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GPS-TO-GO Takes on Garmin

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Table of Contents
Question 1........................................................................................................................................3
Ansoff Matrix..............................................................................................................................3
Market Penetration.......................................................................................................................4
Market Development...................................................................................................................4
Product Development..................................................................................................................5
Diversification.............................................................................................................................5
4Ps of Marketing Mix..................................................................................................................6
Product.....................................................................................................................................6
Price.........................................................................................................................................6
Promotion................................................................................................................................7
Place (Distribution)..................................................................................................................7
Question 2....................................................................................................................................8
Communication Process..............................................................................................................9
Budgeting Process.....................................................................................................................10
References......................................................................................................................................14

Question 1
It is clear from the given case scenario that Thomas has to reduce overall business operation cost
in order to meet the target cost. The overall business operation cost includes human resource
cost, market cost, and material cost. The management of the organization may face high business
operation cost due to integration of advanced technological application in the production of GPS
Products, which is expensive. Moreover, it will be effective to make it clear for the readers that
the organizational management and leaders has decided to develop a design team to handle the
newly installed technological applications expertly. Strong automation and development of
designing team can automatically increase the material as well as human resource cost in
business operation process. Apart from all these aspects, it is essential to mention that Scott has a
vision to develop a strong product portfolio by integrating advanced technological applications in
the manufacturing process. Strong product portfolio and aggressive production of products can
automatically increase the market operation cost as the organizational management cannot focus
on a small market place through a large product portfolio. Therefore, it can be mentioned that the
management of the organization is facing difficulty to control and reduce overall product UMC
due to high market operation, human resource management, and material cost. It is the
responsibility of Thomas to reduce this overall product UMC in order to ensure profitability.
Ansoff Matrix
It is clear from the above discussion and case findings that Scott has a vision to transform the
organization to market leader from market challenger through the integration of advanced
technological applications. On the other hand, he has the intention to focus on the establishment
of skilled designing team and strong as well as large product portfolio. Therefore, Thomas should

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have the motivation to adopt and implement Ansoff matrix in business operation process as it is
an efficient product-market strategic approach, which may help the organizational leader to meet
the organizational objective of mitigating cost related risks through reduction of overall product
UMC. This matrix consists of four important elements, such as market penetration, market
development, product development, and diversification.
Market Penetration
First of all, Thomas should try to penetrate the existing market by focusing on improved sales of
existing products. Scott is focusing on his vision regarding technological integration and large
product portfolio, but Scott is not bothering about the increases in sales growth rate after all the
needful (Chorafas, 2003). Effective market penetration will require significant pricing and
promotion of products. On the other hand, efficient distribution will also play an important role
in this in order to ensure effective brand recall and customer loyalty.
Market Development
Secondly, it would be important for Thomas to create significant awareness among the target
customers in the new markets about the benefits and quality of the products. Thomas has to
control overall product UMC by increasing profit and d revenue through the same business
operation process and productivity. The organization is already spending in technology
applications, product portfolio, and designing team development process. Therefore, Thomson
should try to go for business expansion in new markets for the existing products to improve the
sales growth rate.

Product Development
The organizational management and leaders need to communicate with Thomson regarding
effective marketing and distribution activities to introduce the new products in the competitive
market. Scott has ensured increase in the production and large product portfolio aspect.
Therefore, it will be effective as well as beneficial for the organizational leaders to ensure
aggressive and unique marketing practices to create significant awareness of the newly
developed products (Garlough, 2010). Apart from this, it is also essential to know that new
product development in existing market maintaining the uniqueness, innovation, and high-quality
aspect will ensure positive sales growth rate for the organizations.
Diversification
Thomas should also try to focus on effective product as well as market diversification process. It
is recognized the global GPS market is full of competition and highly saturated. Therefore,
constant innovation and diversification can help an organization to gain success in this potential
as well as competitive global market. However, it is also the responsibility of the entire
organizational staffs, managers; stakeholders along with Thomas that the organization needs to

