Announcement
QUARTER FINAL | BUSINESS CASE - BCS 04
Business Adviser 2 Submission BCS 04
NMO 2020
Advisory note on 'organizational culture' of DND
Submission Date & Time : 2020-03-22 13:27:03
Submitted By: SAURAV GOHAIN - Business Adviser 2 From Team Earth
Case UnderstandingIt is a case of a Delivery startup named “Daily needs delivery LLP†(DND) which is founded by two college friends. It basically deals in delivery of mainly 3 products including Milk, Paneer (cottage cheese) and Curd. DND uses an app based ordering system where customers can order for their daily needs accordingly. It currently has presence in cities like Delhi, Bengaluru and Mumbai only. Although the organization is showing a good growth as its total sales have increased from Rs. 67211000 in financial year 2017-18 to Rs. 117450000 in financial year 2018-19 keeping in mind that it is still in its initial phase but currently it is running under Operating Loss of Rs. (6855000) approximately annually. Like all start-ups DND too is facing certain challenges which are as follows: 1. Increasing competition from Traditional competitors and new entrants in the market. They are taking advantage of non-availability of services in Non-dense areas by DND. 2. Company is clueless about its organizational culture as to how should it can improve its organizational culture in the company. 3. Non-cooperation of Delivery partners as sometimes delivery executives do not report to duty in the morning and due to deliveries get affected in that particular area. Also, there are certain cases of missing deliveries. 4. DND is not having a strong customer service network as some customers are facing difficulty in complaining or giving feedback through website/app.
BCS Solution SummaryIn response to the problems stated above and the improvement of organizational culture of the company, I, as a Business Advisor of DND have proposed some of the solutions and steps which should be implemented and also certain things which have to be kept in mind while improving the organizational culture in my main solution part. Some of my proposals include that the company should have personnel communication with its employees, like informal communication should be there between the employees and employers.
Solution
By taking the current situation of the company in mind and analysing all the challenges it is facing, I am proposing following solution as an advisory note for the improvement of the organizational culture :By taking the current situation of the company in mind and analysing all the challenges it is facing, I am proposing following solution as an advisory note for the improvement of the organizational culture :
1) The management of the Company should come up with a 3-year plan and set some targets to achieve in these three years. DND should strive towards achieving the trust of each and every employee of the organizational, they should build a good communication between the employees . Here, the principle of “Authority and Responsibility” is used as the management has the authority to take decision and to give order but also has certain responsibilities to fulfill.
2.) Currently corporate offices are facing some issues on delivery partners is that suddenly they don't report to duty in the morning.
-The organization can make some changes in the reporting timings of the delivery partners & their shift timings. They can even introduce different shift like part time of 3 hrs & full time of 12 hrs shifts. According to me the organization should pay their delivery partners according their deliveries, instead of their hours of work.
They should be given a flexible reporting hours such as they can report to their duties at any point of time & can start their duties.
-HR can ensure the company understands employee concerns and act on them by conducting an ongoing feedback loop via engagement surveys or focus groups to give employees the chance to voice their opinions.
Once this feedback is collected, HR can help to ensure unity across the leadership team, coaching those at the top and making them aware of negative behaviors and how these impact the company as a whole. In addition to encouraging leaders to drive the necessary changes, it is also HR’s responsibility to impact culture by working to remove those who are poor leaders and bringing in people who align with the company’s current or desired culture.
There some of the important points to keep in mind to ensure a good organizational culture
- A mentality of "we're all in this together" (the company, suppliers, and customers)
The company not just as the buildings, assets, and employees, but also customers and suppliers. The goal is consistently win-win-win for all parties.
- Open, honest communication is vital
An important way to encourage truth-telling is by creating a culture where people listen to one another. This is a culture where open, honest communication is understood as necessary for people to function best.
- Information is accessible
Information accessibility is at the heart of the work we do. Business leaders should be open about sharing information on the company’s strategic goals because this information provides direction for what we will do next and - more importantly - direction for how to improve.
- Focused on processes
- Everyone should move away from a "blame the person" mentality to a "blame the process and let's fix it" approach to problems and improvement.
