POM Case study

7/26/2019 POM Case study

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DECISION MAKING

Decision-making can be regarded as a problem-solving activity terminated by a solution

deemed to be satisfactory. It is, therefore, a process which can be more or less rationalor irrationaland can be based on explicit knowledgeor tacit knowledge.

According to Lopez,

A decision represents a udgment! a final resolution of a conflict of needs, means, or

goals! and a commitment to action made in face of uncertainty, complexity, and even

irrationality"

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Case-1

THE !"ST!ATED #LANT MANAGE!

#emant $ha, the plant manager of a manufacturing company, attended a seminar of four

weeks duration, conducted by a reputed university. %he seminar was devoted largely to

the topic of executive decision making.

During the seminar, $ha was particularly impressed by &rofessor %ripathi's (ectures on

)roup discussion * )roup decision making. &rofessor %ripathi was convinced that

employee, if given the opportunities, could intelligently consider, and then formulate

+uality decision.

eturning to the plant at the conclusion of the seminar, $ha decided to practice some of

the principles that he had learned. #e called together the employees of his

department and told them that the production standard established several years ago

were now too low in the view of the recent installation of automated e+uipment. #e

wanted the employees to decide among themselves, as a group, what the new standard

should be.

$ha believed that employees would doubtlessly establish much higher standards than theexisting ones. /ut he was ama0ed when he came to know that contrary to his belief, the

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group considered the existing standards as already too high. And therefore decided to

reduce them by 123. %hese standards, $ha knew, were far too low to provide a fair

profit on the owner's investments. 4et it was cleared that his refusal to accept the group

decision would be disastrous. /efore taking a course of action, $ha called professor

%ripathi at the 5niversity for his 6pinion.

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S$%%ar&

%his case is about a plant manager of a manufacturing company, 7r. #emant $ha who

attends a seminar for a month which was conducted by a reputed university. %he topic

was based on 8xecutive Decision-7aking". 7r. #emant liked the topic of group-

decision and decision-making so much9 %hat he thought to apply the same formula with

his employee of his department. #e wanted his employee to work as a group and

execute the work with a innovative standards giving a new outlook towards work. /ut,

unfortunately on contrary to his belief, the group considered the existing standard as too

high and thus they want to reduce it by 123. %hese standards, $ha knew, were far too

low to provide a fair profit on the owner's investment. And if he try to refuse the

group's decision a huge disaster would occur so before taking any action he decides to

revisit the university and asks them about an opinion to solve his problem.

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'(1 Ho) co$*d +a ae aoided te present di..ic$*ties/

7r. $ha may have avoided the present obstacles by assisting the employees to work in

the existing standards without reducing it to 123.

7aking them reali0e about the company's investments loss so that they won't reduce

and try to work like in previous method.

'(0 I. &o$ )ere a %anage%ent cons$*tant, )at adice )o$*d &o$ gie to +a/

If I were the management consultant I would have advised 7r. $ha to observe the

employee's work standards and understand as to why they are not able to cope up with

new innovative standards.

:irst to identify the problem related to employee's paradigm towards work then only i

can able to suggest them a new outlook which will satisfy them and of course 7r.$ha

too.....

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Conc*$sion

;o here we conclude that at times the manager should even as an employee must

understand the core value of the standards been given to employee. If the

standards are too high a proper training should be given to them so that they'll be

much active and dynamic to work on new standards without refusing it.. ather

consulting directly to the third-party the manager must first recognise the problem

then only he should seek advise regarding to his company.

