Despite the failures amongst the top management, their current position has been achieved by the drive of a few dedicated branch managers, who usually ignore all the rules of the organisation, and by some of the sales force, who can be ruthless in their pursuit of commissions and care not for any processes that they should follow. In expanding, Kate Hudson recognises the necessity of becoming less people and more process driven, as well as getting some management structure back in place. There is a tendency for offices to 'go their own way', one consequence being that opportunities to make sales are lost through failure to move a buyer from the office that they have originally contacted to one that can better meet their needs e.g. if they decide that a different location is preferable to the one that they are currently looking in. However Kate Hudson does recognise there are two issues that she needs to be aware of Sales staff attrition rates (which she hopes can be reduced by standardising office processes and pushing up their commission rates it is known that these rates are not consistent across branches and there is expectation that BIP will help here) and the need to operate according to the highest ethical standards; occasionally, customer surveys reveal that staff sometimes fall short of "good customer service". The register of properties for sale, the list of applicants (people who wish to buy property), the calculation of sales commissions, the production of certain standard letters for vendors, applicants, solicitors were all considered to be activities which could be computerised. There could be an issue here - there is very limited appreciation of I.T. within the admin teams. There are currently 16 branch offices; each in a different area and each have between eight and ten sales persons, five administrative staff: a branch manager, property registrar, sales administrator, adverts clerk, and appointments secretary. Administrative staff vary enormously in capability and it is clear that whilst about half of them are very good many are just lazy, some are incompetent and a few are both lazy and incompetent! It is thought that after automation admin staff should be reduced to 3 per office. What are your thoughts about which areas of the business should be outsourced, which should remain in-house give reasons for all of your decisions. -

Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
Publisher:William Nickels
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
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Despite the failures amongst the top management, their current
position has been achieved by the drive of a few dedicated branch
managers, who usually ignore all the rules of the organisation,
and by some of the sales force, who can be ruthless in their
pursuit of commissions and care not for any processes that they
should follow.
In expanding, Kate Hudson recognises the necessity of becoming
less people and more process driven, as well as getting some
management structure back in place. There is a tendency for
offices to 'go their own way', one consequence being that
opportunities to make sales are lost through failure to move a
buyer from the office that they have originally contacted to one
that can better meet their needs e.g. if they decide that a different
location is preferable to the one that they are currently looking in.
However Kate Hudson does recognise there are two issues that
she needs to be aware of Sales staff attrition rates (which she
hopes can be reduced by standardising office processes and
pushing up their commission rates - it is known that these rates
are not consistent across branches - and there is expectation that
BIP will help here) and the need to operate according to the
highest ethical standards; occasionally, customer surveys reveal
that staff sometimes fall short of "good customer service".
The register of properties for sale, the list of applicants (people
who wish to buy property), the calculation of sales commissions,
the production of certain standard letters for vendors, applicants,
solicitors were all considered to be activities which could be
computerised. There could be an issue here - there is very limited
appreciation of I.T. within the admin teams.
There are currently 16 branch offices; each in a different area and
each have between eight and ten sales persons, five administrative
staff: a branch manager, property registrar, sales administrator,
adverts clerk, and appointments secretary. Administrative staff
vary enormously in capability and it is clear that whilst about half
of them are very good many are just lazy, some are incompetent
and a few are both lazy and incompetent! It is thought that after
automation admin staff should be reduced to 3
per office.
What are your thoughts about which areas of
the business should be outsourced, which
should remain in-house give reasons for all
of your decisions.
Transcribed Image Text:Despite the failures amongst the top management, their current position has been achieved by the drive of a few dedicated branch managers, who usually ignore all the rules of the organisation, and by some of the sales force, who can be ruthless in their pursuit of commissions and care not for any processes that they should follow. In expanding, Kate Hudson recognises the necessity of becoming less people and more process driven, as well as getting some management structure back in place. There is a tendency for offices to 'go their own way', one consequence being that opportunities to make sales are lost through failure to move a buyer from the office that they have originally contacted to one that can better meet their needs e.g. if they decide that a different location is preferable to the one that they are currently looking in. However Kate Hudson does recognise there are two issues that she needs to be aware of Sales staff attrition rates (which she hopes can be reduced by standardising office processes and pushing up their commission rates - it is known that these rates are not consistent across branches - and there is expectation that BIP will help here) and the need to operate according to the highest ethical standards; occasionally, customer surveys reveal that staff sometimes fall short of "good customer service". The register of properties for sale, the list of applicants (people who wish to buy property), the calculation of sales commissions, the production of certain standard letters for vendors, applicants, solicitors were all considered to be activities which could be computerised. There could be an issue here - there is very limited appreciation of I.T. within the admin teams. There are currently 16 branch offices; each in a different area and each have between eight and ten sales persons, five administrative staff: a branch manager, property registrar, sales administrator, adverts clerk, and appointments secretary. Administrative staff vary enormously in capability and it is clear that whilst about half of them are very good many are just lazy, some are incompetent and a few are both lazy and incompetent! It is thought that after automation admin staff should be reduced to 3 per office. What are your thoughts about which areas of the business should be outsourced, which should remain in-house give reasons for all of your decisions.
