management project

PB 301 Business mangement

1.1 Introduction to: Cosmetics

The company for Women

L’amorous’s brand personality is fun, young, and colorful and exudes confidence. The core promise of the brand is delivered through the latest color trend and high quality specifications of the products.

L’amorous is now marketed at over 1,000 cosmetics counters in Malaysia, Singapore, Brunei and Jakarta. In Malaysia, it is available at Guardian, Watsons, Parkson, Jusco, Sasa, Apex and other independent supermarkets and pharmacies.

It's a bond forged by everything from shared causes to biology, tracing back through more than a century of beauty and business opportunity. And as we

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stride past the threshold to the next hundred years, that natural affinity is strengthened by energetic new initiatives, a bolder vision, and a wider, more diverse community of customers. In a dynamic new world, L’amorous continues to connect, reaching women through a vibrant image and outstanding products, personal relationships, cutting-edge technology, exciting new channels, and unparalleled support for gender and family issues. When we say we're the Company for Women ... we mean it.

1.2 Background of the Company

Company Name : L’amorous Cosmetics

Company address : 32 Jalan Todak 2 Pusat Bandar Seberang

Jaya, Seberang Jaya, Penang

Headquarters : Georgetown, Penang

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Keypeople : Yadu Priya Devi (Chairman)

Khantini (CEO)

Industry : Cosmetic

Products : COSMETICS, CLOTHINGS & PERFUMS-

RETAILS

Tel No : 04 - 284 1117

E-mail : L’[email protected]

Website : www.l’amorouscompany.com

1.3 Type of competition the company engages

The L’amorous Cosmetics Company has engaged in an oligopoly competition. This is because the markets that they have enter producing the same goods and services in the cosmetics industry same with the other

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http://www.l'amorouscompany.com


cosmetics company such as Avon, Maybelline, L’oreal and M.A.C.

As they produce the same product, oligopolistic company will practice non-price competition through advertising, differentiation in design and brand names, and free gifts or special offers.

To encourage sales, this L’amorous Cosmetics Company had use modern biotechnology to improve the production process to produce cosmetics and perfumes that is better than their competitors.

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2.1 Types of Planning2.1(a) Strategic planningOur Vision and MissionThe L’amorous Vision

To be the company that best understands and satisfies the product, service and self-fulfillment needs of women—globally.

L’amorous’s Mission

The Global Beauty Leader

We will build a unique portfolio of beauty and related brands, striving to surpass our competitors in quality, innovation, and value, and elevating our image to become the world’s most trusted beauty company.

The Women’s Choice for Buying

We will become the shopping destination for women, providing a personal, high-touch experience that helps create lifelong customer relationships.

The Best Place to Work

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We will be known for our leadership edge, including our passion for high standards, our respect for diversity, and our commitment to create exceptional opportunities for professional growth so that associates can fulfill their highest potential.

The Largest Women’s Foundation

We will be a committed global champion for the health and well-being of women through philanthropic efforts, with a special focus on breast cancer, domestic violence and women’s empowerment.

The Most Admired Company

We will deliver superior returns to our shareholders by tirelessly pursuing new growth opportunities while maintaining our commitment to be a socially responsible, ethical company that is watched and emulated as a model of success.

Our Values and ObjectivesThese five values, and our guiding objectives, outlined below, have served as a continuing source of strength within our organization. They remain at the heart of who we are and who we strive to be.

The L’amorous Values

Trust - means we want to live and work in an environment where communications are open—where people feel free to take risks, to share their points of view and to speak the truth as they see it. Trust people to do the right thing—and help them to understand your underlying reasoning and philosophy—and they won’t disappoint.

Respect - helps us to value differences, to appreciate each person for her or his unique qualities. Through respect, we help bring out the full potential of each person.

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Belief - is the cornerstone of empowering Associates to assume responsibilities and be the very best they can be. Believe in someone—and show it—and that person will move mountains to prove you’re right.

Humility- simply means we’re not always right—we don’t have all the answers—and we know it. We’re no less human than the people who work for us, and we’re not afraid to ask for help.

Integrity - should be the hallmark of every L’amorous associate. In setting and observing the highest ethical standards and doing the right thing, we fulfill a duty of care, not only to our Representatives and customers in the communities we serve, but to our colleagues and ourselves.

