Service Adhesive Ltd: Strategies For Enhanced Profit Margin And Sustained Growth

1. Describe the current business operations approach of the Service Adhesive ltd and how the need for improvement emerged

2. Improvement Initiative Roadmap adopted by Service Adhesive

Please critically describe the improvement initiative roadmap adopted by Service Adhesive in order to improve their operations.

3.Please critically describe team work motivation and employee empowerment approach adopted by Service Adhesive ltd

4. Identify and describe potential risks in order to ensure maximum success of the Service Adhesive improvement project. In addition, create a realistic time schedule report.

5.  What would you recommend to the Operations Director of Service Adhesive for further improving their operations and sustain any changes made;

While filling the risk register template, make an estimation on potential risks that may appear during the operational improvement phase.

Do not focus your reports in financial (budget) and technical details, as these are not available in the case study. Instead concentrate on managerial facts and information provided on the case.

You may use the provided Risk register template as well as the Time schedule template for your support, or create your own ones.
 

Importance of Continuous Changes in Strategies for Business Sustainability

Every company has to go through the stages of fall and rise the companies that are engaged in the production of products that are used in the FMCG sector, has to face stiff competition from the market players. In such a situation the companies of that sector has to bring continue changes in their business strategies in order to sustain in the competitive market. Service adhesive ltd is a mid-sized company having more than 20years of experience in the sector to produce specialist adhesive. Due to its long term presence in the market it has earned reputation and is recognised as one of the best adhesive producer in the market, and the company has been able to earn profit on every financial year.

Despite of the factor that it is earning profit regularly in the last few years the company has observed that the profit margin is slowing down. The sales figure is increasing while the profit margin is falling indicates that the company’s variable cost might have increased. The company is looking forward to bring certain changes in the strategies to improve the condition and to bring more efficiency in the production process.

In the modern days, every company has to make continuous changes in the strategies so that they can sustain with the changing environment of the business world. All the aspects of the production process is required to be improved and the sales team also has to improve the skills to compete with the other products and to present the unique features of their products to the customers to improve the sales figures.

The strategy of a company includes both the employees and the top management. The performance of the organisation depends on the strategy framed by the top management and the employees implement these. This is a team work doing which the company can achieve the desired goal so it will be the primary objective pf the company to create a efficient team which will help the company to achieve the top position in the market. 

The service adhesive ltd is operating in profit from long time its presence in the market has make the company popular among the customers. The trust that the company has earned from the customers is paying good return to the organisation. The main strength of the company is that it is making continuous improvement in the products. The patented adhesive products of the company is unique in the market and the competitors has not been able to provide same standard of products to the consumers, which made it possible for the organisation to generate profit on consistent basis. The company has the record in developing new products, which the other companies fail to do and that lead to the increase in the demand of the products of service adhesive ltd. The demand of any new product always improve the sales figures of the company and for that, the profit margin will always improve.

Service Adhesive Ltd: Background and Recent Challenges

The company in the current stage trying to bring more improvement in the quality of the products. The company always give importance in the innovation of new products and try to increase the market share. The main advantage of the company is that it is carrying its operation for a long-term which enables the company to reach to more customers and also to earn the trust of the users. The market of adhesive business is very competitive and for that it is very important to make changes in the features of the products. Improvising some of the attractive features in the product of the company will further enhance the potential customers to buy the product in the market. The long term objective of the company must be revised year after year in order to serve the organizations in the best possible way.   

The company has been successful in earning profit on continuous basis but in the past few years it has been facing a serious problem. However, the sales of the company increased but the profit margin of the company falls, which become a serious matter of concern for service adhesive ltd. The issue came in to the observation of the company in the last few years (Woodcock 2017). The company is trying to solve the situation by bringing changes in the strategies of the production process. The fall in the profit margin occurs due to the rise in the variable cost related with the production process. The management feel that the company now requires changes in the production process and should try to produce innovative products at cheap cost. Realising the need of the change in the production process the company decided to implement new technology, which will make the production easier and cheaper. Improvisation of the new technology in the market will automatically increase the possibility of the company to stay ahead among the other competitors in the market. Then implementation of the technology will furthest improve the potentiality of the products in the market. Implementation of new technologies will further help the company to increase the production at large scale. Hence, the sale of the company will also increase which will further lead to an increase in the revenue or the income of the company.

