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Starlet: Management style in todays world




Prepared For:
Madam Wajiha Kazim
Lecturer
IBA, Punjab University, Lahore


Prepared By:
Arousa Sadiq 016
Assad Naseer 034
Sadia Saleem 039
Sundus Khalid 02
Umaid Faisal Cheema 040
Abdul Ghaffar 030

BBA morning
Semester: 2
nd

Session: 2010-2014

Date: 27/6/2011
Table of Contents
Table of Contents 3
About Starlet: 5
Salman Rehman (Head of operations): 5
Hierarchy chart: 6
Starlet Vision: 7
Mission statement: 7
Strategies and plans: 7
Strategy to create brand image: 7
Planning: 7
Trend of product: 8
Customer services: 8
Customer binding: 8
Strategy to attract customer: 8
Comfortable environment: 8
Walking space: 8
Visibility of products: 9
Sale courtesy: 9
AIDA strategy: 9
Attention: 9
Interest: 9
Desire: 10
Action: 10
Presale preparation: 10
Promise less, deliver high: 10
Strategies while recruiting employees: 10
Structure of Starlet: 11
Starlet: 11
Starlet 2: 11
Vendors: 11
Export: 12
Semi-centralized structure: 12
Strict Rules and regulations: 12
Job structure: 12
Flexible environment: 13
Span Of Control: 13
Production development: 13
Leading and motivating employees: 13
Winning their trust and confidence: 13
Employee who violates the rule: 13
Maintaining pressure on employees: 14
Appreciating employees: 14
Controlling and maintaining structure: 14
Dealing with threats: 14
Reopening of an outlet (witnessing planning, organizing, leading and controlling): 15
Questionnaire 16





5
About Starlet:
Starlet is one of the best shoes making company in Pakistan; it started its
business in 1965 with a simple shop in Shalmi and making shoes and chapel for
gents. Starlet in its early days concentrated on branding, making footwear for
other companies. Then in 1970s established a factory and started making
footwear with its own brand name mainly. Starlet has own 40% of the market
share and has achieved a growth rate over 10% for the past five years.
It is in retail business not in institution business which means it never take
orders to make shoes for army etc. and have several outlets in Punjab.
Salman Rehman (Head of operations):
Salman Rehman did his MBA from Pak aims and has previously worked in
organizations like warid, telenor and joined starlet in March, 2011. He is the head
of operations and mostly deals in marketing and selling. He enjoys working in
starlet because of its flexible environment. He says he got job securities here and
is very close to employees benefits.



6
Hierarchy chart:


C.E.O:
Nadeem Sohail
Production
development
manager
Gulfam
Account
manager:
Riaz Sahab
Head of
operation:
Salman Rehman
Administration
manager:
Zahid Sahab
Regional Sales
manager:
Imran Musheer
Controller warehouse:
Qaisar Sahab
Merchandiser:
Shahbaz Sahab
All outlets of startlet
All Staff


7

Starlet Vision:
To achieve customer satisfaction by providing foot friendly shoes in
elegant designs with sophisticated manufacturing techniques and yet cost
effective.
Mission statement:
To become a brand of choice by:
Registering to customer mind both at a national and international level as
manufactures of high quality shoes. Beside from profitability customer
satisfaction is our utmost priority. We aim at continuous improvement in all areas
through a dedicated, sincere and competent work force supervised by a team
of highly qualified and committed professionals.
Starlet develops plans, strategies and sets goals according to their mission
and vision statement.
Strategies and plans:
Strategy to create brand image:
Starlet applied the following technique to create brand image.
Planning
Trend of products
Customer services
Customer binding
Planning:
It includes determining of which products are great in demand, how to
meet this demand level, making sure that product is available at the outlets.
There come no hurdles in supplying goods.


