PERSPECTIVE

MANAGEMENT
ASSIGNMENT

Presented By :-Harshal Naik

RN-70 / FYMMS

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SEQUENCE

Henry Fayols 14 Principles With Example.

Pestle Analysis Of Any 1 Company

BCG Matrix ? Explain 1 Example?

Explain Roles Of Managers

What Is Crisis Management? Explain With

Example? Competitors

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HENRY FAYOLS 14 PRINCIPLES

Division of work:

Assign each employee a task that

they can become proficient at.
Productivity increases as
employees become more skilled,
assured and efficient. Today,
experts still warn against multi-
tasking.
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HENRY FAYOLS 14 PRINCIPLES

Authority.

Managers must possess the

authority to give orders, and
recognize that with authority
comes responsibility. As well as
rank, Fayol argues that a
manager's intelligence,
experience and values should
command respect. 4

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HENRY FAYOLS 14 PRINCIPLES

Discipline.

Everyone should follow the rules.

To help, you can make
agreements between the
organization and employees clear
for all to see.

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HENRY FAYOLS 14 PRINCIPLES

Unity of Command.

Fayol wrote that "an

employee should receive
orders from one supervisor
only." Otherwise, authority,
discipline, order, and stability
are threatened.

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HENRY FAYOLS 14 PRINCIPLES

Unity of Direction.

Teams with the same objective

should be working under the
direction of one manager, using
one plan. That, Fayol wrote, "is
the condition essential to unity of
action, coordination of strength
and focusing of effort."
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HENRY FAYOLS 14 PRINCIPLES

Collective Interest
Over Individual
Interest.

Individuals should pursue

team interests over
personal ones – including
managers

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HENRY FAYOLS 14 PRINCIPLES

Remuneration.

Employee satisfaction depends

on fair remuneration for
everyone – financial and non-
financial. Fayol said pay should
be fair and reward "well-
directed effort."

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HENRY FAYOLS 14 PRINCIPLES

Centralization.

Balancing centralized decision

making (from the top) with
letting employees make
decisions. Or as Fayol wrote, "A
place for everyone and
everyone in his place."

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HENRY FAYOLS 14 PRINCIPLES

Scalar Chain.

Employees should know where

they stand in the organization's
hierarchy and who to speak to
within a chain of command. Fayol
suggested the now-familiar
organization chart as a way for
employees to see this structure
clearly. 11

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HENRY FAYOLS 14 PRINCIPLES

Order.

Fayol wrote that, "The right man

in the right place" forms an
effective social order. He applied
the same maxim to materials:
right one, right place. Academics
note that this principle pre-
empted the Just in Time (JIT)
strategy for efficient production.
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HENRY FAYOLS 14 PRINCIPLES

Equity.

Managers should be fair to

all employees through a
"combination of kindliness
and justice." Only then will
the team "carry out its duties
with... devotion and loyalty."

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HENRY FAYOLS 14 PRINCIPLES

Stability of Tenure of
Personnel.

Organizations should
minimize staff turnover and
role changes to maximize
efficiency. If people are
secure and good at their jobs,
they are happier and more
productive.
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HENRY FAYOLS 14 PRINCIPLES

Initiative.

Employees should be
encouraged to develop and carry
out plans for improvement. As
Fayol wrote, "At all levels of the
organizational ladder, zeal and
energy on the part of employees
are augmented by initiative."

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PESTLE ANALYSIS
A PESTLE analysis studies the
key external factors (Political,
Economic, Sociological,
Technological, Legal and
Environmental) that influence an
organization. It can be used in a
range of different scenarios, and
can guide people professionals
and senior managers in strategic
decision-making.
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PESTEL ANALYSIS OF BMW
BMW is one of the top car manufacturers in the world, and they have
customers all over the globe. The Germany-based brand is well-known for its
luxurious cars and has earned the position of a crucial player in the global
automotive industry. The brand owns two more luxury brands, namely Mini and
Rolls Royce. BMW group is trying to bring in more advanced technology in
their cars to cement their position as the tech leader in the automotive market.