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take care of the needs and satisfaction level of the customers. Apart from all these aspect, it is
also important for the organizational management to focus on the implication of 4Ps of
marketing mix strategy in order the bring efficiency in the application of Ansoff matrix.
4Ps of Marketing Mix
4Ps of marketing mix can be referred as an important and significant strategic marketing
approaches that can help Thomas to adopt effective product, pricing, promotion and distribution
strategy, which will help the organization to reduce overall product related cost.
Product
Scott already has adopted and proposed product differentiation and diversification strategy.
According to his visionary, leadership style, the organizational management will develop a large
product portfolio. Moreover, he is going to integrate technological applications in the
manufacturing process in order to enhance the high quality aspects of the products and services.
In this case, Thomas should support the decision of Scott regarding the establishment of skilled
designing team.
Price
High product UMC can be considered as one of the major challenges of Thomas as he is
concerned about the lower business profitability. Therefore, it would be effective for the
organizational management to focus on effective economic pricing of the products. High
business operation cost can affect the financial sustainability of entire business operation process
(Jones, 2014). Therefore, it is recommended for the organizational leaders to implement
economic pricing strategy for the products. In order to do so, the management professionals
should focus on the adoption and implementation of cost-leadership strategy. Effective

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application of cost leadership strategy can help Thomas to ensure reduction of unnecessary as
well as business operation cost, such as less investment in human resource management can
justify the implication of cost leadership business level strategy. Alternatively, the integration of
advanced technological application in production as well as other business operation process can
support limited investment in the human resource department comparing to the previous days.
Promotion
It is clear from the case scenario that Scott has suggested in the board meeting that organization
should go for product differentiation and increase in product portfolio strategy. It is highly
essential to promote those newly developed products in the market place in order to ensure
effective brand awareness; otherwise it may affect the sales growth rate of the organization.
However, these are different types of promotional mediums and platforms can be considered by
Thomas. Thomas should encourage the marketing department to mainly focus on advanced
online social media promotional strategies comparing to the other traditional advertising
mediums as this aspect can be considered as one of the effective time and cost effective
approaches that can help Thomas to control the product UMC (Sanders, 2015).
Place (Distribution)
In the supply chain and distribution process, the operation management and professionals should
try to integrate and use ICT or information communication technology as it will help the
organizational management to bring efficiency in the supply chain network. On the other hand,
the organizational leaders will be successful in maintaining cost as well as time effectiveness in
the logistics as well as distribution activities (Dopson, 2010). It is true that, the management
needs to invest some capital initially, but will help in near future to overcome the high cost

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consumption aspect. As a result, it will help in business profitability and financial sustainability
in near future.
Question 2
High revenue generation and significant earning can be referred as the pure success mantra of a
particular developed project. The management and leaders of GPS-TO-GO should give
importance to revenue generation and earning capacity development process. The overall global
market is becoming competitive. Alternatively, high market saturation is also affecting the sales
growth rate of an organization. In an addition, it is also important to discuss that business
operation cost is also increasing day-by-day due to increase in cost of raw materials and other
resources (Zhang, 2011). Therefore, it would be vital for the organizational management to focus
on significant strategy development and application process to ensure high revenue generation
aspect. The operational management team should focus on maximizing productivity based on
similar resources and inputs. In this process, the management and leaders of GPS-TO-GO should
consider and execute different important as well as sustainable strategic approaches that can
improve productivity and sales growth rate.
A project development and successful competition of the particular project always depends upon
the team work, co-operation, and collaborative workplace performance. However, it will be
highly effective to realize and accept that a particular project can be completed successfully
through the collaborative effort given by the team members within a group. Alternatively, there
should be a manager or a team leader, who will focus on effective communication and budgeting
process. In this case too, the organizational management and leaders of the firm should focus on
effective and conflict free organizational communication process as well as appropriate and
successful budgeting process.

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Communication Process
Communication regarding raw material selection, cost-setting approach, product quality control,
service delivery process, as well as strategy implementation process should be taken care of.
Successful project management is enhanced through effective communication, team building,
group dynamics, as well as significant democratic leadership approaches. In this case, the team
leader of the particular team should focus on the sustainability of the entire workplace
environment in order to gain success in the future project.
First of all, the organizational leaders should allow and encourage implicating democratic
leadership style within the group as it will help in the development and application of effective
strategies as leaders and sub-ordinates will participate in collaborative strategy development
process. This particular aspect will help the team leader to improve the motivation and selfconfidence level of employees, which will ensure effective workplace performance. Slowly and
gradually, the team leader should focus on the development of conflict free communication
network in which the organizational communication process (Reider, 2008). This aspect will help
the team leaders to take care of the time as well as cost effectiveness approach within the future
project.
Effective bottom-up communication approach will help the top level management as well as the
team leaders to get knowledgeable about the comfort zone and other perception level of
employees regarding any managerial decision making and strategy development process. On the
other hand, effective sharing of thoughts and views will help the management to understand the
strengths as well as drawbacks of employees. Effective bottom-up communication approach can
help seminar time and cost, as well as training and development time as well as cost. This aspect