Applying new techniques or strategies will further enhance the growth of the business and recruitment of talented employees in Service Adhesive Limited will further foster tremendous growth in the development of the organization. Effectiveness in the work force of the company will further increase the overall productivity along with overall sales of the company. Stringent marketing strategy of the company must be adopted in that case to attract the potential customers in the market. Improvisation in the marketing strategy of Service Adhesive Limited will further take this company to the top notch.

Improving the Profit Margin through Strategic Roadmap Policies

Some of the key elements must be considered by the internal management system of the company in order to build an effective team or work force. The team must have strong communication and understanding in order to generate accuracy and transparency ion the communication where there must not have any kind of communication gap. 

The various roadmaps that the business follows are stated below

• Strategic roadmap
• Change roadmap
• Business development roadmap
• Business intelligence roadmap
• Data strategy roadmap
• Start-up roadmap
• Enterprise architecture roadmap 

The strategic roadmap communicates the business vision. The strategic roadmap design the mission of the organisation based on which the company carry on its process of operation. The strategic roadmap should give emphasis on the long-term goals of the business and includes the features of the product and the improvements required to bring in the products (Bender et al. 2018).

The service adhesive ltd has adopted the strategic roadmap of changing the production process for which the company has decided to implement new machines and trying to improve the skills of the labours so that they can produce more innovative items that makes the product of the company more demanding in the market. The strategic roadmap generally developed by the senior level stakeholders and it should be accessible to every employee that they can apply these strategies effectively and help the organisation to achieve its desired objective (Zornoza et al. 2015). The efficiency in the business will further drag the potential stakeholders in the market and further the interest of the stakeholders in the company must be maintained. If the interest of the stakeholders of the company is increase then the company will be further able to increase the growth of the business on long run perspective. The investors will be interested in the company to further make potential investment which will in increase the value of the shares of Service Adhesive Limited. This will be an opportunity for the company to make potential investments in order to generate huge return out of investment by the upper level management of the company. Hence the decision taken upper level management of the company plays significant role in that case.

In the present situation, the main objective of the company is to reduce the cost and to improve the profit margin. The profit margin of the company is needed to be enhanced in such a way that it fulfil the basic requirement or rather the needs in the organizations in that case. The production process must be enhanced in that case to deliver the customer on a large scale by maintain the product quality will automatically drag the potential customers in the market. There lies the chance of the company to increase the profitability position and further revising the strategies if there lies glitches within the internal management of the company.

Importance of an Efficient Team in Achieving Long-term Goals

For sustained growth the company has to undergo various change process to adapt with the changing environment of the business world the company has to take steps so that it can compete with the other competitors. Like the strategic roadmap the change roadmap also requires the team work of the management and the employees (Rostamzadeh et al. 2015). The long term change roadmap includes the factors like the team restructures and the introduction of new technology in the business. This roadmap is particularly important for the team leaders who are responsible for the implementing the change process in the team.

The service adhesive ltd is following the change roadmap policy in order to get an advantage over the competitors. Th main reason for the company to take the change roadmap is to improve the falling percentage of the profit margin. The company in the last few years realised the necessity of change in the strategy as the company wants to earn more profit from its business operations (Santoro et al. 2018).

Service adhesive after staying in the market for such a long period it realised that it become essential for the company to go through a change policy and to frame a new strategy that will raise the profit margin and at the same time will improve the existing reputation in the market. As per the competitions in the market, the company needs to give tough competition to its competitors by applying the stringent policy and as also by analysing the overall market conditions (Wiengarten et al. 2016). 

The capability roadmap helps the organisation to plan the process of executing the new projects that the company wants to introduce in the company. In plotting the large scale capabilities, a company wants to check whether the company will be capable enough to handle the changes in the policy that the company wants to implement in the next few years.

The service adhesive ltd has also prepared a changing roadmap to check the capacity of the company to adapt with the changes that the company wants to introduce. The company will make changes in the production process so the capacity roadmap that has been prepared by the company will be based on the production process only. 

The business development roadmap highlights the essential task that contributes to the increase in the revenue figure of the company and market share growth within one-year period. The marketing and operation team is related with the business development road map. The business development team plays an important role in the profit generating capacity of the organisation (Pollack and Matous 2019).