The current automotive industry is highly dependent on technology. Therefore,

innovation has become the driving power for brands. The PESTEL BMW can
show the varied external factors responsible for the brand's current position.
Some basic details about BMW are as follows: 17

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OVERVIEW OF BMW
BMW (Bayerische Motoren
Company Name:
Werke AG)
CEO: Oliver Zipse
Company Type: Automotive manufacturer
Year Founded: 7 March 1916
Employees: 118,909 (2021)
Annual Revenue: 131,607 million USD (2021)

Camillo Castiglioni, Franz

Founder:
Josef Popp, Karl Rapp

Area Served: Worldwide (except Russia)

Headquarters: Munich, Germany
Operating
€16.060 billion (2021)
Income: 18

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BMW PESTEL ANALYSIS
BMW considers being one of the top
service providers in the mobility field. The
company already has a loyal customer
base attracted to BMW's sophisticated
products with advanced technologies. The
brand has already earned a name for
itself, becoming a global brand. Different
macro factors can impact the business of
BMW. PESTEL BMW can show how
factors like politics, economy, society,
technology, environment, and law can
have roles in establishing BMW at its
present status. 19

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POLITICAL FACTORS:
As a global brand, BMW often gets impacted by political conditions and
governmental decisions. Stable political conditions and the government's
stand about foreign investment can be favorable for BMW. Here are some
political factors that influence the brand's business:

Like most other businesses, political instability is a concern for BMW.

Political instability can directly impact their business. People's buying
habits may change if there is turmoil in the countries they have invested in,
thus, affecting their business. BMW's business is at risk due to its political
condition in countries like China, Russia, and Brazil.

Trade laws and investment regulations can impact the business of a

company. BMW operates worldwide, and therefore free trade zones, labor
laws, and the government's approach towards foreign investors also play a
significant role in the business expansion of BMW. 20

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ECONOMIC FACTORS:
The growth of any business is directly related to the economy. As BMW has
customers all over the world, the global economy contributes to the
expansion of its business. Here are some ways the economic factors have
worked on the company's sales number:

BMW makes luxury cars, and the automobile market is highly competitive.
There are multiple vital players like Toyota in the market, and the brand
value of the brands keeps fluctuating. Therefore the brand cannot correctly
speculate its profit, loss, and sales figure. Thus, its investments in BMW
can be at risk.

Currently, the global economy is in an unstable condition. It has created

volatility in areas like currency conversion rate, GDP, etcetera. As these
conditions impact people's buying habits, they may influence the growth of
BMW's business. Though the economic development of 2018 in the USA 21

favored BMW, the pandemic slowed down their business to some extent .
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SOCIO-CULTURAL FACTORS:
The company does thorough market research before launching a product. The
GDP, per capita income, society, and culture can influence people's buying habits.
They also consider the nation's political and economic condition in a new product.
It has helped them to increase their sales.

Social media and other online platforms are crucial for shaping consumer behavior.
BMW has a robust online presence, and they are active on various social media
platforms, for which they have smooth connectivity with their customers and
potential customers. Their brand image and performance history have extracted
positive reviews from customers. These factors have also contributed to increasing
their business.

The social trends of owning luxury cars have increased demand in certain regions.
For example, in 2020, 34% of Chinese people wanted to own a luxury car which
increased to 40% in 2021. A similar mindset is evident in many Asian countries. It
shows BMW has a chance to expand its business in those countries with high 22
demand. Their top-quality safety features are adding to their increasing demand.
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TECHNOLOGICAL FACTORS:
Technological advances have brought revolutionary changes in the
automobile industry. AI-based tracking services and safety setups give
people a smooth and safe driving experience. Here is how technology can
impact the business of BMW:

BMW is one of the brands paying attention to research and development

before bringing any car into the market. The market of the automotive
industry is highly competitive, and to survive in it, BMW has chosen
innovation. The brand is working on adding automatic car parking, hybrid
mode, autonomous driving, and several other AI-powered systems.

BMW is one of the brands paying attention to research and development

before bringing any car into the market. The market of the automotive
industry is highly competitive, and to survive in it, BMW has chosen
innovation. The brand is working on adding automatic car parking, hybrid 23

mode, autonomous driving, and several other AI-powered systems .

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ENVIRONMENTAL FACTORS:
BMW is a part of the automotive industry. Therefore, environmental factors
can directly affect their business. Consumers are aware of the pollution
reports and ranking of cities based on the CO2 emitted by vehicles. They
are more willing to take steps to keep the earth green. Therefore, BMW
has concentrated on providing customers with more environment-friendly
options.

Considering that fuel-powered cars contribute to pollution and,

simultaneously, the non-renewable energy sources are limited, BMW has
added a hybrid mode to their products. They use less fuel than the
average. They are also bringing in electric models, which are more eco-
friendly.

