Evaluate the differing management styles and levels of management decision making within an organisation.
Organizing and coordinating the activities and operations of a business corporation in order to attain the desired targets can be termed as the process of managing business. Some times management can also be considered as one of the empirical component in the process of production along with machines, materials and money. Effectiveness and efficiency in maintaining the business activities and operations will lead the entity towards the high peaks of success and growth (Armelini & Villanueva, 2011). Managing a business is a crucial task for any of the business corporation. There are three hierarchical levels within a business entity that are the operational, the management, and the executive. These hierarchies are considered as significant and are accountable and all the business goals must funnel towards upward and downward direction for fulfilling the success criteria for the business. The core operations or at the heart of the business is setting the objectives and goals/ and also monitoring and gauging the individuals on their achievement. The below presented analysis has been presented on the evaluation of different management styles and decision making in Honda Motor. Due to increase in competitiveness the entity is planning to establish venture in Vatican city.
Analyzing the external factors that are held responsible in stimulating the business environment of an organization can be termed as the process of analysis of external environment. Honda Motor Ltd. can make use of various approaches for analyzing the external environment (Armstrong et al., 2015). PESTEL analysis is the best approach that can be used and the same is described as follows:
Political: The political factor is one of the vital factors of the external environment and is also held liable in stimulating the business environment and the operations of the business corporation. As per the given scenario, it has been estimated that the Vatican City is expecting positive changes of growth and developments in the economy due to the next election. The Vatican City is located in a limited area and due to which the governing authorities denied many business activities and investments of firms (Baker, 2014). The governing authorities are also trying to bring enhancements in the areas where for the emergence of establishments. And hence if the business corporation is planning for establishments in Vatican City then they should cope-up with the governing authorities.
Economic: The economic factors comprise of the interest rates, fluctuations in the tax rates and GDP etc. Moreover, it has been observed that the current economic trend is experiencing fluctuating that will affect the business activities. The Vatican City has a pool of skilled labor and low employment opportunities are available (Baum, Frese and Baron, 2014). This scenario will be proven beneficial for the business entity as while establishing in the region the requirement of the skilled labor will be fulfilled. It has also been found that region is economically stable and acceded to WTO in 1998 and also has backing of IMF.
Social: On the basis of the analysis it has been noted that the country is the smallest region amongst European region and hence the country is trying to bring an increase in the in population and growth rate. The social communities are very limited and hence the business entity will have to serve special focus towards them so as to ensure effective and efficient delivery of products and services (Bhachu, 2017). Moreover, by focusing on the social aspects the business corporation can bring an increase in the goodwill and brand equity. And hence being socially aware proves beneficial while the entity is expecting to establish the business.
Technological: This component has been considered as one of the biggest and essential requirement for any of the business enterprise. Technology is also considered as one of the pillar of the base for the firm (Bienkowski et al., 2010). This aspect will aid the firm in attaining the goals and objectives and also will maintain the sustaining position of the enterprise in the competitive environment. On the basis of the research it has been observed that the Vatican City is trying to improve the infrastructure facilities and also seeking for technological developments and advancements. And as Honda Motor is planning to establish the venture in the region then technological aspect is one of the most considerable components for the entity.
Environmental: Under this aspect the business entity should ensure that the manufacturing process and other operations executed in the business entity should be environmental friendly. The firm is required to be aware of all the activities and aspects that can cause harm to the environment and for which the enterprise should also make adoption of preventive measures. If the firm is environmentally aware then there will be an increase in the goodwill and market share.
Legal: This factor comprise of the rules and regulations, the norms and legal obligations of the entity and that are required to be adhered by the business firm (Bruni, Gherardi and Poggio, 2014). The legal aspects may fluctuate with the change in the governing authorities and that will also change the legal aspect. The business entity will have cope-up with the legal environment of the Vatican City so as to develop a smooth flow of operations and functionalities.
Resources and capabilities are the factors that enable the business entity to perform the various operations and functionalities within the business entity. The business entity should make use of various tools and mechanisms for manipulating and stretching various resources and capabilities of the firm. Honda Motors Ltd can make use of VRIO analysis for executing the process of manipulation. This tool will be proven very much beneficial for the analyzing the internal sources and capabilities of the business (Deakins and Freel, 2009). On the basis of the survey it has been observed that Jay B Barney introduced this framework tool in framework tool in 1991 in his work ‘Firm Resources and Sustained Competitive Advantage’. VRIO as a framework can be utilized for evaluating the capabilities and resources of the firm such as financial, human, material and non-material resources and capabilities. The below presented is the VRION analysis for Honda Motors Ltd that will be proven beneficial in number of ways:
The above-presented analysis has been made focused for generating resources and capabilities for Honda Motors Ltd in Vatican City and is also considered as a complement for the PESTLE analysis. According to this analysis the macro environment of the business organization is also assessed.
