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Assignment/Project Front Sheet

CIM Membership
Number

12998007

Unit Title

Marketing Managing

Level/Award

Diploma in Marketing (Level 6)

Accredited Study
Centre

Oxford College of Marketing

Candidate Declaration: I confirm that in forwarding this assignment/project for


marking, I understand and have applied the CIM policies relating to word count,
plagiarism and collusion for all tasks. This assignment/project is the result of my
own independent work/investigation except where otherwise stated. Other
sources are acknowledged in the body of the text/and a bibliography is appended.
The work that I have submitted has not been previously accepted in substance for
any other award. I further confirm that I have not shared my work with other
candidates.

I hereby give consent for my assignment/project, if accepted, to be available for


CIM use in relation to dissemination of best practice and, or, other appropriate
purposes. It is on the understanding that all studying member numbers would be
removed prior to use for the purposes of full anonymity.

Tick here to opt out

Candidate Number :
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70889221
June 2014

CIM Professional Diploma in Marketing


Marketing Managing : Option 1

Option 1- Implementing Quality systems in


Marketing to Improve Performance
CIM membership no: 70889221
To: XXXXXXXX Senior Manager
From: XXXXXX Marketing Manager

Total word count: 4945 (From task 1-4)


320 words (task 5: Justification of presentation and Report Style)
1084 words (speaker's note)
I confirm that in forwarding this assessment for marking, I understand and have
applied the CIM policies relating to word count, plagiarism and collusion for all
tasks. This assessment is the result of my own independent work except where
otherwise stated. Other sources are acknowledged in the body of the text, a
bibliography has been appended and Harvard referencing has been used. I have not
shared my work with other candidates. I further confirm that I have submitted an
electronic copy of this assessment to CIM in accordance with the regulations.

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Marketing Managing : Option 1

Content:
Executive Summary
Task One Cover Page
1.0 MQMS and Performance measuring
1.1Introduction
1.2Standards Brief and Outline
1.3 MQMS comparison
1.4 Recommendations
Task Two Cover Page
2.0 MQMS and Management
2.1 Management and leadership traits
2.2 Recommended Management Style
2.3 FMM skills gap assessment and development
Task Three Cover Page
3.0 MQMS and Teamwork
3.1 Successful team characteristics
3.2 Employees Requirement
3.3 Management approach
Task Four Cover Page
4.0 MQMS and Budget
4.1 Information Sources' Evaluation
4.1.1 Internal sources
4.1.2 External sources
4.2 Justification and cost benefits analysis CBA
4.2.1 Intangible Benefits
4.2.2 Net Tangible Benefits
5.0 Conclusion
Bibliography
: Organizational Brief
Appendix I
: Description of Marketing Function
Appendix II
: QMS Systems comparisons
Appendix III
: Deming Questionnaire
Appendix IV
: The integrated team Development Framework
Appendix V
: MQMS Benefit Net present value calculations
Appendix VI
: Forecasted organizational revenues
Appendix VII
Appendix VIII : MQMS costs Net present value calculations
Task Five Cover Page
Justification of presentation and Report Style

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CIM Professional Diploma in Marketing


Marketing Managing : Option 1

Executive Summary
Al-Fozan Electrical Material's 'Al-Fozan' weak corporate values achievement is a result of its
weak marketing processes 'MP' which need to be improved. Even Al-Fozan has ISO-9001;
it's function was reduced to be a documentation system within finance, accounting and
inventory management and it hasn't any effect on different MP. That generated the need for
the selection of a Marketing Quality Management System 'MQMS', which could be effective
in Al-Fozan marketing business unit 'MBU' for performance improvement.
After a comparison between lean system, Deming's' total quality management TQM
approach, six sigma and theory of constraints TOC, as per the Al-Fozan's MQMS
requirements, Deming's TQM has been recommended to be the most suitable for Al-Fozan's
MBU, since Deming's guidelines will focus on different MP, it has a full scope on the
marketing business unit MBU, it has application history in sales and marketing, also it has a
team development initiative, with leadership and cross functionality involvement. But AlFozan should detail each process's tasks to avoid its limitation, assess the current status
through Deming's questionnaire and follow the guidelines for successful implementation
results.
For successful implementation, Al-Fozan Marketing Manager's 'FMM' managerial and
leadership needed traits and skills has been assessed according to Deming's requirements for
Leadership using different skills assessment tests, which identified FMM's several strengths
and few skills limitation, which was a base for FMM's selling and consulting leadership
approach for Al-Fozan complicated corporate environment, and his personal development
plan PDP for his limitation's which will be based massive open online courses 'MOOC'
providers as coursera.com.
Another aspect for successful implementation is to have a successful and effective team,
where Al-Fozan Marketing team FMT has been assessed against Sheard and Kakabadse's
(2001) integrated team-development successful team characteristics with its major areas as
task, individual, group and environment, this assessment detected some critical changes to be
progressed, then different key roles and functional roles has been defined and individual
changes has been stated, these two changing aspects will be critical for successful MQMS
implementation, also it will affect the FMM's managerial approach, afterwards an appraisal
has been stated for the FMM successful team management approach, taking in consideration
the task, individual and group's changes and aspects at each team's developing stage.
In order to build a business case, information is needed from several sources, where internal
sources and external sources has been investigated and its impact on budget where Sales
figures, Inventory cost and market trends proved to have a high impact on budget, while ERP
updates and competitors has a medium impact, while training staff has a low impact on
budget in spite of its high return benefits. Afterword intangible benefits has been stated, also
tangible benefits has been the base for a cost-benefit analysis based on Al-Fozan's forecasted
revenues after the MQMS improvement, which proved that Deming approach is beneficial.
(469 words)

