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To what extent might the Chiltern products division benefit from the introduction of more scientific decision making through, for example, the adoption of the 'marketing model'?

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Introduction

The Takeover 1) To what extent might the Chiltern products division benefit from the introduction of more scientific decision making through, for example, the adoption of the 'marketing model'? Scientific decision-making tries to ensure that all decisions in the business are arrived at in a logical and methodical fashion. Decision-making is a form of problem solving. By introducing this method of decision making into a company and a department such as Chilterns product division can be beneficial to both employees and the organisation because a typical system for decision making on a scientific basis is to set a target, gather relevant data, form a likely idea, test the idea in practical terms, review the outcome and then to revisit the original aim to see what new direction ought to be taken. Chilterns Product division's introduction of a marketing model is the core of the process by which a message will be given out to people in which Chiltern wants to attract. This should be met at a cost that makes sense to the division. By scientifically looking at the marketing model the company can develop and introduce a marketing strategy that has been tried and tested before hand and because 'ATCO' are responsible for marketing both brands the firm would have to distinguish between the two products which both are aimed at very different market segments the company will be more organised and directed in marketing these very different products. ...read more.

Middle

The power an individual holds is based on the position they hold in the business rather than qualities of the person themselves. Chiltern products 'task culture' was based on small groups of employees working on individual projects. These projects had enabled talented staff to utilise their skills, without the limitations imposed in companies with more traditional hierarchical structures eg ATCO. If the culture of 'Fine Furnishings PLC' followed 'Atcos' traditional 'role culture', staff at Chiltern products would need to adopt a bureaucratic, cautious and focused way of working with a keen emphasis on the avoidance of mistakes. Employees may form opposition to this culture, as they prefer the culture they have known and has been successful in the past. Both companies will also have different targets in which they meet deadlines it could cause problems if they attempted to unify. 3) How might a social audit help fine furnishings plc deal with the possibility of adverse comments from pressure groups A social audit is where an outside independent agency checks on the methods and procedures that are used to check a company's contribution to the environment, the community and the staff who work for the company. Chiltern products had been severely criticised for its move away from UK suppliers and the move towards the importation of non-renewable hardwoods from tropical rain forests. ...read more.

Conclusion

5) Provide a reasoned judgement on the merits of the take-over of Chiltern products plc from the viewpoint of ATCO plc The take-over of Chiltern products PLC by ATCO I believe to have both positive and negative implications the benefits to ATCO are Chiltern Products plc has an excellent reputation for lounge and dining room furniture. The merger has also been forward vertical integration this moves ATCO into the field of furniture retailing by putting the firm in direct contact with consumers. The acquisition of Chilterns products range will give ATCO two distinct market segments. 'Chiltern products' was also recognised for the excellence of its staff and the high quality of its products. These factors had enabled it to flourish during both booms and recessions. The teams at 'Chiltern products' had created a number of successful new products. Chiltern products doesn't have a trade union Chiltern products over value angered ATCO institutional investors. Limitation of the range of products at Chiltern compared with ATCOs broad product portfolio of both domestic and office furniture. Chiltern Products marketing is disorganised and no overall direction given. A clear marketing strategy is needed as many of its product ranges were in direct competition with each other. Chiltern products had been ciritised severely for its move away from the UK suppliers to the importation of non renewable hardwoods from rainforests and also its recent policy of subtracting assembly work to low wage countries in order to reduce costs. Shaun Kirby 13G A2 Level Business Studies ...read more.

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