BMW Group has developed its cars to have a low carbon-emission rate. In
recent years, BMW has decreased the CO2 emission from their new 24

vehicles
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in the European market by more than 42%.
LEGAL FACTORS:
The brands engaged in businesses worldwide need to pay attention to the legal
system of the countries they operate. Thus, BMW needs to keep an eye on the
laws to avoid getting banned. Here are some legal factors that can have an
impact on the performance of BMW -

BMW Group uses a bunch of technologies in their cars to offer a luxury

experience to the buyers. The group adheres to sets of copyright laws associated
with their technologies.

The company must comply with the labor laws and quality standards of the
countries they operate in for further growth and sustainability. There are specific
laws regarding the safety of the riders, which BMW needs to oblige.

BMW has faced legal proceedings regarding the faulty engines and fires. There
are multiple lawsuits against the company regarding the defective engine issues.
The South Korean Government has asked the brand for compensation of $9.9
25
million for product failure.
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KEY TAKEAWAYS
PESTEL BMW can hint at the future potential of the company as a
car manufacturer while considering its present status in the global
economy. As they are a big corporation, their efficient employees,
funds, and brand recognition can be favorable for the growth of
their business.

The PESTEL BMW shows how the macro factors can impact the
business of BMW. Since BMW is a brand that operates its
business worldwide, they can set the strategies likewise. It will
allow them to cushion the negative impacts of external factors to
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retain their position in the competitive market.
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BCG MATRIX ?
BCG Matrix is an apparatus utilized to incorporate
methodology to break down specialty units or product
offerings dependent on two factors: relative piece of the
overall industry and the market development rate. By
joining these two factors into a matrix, an organization can
plot their specialty units as needs are and figure out where
to dispense extra (financial) assets, where to money out,
and where to strip.

Four different classification names can be credited to every

group:
Dogs
Question Marks
Cash Cows 27

Stars
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BCG MATRIX OF COCA-COLA
A world-driving ready-to-drink refreshment company, Coca-
Cola Company has more than 500 soda pop brands, from
Fuse Tea to Oasis to Lilt to PowerAde. Yet, none of them is
anyplace near the coke brand in terms of mindfulness,
income, and benefit.

Stage 1. Choose the Product/Firm/Brand

We pick the firm Coca-Cola for investigation. Also, you need

to identify the market, as the picked market is beverages,
diet cokes, and mineral water.

Stage 2. Calculate Relative Market Share & Find out the

Market Growth Rate

By and tremendous Growth rate in Coke is that it is no: in

more than 200 countries.
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Stage 3. Draw the Circles on a Matrix

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INTRODUCTION – A MANAGER

A manager is a person who is responsible for a part of a company,

i.e., they ‘manage‘ the company. Managers may be in charge of a
department and the people who work in it. In some cases, the
manager is in charge of the whole business. For example, a
‘restaurant manager’ is in charge of the whole restaurant.

A manager is a person who exercises managerial functions primarily.

They should have the power to hire, fire, discipline, do performance
appraisals, and monitor attendance. They should also have the power
to approve overtime, and authorize vacations. He or she is the boss.
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EXPLAIN ROLES OF MANAGERS

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FIGUREHEAD ROLE OF MANAGER

Managers perform the duties that are ceremonial and

symbolic in nature such as welcoming official visitors,
signing legal documents etc as head of the organization or
strategic business unit or department.

Duties of interpersonal roles include routine, involving little

serious communication and less important decisions.
However, they are important for the smooth functioning of
an organization or department.

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 LEADERSHIP ROLE OF MANAGER

All managers have a leadership role. The manager, as in

charge of the organization / department, coordinates the
work of others and leads his subordinates.

This role includes hiring, training, motivating and

disciplining employees. Formal authority and functional
authority provides greater potential power to exercise and
get the things done.

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 LIAISON ROLE OF MANAGER
As the leader of the organization or unit, the manager has
to perform the functions of motivation, communication,
encouraging team spirit and the like. Further, he has to
coordinate the activities of all his subordinates, which
involves the activity of liaison.

This role also requires the manager to interact with other

managers outside the organization to secure favours and
information. In this role, the manager represents his
organization in all matters of formality. 33

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 MONITORING ROLE OF MANAGER

As a result of the network of contacts, the manager gets the

information by scanning his environment, subordinates, peers and
superiors.

