MANAGEMENT EXAM

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

Management Management decision (name

Problem Value for the company
function in short)

ORGANISING

(2 point)

EXPLAIN HOW THE DECISION

SHOULD BE MANAGED AND
IMPLEMENTED (MAIN
PRINCIPLES)

Management Management decision Value for the company

Problem
function

PLANNING

(2 point)

EXPLAIN HOW THE DECISION

SHOULD BE MANAGED AND
IMPLEMENTED

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

Problem:

Strategical Responsibility
Operational goals
goal Tactical goal (title of the job
(at least 3)
position)
 TASK 3: According to the business case, please integrate FULL control system based on the
PROBLEM. (4 points)

PROBLEM:

Criteria
system/Rates/Metrics
(evaluation).

Title of the rates?

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

Explain how rates will

managed at each level
of control?

Cells marked with this symbol do not need to be filled in