HUMAN RERSOURCE MANAGEMENT

CASE STUDY # 02

SUBMITTED TO:
Prof. F.A Fareedy
SUBMITTED BY:
Rana Noraiz Ali
MBA 2
13P00033
Section C

DATE: September 11, 2014

Introduction
Johnson and associates is co-founded firm by four persons in June 1989 and has experience of
about six months. It is a small software firm in which each member has some specialize skills.
James Johnson is introvert type perfectionist who always take interest in computer and in science
clubs. He completed his majors in computer science and worked as computer programmer for
about two years, when they open the firm.
Michael Johnson is more of an extraversion type. He completed his majors in business and
worked as consumer product analyst for about six months until Johnson and associates was
founded.
Jackson also did majors in computer science and was worked in insurance company as a
computer programmer
Wilson attends technical school for computer programming and worked as programmer for about
two years in Republic Airlines.
Both James and Michael(Johnsons) has desire to open-up their own business since boyhood, also
their father has same wish for his field but do not do so, that makes boys more passionate.
Computer market was at his full throttle and software markets was estimated to grow
approximately 19% annually i.e. from 25 billion to 61 billion from 1988 to 1993.sales of
computers are estimated to about 80 billion while software expenses were expected to rise from
17% to 20% of total information technology expenditures.
Johnsons and associates selected three target markets for their products
1. Health and racquet clubs
2. Independent insurance agents
3. Whole sale produce distribution companies
The firm selected health clubs for their initial startup and target three cities for this. The cities
has 1400 fitness and health clubs out of total 22000.The firm is able to sell his product Club-Kit
to two of fitness center and seriously considering for the promotion of their product.

Issues

Two of the members are of opinion that they should make their price more negotiable
while other two feel that they should maintain price and profit margin.

The field that they were has a massive competition and person responsible for marketing
has only six months experience.

The firm does not have any competitive strategy.

The firm lacks in strategic planning and strategic management.

They are just relaying on revenue from single product in a highly competitive
environment.

Lack of any guiding tool for business e.g. business plan.

In six months they are only able to sell two software of Club-Kit.

Involving James in selling the product will seriously affect the product developing
process.

There should be hierarchy of authority and proper designations.

Recommendations

Should go for more negotiable software price, as the cost of developing the
software is in the hands of firm on which the firm can compete. On the other hand
cost of personal computer is not in the hand of firm and cannot compete on it as
supplier will definitely take margin ,resist the firm to take cost leadership

Should hire more competent and experienced marketing personnel of past relevant
experience, as there is no margin for error in highly competitive environment

Should form some strategic plan so that they can efficiently match internal
strengths and weakness, and external opportunities and strengths.

Must develop more products as it will reduce the dependence on only single
product in a very competitive environment.

There should be hierarchy of authority so that firm can easily decide on final
verdict.

Conclusion
Johnson associates is new established firm so the founders of the firm must have some
guiding material like business plan which could help the firm to take decisions that are
relevant to the purpose and mission of the firm. They should develop a hierarchy of
authority which will help them to reach a final conclusion more appropriately and
efficiently e.g. decision about whether to cut their margin on software price or on
computer systems. The selection of target market is also questionable as there are only 6
percent market share is present to which they can capitalize. Only sale promotion will not
be much effective for a new born firm which also did not have enough resources (as they
sell only 2 software).The new firm should be more focused on their strategic management
process and strategic plan. This will help the firm to identify their strengths and
weaknesses in order to compete more efficiently and increase their market share rather
than just relying on sale promotions and selling with the help of friend.