The manager seeks and receives information concerning internal

and external events so as to gain understanding of the organization
and its environment. Typically this is done through reading
magazines and talking with others to learn the changes in the
public’s tastes, what competitors may be planning, and the like.

Managers, mostly collect information in verbal form often as gossip,

hearsay, speculation and through grapevine channels. 34

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DISSEMINATOR ROLE OF MANAGER

Manager disseminates the information, he collects from different

sources and through various means. He passes some of the privileged
information directly to his subordinates, peers and superiors who
otherwise have no access to it. This information is gathered by him
from his environments and from his own equals in the organization.

The manager will play an important role in disseminating the

information to his subordinates, when they don’t have contact with one
another.

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SPOKESMAN ROLE OF MANAGER

Managers also perform a spokesperson role when they

represent the organization to outsiders. Manager is required
to speak on behalf of the organization and transmit
information on organization’s plan, policies and actions.

The manager has to keep his superior informed of every

development in his unit, who in turn inform the insiders and
outsiders. Directors and shareholders must be informed about
the financial performance, customers must be informed about
the new product developments, quality maintenance,
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government officials about implementation of law etc.
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ENTREPRENEURIAL ROLE OF MANAGER

As an entrepreneur, the manager is a creator and

innovator. He initiates and oversee new products that
will improve their organization’s performance.

He seeks to improve his department, adapt to the

changing environmental factors. The manager would like
to have new ideas, initiates new projects and initiates
the developmental projects.

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DISTURBANCE HANDLER ROLE OF MANAGER

As a disturbance handler, managers take corrective action to

response to previously unforeseen problems. Disturbance
handler role presents the manager as the involuntarily
responding to pressures. Pressures of the situation are severe
and highly demand the attention of the manager and as such the
manager cannot ignore the situation.

For example, worker strike, declining sales, bankruptcy of a

major customer etc. The manager should have enough time in
handling disturbance carefully, skilfully and effectively.
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RESOURCE ALLOCATOR ROLE OF MANAGER

The most important resource that a manager allocates to his

subordinates is his time. As a resource allocator, managers are
responsible for allocating human, physical and monetary
resources. Accordingly, setting up of a time schedule for the
completion of an operation or approval of expenditure on a
particular project, etc., are the functions which the managers
perform in the role of a resource allocator.

The manager should have an open-door policy and allow the

subordinates to express their opinions and share their
experiences. 39

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NEGOTIATOR ROLE OF MANAGER

In this role, the manager represents the organization in bargaining

and negotiations with outsiders and insiders, in order to gain
advantages for his own unit. He negotiates with the subordinates
for improved commitment and loyalty, with the peers for
cooperation, coordination and integration, with workers and their
unions regarding conditions of employment, commitment,
productivity, with the government about providing facilities for
business expansion etc.

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Crisis management is the application of strategies designed to
help an organization deal with a sudden and significant negative
event.

A crisis can occur as a result of an unpredictable event or an

unforeseeable consequence of some event that had been
considered as a potential risk. In either case, crises almost
invariably require that decisions be made quickly to limit damage
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to the organization.
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CRISIS MANAGEMENT- JOHNSON & JOHNSON

The crisis:
In 1982, seven people in Chicago
died after taking cyanide-laced
capsules of Johnson & Johnson's
over-the-counter medication Tylenol.
The incident remains unsolved. The
company's response has become a
textbook example of how to manage
a crisis
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CRISIS MANAGEMENT- JOHNSON & JOHNSON

The response:
Johnson & Johnson immediately launched a massive response to the incident,
which included halting all product advertising and sending 450,000 messages
to healthcare facilities and other stakeholder groups. It also issued safety
warnings to consumers.

Despite the evidence indicating that the toxic substance was accidentally
introduced through the store shelves and therefore not the company’s fault,
the company did not try to hide the truth, and the brand eventually started
making tamper-proof packaging. James Burke, the company’s CEO at the
time, even went so far as to express regret later on that the company did not
immediately switch to a more secure caplet immediately following the incident.
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CRISIS MANAGEMENT- JOHNSON & JOHNSON

Key takeaway:
Tylenol’s response is regarded as one of the best crisis
management strategies in history. In fact, according to RETRO
REPORT on YouTube, it has created the script that
corporations still use today. The media generally praised J&J
for its actions in handling the situation and helping the Tylenol
brand recover. One of the most important lessons in this
example is that transparency and integrity will go a long way
towards managing a crisis.
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 THANK YOU FOR YOUR TIME

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