Answer in Management for Sameen Shah #159931
Mr. Ali is a CEO (Chief Operating Officer) of XYZ Electronics. He has introduced a new project in which the electronic appliances will be delivered online to customers. Currently XYZ Electronics has 8 outlets across Pakistan through which it sell the products. A team of 8 members was formulated for the new project.
Two members of the team were involved in planning process. They worked on creating effective plans, strategies and objectives of project execution.
Furthermore, two members were the part of organizing process. They looked after allocating the resources, determining what tasks are to be done and who will perform those tasks.
Moreover, two members were involved in leading process. They looked after employee behavioral and motivational issues. And at the last the remaining two members were involved in controlling process i.e. monitoring the project performance comparing actual with the desired performance.
Despite the efforts of the team the results of the project was not progressive as expected and now it’s a challenge for XYZ Electronics to figure out what’s going wrong.
Being a management student you have to carefully analyze the situation and answer the following questions
A) Discuss in detail the external and internal factors which you think are affecting XYZ Electronics. Give logical reasoning of selecting each factor
The external factors which are affecting XYZ Electronics include competition and consumer demand. Competition is very essential especially in cases where there is more than one company doing the same business. If XYZ was a monopoly, then they would have not had a problem with competition. However, companies that sell electronic appliances are quite a number and therefore there must be competition. XYZ electronics did not consider exactly what their competitors were doing in order for them to do something different. One thing with competition is that a company needs to be alert of the things the other company is doing so as to outdo them in order for the customers in the market to consider them better than the other company meaning they will purchase their products more (Abd Ghani et al., 2010). Secondly, the consumer demand matters. In relation to competition, XYZ needed to be aware of what their target consumers wanted. For example improve their services and include a free delivery service once a customer has purchased a product.
The most significant internal factor affecting XYZ Electronics is technological innovation. Initially XYZ was only working physically and then the CEO initiated an online platform project. The fact that they are monitoring the behaviors and attitudes of the employees is good but the employees have not yet adjusted to the online situation. This is because a transition takes some time and that means they are still adjusting to this new culture where they have to be advertising and selling the products online (Abd Ghani et al., 2010). Transitioning to this technological way of doing things is hindering XYZ from performing as it had initially expected.
Abd Ghani, K. D., Nayan, S., Mohd Ghazali, S. A., Shafie, L. A., & Nayan, S. (2010). Critical internal and external factors that affect firms strategic planning. International Research Journal of Finance and Economics, 51, 50-58.