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CIM Professional Diploma in Marketing


Marketing Managing : Option 1

TASK 1: 1550 words

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Marketing Managing : Option 1

1.0MQMS and Performance improvement


1.1 Introduction
Al-Fozan acquired ISO-9001in 2006, but its functions was reduced to be a documentation
system within finance, accounting and inventory management functions, in addition to the
weak corporate performance where the gross profit declined to 9% in 2013, this generated AlFozan's need for a marketing quality improvement process, in order to get the utmost of ISO9001 in marketing activity quality to achieve shareholders and customers' values.

1.2 Standards Brief and Outline


All Quality management systems QMS improve the quality in its own approach (Nave,2002),
Nave (2002) stated that to choose the appropriate improvement system, you should focus on
the QMS primary effect. Using appendix III, the following table outline four different QMS.
Lean Enterprise system
Brief outline

Mutually supportive and


reinforcing set of principles,
practices and methods for
evolving efficient and
flexible enterprises as
networked systems creating
value for multiple
stakeholders

Focus and
Benefits
Limitation

TQM (Deming
Approach)
Evolving system of
precepts, practices,
tools and techniques for
improving quality to
satisfy customer needs
& expectations

Six Sigma

TOC

Structured methods,
practices and tools for
reducing all sources of
variation in order to
improve quality,
satisfy customer
needs, and improve
the bottom-line

Set of ordered practices,


methods and tools for
improving
throughput in production
systems in order to
maximize financial
performance, by viewing
the production system as
chains of
interdependencies
- Fast throughput

- Reduction in flow time

- effective processes

- Uniform output

- Statistical or system
analysis is not valued.

- Lack of structured
process

- System interaction
not considered
- Process is
improved
independently

- Minimal worker input


- Data analysis not valued

Table 1.1: Adopted from (Bozdogan,2010), (Nave,2002)

1.3 Information to improve marketing processes


The following table will discuss the coherence between the different QMS and Al-Fozan
requirements.
Lean Enterprise system
QMS purpose

Effectiveness on a
Marketing
(Business Unit BU)
Applicability and
history in marketing
Marketing scale
Strategic
Tactical
Operational
QMS improvement

- Deliver value to
multiple stakeholders
- Build Long term
dynamic network-wide
capability for sustained
competitive advantage
High

TQM (Deming
Approach)
- Meet customer
expectations
- Improve profitability
and shareholder
value

Six Sigma

TOC

High

- Increase customer
satisfaction
- Create economic
wealth (higher
profitability and
shareholder value)
Moderate

- Maximize
throughput
- Improve net profits

moderate

Could be applied but


without history

Could be applied with


history (Selden,P,1997)

Could be applied
without history

Could be applied
without history

High
High
High
- Continuous processes
improvement

Moderate
High
High
- Continuous
processes

Partial
Moderate
High
- Continuous process
specific

Partial
Moderate
High
- Continuous
operational
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- Gradual incremental
change
Compatibility with
MQMS core concepts;
Improve marketing
values through better
management of
processes as;
- Value proposition.
- Customer
segmentation,
Satisfaction and
retaining.
- Suppliers.
- Sales.
- Marketing
information system.
- Team development
- Quality
- Quality Control
- Cross-functional
- Leadership and
management.
- Bench marking.
Implementation cycle

Its concept is to achieve


quality through
elimination of waste,
stable and synchronized
flow, and flexible
adaptive enterprise to
customer needs. It focus
on all marketing
operation, process and
functions, Emphasis on
creating customer's value
propositions and
exchange among
shareholders, also
information Management
in networked enterprise is
a critical aspect for its
success.

