The sphere of business management covers the development of effective tools and internal controls, procedures and policies, aimed at stimulating and measuring profitable results of company’s operations. The analysis of Woolworth’s strategic management is concentrated on the approaches centralized within the organization and the success it managed to reach by 2006.
Strategic management style contributed to quadrupling the profits of the company providing returns for the shareholders exceeding 300 per cent. It is necessary to underline the idea that management style appeared to be the key element in stabilization, growing and expansion of company’s opportunities. Special attention was given to challenges within the culture and working environment of the company through increase of the staff efforts and working time in the schedule. The paper is concentrated on the identification of basic management success tips developed within Woolworth’s structure, and realizing the consequences of discipline pressure within autocratic management style.
Discussion
Woolworths CEO renewed operations have close relation to the challenges within management style and working environment. It should be stressed that central attention was paid to costs reduction and strict conservative discipline introduced as the element of new management structure. Corbett’s style was focused on conservative, autocratic and uncompromising cooperation with the employees stressing the importance of hard and constant work aimed at reaching profitable results. It should be noted that the reduction of environmental footprint appeared to be one of the management approaches used to show the team members new principles of business operations. The problem is concentrated around innovations within business culture concerning the increase of working hours. Working weekends and 12-hour working days may lead to unexpected decrease in the staff working productiveness; nevertheless, executives are concentrated on the renewed management positions and supply chain network restructuring leading to complete understanding of buying habits and making stable and fixed relations with the customers.
According to Elmer, 2008, management success is closely dependant on the development of appropriate functional activities within the company’s structure; his theoretical vision on business running is expressed through the following tips introduction in the style of business running:
- Teambuilding; it is concentrated on stimulating the staff to work as one whole functioning unit in the creative and productive manner;
- Interpersonal communicators; it is necessary to stress that this aspect is concentrated on reporting the colleagues and employees to concentrate on attentiveness, collaboration, trust and caring;
- Financial aspects understanding; the element is closely connected with measuring and goals setting identifying the progress and benefits of company’s success;
- Business stimulating; the aspect is concentrated on stimulating the employees developing personal professional skills and capabilities through additional education and professional policies introduced within the company;
- Rewarding; feedbacks within the company are to be concentrated on simulating the staff working in order to get professional and financial rewards.
Elmer was eager to demonstrate the effectiveness of management style through the challenges within the company’s structure aimed at staff stimulating and team work. (Elmer, 2008)
It is necessary to stress that effective management is dependant of leadership promoted within the company; Lea Strickland, 2006, identified the success of any business structure through appropriate determination of cost drivers and profitability, being effective and principle mechanisms for results measuring considering various operational points, such as business line, product, market, etc. Business management system is dependant on the introduction of its principle elements aimed at effectiveness and success of business operations: forecast and budget mechanisms, performance management processes, business risk analysis, priorities aligning operations, and accurate financial statement information. Taking into account Woolworth’s principles of management, it is necessary to stress that the company was concentrated on the promotion of business management system elements; its strategy is aimed at appropriate and productive business planning, cooperation with the customers and investors, and attraction of talented and skilled professionals. (Strickland, 2006)
Woolworth’s shares are on the way to increase due to the development of training policies and rewarding system stimulating the staff to productive and hard work; the company’s executives are aimed at making the specialists be completely involved into the working process building the atmosphere of team work. 40 per cent shares rise can be explained by complex leadership style promotion within the business structure; it is necessary to stress that uncompromising and autocratic attitude to working staff is combined with involving and consultative atmosphere allowing the specialists participating in decision making processes, meetings and negotiations. (The Woolworth’s Management Success Story, 2006)
