MANAGEMENT EXAM

Business case: Company X operates online trading platform/website. Products: toys, women's
and men's wallets, accessories and watches. The company doesn’t produce goods, just provide resale
activity. Each category products are supplied from only 1 (one) specific supplier, i.e. toys (T1
supplier), women's / men's wallets (T2 supplier), etc. According to the financial reports, the watches
product category/activity generates zero profit, even with this type of production company has been
trying to enter to the market for 2 years, but unsuccessfully. Revenue and profit from other products
are constantly growing.
The CEO of the company provides an aggressive sales policy and believes, that the order must
be completed by any means. The Sales division Manager (SDM) is responsible for organizing,
coordinating and developing sales activities. The functions of 4 Sales Managers (SM): sales contracts
management, goods descriptions on the website, sales promotions, orders administration, assortment
policy, etc. A new order is regulary assigned to the SM, who has more free time on the current
moment. If SM faces with some problems and issues, he or she can always consult with colleagues,
gain new experience (each product category has its own specifics). Such work distribution policy is
managed due to the high workload and in order to expand the field of specialization of every
employee. Marketing activity is managed by Marketing Manager (MM).
In the company are created 4 positions for Assistants (2 positions are in the Sales Department, 2
– in the Warehouse Department). The workload and work plans of Assistants are set and managed by
SDM and the Supply-Warehouse Division Manager (SWDM). The Office Administrator (OA) is
responsible for documents management policy, clients service activity and clients feedback. OA
provide customer service by phone and e-mail, but according to the workload, Assistant from Sales
division can be included in that operation. Clients feedback function as well not work properly:
surveys are delayed, sometimes surveys are duplicated, surveys are not sent to all customers.
The supply-warehouse division is directly responsible for the logistics operations of the goods
from suppliers to the final client. The supply-warehouse division operates/uses goods supply e-system,
which is connected with Sales department. When the sale is made on website, 2 (two) Warehouse
Operating (WO) teams are in progress of goods delivering process. The 1 st team unloads the goods
received from the supplier, sorts them, stores them. After the sale, 2 nd team selects the goods according
to the order information, packs the selected goods and prepares them for transportation. The packaged
goods are passed to the courier company (based on the business contract), which distributes the parcels
to the final customer.
However, the SDM faces with customer complaints – frequent delays, technical errors. This is
caused not only by late orders from suppliers, but also some technical bugs in the IT system, managed
by IT Specialist (ITS)), in which sales information and information about the balance of the goods is
constantly delayed. That means, Company X sell a product, which is not in the warehouse. As well
slow response to the customer complaints and increasing number of wallets with defects, also, the
packages of parcels are often damaged when they are picked up by the customer from the parcel
machine network or directly from the courier. Computer and software is required for a update – it is
very difficult for the marketing specialist to make properly design / layout work. Due to the large scale
of work and activities, the SDM is unable to coordinate all activities, physically unable to discuss and
indicate all problematic issues, evaluation of the production quality, etc.
Company X constantly faces with some staff problems – lack of motivation and complaints due
to a high level sales volume and critical flow of workload (employees often stay after work and work
on weekends). Sometimes, not regulary, employees are awarded by bonuses. Increase of the salary is a
very rare phenomenon in this organization, unless is required by staff members. Company’s
administration follows the principle that it is better to raise salary more frequently, but at a lower rate.
Level of turnover/profit is the main rate, which is critical in that company.
 TASK 1: According to the business case, please name the main problems for each
management function and make decision for solving the problem. (4 points)

Management Management decision (name

Problem Value for the company
function in short)


Improve sale and Customer Enhanced customer
Sales Function: Sales
Management Service Process satisfaction and loyality.
Customer
complaints due to  Customer
Reduced return ratesand
delays, technical service
complaints, leading to
Management
errors and slow better brand reputation
response times.
More Efficient sales and
Frequent issues delievery processes,
with product increasing profitability.
defects.

Conduct a thorough review of the sales and customer service

EXPLAIN HOW THE DECISION
SHOULD BE MANAGED AND processes.
IMPLEMENTED (MAIN Implement training programs for Sales and managers and
PRINCIPLES) assistants focused on customer service excellence.

Improve Communication channel between the sales team and

the warehouse to ensure real-time stock updates.

Management Management decision Value for the company

Problem
function

PLANNING Ensures real-time data

IT Function
accuracy, preventing
Technical bugs in IT System Upgrade and overselling and stockouts.
Management Maintenance
the IT system
Reducesoperational
causing delayed
disruptions, leading to
updates on sales
smoother sales and
information and
logistics processes.
inventory
balance.

Conduct an audit of the current IT system to identify and fix

EXPLAIN HOW THE DECISION
bugs.
SHOULD BE MANAGED AND
IMPLEMENTED Upgrade the software and hardwares as needed to handle the
volume of transctions.

Implement regular maintenance schedules and backups to

prevent future issues.

Provide Training to the IT system specislist to handle

advanced system troubleshooting and maintenance.
 TASK 2: According to the business case, please create one (1) strategical, one (1) tactical and
three (3) operational goals in order to solve problem. (2 points)

Problem:

Strategical Responsibility
Operational goals
goal Tactical goal (title of the job
(at least 3)
position)
Diversify Streamline and IT Specialist
Product optimize supply chain Improve IT System Reliability and
Portfolio and Efficiency
enhance Office
profitability Enhance Customer feedback Administrator
Mechanism
Increase Quality Control for Products Sales Division
Manager SDM

TASK 3: According to the business case, please integrate FULL control system based on the
PROBLEM. (4 points)

PROBLEM:

Criteria
system/Rates/Metrics
(evaluation).

Title of the rates?

Decision/tool of the control:
Control Responsibility –
please, explain how the control
COMPLEX Indicate whether your title of the job
decision should be managed
(levels/types) rate is quantitative or position?
and implemented
qualitative?

Explain how rates will

managed at each level
of control?
Operational Key Performance Indicators
Control: (KPI) :
Overseeing daily Define specific KPIs for each
activities, department to measure
ensuring performance effectively.
efficiency, and Example include order fulfillment
maintaining rate, customer satisfaction score,
product quality. and return rates.

Balanced Scorecard: Implement a Title: Profit Margin by CFo and SDM

Financial balanced scorecard approach to Product Category
Control: align business activities with the Quantitative: yes
Monitoring company vision and strategy. Management: Calculate
revenue, Profit This includes financial customer the profit margin for
margins, and internal business processes, and each product category.
expenses. learning and growth. Managed at the financial
level.

CRM Customer Relationship OA and MM

Management System: Title: CSS
Logistic Control: Utilize CRM to manage customer Quantitative: Yes
Managing the interactions feedback and service Management: Conduct
supply chain from requests. Ensure integration with surveys and measure the
supplier to the sales and supply chain average satisfaction
customer. systems for real time data access. score. Managed by the
Office Administrator
OA and marketing
Manager.

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