Conclusion

The strategy of the company is to develop its business for which it framed a business development framework. The company is facing some threats that it thinks can be controlled through an efficient business development plan. The company also focuses on improving the production process and thereby try to manage the problem of falling profit margin. In the business development, process the company collaborate both the sales and the production team, which leads to the development of the organisation and the company, will be able to create more innovative products for their clients (Tian, Cordery and Gamble 2016). 

For business intelligence, roadmap strategy the company wants to maximise their effort on organisational decisions and growth. The business intelligence roadmap visualizes and communicates all the aspects of the business intelligence that includes from data mining to querying and reporting (Inkinen 2016).

The business intelligence roadmap of the service adhesive ltd also contains all the three aspects of the business intelligence, which includes the data mining, and reporting process of the organisation (Svalestuen et al. 2015). The company through data mining try to find out the real reason of the fall in the profit margin and at the same time it reports to the top management about the necessary step to take to prevent the occurrence of such situation in future.

The data strategy road map is essential to organise all the data of the organisation in one place and to utilise these data to get some information, which will affect the operation of the business (Aga, Noorderhaven and Vallejo 2016).

Service adhesive also made a data storage road map to analyse the performance of the company. By utilising data the company will be able to find out the result of the previous years and based on that past records can be able to make a comparison of the past performance with the current performance. The data strategy roadmap also enables the company to take decision based on the past performance and the company can also detect the mistake that it has done in the past (DeCenzo, Robbins and Verhulst 2016).

Based on the following roadmaps the company try to solve the problem of fall in the profit margin. It also set up certain business strategy that will bring changes in the existing structure of the company and will help the organisation to achieve its desired objective (Göçer, Hua and Göçer 2015). 

The service adhesive limited being a reputed company always give priority to their employees. The company realised that to improve the efficiency of the organisation it is required to keep the employees motivated and to empower them so that they can take correct decisions which will be beneficial for the company (Hussinki et al. 2017).

The ways in which the company motivates the various teamwork are stated below

Share the vision of the organisation with each member

If the employees are aware of the vision of the company then it will bring prosperity and success for each team member, motivation and empowerment become an indivisible part of all the activities of the employees.

The service adhesive company also share their vision to all the employees and the various teams so that they always remain focus and be very clear about their respective duty. 

It is very essential to create an environment where two way of communication will exist. If the employees find it difficult to communicate with the top management then it will create a gap between the management and the operation team. The smooth running of the operation will never be possible without an effective communication system (Bloom, Sadun and Van Reenen 2015).

The company service adhesive Pvt ltd has also structured their organisation in such manner that the employees can easily communicate with the management and can give their suggestions regarding the production process or the process of marketing. The company has always give importance to the fact that without a proper communication system the company will never be able to produce innovative products neither it will be able to generate more revenue.

One of the important need of any team is the need of being appreciated. Appreciation is reward, which is more encouraging, then money. The effectiveness of the team will improve with appreciation. The company should show its gratitude for the contribution that the team provide (Beauchamp, McEwan and Waldhauser 2017).

  Service adhesive always give priority to its team. In very successful implementation of strategy or plan the company always appreciate the performance of the particular team be it the marketing team or the operation team. The company has the culture of showing gratitude towards its employees for every success that it achieved (Gutierrez-Gutierrez, Barrales-Molina and Kaynak 2018). This gesture has made it as one of the top company in the market.

The team members feel empowered if they are allowed to give new ideas to the management apart from doing their daily routine jobs. This will encourage the team to think more about the success of the company and at the same time, it will create a healthy relation between the team and the organisation (Valori and Johnston 2016).

The service adhesive has the reputation of creating new products this happens because the company always give the operation team to suggest new ideas and empowered the team to provide new ideas to the top management (Dyer 2015).

A team will never grow unless it get new challenges from the organisation. Challenging tasks will develop new skills among the team members (Butler 2018).

The company always give challenges to its production team to develop new products for the company. For this thinking of the management, the company is able to provide innovative items to its customers and earn the reputation of the number one adhesive company (Paulraj, Chen and Blome 2017). 

It is required to give encouragement to the team to do creative work and innovate something new for the organisation. The organisation should encourage the team and the employees to create something, which is unique, and help the company to earn revenue by selling these items.