Keith and Newstrom, 2003, developed the idea of leadership role within the strategic management development; they managed to identify the consequences of inappropriate leader’s position and its influence on the working environment. The analysis of autocratic style used in Woolworth’s management can be related to the atmosphere of threats and power abuse; such a style can be identified as inappropriate and unprofessional bossing employees around. The authors demonstrate the idea that this style can be used only on rare occasions because it is determined as an oppressive and aggressive one. For the purpose of effective business management development it is important to stick to participative and delegative style making working environment conducive to progress and involving. It should be noted that this atmosphere is considered to be participative and involving; it helps to develop the necessary team working skills and involve more professionals in decision making process. Keith and Newstrom strived to show the idea, that the most effective leadership style contributing to business success is considered to be combined one; this very type is used in Woolworth’s structure uniting the elements of participative and authoritarian manner of business running. (Keith and Newstrom, 2003)
According to the report developed by Ernst and Young, 2008, cost reduction in business management has always been considered an effective step and key priority leading to profitable economic environment within company’s structure. It is necessary to stress that current businesses are concentrated on strengthening and promotion of cost reduction under the pressure of catastrophic market conditions. Considering the fact, that credits and loans are almost unavailable due to weak economic position all around the world, business growth appeared to be very restricted; as a result the company’s are focused on cutting costs for the purpose of making their operations more effective. The statistical data have shown that the level of investments in new developing markets has considerable decreased due to lack of financial support on the part of banking system. Most companies are concentrated on rapid costs reduction making this step be the central point in annual marketing planning. It is necessary to stress that the report clarified changing economic conditions and their influence on strategic management development; most efforts are related to revenues optimization, and efficient operation on the basis of cost reduction. Corbett’s management style disclosed in the case study is concentrated on cost reduction, as the central element in company’s culture change; this aspect is key explanation to successful business operations within Woolworth’s business running. (Ernst and Young, 2008)
Williams, 2009, disclosed the idea, that modern business sphere is concentrated on stimulating hard work by company’s executives; his managed to develop arguable point as to this marketing position. In accordance with William’s position, hard work can be the way to professional exhaustion, rather than economic growth or progress. For the purpose of reaching business management success, it is important to concentrate on the development of special training policies improving the professionalism of the working staff. Industrial progress is certainly dependant on the careful hard work, though this aspect is not the central one. In some cases professional and skilled workers, whose contribution provided profitability, can become the victims of their own hard work. High speed of work and long working hours can result to inappropriate marketing steps and decision making mistakes; this aspect often results in professional destruction, depressions, and inadequate thinking; the problem is connected with business politics developed by most executives striving not to lose a moment of business opportunities. It is necessary to stress that strategic management results in successful business operations only in case of appropriate, accurate, mechanized, careful decision making process; the company is to provide enough time for the employees to recharge their batteries for the purpose of productive work and complete feedbacks. (Williams, 2009)
The analysis of business sphere success managed to demonstrate the principle mistakes in business running process and identify the key elements to be developed in order to reach effectiveness in cooperation with customers and employees.
Conclusion
The paper managed to illustrate the central elements of business success on the basis of Woolworth’s management style and business operations; it is necessary to stress that the most important principles of appropriate marketing planning are considered to be based on leadership style, cost reduction, and development of effective functional activities. The analysis of business literature managed to prove the effectiveness of Woolworth’s strategic planning and approaches involved in cooperation with employees and consumers. The company’s executives managed to combine the most important elements of business running system leading to success, profitability and high competitive level. The analysis of principle management approaches is to be the central aim of business leaders in order to understand all consequences of ineffective working environment development based on pressure and threats within its internal structure; the success of any business lies in providing the stimulating, involving and participative company’s culture allowing the employees participating in decision making processes.
References
Elmer, M. (2008). Environmental Management Success Stories. A Contribution to the Philippines country Environmental Analysis.
Ernst and Young. (2008). Effective Cost Reduction. Web.
Keith, D. and Newstrom, J. (2003). Organizational Behavior – Human Behavior at Work. New York: McGraw-Hill.
Strickland, L. (2006). Business Management Systems. Critical to Long term Success. Carolina Newswire.
The Woolworth’s Management Success Story. 2006.
Williams, J. (2009). Hard Work is not enough – You are your own HR Department. Ravenwerks, Global Ethics, Etiquette and Effectiveness.