- Identify the waste in


marketing processes
'MP' as; marketing
information system
MkIS, inventory,
delivery, order
processing time,
defects, workforce
utilization, which
could be achieved
through value steam
map.
- Improve through
analysing the waste in
MP through root
cause analysis using
tools as cause and
effect diagrams.
- Allow customer to
pull output, after
solving the root cause
using problem-solving
technique.
Yes
Theoretically applicable,
but Lean system is mainly
used for manufacturing
businesses and there is no
record in trading business
that successfully applied
the lean system. Moreover
its main approach is to
reduce waste not
improving different MP;
also it needs a developed
team to conduct it which
is not available in AlFozan.

CIM Professional Diploma in Marketing


Marketing Managing : Option 1
improvement
- Gradual incremental
change
Concentrate on process
management to reduce
variation to improve
quality in QMS,
establish close
relationship with
customers & suppliers,
customers' expectations
determination, require
heavy leadership
involvement, workers
trainings,
empowerments,
fulfillment, and
Different function
integration for
development.

- Plan Marketing
objective's outputs
expectation that is
needed to be
achieved.
- Do your plan, and
collect data while
you are doing it.
- Check the collected
data and compare it
to standards and
expectations.
- Act with the
appropriate
corrective actions
and determine the
root cause to the
variance in results.

Yes
Applicable, since
Deming's TQM is
effective on BU scope
and it has been applied
marketing and sales
BU. And it focuses on
improving MP to reach
quality through team
development,
maintaining, leadership,
cross functional
operation. But AlFozan should detail
each process's tasks to
avoid its limitation.
Table 1.2: Adopted from (Bozdogan,2010) ,(Manktelow,2014)
Expert needed
Evaluation for AlFozan

improvement;
- Discrete change
Reduce all sources of
variation through
structured process
improvement, using
data management and
teamwork, but It
concentrate on specific
process at a time.

- Define the process,


its key
characteristics
important to
customer, and its
relation to output
conditions.
- Measure the MP
with different inputs
and outputs, and
record the data.
- Analyse the data
identifying every
MP's aspects.
- Improve the process
as per data collected.
- Control as per the
desired output.

No
Even it has a rigid
improvement structure,
it isn't effectively
applicable, since six
sigma is mainly for
plant floor with
moderate applicability
on marketing as a BU
level, also it has a
discrete improvement,
and the MP
improvement is a
separate process.

improvement;
- Incremental change
Improve workflow in
QMS, concentrate on
key leverage points
offering a protection
against interruption and
stops, and meanwhile
ensure people learning.
It focus on production
process and its weakest
point

- Identify the
constraints which
hinder MP's flow.
- Exploit the MP and
improve it to get the
utmost of it.
- Subordinate and
pace the other MP to
the constraints
process.
- Elevate, if the
overall output is not
satisfactory, further
improvement is
applied.
- Repeat for new
constraints that may
appear.

No
TOC is exclusive for
the plant floor, Which
makes it not applicable
at Al-Fozan Business.

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1.4 Recommendations
Al-Fozan's most suitable MQMS will be Deming's TQM, since it mainly focuses on MP
beside its Al-Fozan's evaluation stated in table 1.2, But Al-Fozan needs to implement a
structured detailed processes for each MP to avoid its limitation (Table 1.1).
A questionnaire (Appendix III) based on Deming 14-step should be conducted with AlFozan's employees, backed-up with census in depth internal interview with managers
discussing the questionnaire's results, then different MP should be designed taking in
consideration the following guidelines:
#

Aspect

Create a constant purpose

New Quality philosophy

Cease inspection and Focus


on process

Don't award business on


Price alone

Improve constantly

Institute Training

Institute Leadership

Drive out Fear

Action required
Al-Fozan MQMS process should have structured MP implemented for the purpose to achieve
the following values:
- Shareholder's value to increase profit and dividends. (Simkin and Dibb,1998).
- Customer's value increasing satisfaction and customers' life time (Cross and Smith,1997).
Moreover these values should be constantly communicated to the team.
Al-Fozan should Motivate to produce more with fewer inputs, which is a good quality
productivity measure, but several caveats must be taken in consideration as; Marketing planning
process quality and the risk within for each market in GCC, also it should focus on more
differentiated products as wiring accessories due to its higher profits, high return customer
segments as contractors, and to understand the diminishing return on investment.
All MP should be carefully designed, but a fast Strategic advantage cycle SAC is an important
MP (Palmer et al.,2011). Where Al-Fozan needs to have an adequate MkIS in place (Jobber,
2013): Internal reports, Market intelligence, Marketing decision support, and Marketing
research processes. These processes will enhance Al-Fozan's value proposition.
Al-Fozan has a good evaluation Supplier price/quality criteria has been conducted. Hence no
action required.
Using Plan-Do-Check-Act Deming cycle as Illustrated in table 1.2 Al-Fozan needs to apply it on
several MP especially, reporting processes since it doesn't exist, and product/market strategies
due to current weak strategies.
Due to current modest calibers in Al-Fozan, a development plan should be in place.
Al-Fozan's managerial responsibility must be to MP quality, also Managers should act as a team
couches with Participative and transformational leadership.
Employees should have better communication which could be measured through employees'
contribution level in decision making and mistakes' blaming level.
Departments' should cooperate to develop the MP's quality through periodical Cross functional
meetings.