CASE STUDY - Bricks and Mortar
This coursework concerns the development of information
systems for the branch offices of Bricks and Mortar, a rapidly
expanding estate agency in the south of England. The attached
information was gathered in an interview with Mrs Kate Hudson,
joint owner and managing director.
Bricks and Mortar are considering computerising and
"internetting" the main part of their business: that carried out in
the branch offices; the selling and marketing of houses. They
called this the "Business Improvement Project" (BIP). It is hoped
that this will enable Bricks and Mortar to become the premier
estate agent in the south of England although with the drop in
demand to buy houses as the rental market expands coupled with
new internet based estate agents emerging this could be a tough
target to meet. However, the BIP should allow costs to fall as
there will be a need for fewer administrative staff especially if
they switch away from advertising in newspapers and move onto
the web. Kate Hudson also hopes that this will enable houses to
be sold more quickly. Current use of IT is limited to use of a
general ledger accounts package, a payroll package, spread sheets
for financial planning, and some word processing. These are run
on four stand-alone PCs based in the Head Office which houses
the Finance and Marketing departments as well as the Managing
Director. Given the quality of staff in Head Office it is expected
that Finance and Marketing will cope effectively with all the
proposed changes. Having said that there is little experience
within Marketing of what going digital would actually involve
although a recent visit by a consultancy evaluated the marketing
team to be one of the best and most innovative that they had come
across.
Bricks and Mortar have requested a thorough analysis of their
business, reviewing their business strategy, and to identify
opportunities for the use of IT in improving their profitability and
market position.
Due to the negligence of the other partner, Robert Jackson, the
company has for some time now been without any effective
personnel management (that being a major role of his) and as a
result it has been decided that Robert Jackson should retire and
leave the running of the company to his more diligent business
partner Kate Hudson. Indeed, the Personnel team that Jackson
was responsible for is clearly underperforming - it is rare to see
anyone in the team before 10 am and the office is normally empty
at 4pm. Long lunch hours in the pub are not unknown and there
isn't a single person in this department that has an appropriate
qualification.
Transcribed Image Text:CASE STUDY - Bricks and Mortar This coursework concerns the development of information systems for the branch offices of Bricks and Mortar, a rapidly expanding estate agency in the south of England. The attached information was gathered in an interview with Mrs Kate Hudson, joint owner and managing director. Bricks and Mortar are considering computerising and "internetting" the main part of their business: that carried out in the branch offices; the selling and marketing of houses. They called this the "Business Improvement Project" (BIP). It is hoped that this will enable Bricks and Mortar to become the premier estate agent in the south of England although with the drop in demand to buy houses as the rental market expands coupled with new internet based estate agents emerging this could be a tough target to meet. However, the BIP should allow costs to fall as there will be a need for fewer administrative staff especially if they switch away from advertising in newspapers and move onto the web. Kate Hudson also hopes that this will enable houses to be sold more quickly. Current use of IT is limited to use of a general ledger accounts package, a payroll package, spread sheets for financial planning, and some word processing. These are run on four stand-alone PCs based in the Head Office which houses the Finance and Marketing departments as well as the Managing Director. Given the quality of staff in Head Office it is expected that Finance and Marketing will cope effectively with all the proposed changes. Having said that there is little experience within Marketing of what going digital would actually involve although a recent visit by a consultancy evaluated the marketing team to be one of the best and most innovative that they had come across. Bricks and Mortar have requested a thorough analysis of their business, reviewing their business strategy, and to identify opportunities for the use of IT in improving their profitability and market position. Due to the negligence of the other partner, Robert Jackson, the company has for some time now been without any effective personnel management (that being a major role of his) and as a result it has been decided that Robert Jackson should retire and leave the running of the company to his more diligent business partner Kate Hudson. Indeed, the Personnel team that Jackson was responsible for is clearly underperforming - it is rare to see anyone in the team before 10 am and the office is normally empty at 4pm. Long lunch hours in the pub are not unknown and there isn't a single person in this department that has an appropriate qualification.
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