management & enterprise

Cadbury   is doing so well because they have done some effective planning at all levels of management which makes them the leading confectionary and soft drink in UK. This   allows them to increase their sales revenue; consequently this result is gaining a higher share of the market which gives them advantage over their competitors.

Forecasting

This function manger must first plan which is to set objectives.

 Forecast then analyses the problems, and make decisions about what should be done putting their past performance in consideration to help them plan for the future. This timescale for planning and the nature of the decisions will vary with the level of management for both Cadbury and Hussein’s shop.

How work together, Hussein’s Shop and how they contribute towards the aims and objectives.

Forecasting

 Forecasting is the process of predicting what will happen in the future and tries to secure   sale future for the business. Forecasting also helps Hussein’s shop to achieve some of its objectives.   The forecasting is very important for Hussein’s shop as the customers are becoming aware of the services.

 Hussein’s shop needs to forecast sales and by doing this they would be looking into the future and this would  help company to have better results and increase sales which would make higher profits which helps to achieve their objectives.

Planning

 Hussein’s shop set objectives and also their strategies, policies, programmes and procedures for achieving them. Strategies are plans that are used to help the organisation meet their major objectives and goals.

Controlling

 This function contributes greatly towards the achieving business objectives as it can save Hussein’s shop money and managers have to control their budget limit. Controlling would help staff inside Hussein’s shop product to achieve higher quality standard and this would increase quality of Hussein’s shop products

Task 2

Produce an annotated organisational chart for each business showing the lines of communication and authority.

 Hussein management style   

The idea of setting out everyone's role and position is to make it clear who is responsible for what, and that there is a clear line of authority because an individual's position was clearly marked on an organisation chart or diagram, it was easy to see where responsibility lay. This is still important in such organisations as the army, where there has to be a clear chain of command. It is less important in a creative advertising agency, where you have a great many creative people generating individual ideas.

The term 'span of control' refers to the number of employees who are directly supervised by one person. The manager who tries to supervise too many people may be so overworked that his or her staffs are unable to perform their duties effectively. On the other hand, if a manager has too few people to supervise, his or her time may be wasted.

Where there are narrow spans control and more layers of authority,

There is no single ideal combination of span of control and scalar chain for any one organisation. It is, however, argued that fewer levels tend to improve decision-making, communications and morale. On the other hand, by 'delaying' and reducing the number of levels in the chain, this may reduce the opportunities for promotion and positions with high status. This, in turn, will limit the opportunities for the development of future managers.

Flat Structure

In the flat structure there are few layers in the organisation. This structure is often used for smaller businesses e.g. shop

There is only one level of command with a wide span of control. Communication in this type of structure will therefore be a lot more effective. This will keep costs down, as employing managers to look over the workers will no longer be needed. There is less bureaucracy. However if there are a lot of workers who are all responsible to the managing Director the workload will be massive and him/her will spend so much time sorting out problems he/she will not be able to get on with their own work at all.

There is no single ideal combination of span of control and scalar chain for any one organisation. It is, however, argued that fewer levels tend to improve decision-making, communications and morale. On the other hand, by 'delaying' and reducing the number of levels in the chain, this may reduce the opportunities for promotion and positions with high status. This, in turn, will limit the opportunities for the development of future managers.

Cadbury’s management style

A hierarchical structure has many layers. This shows that the layer at the top has direct control over the people below them; they have control over the people below them and so on. This can also be described as a pyramid structure.

A director and then several managers manage this works well for as each division. This ensures everyone knows whom he or she is responsible to and whom he or she is responsible for. The downside of the hierarchical structure is the chain of command. Each division may not know what the other is doing which could cause a problem. Also because the lines of communication are quite long it may be possible for messages to get lost or distorted. This is why it is important to have an autocratic management style as every employee must be kept alert and task focused so that those sorts of problems do not occur.

Advantage of Hussein management style

• Decisions can be put into effect quickly as there is one else to consult.
• The sole trader his own boss and does not take orders from anyone else.
• The sole trade can be flexible about his working hours.

Disadvantage of Hussein management style

• This can de-motivate staff as employees aren’t given the opportunity to make decisions.
• The employees must obey instructions without any questions. As results the worker often became unhappy and feel that they views are not important to the organisation.

Advantage of Cadbury Schweppes management style

• The employees support the managers of Cadbury.
• The employees are given the opportunity to make decisions.
• Employees at Cadbury making decisions and bring ideas could provide a greater diversity of solution to problems.
• Members of staff at Cadbury can claim ownership of a decision in which they have participated in taking.

