goes 6 months without messing up any orders, they would get rewarded with a lunch provided to the whole team. C1.
There are 10 basic tasks for “The action agenda for executing a strategy”. These 10 tasks are: Build the organizational capabilities required for successful strategy execution, establish a strategy supportive of organizational structure, and allocate sufficient resources to the strategy execution effort, Institute policies and procedures that facilitate strategy execution, adopt best practices and business processes that drive continuous improvement, install information and operating systems that support strategy execution activities, tie rewards and incentives directly to the achievement of strategic and financial targets, instill a corporate culture that promotes good strategy execution, exercise strong leadership to propel strategy execution forward, and staff the organization with the right people for executing this strategy. If managers execute these 10 tasks well, the company has a higher success rate.
To begin Company D put the most qualified personnel in place in order to determine what is needed to go forward with the shoe company. This highly qualified management will be able to point out if upgrades are needed, as well as if any training is needed for specific positions in the company. Management will make sure all resources are provided in order to complete the orders. HR will set up and schedule training for all employees throughout the years.
Next, Company D will staff the organization with attracting skilled management and employees and keep them at the company. By Company D hiring, training, and keeping these skilled and qualified employees they will succeed in business. Company D will strive to attract and maintain these skilled employees and management team by offering pay incentives for less rejects and not missing days of work. In order to find and retain the good employees, extra money will be spent on the screening and evaluating process for looking for the right employees. All employees will be offered training in order to further and advance their skills within the company. Company D will provide 6 month coaching reports to all employees to help weed out those who really don’t want or need to be in the company.
Now, Company D will build and strengthen their capabilities within the company. In order for employees to strengthen their capabilities, they will need to just practice what they learn instead of just learning about it in training. One cannot play football just by watching it on TV all the time, training and physically doing it stimulates the learning of the skill. Trail runs will be ran before any new model of shoe is made in batches to work around a lot of the defects and correct the problems.
Company D will organize a work effort with a supportive organizational structure. To do this Company D will be sure all employees understand the goals of the company. Goals will be geared to using the broad differentiation strategy, while gaining image and rating quality. Working with external partners such as those in other shoe companies in the area will improve moral and support a good relationship between the 2 organizations. During facilitating what managers are doing what, Company D will give highest authority to HR management for hiring and firing. Department managers will have authority to reprimand employees as they see fit. Company D will use a simple structure for choosing 1 person to oversee and make big decisions, this person will be the President/CEO of the company. A functional structure will also be used for departmental issues.
There may be a change in strategy which calls for re-budgeting and allocating resources to others areas of the organization. Company D may have to put employees in other areas to better fit the company and their production. They may also need at add more employees.
Company D will have management sit down and create policies and procedures easy to understand that will protect the company as well as the employees of the company. Each employee will be required to go through a short class before being placed in the plant to work in order to go over and understand these policies and procedures. Once all employees have signed and went through the class, all management needs to be sure all policies and procedures are followed to ensure proper running of the organization. Quality management techniques will be put in place to improve and keep good quality. Performance will be improved for each and every task. The quality manager will use six sigma to reduce the quality defects and improve business processes.
Capturing benefits of initiatives to improve operations is a very important step in managing and following through with the strategy. By the employees recognizing what is being accomplished and committing to helping with improving performance, the organization is capturing it all. Improving the quality has to be part of everyone’s job daily.
Installing information and operating systems will help the employees carry out the daily duties in the office as well as in the plants. Company D will provide a self-service program on the company’s intranet for the employees to review their time, PTO, benefits, and will allow them to change their benefits as needed. There will also be software to track orders, shipping, and receiving of materials. By having these information systems and software, Company D will be able to monitor the flow of work and how well they are doing on orders. HR and plant managers will monitor employee performance to be sure everything is going smoothly in production and other areas.
Rewarding and offering incentives are a great way to attract employees as well as keep those employees on board that are currently working. By rewarding employees, it keeps them energetic and wanting to meet whatever goal it is to achieve the reward. Company D will offer incentives and rewards on a monthly basis as like an employee of the month and the plaque will be hung where all can see. For some office workers, management may reward some with 4 10 hour work days instead of 5 8 hour work days. This would cut down on traveling and being away from home. Some upper level may be able to work from home when their presence is needed but are sick or have appointments on and off all day. For additional rewards, the company will ask employees what rewards they would like to see. Asking for input from the employees makes them feel like they are important. Company d will also use performance reviews to look into promotions within the company before looking outside the company.
There will be a family atmosphere as in, everyone treats each other as family instead of just a number working for the company. Corporate culture is important as Company D strives to have a family environment while providing what the customers want and need in the shoe category. Corporate bosses are to be sure all policies and procedures are followed and that the vision statement is being carried out. Company d will have great values and ethics and focus on that rather than just money. To transform the cultural standards in norms all it takes is just practice it daily and it will become normal for the company. Company D will pay close attention to those applicants during the interviews to see if they portray the company’s core values. Once employees are hired, part of the training will include company values and traits for employees to get familiar with. The President and CEO will make visits to insure these values are being put in place and to show the company they care as well.
D. Company D strives to better the organization and wants to include all employees in decision making. Creativity is a big deal to Company D. Plant managers will have meetings with employees to discuss creating new show product lines and will ask employees to give ideas for this line. Managers will also encourage employees to work as a team on their jobs and come up with better and more efficient ways to do their specific jobs. If a team could work together and find a more efficient way to do the job, management would reward them with free lunch one day as a team. They could also be asked to give a class on their method and show how much better it is that the old way.
E. The balanced scorecard approach is a management system not a measurement system although measurement is a key element. The balanced scorecard is a management system that authorizes the organization to set, track, and accomplish its key business strategies and objectives. Company D will use basic legs of a scorecard. The customer leg will focus on the customers and what they want. The financial leg will monitor the financial status and performance of the company. The internal business process leg of Company D will measure the customer’s critical requirements and measures. Lastly, the knowledge, education, and growth leg will focus on educating Company D’s employees, how the company gathers and maintains knowledge about the business, and how it uses competition to compete with other companies. Company D will use these 4 legs to continuously improve the organization.
The scorecard was helpful by showing what the company was lacking and where it was thriving. Company D was lacking in best in industry and investor expectation overall with a score of only 61. Company D started off very low in this area but as the years went on they improved a little each year. The scorecard is what showed the company what to improve on each year. This helped in making the decision to focus on corporate social responsibility after the first year or 2.
E1. Company D would create a balanced scorecard with financial data as well as performance data to ensure proper performance reviews are taking place. One leading aspect is corporate social responsibility with using green footwear and recycled boxes as well as donating to charity. This shows employees that the company cares. A lag shows to be in quality but with proper training and hands-on learning, this can be turned around and improve quality pretty fast.