The Objectives That Guide L’amorous

1. To provide individuals an opportunity to earn in support of their well-being and happiness

2. To serve families throughout the world with products of the highest quality backed by a guarantee of satisfaction;

3. To render a service to customers that is outstanding in its helpfulness and courtesy;

4. To give full recognition to employees and Representatives, on whose contributions L’amorous depends;

5. To meet fully the obligations of corporate citizenship by contributing to the well-being of society and the environment in which its functions

6. To maintain and cherish the friendly spirit of L’amorous.

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2.1(b) tactical planningTactical planning is a process by which companies determine and prioritize strategic initiatives. These initiatives include what markets to enter, what products to introduce and how to compete with other companies more effectively. As is the case with most large and mature companies, L’amorous's tactical decisions revolve around growth. L’amorous's tactical planners are constantly trying to determine what new markets the company should enter, how to steal market share from competitors and how to encourage more consumers to use L’amorous's Cosmetic products.

Market Sizing

The first step in effective tactical planning is to determine the sizes of various markets around the country. L’amorous will first consider the total size of a

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market's population, the percentage of that population that is currently using L’amorous’s Cosmetic product and the quantity of product that L’amorous could sell to non-users. For example, suppose L’amorous was considering whether or not to attempt expansion into Johor Bharu. Using national census data, L’amorous's tactical planners determine that the state's population is 3 million. L’amorous would then hire a local marketing agency to conduct detailed customer surveys to determine what percentage of the population uses L’amorous cosmetics on a regular basis. Suppose these surveys revealed that 40 percent of the population uses L’amorous's product, implying that 60 percent x 3 million = 1.8 million people in Johor Bharu do not use L’amorous Cosmetics on a regular basis. Completing this type of analysis for a number of states allows L’amorous to rank each state according to market size, which helps prioritize which new market the company should target.

Strategies for Entering a New Market

Once L’amorous's tactical planners have chosen which market to enter, they must decide upon the appropriate strategy for achieving this goal. Suppose that the 1.8 million people in Johor Bharu who do not use L’amorous are heavy purchasers of M.A.C, In this case, L’amorous must attempt to steal market share from M.A.C by highlighting the product features that make L’amorous superior. If convenience of purchase is most important, L’amorous will likely expand its distribution so that L’amorous products are available in a larger number of locations.

Other Tactical Initiatives9


There are numerous other tactical initiatives that L’amorous pursues on a regular basis. One is to increase the volume of product that L’amorous customers purchase. Generally, L’amorous attempts to achieve this goal by introducing new products, such as Perfumes to go along with Cosmetics. L’amorous also runs advertising that targets current customers in order to keep the L’amorous brand in the minds of customers.

2.1(c) Operational PlanningThe following section will identify the proposed operational plan for L’amorous Cosmetics Company. Included are the general operating procedures, human resources, and insurance.

General Operating Hours

L’amorous intends to operate Monday to Friday from 9 am to 5 pm. L’amorous will be operational year round.

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Human Resources

Miss. Yadu Priya Devi will be the sole employee of L’amorous Cosmetics for the first two years of operation. When additional human resources are needed, L’amorous has identified the persons qualified and able to assist on a contract basis for the same rate as the owner.

Once the business reaches 60% of its operational capacity this will represent 1300 hours, L’amorous will offer the above Human Resource professionals full time positions. Also at this time, an administrative assistant will be sought.

A professional user of Auto Cad will be sought to perform various jobs for the company. It is unknown at this time that will fill this position; however, job advertisements will be put in the local papers and organizations to attract a good pool of respondents.

Once hired, all employees will be covered by the Workers Safety and Insurance Board and covered for Employment Benefits.

Insurance Requirements

L’amorouos will have to incur costs for business liability insurance. The estimated cost for this requirement is RM4, 000 per year.

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3.1 Organization Structure

L’amorous organization focuses attention on major product areas in the corporation. Each product is under the authority of a senior manager who is a specialist and is responsible for everything having to do with her product line. The advantage of product grouping is that it increases accountability for product performance, because all activities related to a specific product are under the direction of a single manager. L’amorous Cosmetics Company uses product departmentalization under the divisional organization.

The Divisional Organization

Product Departmentalization:

Businesses that produce diverse products sometime organize marketing units according to product. Organizing by product group gives a firm the flexibility to develop special marketing mixes for different products in a diverse product line. The L’amorous Cosmetics product mix (beauty and beauty related products) was narrow and deep, and would have less to gain from such an organizational structure than a company with a more diverse product line.

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General Manager (Yadu Priya Devi)


HumanResource professionals of l’amorous frequently are asked to create organization charts for the company to make it easy for executives and managers to accurately assess the organization as it is currently structured and respond to changing market conditions and opportunities. Employees understand the company strategy and structure, and their role in achieving organizational objectives. Using this organization chart template can help HumanResource professionals visualize their current structure; create scenarios to plan for change, and to communicate organizational information across the enterprise.