Advantage of Cadbury Schweppes management style

• The manager may not always agree with the decision made by other member of the group.
• When there is a wide range of opinions on a subject, it may be impossible for everyone to agree.
• Employees need to be competent to work in order for then to be able to make a decision
• Although the manager may be democratic, the subordinated may not be.

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Task 3

Describe the management styles and skills used in each organisation explain how effective they are in the performance of specific management tasks.

Autocratic management style Hussein

In autocratic management style all policy, the decision making and objectives are set by the manager or the person in charge of the business, the flow communication is only one way and no feedback, employees can't answer back, there's no communication between them. The activities to achieve the objectives are set by the manager. Often, steps are given one at the time meaning that the future steps are uncertain to the team. The manager tends to specify the type of task and work colleagues of each team member.

Management skills used by Hussein

Induction: the ability to give clear induction and the ability to make all decisions without any consultation from employees. The employees must obey instructions without any questions. As a result, the workers often become unhappy and feel that they and their views are not important to the organisation.  The autocratic management style has the advantage of enabling decisions to be made quickly, with no time wasted on discussions.

Delegation Skills: The objective of delegation is to get the job done by someone else but the responsibility still lies with the manager. For example, a manager at  Hussein shop  gives orders to junior staff to carry out some project, but if the project fails, the manager will be hold responsible instead of the staffs that was ordered by the manager. With delegation, staffs have the authority to react to situations without referring back their manager

Problem Solving and Decision Marking Skills: Decision making can be hard. Almost any decision involves some conflicts or dissatisfaction. The difficult part is to pick one solution where the positive outcome can outweigh possible losses. Making decisions and accepting the consequences is the only way forward for organisations such as Thorpe to stay in control of their time and be successful.

Evaluation of whether, style of management contributes towards the success or failure of Hussein’s shop

According to Mr Hussein’s reports the business made 15% profit on sales compared to last year,  staff turnover now 15% compared to last year 20% and these results show Autocratic management style has contributed to the successes of Hussein’s shop  through the quick discussion making  has help because changes can be made as and when needed . The flow communication is only one way which means the manager delegates staffs on day to day running of the business. Hussein management style has helped them to expand over the years and become well organise business. There is more efficiency, every one knows exactly what they have to do, there is no misunderstanding there are no disagreements because there is no feedback and the decision making straight way

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Democratic management style

Democratic management style all policies, decisions and objectives are decided by group discussion however are still the managers who makes the last decision. There is to way communication flow, the manager tries to create better understanding by seeking employee’s opinions and ideas, wish motivates the worker’s because this make staff feel value which will motivate staff.

There is more point of views to help and manage the business properly and individuals feel more valued and motivated.

The main disadvantages are that it can undermine the authority of management.   Decision making May takes long time to make a decision on the business; however it depends on the occasion business, however it depends on the occasion.

Management skills used by Cadbury

Interpersonal skills: employers appreciate employees who get along with people at all levels; therefore they seek employees who have good interpersonal skills, such as communication, problem solving, and teamwork abilities. Interpersonal skills enable you to work with other harmoniously and sufficiently. Working well with others involves understanding and appreciating individual differences. It also means using those differences to your best advantage.

Delegation skills: delegation involves passing responsibility for completion of work to other people. Delegation is one of the most important management skills. These logical rules and techniques will help you to delegate well. Good delegation saves you time, develop your people and motivates. Poor delegation will cause you frustration, de-motivates and confused the other person, and fails to achieve the task or purpose itself.

Communication skills: Cadbury requires good communication skills and the ability ensure that what their message is clear and understandable so that it can be passed down the communication channel without any barriers.  Many employees may be from different culture background or have different perceptions which mean that manager needs to have the skills to communicate with all employees.

Political skills: is the ability to handle a range of different views and opinions and be able to a decision base on different views and opinions. A manager at Cadbury Schweppes needs to be able to make the right decision based on staff opinions. A manager can not just dismiss the opinions of staff, as this would make the staff feel unwanted and discourage the staff from working hard.

 For example, staff at Cadbury Schweppes might have different opinions of what they think their customers want best, the manager needs to have the political ability to take into account the opinions of staff and then make a decision what customers want best

Evaluation of whether, style of management contributes towards the success or failure of Cadbury Schweppes.