The service adhesive ltd creates new and innovative products by encouraging their team of production to produce more unique products, which are not available in the market, and the customers will become more dependent on the company. The tradition of the company to promote creativity in the production process has made the company as one of the popular company of the FMCG sector (Deelman et al. 2015). 

The organisation depends on every department, it is impossible for the company to run its operation without taking help from any particular team. Therefore, it is very important to give equal importance to every unit of the organisation (Barrow and Clarke 2018).

Service adhesive gives equal importance to all its team, from marketing to operation every team gets the same benefits and every team member gets equal opportunity to show their skills. The company always believe that it is performing as a unit and every team is important for the smooth running of the business (Chelladurai and Kerwin 2018).

A company can run smoothly only if all the members of the organisation feel that he is important and he has all the recognition that other members have. Even a single dissatisfied employee can create obstacle in the smooth running of the organisation.

It is the reputation of the service adhesive ltd that the company empower each employee to express its own view and to give suggestion to the top management about anything, which is in relation to the wellbeing of the organisation, and about the personal interest of the particular employee (Kerzner 2018).

Even if the team members are self-disciplines and enough skill full to solve all the problems all by themselves still there is a requirement of supporting every individual member of team. This will make them feel that the organisation is there to back them and they are not alone in facing any problem in their life (Albrecht et al. 2015).

Service adhesive also have the policy to give support to every member of the team they have created such an organisation structure that it is possible for the top management to take care of all the members of the particular team. So that the member of a team never feels that, the company will not support them in case of any situation which requires special attention and support (Hussinki et al. 2017).

It is often found that the teams become bored with the monotonous activity of the work.it is the duty of the organisation to create something in the working environment so that the team members does not feel the work as  monotonous activity and feel upset in doing their daily work.

The working environment of service adhesive ltd is framed in such away that the team s always feel encouraging to work and they always try to find out innovative ways of doing any job. This spontaneous activity of the team members leads to the innovation of new products by the company. 

The organisation should create an environment of healthy competition among the employees and the teams. The healthy competition will help the organisation to grow and at the same time, the team members will also grow. It is always better to have a healthy competitive environment in the organisation which will motivate the teams to work more efficiently (Bratton and Gold 2017).

The service adhesive ltd also have a healthy competitive work environment which give motivation to the team members to prove their efficiency and also to prove themselves. The company always strive towards excellence by creating a competitive work culture (Delery and Gupta 2016).

The organisation runs with effort of many teams it is not the performance of any individual .so when the company achieve anything then the success should be celebrated with everyone. Celebrating success with the entire team will encourage the team to work with more efforts and to continue the success in future also (Donate and de Pablo 2015).

Service adhesive ltd also used to celebrate every success of the company with all the team members which motivates the team to perform more in the coming days.

Great team based working is important for the service adhesive limited to further improve the management system of the company. Every successful projects depends on the strategy of the team and the performance that particular team is implementing. The key elements which leads to success including the commitment, contribution, good communication and cooperation will further enhance the overall performance of the management (Bennett, Ryan and Walker 2018).

Service adhesive limited must foster the team work which is the first priority of the top level management. These will lead to a resultant increase in the productivity, improved customer services, the internal system will be more flexible and employee empowerment which is one of the key element for fostering the growth of the team based work within an organizations. 

The purpose of commitment and values of the service adhesive limited must provide clear sense to the direction. There are specific team goals and objectives needed to be accomplished and the team members knows the exact way to perform their responsibilities. Each and every individuals perform task assigned and works in the best possible way to achieve the growth of service adhesive limited (Obeidat et al. 2016). The goals of the organizations are developed by keeping the corporate priorities of the firm. There are certain rules and regulation which are followed by the members of the team in order to deliver the work as per the accuracy and the transparency in the system. When the conflict arises within the team there lies some purpose, values and goals are the important criteria for accepting the relevant solutions (Lacerenzan et al. 2018).

There lies vision, mission and values of Service Adhesive Limited and it is aligned with the team members as an individual’s goals and objectives. The goals of the organizations vary as per the current strategy and it is needed to be taken care of the management system of the company in that case (Moore and Jennings 2017). It is important for the team members to get in to the right track to achieve the objectives of the organizations.

