Reference no: EM132212865
The Seven Management and Planning Tools
The Creative Design Group (CDG) designs brochures for companies, trade groups, and associations. Their emphasis on customer service is based on speed, quality, creativity, and value. They want each brochure to “wow” the customer in its design, meet or exceed the preparation deadline, and be of superior quality at a reasonable price. Value is emphasized over price, because the president, Trendy Art, believes that CDG’s experienced staff should emphasize high quality and creativity instead of price. They accomplish their primary objectives 97 percent of the time.
To carry out their objectives, the small company has four designers, a customer service/estimator (CSE), and Trendy, who is the creative director and strategic visionary. The work environment, in a converted garage behind Trendy’s house, features modern (though not always state-of-the-art) computer hardware and software, excellent lighting, and modern communications for sending design documents to clients and printers. Designers generally work independently of each other, consulting with the CSE about requests for status updates or client-initiated changes. They also consult with Trendy, who signs off on the creative design, after consultation with each client. A casual dress code and work policies, and a number of perks for workers, such as health insurance, flextime, generous vacation and sick leave benefits, a 401(k) retirement plan, and competitive wages have, in the past, made it easy to attract and retain talented people. However, with fewer talented people graduating from design schools in the area, and more competitive firms bidding up salaries, turnover has become an issue.
The CSE, Green Ishied, is the contact point for all projects, which may number 10–20 active at any one time. He must ensure that projects are carefully estimated and prepare proposals, track progress of each project, and communicate with clients on status and change requests. He is also responsible for advertising and promotion of the firm.
Trendy’s husband, Hy, is a CPA and part-time accountant for the company. He noticed recently that costs are increasing, the percentage of their bids accepted is decreasing, and the ROI is slipping.
Given the situation Trendy determined several long-range objectives, among which are outdistancing the competition to grow the business by 10 percent per year for each of the next five years (a 61 percent compound growth rate), and adding a new designer every two years. These factors should be the key ingredients for her goal of increasing her profitability by 10 percent per year. To accomplish her objectives, she must deal with the two major issues of the increasing competition and employee recruitment and retention in order to develop effective action plans to support her long-range plan.
Instruction
1. Develop a tree diagram, starting with “Develop action plans” as the main theme. At the next level, include the two main issues. One, for example is, “Develop a plan to meet competition.” Then break out each of the issues into two or three feasible proposals, such as “Make advertising more effective,” under the previous item of “Develop a plan to meet competition.” Finally, add another level of specificity with two to four items, such as: “Place ads in business newspaper,” “Redesign Web page,” and so on, under the “Make advertising more effective” item.