8
Trend of product:
Next step is to determine trends of product in various locations. For
example, in Defense the main focus will be on casual shoes and executive
shoes. In Shadra main focus will be own ladies shoes and sandals.
Customer services:
Starlet makes sure the provision of service to customers before, during and
after a purchase at their outlets. They design a series of activities to enhance the
level of customer satisfaction that is, the feeling that a product or service has
met the customer expectation.
Customer binding:
Finally it creates customer loyalty or ties that bind the customer with
starlet.
Strategy to attract customer:
Following is one of the strategies which
starlet applies to attract customers
Comfortable environment
Walking space
Visibility of products
Sale courtesy
Comfortable environment:
Environment of shop must give
customer a sense of comfort. Starlet strives to create calm atmosphere in their
shops.
Walking space:
Customer must have a walking space to see the products in the shop. Not
too many employees must be placed in a shop so that customer got a feeling
of dislike because of rush in the shop. Moreover if a family comes to a shop,
family as a whole must be dealt by a single employee. It must not be like
separate employee for each member because in this case customer would


9
prefer the suggestion of people with them not of salesman. And will get irritated
if salesman interferes.
Visibility of products:
Products must be arranged in such a pattern that customer must be able
to check its features in a single sight. Footwear is placed in shelves and almost
each variety is put in shelves.
Sale courtesy:
Starlet encourages it employees to treat customers with courtesy from
them enter the shop to the moment they leave. So by being impressed by
behaviors customer comes back once again.
AIDA strategy:
Another selling strategy is AIDA plan
It comprises of following factors
Attention
Interest
Desire
Action
Attention:
When a customer enters the shop
give him/ her time n space to think what
he/she wants to buy for him/ herself, time
must be given to customer to look for the
thing he/she is in shop for.
Interest:
It is advised to salesman to
continuously notice the customer n things
he/she is developing interest in.


10
Desire:
When salesman gets sure of the desire of the customer and came to know
of the type he/she wants to buy this is the moment where the salesman should
step in
Action:
Last step is to take action and show the customer different colors, sizes,
and styles of shoes he/she expressing interest in. the salesman should never
force customer to buy a product but should assist him/her in making the desire
decision.
Presale preparation:
This step is normally taken before daily opening of a shop. Hygiene of a
salesperson is checked, dressing is made perfect n clean and they are
motivated to give their best and make customer feel welcomed.
Promise less, deliver high:
It is the part of customer dealing of starlet that promise him/her less n deliver
high. Because when you cant keep the promises you made you will lose
credibility and as a result your customer. And when you deliver more than you
promised you win confidence of your customer.
Strategies while recruiting employees:
The personality of employees is checked and judged. for example in
outlet in DHA good looking and got personalities salespersons are employed
because of elite trend followed in that part whereas in Ichra, Shahdra not much
focus in laid on looks of employees.



11

Structure of Starlet:
Starlet is divided into four categories
Starlet
Starlet 2
Vendors
Export
Starlet:
80% of the total share of starlet companies comes from this sector of
starlet. In which they manufacture goods locally
Starlet 2:
This comprises of all their imported stuff mainly from china. And majority
comprises footwear of ladies and it comprises 14-15% of the starlet company
Vendors:
Starlet orders local vendors to manufacture shoes and use their own
brand to sell it.


12
Export:
The export material is mainly made in Sheikhupura factory. Orders are
taken from the countries like Germany and France. Starlet in-house their experts
which make them aware of their trends and then starlet manufactures and sells
them to various foreign companies which use their own brand name to sell
shoes.
Semi-centralized structure:
Starlet lies between centralized and semi-centralized structure. It means in
some decisions employees do participate and management takes action but
all decisions regarding finance of the organization are taken by C.E.O
Strict Rules and regulations:
Starlet observes strict rules and regulation within its organization. Those
rules and regulations are observed even by the C.E.O of the organization. There
are rules and regulations for outlets, factories and offices. Formalization exists in
starlet.
In the main office, in house employees have to wear a proper dress code
which is blue jeans and blue starlet shirt. It shows their loyalty with their
organization whereas other employees who have to interact with the outside
world can wear formal dress code.
Job structure:
Jobs are well defined. They
prefer employees from relative fields
while recruiting. They prefer team
work. Normally they have
permanent employees but they also
hire teams for various projects which
are not a part of starlet family. It
means they do have a concept of
boundryless structure within their
organization. Tasks are assigned to
workers on daily basis.