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CASE -0

INTE!NATIONAL CASE CA!!EO"! 2 3HICH 3A4 TO GO/

arrefour, a firm that has

hypermarkets, big stores offering a variety of goods. It has made large investments

around the globe in (atin America and >hina. /ut not all is well as competitors taking

market share it its home market, for instance. %here has been even speculation of atakeover by 0ech

epublic. In )erman, the company faced tough completion from Aldi and (idle@two

successful discounters. 6n the other hand, it bought stores in &oland, Italy %urkey, and

opened new stores in >hina, ;outh orea, and >olumbia, >arrefour has become morecareful in selecting markets. %he company is eager to enter the Indian market but found

in late 22B that


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In :rance, where >arrefour is well established, the company made the big mistake in its

pricing policy. It probably started with the 1??? merger with &romodes CA :rench

discount chain. >arrefour confused the :rench clientele by losing its low-cost image!

whether the image can be changed remains to be seen. 7r. Duran, the new >86 since

22, embarked on the new strategy by offering 13 new products in its hypermarkets

and 123 in its supermarkets. 7oreover, he wants to employ more staff, extend the

operating hours in certain hypermarkets, cut prices, try small stores, and push downdecision-making. 7r. Duran aims to stay only in countries where >arrefour is among

the top retailers.

'$estions

1. #ow should 7r. Duran assess the opportunities in various countries around the

worldE

. ;hould >arrefour adopt


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S$%%ar&

%his case is all about >arrefour a :rench multinational retailer founded in $anuary 1,

1?H which is head+uartered in, :rance. It's a firm that has hypermarkets, big stores

offering a variety of goods. It is one of the largest hypermarket chains in the world, thefourth largest retail group in the world in terms of revenue Cafter ostco, and the third inprofitCafter hina. %here has been a

rumour of a takeover by arrefour.

7r. /arnard who was controlling the company for 1 years was expelled and was

replaced by $ose (uis Duran, arrefour also had problems competing

with %esco in ;lovakia and the >0ech epublic. In )erman, the company faced tough

completion from Aldi and (idle@two successful discounter retail stores. 6n the other

side, it bought stores in &oland, Italy %urkey, and opened new stores in >hina, ;outh

orea, and >olumbia! >arrefour has become more alert in selecting markets. %he

company is eager to enter the Indian market but found in late 22B that arrefour is well established in :rance, but the company made the big mistake in its

pricing policy. It probably started with the 1??? merger with &romodes a

former :rench group of retailers, one of its maor competitors in the :rench market.>arrefour confused the :rench customers by losing its low-cost image.

7r. Duran, the new >86 since 22, started on the new strategy by offering 13 new

products in its hypermarkets and 123 in its supermarket. And he wants to employ more

staff, extend the operating hours in certain hypermarkets, cut prices, try small stores,

and push down decision-making. 7r. Duran targets to stay only in countries where

>arrefour is among the top retailers.

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'(1 Ho) so$*d Mr( D$ran assess te opport$nities in ario$s co$ntries aro$nd

te )or*d/5

7r. Duran should assess the opportunities in various countries by

De.ining 6$siness p*an .or accessing g*o6a* %ar7ets

International business plan is important in order to define your company=s present status

and internal goals and commitment, but it=s also necessary if you plan to measure your

results.

Cond$ct %ar7et researc to identi.& &o$r pri%e target %ar7ets(

4ou want to find out where in the world your product will be in greatest demand.

7arket research is a powerful tool for exploring and identifying the fastest-growing,

most penetrable market for your product.

Searc o$t te data &o$ need to predict o) &o$r prod$ct )i** se** in a speci.ic

geograpic *ocation

&repare pricing and determine your landed costs

/e ready to test out your price on your customer. ;ee what reaction you get and then

negotiate from there.

I%p*e%ent an e8traordinar& a.ter-sa*es serice p*an.

%he relationship between your company and your overseas customer shouldn=t end

when a sales is made. If anything, it should be ust the start of a long relationship which

re+uires more of your attention. %he care and feeding of your customers willdetermine if they keep coming back for more.

7ake personal contact with your new targets, armed with culture-specific information

and courtesies, professionalism and consistency

4our goal should be to enter a different culture, adapt to it and make it your own.

