Aligning product-based business objectives and policies with the entire business strategy
It has been found that numerous New Zealand businesses are suffering from issues related to managing operations which can be improved if managers recognise market opportunities and plan business objectives strategically. The first and foremost, Businesses can improve their performance by establishing directions which is meant to align operational priorities with organisational objectives and apart from rectifying mistakes through revising policies; developing a culture of innovation can help the business to sustain in the market longer period.
Aligning product based business objectives and policies with the entire business strategy may seem easily implacable yet various issues have been experienced by the managers. Even after creating policies and mission statement related to operational priorities, workers cannot really the follow the guidelines due to difference between firm’s objectives and sudden operational priorities. In order to solve the matter, New Zealand businesses must try to focus on aspect of balancing two features together. For instance, if serving quality product is priority then infrastructure should be supportive enough to provide that or a company cannot rely on vendors which supplies poor quality of materials. Measuring the quality of provided material and trying to improve performance by customers’ feedback or developing HR capabilities through training and recruitment and motivate them to obtain product based goals are some of the measures that a business can opt for to improve itself.
Innovation is necessary in business because if managers are only focusing on eliminating faulty practices, correlating mistakes and apply smart product based policies then at a point the business will be stagnant. In order to add variation and increase acceptability a business should practice extraordinary ideas of implementing a cost effective way or how quality can be increased without altering operation cost etc. Establishing direct routes is predictable and chances are strategies can be imitated by rivals. Thinking in an extraordinary way and good relationship with the suppliers’ help to deliver quality and maintain relationship with the customers in longer terms.
A country’s psychological health is dependent on how happy people are within the given parameters. New Zealand is a country where managers have a tendency to improve the workplace culture for enhancing HR capabilities. Another important factor is people can accept various cultural background quicker than any other nations. It increases employee loyalty, efficiency and they feel more engaged with the work. With the strategic objective of improved and efficient outcome, boosting employee engagement providing facilities can be spotted in companies and MixBit and Trade Me. While Trade Me offers employees to avail games and Mp3 song player to beat stress and input the best at work; as per Youtube.com (2019), MixBit offers a range of gaming facilities including LEGO, pool and table tennis while collaborating for original video contents.
Developing a culture of innovation
Air New Zealand has been following a strategic direction since the beginning of millennium to break their monotonous, non-flexible services to customized and more bespoke facilities. The company realized the changing behaviour of customers regarding travelling and following the changing needs the airline have chosen to deliver value based services which satisfy all their travelling criteria. With the changing nature of business, following the study of Liu, Ke, Wei and Hua (2013), the company has applied digital strategy to identify the current customer base. The business objectives of digital strategies are creating brand awareness, engage customers to the brand and collects feedback to serve the customers better. To increase the revenue and sustain within competitions framing efficient digital strategy is the appropriate generation based approach.
As per the case study, at stated in Sem.tsinghua.edu.cn (2019), improving operation management can help to accomplish business objectives only if following framework can be followed. Operation managers, generally, align shared goals to strategic plans which makes an organisation capable to compete within turbulent business environment. Operation managers take the responsibility of procedures which are analysed, modified and followed later. Keeping the operation plan in centre, managers can shape the performance of the entire workforce to accomplish particular business objectives. While different departments are working on different responsibilities, it is the duty of managers to align all those segregated duties with one business objective. The task is to allocate duties efficiently and maintain seamless communication for collaboration and support from various departments. Such as, irrespective of industries, operation managers establish linkage between capability human resource, suppliers’ quality and infrastructure to offered services and products or connecting marketing with the percentage of sales as well as profitability.
‘Production, operation planning and supervising the entire method’ contributes positively to business goals. Apart from financial planning, how the targeted production will be met that is another question to be solved. Operational departments can satisfy the mass requirements when workforce is flexible enough to work at different working hours and explore their full potential. Understanding customers’ demand, serving them high end customers’ service by addressing their feedback is important products can amended based on those feedback applying just in time approach. Following this policy, firm’s performance can be measured and quality can be managed too.