To be a good employer and sustain a working environment that attracts retains and develops committed employees who share in the success of the Cadbury Schweppes. The organisational structure is bound to help the employees in a number of ways. Firstly they will all know whom they are directly responsible for and where they are in the organisational structure. It also makes it easier for the managers to see how the working environment helps people they are directly responsible for.

Management styles will differ depending on the objective they are working on. The organisational structure will probably affect certain objectives more than others. In my opinion the main objectives that it affects are:

Strong & consistent financial performance: I think this because the strong and consistent financial performance can be monitored carefully by the finance department to make sure that marketing is not costing too much and to make sure that they are spending enough on other like customer service

Democratic management styles could help the employees to feel more inspired and work more efficient and effective, and causing more productivity (Motivation staff has lead to an increase in sales from £2.3bn rising by to 4.3 in 2004).

Unfortunately there is a big constraint because is time consuming, everyone shares their decision-making. Decision-making would take longer to occur, however it depends on the occasion the business is situated.

Task 4

Outline the role of enterprise and innovation in the organisations and analyse their contribution in the development of the business. Produce a critical appraisal of the role of enterprise in the future growth of the organisations.  

Innovation of products: I personally think that Cadbury Schweppes is growing and will increase in the future. One of the reasons that Cadbury Schweppes is increase very fast in the market is because of the impact of information communication technologies that made it possible for Cadbury Schweppes to work almost anywhere. Very few jobs are not directly or indirectly affected by computer technology now.  

Innovation of products:

Innovation and enterprise

Analysis of why organisation such as Cadbury Schweppes and Hussein shop wants to increase customers.

Cadburys Schweppes and Hussein’s shop both  aim to grow and expand because this allows them to increase their sales revenue consequently this result is gaining a higher share of the market which gives them advantage over their competitors. A larger share of the market enables business to gain of the market.

Why organisations Such as Cadburys Schweppes and Hussein’s shop need to improvement in the future.

Information  technology helps Cadburys Schweppes and Hussein’s shop to be able to  keep track of all financial records and  documents in a secured data base e.g. if the sale manager of Cadburys Schweppes and Hussein’s shop  both want to analyse the sales figures and compared it to previous years, he/she can have access at a touch of a button. This helps Cadburys Schweppes and Hussein’s shop to able to safeguard information from getting into the hands of competitors.  

Cadburys Schweppes and Hussein’s shop both need to need to keep up with the latest technology which will enable Cadbury Schweppes and Hussein’s shop   still ahead of the competitors. E.g. computers software need updates all the time and new and models come up almost every year.  This making Cadbury Schweppes and Hussein’s

Shop more cost effective which will increase the overall profit margin.

The technology can lead to increase productivity, so there can be more produced with less and as a consequence business   profitability increases, due to meeting customer’s needs and wants.  This therefore also implies the effect on waste. It means that using the new technology can save time as fewer materials are being used as well as fewer mistakes is being made. This therefore improves the relationship with working environment, as technology can make work easier and satisfactory, without any pressure groups or complaints being made against the firm.

Evaluation (why innovation is so important to Cadbury and Hussein shop.

Technological innovation has become a major driver of progress in businesses such as Cadbury Schweppes and small business like Hussein Shop.  Innovation relies on intangibles, such as creativity, knowledge and experience.  These intangibles are the most valuable resources of our time, much as raw materials were during the early times of industrialisation.

 

There are three forces that make innovation important in today’s world.  One is the need to achieve reductions in time, effort and space in most every human activity.  Time, effort and space are often interrelated, and collapsing one of them in any significant way usually affects the others.  

These three factors (Time, effort and space) also helps businesses reduces costs.  The introduction of e-mail, for example, reduced the time needed to send a letter to almost nothing, it eliminated the effort associated with processing and carrying the letter, and it also managed to shrink geographical space by allowing instantaneous transmission.  As a result, the costs associated with sending a letter were reduced substantially.  We might therefore say that the socioeconomic importance of any innovation is related to how strongly it helps businesses such as Cadbury Schweppes time, effort or space.

 

Globalisation and Competition

Second force is the need to increase the pace of innovation.  Globalisation and competition have created more pressure to accelerate the speed of innovation in many economic activities.  Increasing the pace of innovation requires improving the intangible resources that support innovation.  It also requires placing more emphasis on research and development (R&D), and finding faster ways to introduce innovations to markets.  

