Shah Enterprise Ltd. manufactures tea. The production department produces more tea than required and sales department is not able to sell the total production. What qualities of management do you think in which the company is lacking?

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Solution

The management of Shah Enterprise Ltd. is lacking the following qualities :

(i) Lack of coordination: The management lacks coordination among people’s working across different levels leading to a mismatch between production and sales of tea.

(ii) Lack of adding real value: Because of the lack of coordination between production and sales, there was no flow of communication and information regarding how much tea is actually demanded. Over production can lead to wastage and cannot create real value across stakeholders.

(iii) Inability to achieve organisational objectives: Shah Enterprise Ltd, should have set the objectives or specific targets to be achieved within a particular time frame so that, overproduction couldn’t have occurred. However, if the sales department could not sell the production then alternative strategies should also be devised. Due to overall miscommunication between the management, the company’s objectives of revenues could not be achieved.

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