It must be remembered that companies have to provide the customers whatever the organisation has promised at the time of marketing campaign. Southwest Airlines clearly refuses to transfer baggage as at that time they were not capable of providing that facility. It helped them to gain competitive advantage and fulfil business objectives of on time arrival and offering efficient customer service as well. As a result, number of complaints regarding lost baggage has decreased.
Boosting employee engagement
Managing inventory costs and suppliers’ relationship is significant in terms of fulfilling business objectives of satisfying customers as well within budget. In case a company wants to deliver premium quality they cannot choose suppliers who provide low quality materials. Besides, a company should certify suppliers based on their quality as company mission is to serve premium quality. Company needs to understand the demand of the market, otherwise inventory cost will be high. A company which runs on cost effective operational system cannot make wrong calculations while understanding the customers’ requirement to avoid increased inventory cost.
As firms of New Zealand confronted with dilemma in making business decisions and suffers from demand uncertainty at a large rate, Oracle treating all the product lines in similar manner and by planning resource packages smartly, they try to accomplish the business objectives.
Management accounting helps to estimate the budget while finance planning. It tries to predict the budget analysing the gathered information and determined actions within available firm policies. The study of Taipaleenmäki and Ikäheimo (2013) states correct balance between facts and figures keeps the financial control in hand of managers. It is important as it helps to interpret monetary information and predict the capability. As stated in Ghanbari and Vaseli (2015), financial planning makes the operation more organised and stick to the budget. Companies can survive in long terms following the digital tools for management accounting and gain competitive advantage. Implementation software for management accounting help to do the tasks with efficiency and more quickly. Customers want their service within affordable range, whereas shareholders ask for more profit. In such a condition planning monetary resources professionally and in a cost effective manner can help to manage all these aspects. With the gradual increase in economic competition, companies feel pressure to perform at their best based on financial figures. That is why, cost effective innovation procedure have become necessary for increasing the quality and percentage of profit while keeping the operation cost lower. Another important thing is, while accounting managers develop an idea about various procedures and its capability of adding value towards organisational performance.
ABC accounting process or activity based costing is one of the effective techniques that has been applied in New Zealand business scenario. Activity based costing is dependent on usage of resources. Such activities cover entire range of products and services. By following this method, cost of entire project can be determined and it helps managers to take important business decisions assigning more direct costs.
Improving operation management
Whereas, activity based costing decides the activities first and calculates cost later; cost benefit analysis compares two or more strategic choices and choose the most cost friendly term as per company capability and customers’ demand. Future costs are analysed as revenue is associated with this matter. The performance depends on the smart investments too. It compares cost of business strategy and the value of its outcome in parallel. It is compared on the basis of tangible and intangible costs along with benefits. The objective is to measuring finance for restoring value.
PWC, Deloitte are some of the big industrial names which can be regarded successful outcome of efficient management accounting.
Irrespective of business size and its industry, need of marketing plan is everywhere as structured objectives help to understand managers and employers which way to follow for accomplishing business goals. Acknowledging the business objective of a particular organisation, followed by a situational analysis marketing plan includes selecting preferred demographics and then prepare strategies to cater the needs of that targeted customer bases. The success of business objectives depends on effective use of marketing strategies that involves effective communication plan with customers and within the company too. Impact of sales and marketing strategies will affect the business goals positively when the strategies would be specific and goals oriented. Contemporary digital strategy is fine example of measurable strategy as using social media business actually can measure a product’s acceptability among targeted audience and amend the product line accordingly expecting greater benefits which has been implemented in all possible business industries. Reasonable objectives makes the success easier to achieve and it must align with the available resources. The impact of sales and marketing strategies over business objectives will generate desired outcome only if all of the above mentioned criteria can be fulfilled within a specific timeline. Basically, following the study of Huang and Sarigöllü (2014). , it can be said, marketing enhances product recognition, creates a solid brand image and convinces the targeted demographics to buy a particular product or service. A successful implementation of marketing campaign leads towards fulfilment of organisational objectives. On the other hand, increased sale boosts the capacity of production. Sometimes, there are some sale strategies like businesses try to create a mock crisis of products to understand the acceptability of a particular product or service. Based on received feedback from customers, company pushes the production and marketing and both of the aspects penetrate sale and profitability.