13
Flexible environment:
They are currently organic in nature. Their organization is flexible. But they
are tending to be more mechanistic like introducing work specialization etc.
Span Of Control:
As you can see from the hierarchy chart, starlet possesses wide span of
control. Many staff members and employees can come under a single
manager,
Production development:
Manager from product development manager thinks of a design and
presents it before management .After getting approved management provides
the manager with necessary raw material and dead line. And prepares this new
product in small lot and then provides it to various shops after checking its sales
pitch further orders it in bulk. (if sales pitch is positive)
Starlet produces thing in mass production. Work mainly depends on man
power and very much less on machines.
Leading and motivating employees:
Winning their trust and confidence:
While recruiting new employees, if there comes two people for the job
with same caliber, starlet would go for the person who needs the job the most (is
in desperate conditions) their belief is that in return that worker would give them
their honesty because the organization helped them in their harsh times. Starlet
offers very good job packages to its
employees.
Employee who violates the rule:
If an employee commits a fault or is
shirks from work. The organization counsels the
employees at the lower level, then finally at
the C.E.O level if the employee continues the
same traits. If an employee violates the limit in
disobeying the rules starlet then suspends
such employees for a month or so but does not fire them.


14
Maintaining pressure on employees:
Starlet always maintains a constant pressure on its employees mainly who
are in the export sector because they have to deliver an order before the
deadline and employees take this pressure positive.
Appreciating employees:
Starlet always appreciates its workers for their extra ordinary
performances. Starlet gives bonus to the sales person who performs better than
the desired goal. This promotes competition within sales person but to minimize
its negative affects starlet continuously counsels the worker who are not
achieving their goals.
Controlling and maintaining structure:
Starlet maintains check and balance within organization. The daily reports
of outlets are given to the administration manager who notices the sails. And
monthly reports are also made for feedback and improvement.
Dealing with threats:
Starlet is highly affected by the load shedding. It increases their per unit
cost because they have to deploy generator to carry on the process of
production. But they cant increase the sale price of their product. Other usual
problems faced normally in our country are dealt and solved by either hook or
crook method.


15
Reopening of an outlet (witnessing planning,
organizing, leading and controlling):
We witnessed the opening of their outlet in shahdra. The shop was going
to open after a whole month as it was going through a renewing process. Before
the shop was quite old and pretty much down in sales. Then based upon
customer feedback (many of the starlet permanent customers suggested if you
increase the size of shop and renew it you will have greater sales. This feedback
was discussed with the C.E.O of the organization. After checking with the
availability of resources starlet decided to invest in their outlet). Head of
operations and administration in charge visited the place an hour ago before
the opening. They checked if everything was going according to the plan. They
discussed monthly goals with the manager. After that summoned all the sales
boy and made them realized that they are a part of their starlet family, made
them aware of selling tactics then divided the shop in zones like mens wear,
ladies shoes, children, joggers and starlet elite class, placed sales persons based
upon their experiences in different zones. A sales person who was going to open
the main door for customer his activity was rehearsed over again and again.
Then they set the daily goals for each sales person depending upon experience
and zone allotted like 10 shoes per day, 8 pairs per day etc. daily reports of the
outlet would be sent to administration manager to check either goals are being
met or not. Monthly reports would be sent to the C.E.O of the organization.



16
Questionnaire
Following is the questionnaire that was developed in order to conduct the
interview although many random questions were asked at the spot.
Kindly tell us the brief history of your organization.
What is the mission and vision statement of starlet?
What is the current position of company in the market?
Kindly tell us the hierarchy of your organization.
How do you plan, Set goals and what are your basic strategies?
Kindly tell us about the departments of your organization.
Do you prefer team orientation or people orientation?
Do you hire a team for a project which is not a permanent part of starlet
family?
To what extent your organization is formalized?
Is the organizational structure of starlet mechanistic or organic?
How much do you promote innovation and creativity in your
organization?
Kindly tell us details regarding span of control.
Do you take orders for a specific customer?
How do you coupe up with environments uncertainty and deal with
various threats?
How do you motivate you workers?
What steps do you take to reduce politics within employees?
If an employee violates the rule, what serious actions do you take against
him?
If an employee gives an extraordinary performance, how do you
appreciate him?