The third force making innovation more important is the need to improve the technological base of many business such as Cadbury Schweppes and small businesses like Hussein’s Shop

 Globalisation has made it necessary to project the innovative capabilities of nations, regions, industries and firms as never before.  More than at any previous time, innovation has become a major tool in the race to create jobs and increase incomes.  As a result, many nations, regions and locales are trying to find ways to bolster the intangibles that support innovation.

 Increasing the quality of technological education, building the kinds of infrastructure that can directly tie into innovative activities, and developing stronger laws to protect intellectual property are examples of some of those efforts.

Task 5

Describe the internal and external constraints on management and explain how these constraints can be reducing through effective management.

Cadbury Schweppes internal constraints

Competition

Cadbury Schweppes faces outside of their business are competitors who have become very strong. The main competitors Mars are dominant that Cadbury Schweppes.

Health and Safety act Laws

When this law was made compulsory, Cadbury Schweppes had to follow by providing their employees with safe and healthy environment to work in. for example, Cadbury Schweppes factories were a quite un-safe working place for the employees because of potential dangers from the machines. The top level managers had to follow the laws which the government made compulsory. This has lead to factories been safe place for the employees and customers.

Solving of the constraint through effective management

Cadbury responded by upgrading their machines so that they safer to work. Cadbury made their own compulsory rules which was staffs will have training once every month. Cadbury Schweppes have modern technology and machinery, which make it completely safe for employees to work.

Skills and training constraint

When Cadbury Schweppes are looking for recruits inside the business there are the problem with using internal recruitment.

Limited range of applicants and there will be a reduced potential of finding new talent.

• The availability and flexibility of labour force
• Less input of new ideas and methods of working.
• Also as one person is promoted then another vacancy is created, which will mean that Cadbury have spent more time and money to look for recruitment.

Solving of the constraint through effective management

The human resource manager can be use an external recruitment method were there is a more chance of recruiting skilled and professional workers.

Also the human resource manager can use appropriate recruitment agencies that are specialised in finding specific workers for specific task which will make it easier for the human resource to look for the right person for the job.

Recruiting external, which will help Cadbury Schweppes avoiding getting stuck in problem. Cadbury Schweppes will have a more wide range of applicants, which gives more choice to the human resource manager.

Disability Discrimination Act When the Disability Discrimination Act was made compulsory Cadbury Schweppes didn’t have disability accesses, facilities, equipment for employees and customer’s. Some employees who were on wheelchairs would have found it difficult to access Cadbury Schweppes working areas. The law become compulsory on Cadbury Schweppes which meant Cadbury Schweppes had to follow the law by producing disability accesses, facilities, and equipment for the employees and customers. This satisfied the employees who had disability problems and it also had given Cadbury Schweppes a good image because its shows that they employee people with disability and take consideration in whose who have disability.

Laws for the environment

Cadbury Schweppes was facing many problems with governments and pressure groups to reduce harm to the environment. This is when the top level of management and especially the chief legal officer had to solve the problem that the law was giving them.

Solving of the constraint through effective management

To prevent this problem they produced environment policies, which every production department around the world had to follow so that they will minimise the affect on the environment.  

 

Government Tax   rate

Tax rate could also have effect on organisations as Cadbury Schweppes and Hussein’s shop because political decision can affect the Cadbury Schweppes for the goods and the bad.

For example if taxes were to increase this would mean consumer’s decrease and sales of stock of decrease. However if taxes decrease the price of Cadbury Schweppes will be lower and consumers will buy more.

Pressure groups

Cadbury Schweppes were selling products that gain weight and not healthy. This gave Cadbury Schweppes a poor image and reputation because the pressure groups and customer’s felts that CS healthy product was unhealthy.

Solving of the constraint through effective management

To solve the problem, the research and development department in CS produced and tested healthier products that will not let consumer to gain weight.  When the research and development finally produced a range of healthy products, CS launched their health products to the customers and took the pressure groups away from CS. This shows that the managers at the top level listened to the pressured groups and produced healthy products that will not gain weight on consumers.

Hussein internal constraints.

Family relation

The amount of space available can be constraint, because this can affect the amount of stock they display at once. However this was solve by Hussein purchase machine which only order the goods need in small quantity.

Finance will be one of the biggest blocks to the business expansion. It will need sufficient cash flow to meet day to day trading needs. The organisation will need to be careful not to borrow too much money. It will need to structure its financing carefully to meet its key objectives. Finance control will be an important element of the business activity. It will be essential that the business controls the cost of labour production and marketing carefully in order to retain a completive edge.