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will directly help the management of GPS-TO-GO to control the overall business operation cost
regarding future projects.
Budgeting Process
Budgeting can be considered as a vital activity, which needs to be considered by the team leader
of a project management team to increase revenue and minimize overall business operation cost
related to the future projects.
Before going into the detail discussion, first of all, it is highly important for the readers to discuss
about important aspects ad advantages of budgeting. Budgeting can be referred as the
measurement or assumption of cost of a future project considering intended revenue generation
and profit maximization through the completion of the particular project. Effective budgeting can
help the organizational management and leaders to reduce overall business operation cost.
Effective budgeting also helps an organization to increase revenue generation aspect.
Alternatively, adequate budgeting process also helps in the business profit maximization aspect.
Last but not the least; it is highly important for the leaders and management of a firm to ensure
time as well as cost-effectiveness of a particular business operation process through effective
budgeting approach. However, the top level management and organizational leaders need to
focus on effective and adequate budgeting option before starting of a project or production
activities as it is really difficult for a project manager or a production manager to reduce business
operation cost and revise budget after the production or allocation of resources and application of
materials or instruments. There are two types of budgeting processes, such as top-down
authoritative budgeting process as well as bottom-up participative budgeting process. The
management and leaders of GPS-TO-GO need to adopt and implement bottom-up budgeting
approach. The justification is provided below.

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First of all, it will be effective for the readers to understand the basic things about these two
approaches. In the top-down budgeting approach, the organizational leaders, managers,
professionals, as well as senior employees participate in this budgeting strategy development and
implementation process. In this process, the sub-ordinates have to follow the made decisions of
the superiors (Thomas, 2008). This approach has some advantages as well as some
disadvantages. In terms of advantages, this particular approach will help the organizational
leaders to take control overall decision making process. Apart from this, it is time effective
approach. Alternatively, this particular approach can help the managers as well as leaders to
develop strategies depending upon the developed organizational objectives.

In terms of disadvantages, too much and strong authorization of leaders and managers can
hamper the skill, competency, self-confidence and motivation level of employees. In an addition
it is also important to discuss that, aggressive centralization and authorization will make it
difficult for the managers to retain skilled and competent employees. Hence, it will affect the
business operation cost control and management aspect.

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On the other hand, bottom-up participative budgeting process is highly democratic, trust worthy,
as well as effective in terms of business operation cost control approach. In this budgeting
approach, the organizational leaders and top level management used to develop budget for a
particular project or activity within the organization. However, it is important to mention that
different organizations adopt and apply this strategy to maintain effective employee-employer
relationship (Tooley, 2010). According to bottom-up approach the managers as well as team
leaders used to circulate the developed budget and strategy to the sub-ordinates as well as lower
level employees of different departments. In an addition, in this particular approach the
employees, staffs, as well as lower level individuals within the organization have the freedom
and authority to share their view with the top-level management through managers as well as
team leaders.

In this budget development process, team leaders as well as managers used to play important
roles as they have to implement democratic leadership style in this process to maintain
transparency in the communication process. Effective communication between employees and
employer is vital to complete a project quite successfully (Ojugo, 2009). This process is cost-

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effective and organization can achieve the developed organizational goals through this developed
budgeting approach. In terms of disadvantages, it is slightly time-consuming as it is a two-way
budgeting approach considering collaboration of employees and management in decision making
process. Most importantly, the leaders and management of GPS-TO-Go can implement change
management process in case of dissatisfaction and de-motivation of employees for the future
project development aspect. It will help to control overall target cost and will help in maintain
effective workplace environment.

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References
Chorafas, D 2003, Operational Risk Control, Routledge, London.
Dopson, L 2010, Cost Control in Operation Management, Rowman & Littlefield, London.
Garlough, R 2010, Modern Service Delivery, Springer, New York.
Jones, P 2014, The management of Operations, Sage, London.
Ojugo, C 2009, Practical Cost Control, Pearson, New Jersey.
Reider, R 2008, Effective Operation and Control, Cengage Learning, Stamford.
Sanders, E 2015, Food, Labor, and Beverage Cost, Kogan Page, London.
Thomas, A 2008, Writing a Convincing Business Plan, IGI, London.
Tooley, M 2010, BTEC, GRIN Verlag, Munich.
Zhang, T 2011, Business Communication, and Control, Cambridge University Press, London.