Deter%ine o) %$c &o$ can a..ord to inest in &o$r internationa* e8pansion

e..orts(


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'(0 So$*d Carre.o$r adopt 3a*-Mart9s strateg& o. :*o) prices eer&da&:/ 3at

)o$*d 6e te adantage or disadantage o. s$c a strateg&/

In our view >arrefour adopting ompetitive advantage in the retail market competition and leads more and more competitors

to imitate.

DISAD;ANTAGES

Always being the lowest-priced supplier sometimes creates the perception that your product

+uality is lower than that of the competition. ;ome consumers might assume that renovated

products are the means by which you maintain your low prices. Juality-conscious customers

may avoid stores with everyday low pricing strategies.

Insufficient profit margin for discounting- If you struggle to have the lowest prices at all times,

you may not have sufficient profit margin to offer further low prices for promotions or

discounts.

'(< Ho) co$*d Carre.o$r di..erentiate itse*. .ro% 3a*-Mart/

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3a*-%art Carre.o$r

ity store concept consisted of

servicing small andmiddle si0ed towns at

prices e+ual to or lower than prices innearby

cities

Location strateg&

-&lace stores outside towns in areas where

highways provided easyaccess and land

could be ac+uired inexpensively

1=?0

/uild a warehouse that allowed him to buy

largevolumes of merchandise at lower prices.

#igh degree of consumer acceptance -L

fuelled >arrefour's growthstemmed

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;trategy of covering small towns, virtually

ignored by other competitors, the expansion

progressed rapidly without anysubstantive

direct competition until the mid 1?H2s.

#rod$ct strateg&-

Any product a consumer could think of

purchasing more than once a year could be

bought at >arrefour store

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'(@ Identi.& c$*t$res in se*ected co$ntries tat need to 6e considered in order to 6e

s$ccess.$*/

)ermany and &oland both countries are successful with respect to their cultures.

Ger%an&

>ultural awareness or cultural knowledge is becoming increasingly important in today=s global

economy.

)ermans place a high priority on structure, privacy and punctuality. %he )erman people embrace the

values of economy, hard work and industriousness and there is great emphasis on making sure that the

trains run on time.

)ermans are stoic people who struggle for perfectionism and accuracy in all aspects of their lives.

%hey do not admit faults, even okingly, and rarely hand out compliments.

In many aspects )ermans can be considered the masters of planning.

)ermans believe that maintain clear lines of demarcation between people, place and things is the surest

way to lead a structured and ordered life.

)ermany is heavily regulated and extremely bureaucratic.

%hey prefer to get down to business and only engage in the briefest of small talk.

%hey are detail-oriented and want to understand every statement before coming to an agreement.

%hey do not need a personal relationship in order to do business.

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#o*and

&oland's strategic position in the heart of 8urope and its strong and still-growing economy has made it

an attractive destination for foreign businesses.

%he &olish population generally has a strong work ethic and is well educated, and business culture in

&oland is not that different to what expats may experience in other 8uropean countries.

/usiness culture in &oland is formal.


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CONCL"SION

:rom this case we conclude that >arrefour is one of the biggest retailer company in

:rance. %hey invest lot in market share and also earn large amount of profit.

/ut they made one big mistake that is they adopting low price policy like 86 that is 7r.Duran, he decided to adopt new strategy and decide to offer 13 in hypermarket and

123 in supermarket. :or this he re+uires more man power e+uipment and working hour.

#e also decides to do business in only those countries where >arrefour is or will bea

success.

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ST!ATEGIC #LANNING

Strategic p*anningis an organi0ation=sprocessof defining its strategy, or direction, and

making decisionson allocating its resources to pursue this strategy

Strategic p*anning is an organi0ation=s process of defining its strateg&, or direction,

and making decisions on allocating its resources to pursue this strateg&. It may also

extend to control mechanisms for guiding the implementation of the strateg&.

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CASE-ome managerial problems and should necessary steps for raising or improving

%echnical and productive efficiencies and also establish another alternatives

If one alternative cannot success.

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POM Case study