The team members of Service Adhesive Limited must be technically effective and should pose strong interpersonal skills and further must have the eager to learn more. Such kind off thrust in the employees of Service Adhesive Limited will enhance further development in the management system of the company (Nanda 2016). The leaders of Service Adhesive Limited must take initiative regarding the some of the important parameters which are the individual contribution, confidence and empowerment in the work force of the company. Meeting are important to strengthen the relationship of the organizations in that case.

Providing confidence in the team will definitely increase the motivation and the energy in the team. Providing regular feedback to the employees of the company will definitely help the employees to recover the glitches and further to concentrate on the development of the overall team work.  Bolstering the confidence of the team work of Service Adhesive Limited will increase the growth of the company in the long run compared to the current status of the organization (Noe et al. 2017).

The another way to balance the contribution of the team work is the employee empowerment which plays significant role in Service Adhesive Limited and further it is needed to be enhanced by the organization. The employee empowerment is based on the right training and further investment regarding providing the further industrial exposure and knowledge will further enhance the growth of the employees of Service Adhesive Limited. Therefore in this case contribution towards to team work is significant to develop the business growth of the company.

Friendly and effective communication inside the internal management of the company plays significant role in the Service Adhesive Limited. Open, friendly and positive communications plays vital role in the creation of such kind of cohesiveness (Fiscella et al. 2017).

Friendly communication within the internal organizational environment is important to make the work life much better. This will build strong relationship or bonds with the employees of the company. The working environment of the company must be good in order to get the best performance out of the employees working in an organizations.

Open communications within the internal interwork of the company is significant in the team success of Service Adhesive Limited. The work performance of the members must be evaluated as per the feedback and the employees of Service Adhesive Limited will be alert of such feedback and will constantly work on the feedback to improve the quality in the performance of the work (Gerasimov and Gerasimov 2015.).

Positive communications of Service Adhesive limited will put a great impact on the energy of the team work. In this case the members of the organizations talks about the taste and the preferences. Here the employees of the organizations gets to known about the taste and preference of each other (Golini, Kalchschmidt and Landoni 2015).

To enhance the team communications the leaders of the upper level management of Service Adhesive Limited must provide some of the basic training to the employees like the listening, responding and the use of business language inside the organizations in the time of the crucial management meetings, feedback and consensus building. 

The most challenging things in the workplace of Service Adhesive Limited is that needs more solo performance. The success of the organization depends on the degree of independence of the team. The leaders of Service Adhesive Limited must recognize the productivity of the team members of the company which results in effective cooperation of the company. The FACTS model of effective team members behaviours are the follow-through, accuracy, timeless, creativity and spirits are the key elements of Facts which further serve the team as the guide for helping teams to identify behaviours that support synergy effect within the team work (Doda et al. 2016).

The follow through of Service Adhesive Limited is the job done by a particular member creates an impact directly or indirectly on the other members of the team. Hence, in such a situation the team members are completely aware of such kind impact due to the other action created by that particular member.

Accuracy in the team work must be maintained by the Service Adhesive Limited which will further displays the efficiency in the team work of an organization in that case. Maintaining accuracy in the work all the time is impossible but the company needs to implement effective strategy to further ensure that accuracy is maintained at its top notch.

Creativity is subsequently important in the organization and the employees of Service Adhesive Limited tries to constantly improvise their work and further tries to reduce the risk associated with it. The business risk can only be reduced through proper coordination inside the business environment. Improvising or rather revising the strategy of the organization is important for Service Adhesive Limited to enhance the business performance in the organizations.

Timeliness refers that the task accomplished by the team members of the organizations on the perfect time. This means that arriving meeting on time, sharing all kinds of information’s promptly, setting questions for the people and constant communications with the clients and maintaining proper interactions with the clients is significant to maintain for Service Adhesive Limited (Black 2018).

The spirit of the team while working must be effective and developing such team spirit will automatically enhance the work culture of Service Adhesive Limited and further the team members will be equally motivated to contribute their work for the enhancement of business growth of the organizations.