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4.1 Leadership Skills A good business leader possesses certain traits and skills that help her make critical decisions and encourage employees to succeed. Without the basic managerial tools and leadership skills needed in small business, a manager cannot help employees develop. It is important for company decision makers to be able to identify the basic traits of effective leaders. Here are the leadership skills owned by the managers of L’amorous cosmetics:

Be a Mentor

Employees develop a more effective relationship with the managers, while the managers acts more as a mentor than an administrator, according to the Malaysian Small Business Administration. By acting as a coach who holds an interest in the development of his employees, managers of L’amorous gain a level of respect from employees that translates into a more productive staff.

Motivation

Managers here are able to motivate employees in many ways. Our good management inspires the employees to find more efficient ways of performing their jobs, increasing productivity and adding revenue to the company bottom line. Managers with good motivational skills convinceses employees to take an interest in the company's success, making it their goal to add value to the company in any way they can.

Communication

According to career resource Mind Tools, an effective manager can communicate at all of the company's different levels. L’amorous managers understand the concerns and motivations of executives, other managers and subordinates. This allows effective communication throughout the company and

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increases the ability for the small business manager to get information to all levels of organizational structure.

Interviewing

Our small business manager develops proper interviewing skills in order to make sure she hires the right people. Here, each employee is asked to perform the tasks that several people would perform in a larger organization. L’amorous managers understand the positions she is hiring for, creates interview questions that get the information she needs and can evaluate talent based upon resumes and personal interviews.

4.2 leadership styles L’amorous leaders practice the Democratic Style to influence their team members. The top-level and lower-level management of L’amorous make decisions together through negotiations. The management will put trust in employees and encourage them to make decisions. Mangement will delegate the employees the authority to do this (empowerment) and listen to their advice. This requires good two-way communication and often involves democratic discussion groups, which can offer useful suggestions and ideas. L’amorous managers encourage leadership skills in subordinates. The ultimate democratic system occurs when decisions are made based on the majority view of all workers.

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5.1 Types of control5.1 (a) Feedforward controlWe perform this control before an activity starts. It is done to avoid mistakes that occur before the activity is implemented.

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L’amorous provides training for new employees. Even though this training increases costs, it can increase the productivity level of new employees.

5.1 (b) concurrent controls This control is done during the implementation of a job. While the activity is being implemented, the management can take action promptly to correct the mistakes that occur before it becomes serious.

If an employee who, in the manager’s opinion did not concentrate on his work, the production manager has the rights to reprimands that employee. This would affect the smoothness and safety of operations in the organization.

5.1 (c) Filtering or Yes/No control It is a filtering process, whereby certain procedures must be approved before an operation is continued. In L’amorous, filtering control is important and it is performed widely compared to other types of controls.

In making up a new L’amorous perfume, working with chemicals is the most important factor that should be given priority. Therefore, the filtering control enables managers to concentrate on the specific aspects of chemicals and safety.

5.1 (d) feedback control Feedback control is to measure the results of an activity.Through this control, L’amorous can identify any source of weakness in the plans. Through this, we also give rewards and motivations to oue employees.

Employees who successfully achieve the set performance standards will be given bonuses.

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6.1 staff hiring process6.1 (a) Human Resources PlanningA process whereby L’amorous management determines the type and the number of employees that need to be hired to fill the vacant positions in an organization at a certain period of time. In other words, this process matches individuals from inside the company with individuals outside the organization.

6.1 (B) RecruitmentIt is the discovering of potential of applicants for actual or anticipated organizational vacancies. It actually links together those with jobs and those seeking jobs. It is a process of searching for prospective employees and stimulating and encouraging them to apply for jobs in L’amorous. The purpose of we undergoing the recruitment process is to locate sources of manpower to meet job requirements and job specifications.

Sources of Recruitment: There can be two kinds of sources for recruitment:

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Internal – This includes personnel already on the payroll of an organization. Whenever there is a vacancy, somebody within the organization fills in or is upgraded.

External – These sources lie outside the organization.

Methods of Recruitment: The possible recruiting methods can be divided into three categories:

Direct – In this method, recruiters visit colleges and technical schools, e.g. Infosys, the Tata Group, Accenture, IBM, Siemens and several other companies maintain continuous relationship with institutions to hire students for responsible positions.

Indirect – This involves advertising in newspaper, radio, T.V., journals etc. Advertising can be very effective if its media is properly chosen.

Third Party methods – This include use of commercial or private employment agencies, placement officials of schools, recruitment firms etc. Friends and relatives of present employees are also a good source from which employees may be drawn as part of the "Buddy Referral" programs.