Time management

Time is one of the most important constraints in any form of production activity. Time management is the ability to manage and control time. The use of planners, calendars, is effective tools in managing time in organisations for Hussein shop.

Hussein external constraints

Competition: Hussein shops are now competing with well establish business such Tesco express, Sainsbury local and other corner shops.  Hussein shops have been decrease in profit for the last year, results from trading show that Sainsbury and Tesco have move to the area.  

How constraints can be reduced thought effective management

When Hussein’s Shop were in debt with customers (50 0000) and their construction of new premises was being produced, their financial budgets were in debt. They had to pay customers back and had the problem of financing the construction of their new headquarters.

Hussein solved this problem by getting a loan from a bank, which helped Hussein shop to pay back their debts and finance the construction of the new premises. The company director had to have good political and communication skills to show to the bank manager that Hussein shop have the abilities to pay back the loan and what reason they need the bank loan for.

A problem that CS faced many years ago was that it wasn't following the laws for the environment. CS was badly affecting the environment with their factories that was wasting material, which affected the environment

As the laws for the environment kicked in, Cadbury Schweppes was facing many problems with governments and pressure groups to reduce harm to the environment. This is when the top level of management and especially the chief legal officer had to solve the problem that the law was giving them. To prevent this problem they produced environment policies, which every production department around the world had to follow so that they will minimize the affect on the environment. Here is Cadbury Schweppes policy on the environment.

‘We are committed to sound and responsible environmental management in everything we do. This is a natural extension of the importance we place on protecting the world in which we live - in our own interests and in the interests of generations to come. It is also an integral part of achieving our objective to grow shareowner value over the long-term. When the long term is taken into account, what's good for the
environment is also good for consumers and good for business.’(Look at www.cadburyschweppes.com to find source):

My conclusion

There is some debate about the extent to which you can train people to become more productive effective. (One view is that good managers and leaders are born that way) if this is true, Cadbury and Hussein will have to put their resources into finding the right sort of person. It is more likely that a good leader is a combination of training and personal characteristics.

Task 6

Produce a comparative evaluation of the management functions and skills used in the organisation.

In my task 2, 4, and 5, I have made some comparison between Hussein and Cadbury Schweppes with regard to the management functions skills used in both businesses.

The two businesses are completely different and have different approaches to motivate and develop employees.

Style of management

For example, a quick decision need to be made be both managers, then they will use an autocratic approach so that the situation can be handled efficiently and quickly. If the managers (especially the Cadbury Schweppes managers who tend to use a democratic style) use a democratic approach to a quick decision situation, the businesses can miss an opportunity and this can make the businesses inefficient. This can affect the business achieving their objectives and it also shows that different situations can change the styles of management that is used in Cadbury Schweppes and Hussein.

Management Function (planning)

For example, both Cadbury Schweppes and Hussein’s shop would use communication skills to plan for the business because they need to show that they can present information clearly to other members in the business so that the planning can be effectively achieved. This also shows that both managers would need to use political skills so that they can interact with their employees, which will again make it easier for the subordinates to clearly understand what is needed to achieve the planning.

For example, both managers communicate and interact with their employees so that their plan can be completed with out any constraints. However as there always is constraints in the businesses functions the managers from both companies would also need to have good problem solving skills so that constraints can easily and quickly managed.

Motivation and developing staff is very important for both businesses because this function can help them to achieve the company’s objectives. As I said before, Hussein generally uses an autocratic style of management to motivate their employees because the company director thinks differently towards his employees (he think the employees are lazy and are only committed to do due to money) especially the lower level of management and the workers.

When both businesses are planning as a function for their company, they both use similar skills to make their planning effective and efficient. For example, both Hussein’s shop and Cadbury would use communication skills to plan for the business because they need to show that they can present information clearly to other members in the business so that the planning can be effectively achieved.

 This also shows that both managers would need to use political skills so that they can interact with their employees, which will again make it easier for the subordinates to clearly understand what is needed to achieve the planning. For example, both managers communicate and interact with their employees so that their plan can be completed with out any constraints.

However as there always is constraints in the businesses functions the managers from both companies would also need to have good problem solving skills so that constraints can easily and quickly managed.

Bibliography

I used different source to produce the assignment including;

• Intense teaching lessons
• Research on the internet
• Independent/field research
• A range of business studies text books