Managing inventory costs and suppliers’ relationship
While talking about sale and marketing process or techniques, it must be remembered that most of the businesses in New Zealand are innovative and belongs to national origin. Businesses are approaching globally to the local audience. Although, digital strategies; creating social media pages help to add competitive edge and serving customized preferences few local approach organisations can follow to fulfil business objectives.
One of the two process is to create a local network of people who are relevant to the business type. Contacts is important to create popularity for a particular brand locally. Joining local business associations and keep the members updated about the new products and its purpose. Such communities can be created in digital platform as well. A digital business community not only increases brand recognition power of target audience, it will directly reflect to the sales. Local networks or business contacts can be created by distributing business cards and through advertisements introducing the new product line or services.
As per the study of Eid and El-Gohary (2013), another effective and contemporary way is to use method of digital marketing. Professionals can be recruited to execute responsibilities of applying methods so that the company website would appear among the names of most searched list using various keywords. Moreover, use of Facebook and Instagram for developing a brand image through positing creative content is the most contemporary ideas of all. Understanding of clients’ demand, their preferences is crucial which need skilled market analysts. Apart from establishing business relations, developing media relations is important too. Local newspapers, radio, television advertisements, radio broadcast can do the publicity of business.
Once the business get establishment, customer loyalty programmes are helpful to retain the existing base and innovations in marketing procedure and noticeable change in product line will enhance the percentage of sales. Moreover, a company like Xero has attracted a customers by following an honest approach in business and providing employees with best ever social support to work attentively (Xero.com, 2019). It is a great marketing process which is being vocal and publicize a culturally advanced workplace. It has the ability to build up competitive advantage and capture the attention of investors, customers and potential talents as well.
Strategic human resource management tries to establish a relationship between a HR capabilities and organisational objectives with the aim of achieving flexibility in terms of power of innovation and enhanced production rate. As discussed in Kramar (2014), it improves a company’s competitive position in market and performance gradually. Managing HR capabilities strategically is significant as rival business can imitate other strategies yet they cannot replicate talents possessed by a certain organisation. A company may invest higher monetary amount but if HR management is not up to the mark, investment means nothing on that field. That is why, companies need to focus starting from the recruitment, on-job trainings to retaining them with loyalty policies.
Applying effective management accounting
Now a days every company irrespective of national background have separate department to manage employees realising the fact that improved HR capabilities can directly influence company’s growth. The central jobs of HR managers are to develop them consistently offering training and development sessions and retaining them by revising HR policies so that they can continue to support the company fulfilling various requirements. To possess a capable workforce creating training a development programmes not only for trainees but also for working professionals according to the project needs, as it can help to strengthen product or service quality. Due to technological advances, there are various job roles which have been omitted yet effective management of technologies help the company to take the control of both the budget and quality. HR managers consistently try to provide friendly workplace culture where employees can meet the targets and comply with organisational rules. A workplace where effective communication is present and people are happily working, is the place likely to generate higher production rate than their rivals. The example of MixBit helps to understand, how HR management can influence a business positively by managing human resource strategically according to future needs of a certain organisation.
Particularly, if the case of businesses in New Zealand, according to the case study, described in Sem.tsinghua.edu.cn (2019), aspect of HR management is dealt with utmost importance as they believe in the quality of job life, do not prefer to exploit people in names of business requirements and employment along with that respect people’s dignity. In case national organisations aim to possess high calibre workforce, their recruitment process must include high end evaluation process which is capable of filtering talents according to the various business needs. Employees need to have efficient skills to manage job responsibilities within working schedule, it will enable them to balance work and life. Basically, by providing a healthy workplace environment and support organisations can enjoy efficiency from workers and gain employee loyalty for long term.
