Continued...In 2009 beginning, Suparshwa further introduced the concept of Key Results Area (KRA) for each functions of the firm, those were in line with the MBO. To implement KRA, he listed out the basic strength of the MTC.
The illustrative list of strength submitted by him to Mrugesh indicated the product reliability, dealer network, engineering designs, timely adherence to the delivery schedule, and capability to support new design development.
Suparshwa realised that in spite of all these, MTC lacked clarity of purpose and strategic direction itself. Even though, MTC was established as a company involved in the manufacturing of products, the demand of level of products and outsourcing was sluggish. Though the turnover increased, profit percentages were not attractive. (Refer Exhibit: a and b).
In fact, over the years, several changes had been made in the organisational structure of MTC, to suit the changing requirements. The foremost change made at MTC was the implementation of Strategic Business Units (SBUs) concept in 2003. It was done to get the business focus.
As part of SBU strategy product management concept was introduced. The idea was to centralise the support mechanism required by the front-line staff in marketing and manufacturing. Thus, Marketing Service Department (MSD) was created with 10 coordinating managers and all orders were routed through them, since they co-ordinated the critical functions of production, planning, engineering, design and despatch. This exercise brought to light many things – there was no specialisation, direct sales were taking over dealers’ sales, each salesman was selling several products and versions convincing the outsourcer by selling several product processes, with neither due care about costs nor delivery schedule commitment in a scientific way. The convincing salesman had no authority to negotiate prices. The coordinating managers were providing a buffer. This awareness did help combat recession trends. Click here to read more...
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The illustrative list of strength submitted by him to Mrugesh indicated the product reliability, dealer network, engineering designs, timely adherence to the delivery schedule, and capability to support new design development.Suparshwa realised that in spite of all these, MTC lacked clarity of purpose and strategic direction itself. Even though, MTC was established as a company involved in the manufacturing of products, the demand of level of products and outsourcing was sluggish. Though the turnover increased, profit percentages were not attractive. (Refer Exhibit: a and b).
In fact, over the years, several changes had been made in the organisational structure of MTC, to suit the changing requirements. The foremost change made at MTC was the implementation of Strategic Business Units (SBUs) concept in 2003. It was done to get the business focus.
As part of SBU strategy product management concept was introduced. The idea was to centralise the support mechanism required by the front-line staff in marketing and manufacturing. Thus, Marketing Service Department (MSD) was created with 10 coordinating managers and all orders were routed through them, since they co-ordinated the critical functions of production, planning, engineering, design and despatch. This exercise brought to light many things – there was no specialisation, direct sales were taking over dealers’ sales, each salesman was selling several products and versions convincing the outsourcer by selling several product processes, with neither due care about costs nor delivery schedule commitment in a scientific way. The convincing salesman had no authority to negotiate prices. The coordinating managers were providing a buffer. This awareness did help combat recession trends. Click here to read more...
Read More IIPM Related Articles
Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri's Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
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Professor Arindam Chaudhuri - A Man For The Society....
IIPM: Indian Institute of Planning and Management
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