Thus broadly the Personnel Recruitment Process can be mapped in a Flowchart as below:

Personnel/Human Resource Planning -> Locating needed Personnel -> Selecting Qualified Personnel -> Placing New Employees on the Job

6.1 (c) selection The Main Objective of the selection procedure is to determine whether an applicant meets the qualification for a specific job, and then we will choose the applicant who is most likely to perform well in that job.

The entire process of selection begins with an initial screening interview and concludes with a final employment decision. When a selection policy is formulated, organizational requirement like technical and professional dimensions are kept in mind.

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Therefore the Selection Process can be pictorially represented in a flowchart as below as followed by our company:

Establishing Selection Process -> Identifying & choosing selection criteria -> Gathering information about potential employees -> Evaluating information for assessing applicant -> Making decision to select or reject -> Communicating decision

Thus the selection process was planned by L’amorous such that human resource is efficiently used. The right person for the right job and inducting her/him into the organization or department successfully is the basic criteria of the entire process.

6.1 (d) Induction and OrientationInduction is a process to introduce new employees to our company. By this, it will familiarize the new employee to job and work unit. Besides that, it will also help employee to understand values, beliefs, and acceptable behaviors’.

6.1 (e) training and career development

Training and development is the field concerned with organizational activity aimed at bettering the performance of individuals and groups in organizational settings. L’amorous Cosmetics Company uses the Conventional 'training' to cover essential work-related skills, techniques and knowledge, and much of this section deals with taking a positive progressive approach to this sort of traditional 'training'. If employees are not able to solve the problems faced by them, then the L’amorous Management will increase the employeess’ problem-solving skills through training.

6.1 (f) performance evaluation 21

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This is a continuous process of communicating with employees regarding their expected duties and current work performance in the organization. It also involves the evaluation of an individual’s or a group’s job performance by the employer. Barriers in performing evaluation are bisness, recency effect, halo effect and differences in the evaluating pattern.

6.1 (g) employee termination

Employee termination refers to the vertical exchange of jobs. It also refers to the transfer of an employee from one management hierarchy to another management hierarchy in the organization. In L’amorous, when the transfer occurs in an organization, the steps in the staffing process must be repeated as long as L’amorous Company is still operating in the long term. The employee who is transferred still has a relationship with our company.

Separation refers to the action of an individual to exit the organization due to resignation, retirement, or death. Separation causes employees not to have any relationship with their organization.

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As a general

7.1 Types of decision making7 .1 (a) Programmed Decisions

These decisions are used to solve normal and routine problems faced by lower-level-management in L’amorous, especially those involving existing rules, policies and plans. These decisions are made repeatedly and are also made based on L’amorous management guideline, for example, the decision to punish an employee who performed a misconduct which causes lost to the company.

7 .1 (b) non-programmed decisions

These decisions are used in our company to solve complicated and unique problems faced by top-level-management. The solution depends on the skills, experiences and creativity of the top-level-management such as determining the organization directions and goals during the economic recession.

This decision is made only at a certain time and used to solve unstructured problems, for example, the decision to market L’amorous products to Johor Bharu, establish a new market for our organization’s products, or invest in an organization which is newly listed in the Bursa Malaysia.

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L’AMOROUS MANAGERS WHO ARE INVOLVED IN THIS TYPE OF DECISION THINKS CAREFULLY AND CONSIDERS MANY FACTORS BEFORE MAKING A DECISION.

As a general manager, Miss Yadu Priya Devi has to make several decisions to fulfill the customer needs and wants. Miss. Yadu Priya Devi has to identify the problems and find an alternative to solve the problem faced by L’amorous Company. We need to update our products each time so that customer would knows well about the product sell by our company. At least we need to make a final decision which will give profit to our company.

7.2 Decisions making techniques7.2 (a) Individual decision making techniques

Managers of L’amorous practice an autocratic leadership style. Managers who make decisions alone must posse’s experience, high interpersonal and intrapersonal relationship skills, a high charismatic attitude and a positive personality.

7.2 (B) group decision making techniques

Brainstorming – Each member of the team will contribute their ideas. The best idea will be selected to help the decision making prose’s. This technique is developed to encourage members to contribute as many alternatives in order to make logical and wise decisions.

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Nominal Group Technique – All members in the group will be equally involved in making the decision. Each member will present their ideas verbally. These ideas will be recorded by other members. Only after all the ideas are recorded, a discussion, each member will evaluate the available ideas and determine the idea with the highest aggregate.

Delphi Technique – This technique is a decision making process that involves a questionnaire about a specific problem that is administered among group members. All members of the group will share the results, continue the survey, and provide a feedback until a consensus is reached

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management project

Documents

lamorous cosmetics company

business mangement company

company engages3 pb

cosmeticsthe company

company address

oligopolistic company

trusted beauty company

cosmetics industry