- There are no successes or failures, just learning experiences.
- An important insight is that failure and success are always value judgments we form after the fact. We can never predict with certainty whether what we do will end up as a success or a failure (or a mistake). We do the best we can based on our current experience, information, and understanding, and something happens
- 3) Proper Customer service centre culture should be maintained for those who are handling customer’s grievances and feedback. Every customer service executive shouldn’t be only allowed to work continuously during their shift hours but also they should be given ample amount of time & resources to relax themshelves because they are also humans. They should also given the amount of holidays as prescribed by the company policies, hence their holidays should not get cancelled. Even if they do overtime even after their working hours they should be paid fairly. Hence last but not the least they should also be respected enough as the other employees of the organization
Optional Assignment
Q. Suggestions for the strategy of organizational growth for next year
A.
These are some of the strategy that the organization can implement for the organizational growth next year
Joint Venture/Alliance—. Forming joint ventures or alliances gives all companies involved the flexibility to move on to different projects upon completion of the first, or restructure agreements to continue working together. Subcontracting, which allows firms to concentrate on those aspects of their business that they do best, is sometimes defined as a type of alliance arrangement (albeit one in which the parties involved generally wield differing levels of power). Joint ventures and other business alliances can inject partners with new ideas, access to new technologies, new approaches, and new markets, all of which can help the involved businesses to grow. Indeed, establishing joint ventures with overseas firms has been hailed as one of the most potentially rewarding ways for companies to expand their operations. Finally, some firms realize growth by acquiring other companies.
Licensing—A firm may wish to expand and grow by licensing its most advanced technology. This course of action is often recommended to firms with their own proprietary technologies because competitors will likely copy whatever a company develops at some point. Licensing is one method that can be used to maximize the benefit that a firm can gain from its technology. It is also a way to gain the resource to fund future research and development efforts.
Sell Off Old Winners—Some organizations engaged in a concerted effort to grow divest themselves of mature "cash cow" operations to focus on new and innovative lines of products or services. This option may sound contradictory, but analysts note that businesses can command top prices for such tried and true assets. An addendum to this line of thinking is the divestment of older technology or products. Emerging markets in Latin America and Eastern Europe, for instance, have been favorite places for companies to sell products or technology that no longer attract high levels of interest in the United States. These markets may not yet be able to afford large quantities of state-of-the-art goods, but they can still benefit from older models.
New Markets—Some businesses are able to secure significant organizational growth by tapping into new markets. Creating additional demand for a firm's product or service, especially in a market where competition has yet to fully develop, can spur phenomenal growth for a small company, although the competitive vacuum will generally close very quickly in these instances. In the last ten years, many small firms have turned to an online marketing presence as a tool for reaching beyond their traditional markets. For those who do not yet market and sell online, this is one area that may be explored.
New Product Development—Creation of new products or services is a primary method by which companies grow. Indeed, new product development is the linchpin of most organizations' growth strategies.
Outside Financing—Many small companies turn to outside financing sources to fund their expansion. Smaller private firms search for capital from banks, private investors, government agencies, or venture capital firms.
ConclusionThe top level management of the company should set certain targets for itself to achieve in the next three years and prepare a three-year improvement plan. It should work according to this plan and also keep in mind all the challenges and opportunities in the market. It is evident that the company is in dire need of improvement at this stage but there are certain problems which are needed to be solved and fixed before expanding its business futher into new markets like Mumbai, Kolkata, Chennai, etc. All the departments such as Finance, Marketing and Human Resource should work collaboratively to achieve break-even point of the company and work upon the proposals listed above for improvement strategy. The management has to make sure whether all the things are in place while implementing these solutions. For example: a concrete marketing plan should be there for entry in these new markets, taking care of finance needs of the investment required in procurement of assets and other expenses and the recruitment and training of people by Human Resource department.
Attached File Details
Comments
Dr Saroj Kumar Dutta
Try to adopt more practical approach next time..Good Job!
Varun Viduhi
Good analysis Solution is also feasable But some HR points could be better implied
Participant
SAURAV GOHAIN
Doon business school
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