 There lies conflict within the internal system management of the organizations when there are more talented and bright employees inside the organizations. Then such kind of conflict of the employees is managed by the leaders in the upper level management of Service Adhesive Limited. Then such conflict in the internal management of the company is managed accordingly by adopting some of the important strategies. Conflict rises in the communication when there is misunderstanding in the communication within the employees of the organization (Debroux 2017). Work team manages the conflict beater than the leader when the members are taught to shift their mindsets about the conflict in general and the other parties involved in such conflict and their own ability to manage such conflict. There are three techniques or the solutions to shift the mindsets of the employees such as the reframing, shifting shoes and affirmations. Reframing refers to the thinking issues of the employees of the organizations and negotiation in this case will increase the chance of trust and creativity. Shifting shoes is another technique used in this case to practise empathy by mentally. This further means that understanding the problem of the other by standing on their shoes or rather by understanding the point of view of the employee or the employees problems. Affirmations are the positive statements means that the employees are true as per the point of view of the employees and such events of the employee are true to the best of the knowledge of employee. This are the discussed effected measures implemented by the Service Adhesive Limited to stop the conflict inside the management of the company.

The team members of the Service Adhesive Limited are not accustomed regarding the change in the management system of the company. Such implementation of changes may hamper the overall work of the company (Cascio 2015). If such changes is necessary for the betterment of the management system of the company, then in such situation the team members must act accordingly and further resolve such problem through meetings and positive attitudes are needed to bring change in the management system of the company.

To assists the team members in such change in management, leaders should take initiatives by acknowledging such change and ascertaining the dangers and the inherent opportunities associated in such case. The leaders provide securities significant for the team to take risk and the tools must be improvised and they can further reduce resistances to change by providing the vision and the information by bringing positive attitudes of the employees.

Effective team work of service Adhesive Limited can add further value if the employees of the organizations pays attention to the development of the three important connections which are the large work organization, team members and the other work team associated within the organizations (Maduka et al. 2018).

Within the work team, the team members of Service Adhesive limited discusses about the overall team performance related to the in relation to the major corporate objectives, feedback of the customers and the measurement of quality at the same time. The needs or the requirement of the team is based on the overall objective of the management. The requirement of the team is based on the decision which is good for the whole organizations and it is based on joint objectives.

The teams needs to connect well with the customers or the clients of the business as effective communication with the clients will further enhance the growth of the organizations in that case. Maintaining strong customer’s relationship will further enhance the growth of the organizations in that case. Hence, effective communication plays significant role in the development of the business prospects of the organization.

To make stronger connection with the other groups, team work is considered scheduling in the monthly cross departmental meetings and combining efforts on the community projects (Li et al. 2016). For increasing the effectiveness in the competitions among the competitors, effective leadership is significant in order to achieve the overall growth of the company.

Hence these are the seven key parameters which are needed to be enhanced by the managers or rather the leaders of Service Adhesive Group. The management system of the company must make adjustments to the work team to further build effective management of the organizations (Flaherty and Fulmer 2017).   

The employee empowerment of the company must be enhanced of Service Adhesive Limited and the issues related to that must be increased in that case. The responsibilities of the employees working in Service Adhesive Limited must be duly maintained and further enhanced internal management of the organization (Laudon and Laudon 2016). 

Conclusion

From the above discussion it can be concluded that the Service Adhesive Limited is showing potential growth as per the revenue of the company. Further the above discussed internal management of the company needs to be revised in order to strengthen the management system of the company. The various strategy in the above discussion is interpreted in order to develop the internal management of the organization in that case. The key elements needed to be considered regarding developing or further improving the management systems or the team work which was an issue in the organizations.

Creating healthy competition within the system of the organization will further enhance the propensity or the speed in the working culture of the organizations. The working culture of the organizations must be developed and further nurture is needed to motivate the employees of the organizations on daily basis.  The monotonous work must be controlled which makes the employees of the organizations pretty slow in that aces.

The goals of the organizations must be definite and the purpose of the organizations must be accuracy as the upper level management decisions of the company. The team work is important in that case and every individual’s effort is important to make the effort a great success by all the members in the team in the organizations. Certain techniques and the strategies of the organization are discussed in the above discussion and thus it must be duly accepted by the organizations to increase the efficiency of the overall growth of service Adhesive Limited.

In order to make the overall work inside the organizations a great success the company needs effective leaderships and the upper level management to take decisions on behalf of the Service Adhesive Limited.  

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