In KCF Ltd, a food joint, it is being observed that sales are declining day-by-day as the company is not able to produce products as per the satisfaction of customers. Suggest, if the company imposes a control system, it would be effective or not.

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Solution

As per the limitations of controlling, there are many areas in business where measurable standards cannot be set. Such areas are employees morale, job satisfaction, and customer satisfaction. Thus, from this aspect, it is difficult to measure customer satisfaction.

Even if a manager imposes a control system, it will depend more on his capabilities. He can initiate customer feedback and get information on the quality of food, waiting time, service quality, an attitude of waiters, etc. This information might be quite useful in finding the problem areas and thus the company can work towards improvements in customers' satisfaction.

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A company M Ltd. is manufacturing mobile phones both for the domestic Indian market as well as for export. It had enjoyed a substantial market share and also had a loyal customer following. But lately, it has been experiencing problems because its targets have not been met with regard to sales and customer satisfaction.

Also, the mobile market in India has grown tremendously and new players have come with better technology and pricing. This is causing problems for the company. It is planning to revamp its controlling system and take other steps necessary to rectify the problems it is facing.

How can the company relate its planning with control in this line of business to ensure that its plans are actually implemented and targets attained?

Q. Company X is facing a lot of problems these days. It manufactures white goods like washing machines, microwave ovens, refrigerators and air conditioners. The company’s margins are under pressure and the profits and market share are declining. The production department blames marketing for not meeting sales targets and marketing blames production department for producing goods, which are not of good quality meeting customers expectations. The finance department blames both production and marketing for declining return on investment and bad marketing.

What quality of management do you think the company is lacking? Explain briefly. What steps should the company management take to bring the company back on track?

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