Decision making process is making the best choice from the various alternatives available with the business corporation. And there are number of alternatives found in the organization and in the departments. Before making the decision process of evaluation should be evaluated so as to get aware of the advantages and disadvantages. The process aids in developing and bringing out the best outcomes (Lee, Barker and Mouasher, 2013). This can also be considered as the most significant function of the management. Decision making process is very much significant and organizing, directing, controlling, staffing can’t be conducted without them. The below described are some of the advantages that will be assisting Honda Motors Ltd in the decision making process:
Implementation of managerial function: It will be proven very much difficult to execute different managerial functions without decision making process (Hail, Leuz & Wysocki, 2010). For instance, an individual working in Honda Motors will be working through decision making functions. And hence it can be said that decision making function plays an integral role in the implementation process of managerial function.
Pervasiveness of decision making: Taking decisions has been considered as the one of the significant step during all the managerial activities and functions within the business entity (Nunan & Di Domenico, 2013). Decision plays an integral role in all kinds of function and without which no operation executed is possible.
Evaluation of managerial performance: The managerial performance can be evaluated by taking help of the decisions taken by them (Pardalos and Tsitsiringos, 2013). For instance, when the decision taken is correct then it will be considered that the manager is qualified, capable and efficient. And whereas the decision is wrong the manager is expected to be disqualified.
Helpful in planning and policies: The decision making process is very much capable in assisting the management while developing the plans and policies. Any kind of policy or plan will be established by taking the support of the decision making (Renton et al., 2015). No plans and policies will be performed without decision making. Moreover, appropriate and accurate plans are required to be developed for implementing plans and policies.
Selecting the best alternatives: On the basis of the research it has been concluded that the process of selecting the best alternatives is termed as the decision making process (Scarborough, 2015). And hence it is of very much significance for each and every business corporation to have varied range of alternatives from which the selection can be made and appropriate decision can be taken. The decision making team should evaluate various advantages and disadvantages of every alternative and select the best alternative.
Conclusion
In the limelight of the above executed analysis it has been concluded that managing business is one of the crucial task for any of the business entity. The above presented report has been analyzed for the business establishment plan of Honda Motors in Vatican City due to an increase in competitive environment. The assignment comprise of the analysis of the external environment and also of the resources and capabilities available with the firm. And at last the benefits of the decision making process has been evaluated.
As Vatican City is limited in terms area and population, Honda Motors should make use of a mix of contemporary and traditional and contemporary means of promotional tools for promoting the business. This will aid them in covering all types of audience. Moreover, the business firm should provide training sessions regarding the enhancement of the communication skills to the staff of the firm and also to the workforce at the showrooms so as to have interactions with the customers and also developing bonds with them will be easy.
References
Armelini, G. & Villanueva, J., 2011. “Adding social media to the marketing mix”, IESE insight, vol. 9, pp.29-36.
Armstrong, G., Kotler, P., Harker, M. and Brennan, R., 2015. Marketing: an introduction. Pearson Education.
Baker, M.J., 2014. Marketing strategy and management. Palgrave Macmillan.
Baum, J.R., Frese, M. and Baron, R.A. eds., 2014. The psychology of entrepreneurship. Psychology Press.
Bhachu, P. ed., 2017. Immigration and entrepreneurship: culture, capital, and ethnic networks. Routledge.
Bienkowski, M., Feldmann, A., Jurca, D., Kellerer, W., Schaffrath, G., Schmid, S. & Widmer, J., 2010. “Competitive analysis for service migration in vnets”, Proceedings of the second ACM SIGCOMM workshop on Virtualized infrastructure systems and architectures, pp. 17-24.
Bruni, A., Gherardi, S. and Poggio, B., 2014. Gender and entrepreneurship: An ethnographic approach. Routledge.
Deakins, D. and Freel, M.S., 2009. Entrepreneurship and small firms. McGraw-Hill College.
Dorn, T. and Suessmair, A., 2017. Determinants in Pay-What-You-Want Pricing Decisions—A Cross-Country Study. American Journal of Industrial and Business Management, 7(02), p.115.
Hail, L., Leuz, C. & Wysocki, P., 2010, “Global accounting convergence and the potential adoption of IFRS by the US (Part II): Political factors and future scenarios for US accounting standards”, Accounting Horizons, vol. 24 (4), pp.567-588.
Lam, W. and Harker, M.J., 2015. Marketing and entrepreneurship: An integrated view from the entrepreneur’s perspective. International Small Business Journal, 33(3), pp.321-348.
Lee, K.H., Barker, M. and Mouasher, A., 2013. Is it even espoused? An exploratory study of commitment to sustainability as evidenced in vision, mission, and graduate attribute statements in Australian universities. Journal of Cleaner Production, 48, pp.20-28.
Nunan, D. & Di Domenico, M., 2013, “Market research & the ethics of big data”, International Journal of Market Research, vol. 55 (4), pp.505-520.
Pardalos, P.M. and Tsitsiringos, V. eds., 2013. Financial engineering, E-commerce and supply chain (Vol. 70). Springer Science & Business Media.
Renton, M., Daellenbach, U., Davenport, S. and Richard, J., 2015. Small but sophisticated: entrepreneurial marketing and SME approaches to brand management. Journal of Research in Marketing and Entrepreneurship, 17(2), pp.149-164.
Scarborough, N.M., 2015. Entrepreneurship and effective small business management. Pearson Higher Ed.
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