Assignment

GUIDELINES AND BACKGROUND TO THE ASSIGNMENT:

The intended learning outcomes are that on completion of this module the student should be able to:

1. Understand the organisational context - commercial, voluntary, public sectors and interdependencies between them.

2. Identify the basic principles of business including the way in which businesses operate and the factors that influence the process of making managerial decisions.

3. Demonstrate an understanding of the core concepts in each of the business functional areas and their integration within the broader organisational context.

The case study

Background

Shoe-Makers Ltd produces fashion boots and industrial footwear, which are sold under the brand name of "Big Boots". This footwear brand can only be bought in specialist retail outlets throughout the UK or from their own shop, which is situated in the heart of Manchester.

During the 1990s the company achieved huge successes. Their footwear range was particularly popular with the student segment of the market, because of their durability. Sales to other segments of the market were also increasing, as were their profits.

The managers of the company decided to expand their factory to cope with this increased demand, which also meant doubling their production workforce.

The present situation

The factory is situated in a rural area approximately 100 miles from their Manchester store. New employees were recruited from the locality and are given two day's training in the production process when they first started. Management introduced a ‘single-piece' rate, which means all employees are paid for each item of footwear they produce. The managers believed this system is an incentive to increasing productivity. However, the new recruits were making many mistakes leading to rejection of many boots by quality managers.

The experienced workers started rushing their work in order to increase their wages and this led to an increased number of consumer complaints regarding faulty or poor quality goods. Added to this was the increased competition from other manufacturers. The "Big Boots" brand saw its sales figures drop by 50 per cent within two years, which resulted in a loss of market share.

Two-thirds of the workforce has now been made redundant. Those remaining feel very insecure and are unhappy with their current working conditions. Production has been reduced, which means they are losing out on wages. The equipment in use is constantly breaking down, leading to further time lost for which employees are not being paid.

The remaining workers have asked the management to change their payment system to a guaranteed weekly wage for the hours they work. They have threatened to withdraw their labour if conditions do not improve.

Coursework Questions:

Considering the present situation of Shoe-Makers Ltd, prepare a report which discusses the actions that could be taken by each of the following functions to ensure that the business will be successful:

• Operations
• Marketing
• Human Resource
• Accounting/Finance
• Senior Management

You are expected to use relevant theory from both lecture materials and your own self-directed academic study to underpin your answer.

Word limit: 2,000 words

Report Guidelines (with expected word count limits)

• Table of contents [not included in a word count]
• Executive summary [approx. 200 words]
• Introduction (overview of the case study / what the report will be about) [approx. 200-300 words]
• The main content of the report (hint: you could use subheadings to show which business function you are focusing on OR you can analyse the case study by the issues you identify) [approx. 1200-1400 words]
• Conclusions [approx. 200-300 words]
• References (in CU Harvard Reference format) [not included in a word count].