Introduction
Control of the small and medium enterprises generally requires properly structured managerial hierarchy and strictly defined strategic direction. The case of the Power Drive golf company is closely associated with the application of the required managerial principles, and restructuring of the entire control mechanism. Thus, the aim of the paper is to define, what should be restructured, and how the restructuring process should be arranged for avoiding extensive invasion into the managerial process, which may cause the violation of the entire structure and leave of the workers.
Analysis
The overview of the Power Drive Golf company may be helpful for defining the key managerial problems, thus, the key points of the company development should be regarded. The fact is that, the key problems are often covered in the mistakes of the Human Resource Management. (Drejer, 2002) When the personnel is not motivated enough, or wrong people were employed for performing particular tasks, the problems are inevitable. As it stated in the case study, the HRM was based on employing the locals, who knew about the Golf Club business almost nothing, and learnt on the job. At it was of particular importance to speed up the work performance for meeting the deadlines, Jock had to employ more workers, and thus, their amount was essentially increased. (Heyder and Theuvsen, 2008) This was the first mistake, which caused the further faults. Considering the fact that quality was sacrificed in the favor of quantity, the mistakes were originally inevitable, consequently, all the recommendations should be performed from the perspective of changing the GRM strategies. (Mintzberg and Rose, 2003)
The same mistake was made in the sphere of cooperation and supply chain. Instead of focusing on the quality of the supplied production, Jock sacrificed it to achieve quantity. Originally, this step may be logically reasoned, as the growing problems had to be resolved quickly, otherwise, the things could be even worse. (Timmons and Zacharakis, 2004)
Recommendations for Power Drive Golf
Originally, the described problems may be caused by the poorly elaborated strategy and improperly implemented strategic principles of running business. Consequently, particular emphasis should be made on the issues of the strategic management, and rearrangement of the strategic needs and purposes. Thus, in accordance with Siegel (2001), it should be emphasized that strategy evaluation may be regarded as one of the most crucial components of analyzing the business flow, and, the necessity to arrange the strict hierarchy is the defining element for the strength of the selected strategy. In accordance with the principles of strategic business management, the Power Drive Golf business should be based on the Business strategy principles, with the incorporation of the elements of functional strategy. In spite of the fact that business strategy principles are suitable for diversified corporations and companies, Power Drive Golf Company needs to implement strict strategy, with clearly defined marketing strategy, properly arranged hierarchy and definitely outlined business goals. Thus, in accordance with Oladunjoye and Onyeaso (2007, p. 67), the following statement should be emphasized:
A company needs to formulate a business strategy that incorporates either cost leadership, differentiation or focus in order to achieve a sustainable competitive advantage and long-term success in its chosen areas or industries. Alternatively, according to W. Chan Kim and Renée Mauborgne, an organization can achieve high growth and profits by creating a Blue Ocean Strategy that breaks the previous value-cost tradeoff by simultaneously pursuing both differentiation and low cost.
In the light of this statement, it should be emphasized that the necessity to differentiate the business goals should be the basis of the further strategy evaluation. (Cesnovar, 2006) From the perspective of the three main evaluation aspects, which are the following:
- Suitability
- Feasibility
- Acceptability
Consequently, the concentration on the quantity instead of quality can not be fully effective. In spite of the fact that it was the optimal decision for the described case, the quality of the performed business assignments and qualification of the personnel should be improved. (Betz, 2001) Thus, the company needs to focus on the following aspects:
- Adaptation of the organization to its business environment.
- Origination of the innovative combinations of circumstances requiring unstructured non-repetitive responses
- Selection of the strategic management direction
- Planning of the management strategy
- Elaboration of the conceptual and analytical tools (Hess, 2006)
Moreover, considering the focus statement, it should be emphasized that the original recommendations for the Power Drive Golf Company should be associated with the clear definition of the aims, both short term and long term. (Courtney, 2002)
Additionally, it should be emphasized that Power Drive Golf can not be featured as the company with the strong concept and business growth. The problems, which are associated with the requirements of business development, are associated precisely with the lack of focus concept. The relation, which is observed within the company, may be assessed from the perspectives of the strategic management, while the focus concept itself should be critically analyzed from the perspectives of business performance effectiveness. As it is stated in Fallek (2001, p. 345):
The objectives that an organization might wish to pursue are limited by the range of feasible approaches to implementation. (There will usually be only a small number of approaches that will not only be technically and administratively possible, but also satisfactory to the full range of organizational stakeholders.) In turn, the range of feasible implementation approaches is determined by the availability of resources.
Consequently, the opportunity to estimate the business growth depends on the observation of the key requirements, associated with the extensive and steady business growth. Thus, the company will need to arrange new business contacts, and arrange new supply chain, focusing on the quality of the supplied products, but not their quantity. (Koteen, 2003) The structure of the business process and strategy implementation should be properly arranged, and suited for the existing business realities, otherwise the efforts will be useless. The quality of the performed assignments should be constantly controlled, otherwise, another, more crucial failure is inevitable. One of the most important aspects of the focus concept is the setting up of the clear and definite targets, as the clear statement of the missions gives the clear aim and clear assignments for the personnel, and, jointly with the corporate spirit leads the company to growth and success. Finally, the customer care strategy should be defined. The focus concept presupposes that the company should be precisely aimed at the creation, maintenance and expansion of the customers range. If this condition is fulfilled, all the other aims and objectives will be directed for the maintenance of this condition. (Jones, 2003) In the light of this statement, it should be emphasized that Power Drive Golf should focus on the strategic issues of business focus, and rearrange the entire responsibility structure. Considering the fact, that the structure does not presuppose any delegation system, a particular emphasis should be made for it. (Aver and Cadez, 2009) When the delegation system is elaborated, it automatically presupposes the increased responsibility level, as worker will be focused on the completion of the assignments. Considering the aspects of business adjustment, Power Drive Golf Company needs to implement the following flow of operations:
- Define
- Measure
- Analyze and collect data
- Implement
- Control
These are the key tools of the Six Sigma principle. Considering the values of business adjustments, it should be stated that the requirements of the recommendations should be followed strictly, otherwise, the performed actions will have nothing in common with the properly implemented strategy. (Wyckham and Wedley, 2002)
Conclusion
Finally, it should be emphasized that the importance of the solid business strategy, and the properly elaborated and implemented business plan is beyond any doubt. The fact is that, the issues of strategic management, strategy assessment, focusing of business concept and others are required for the proper performing of the business assignments and adapting for the particular business environment. Nevertheless, some principles of control mechanism restructuring are universal, and should be applied independently on the origins of the entrepreneur activity.
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