Additionally, training and development facilities help an employee not only to solve organisational issues but to improve their individual capabilities. Apart from developing workplace environment, proper leave policy, reward and recognition, retirement policy and added benefits help an organisation to retain such talents to achieve long term goals. As described in Rafiei and Davari (2015), another aspect can be mentioned that is maintaining seamless communication across all the hierarchical levels is necessary for sharing knowledge and contribute opinion in decision making. Organisations who value their employees’ opinions, likely to do well in business. Varied opinions enables to approach innovation in business along with that if a company starts to address such efforts employees will feel valued and contribute more towards business needs. As mentioned before, MixBit has invested a great deal of money for developing accurate workplace environment for employees expecting highly creative output from them.
Marketing strategies
No business is free from risks whether it may be a decision, execution related or regarding the product delivery. According to Carvalho and Rabechini Junior (2015), acknowledging the strategic outline whatever decision an organisation is opting for that should impact the final result. While implementing the decisions risk can be generated too and there are several market risk after delivering a product to the market regarding its acceptability. Mitigating business risk is a part of implementing strategies successfully. That is why, efficient risk management is necessary to maintain flow of the production strategically and its performance too.
There is the most frequently used method for managing risks. Evaluating the purpose and chances of mitigating risks, risk management policies first recognise the source of the risk. Professionals invest time and money to analyse it and research on methods applying which risks can be mitigated. After discussing the potential of various solutions, risk is treated and consistently being monitored if spotted with any difficulties further.
Apart from the generic approach a business can mitigate risks based on types of risks in sectors of strategy formation, compliance of regulations, financial or operational. It has been noticed that in New Zealand businesses are dependent on operational efficiency mostly. Therefore, areas of technical risks, operating day to day operations with efficiency is important for avoiding risks. Operational risks can occur due to HR faults as well. Therefore, handling customers and job responsibilities with utmost dedication is significant for businesses in the field of New Zealand.
References
Carvalho, M. M. D., & Rabechini Junior, R. (2015). Impact of risk management on project performance: the importance of soft skills. International Journal of Production Research, 53(2), 321-340.https://doi.org/10.1080/00207543.2014.919423
Eid, R., & El-Gohary, H. (2013). The impact of E-marketing use on small business enterprises’ marketing success. The Service Industries Journal, 33(1), 31-50. https://doi.org/10.1080/02642069.2011.594878
Ghanbari, M., & Vaseli, S. (2015). The Role of Management Accounting in the Organization.
[© 2015 Available online at www.irjabs.com]
Huang, R., & Sarigöllü, E. (2014). How brand awareness relates to market outcome, brand equity, and the marketing mix. In Fashion Branding and Consumer Behaviors (pp. 113-132). Springer, New York, NY. [Retrieved from: https://link.springer.com/chapter/10.1007/978-1-4939-0277-4_8]
Kramar, R. (2014). Beyond strategic human resource management: is sustainable human resource management the next approach?. The International Journal of Human Resource Management, 25(8), 1069-1089. https://doi.org/10.1080/09585192.2013.816863
Liu, H., Ke, W., Wei, K. K., & Hua, Z. (2013). The impact of IT capabilities on firm performance: The mediating roles of absorptive capacity and supply chain agility. Decision Support Systems, 54(3), 1452-1462. https://doi.org/10.1016/j.dss.2012.12.016
Rafiei, N., & Davari, F. (2015). The Role of Human Resources Management on Enhancing the Teaching Skills of Faculty Members. Materia socio-medica, 27(1), 35. doi: 10.5455/msm.2014.27.35-38
Sem.tsinghua.edu.cn. (2019). Tsinghua University School of Economics and Management. Retrieved from https://www.sem.tsinghua.edu.cn/en/david
Taipaleenmäki, J., & Ikäheimo, S. (2013). On the convergence of management accounting and financial accounting–the role of information technology in accounting change. International Journal of Accounting Information Systems, 14(4), 321-348. https://doi.org/10.1016/j.accinf.2013.09.003
Xero.com. (2019). Online Accounting Software – Free Trial, Free Support | Xero. Retrieved from https://www.xero.com/nz/
Youtube.com. (2019). MixBit – Mixbit Video App Demo. Retrieved from https://www.youtube.com/watch?v=N__hKR_tzW8
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