Breakdown Barriers
Between Departments
Eliminate Slogans,
Manager should encourage employees to detail task's process, expected outcome, how to achieve
10 Exhortations, and targets
results and appraisal system, and then negotiate a common ground for implementation.
the workforce
11 Eliminate Numerical Quotes Management by numerical budget achievement. Even it should be process based budget.
Remove Barriers to Pride of AL-Fozan should eliminate judgment of individual and transform employees to aim for better
12
process quality and performance, though listening to productive ideas.
workmanship
Encourage Education and
Incentive schemes for self-development should be implemented to encourage self-development.
13
self-improvement
Take actions for
Management should be committed to the MP development.
14
transformation
Table 1.2: Adopted from (Manktelow , J ,2014), (Sherratt et al,2012),
9

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CIM Professional Diploma in Marketing


Marketing Managing : Option 1

Task 2:1137 words

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Marketing Managing : Option 1

2.0MQMS and Management


2.1 Management and leadership traits
'Managers cannot be successful without being good leaders and leaders can't be successful
without being good managers' (Whetten & Cameron,2011,p17), in the following an
assessment of Al-Fozan marketing manager's needed skills to implement Deming MQMS,
using different management and leadership's traits based on several skills' assessment
questionnaire (Griffin, R,2009), and a critical evaluation for marketing manager's skills with
respect to these traits.

Leadership

Traits & Skills for


Deming's MQMS
Implementation

Management

Type

Description

Motivation

It is a leadership more than managerial trait to


motivate; FMM should motivate individuals
to follow different MQMS processes for
better productivity, through realistic MQMS
goal setting, and being proud of their
contribution to the organizational
development, drive out fear, and express
their ideas about processes improvement.

Plan, Set and brief


goals

FMM should take more managerial approach


to goal setting since he is responsible for
design different MQMS processes' flow and
standards to achieve MP quality, as CRM,
order handling, and sales processes, with
SMART objectives. And focus on MP's
effectiveness rather than numerical
achievements; also he should integrate
Leadership approach to brief the procedures
to assure everyone knows his part of the task.
FMM is responsible for building, managing
team's efforts and insures MQMS tasks are
allocated correctly; also he should work in
lowering barriers between departments to
assure coordination between marketing and
other functions for better customer value
delivery.
FMM sets effective quantitative and
qualitative measures for the MP as visits'
numbers and information needed from each
visit, also manage activities cost. Also he
evaluates the MP's result as per these
measures.

Organizing and
coordinating tasks

Monitor and
Control MP quality

Disseminate
necessary
information

FMM assures the information is disseminated


to assist the processes improvement as visits'
numbers, market analysis, competitors'
analysis and customer satisfaction reports,
also internal process performances report.

Self-awareness

FMM should know his strengths, weakness

Evaluation of Al-Fozan
Marketing Manager 'FMM'

Score

According to Whetten &


Cameron (2011) assessment
questionnaire, FMM is in the
second quartile, since He is
relatively capable of identifying
performance problems and can
take motivational steps to correct
them, and he needs minor
improvement.
According to Locke and Latham
(1984) goal setting assessment,
FMM goal setting approach
could generate successful plans
for Al-Fozan. Moreover his career
achievements reinforce the
assessment results.

99/120

83

61/88

70

According to Hackman (1990)


assessment, FMM possesses high
ability of using team effort, also
according to Roosevelt (1991)
assessment he effectively manage
diversity and conflict in the work
place.
According to Hills and Jones
(2013) assessment, FMM has
standards and values about the
control in organizations. Also
according to American Society of
Quality Control assessment FMM
possesses a good knowledge of
quality control.
Human resource's assessment
indicated that FMM used to
handle Elsewedy Group's
marketing Intelligence unit and he
has experience in classification
and dissemination of information
according to each individual's
need and level of involvement.
According to Whetten &

36/40

90

39/40

99

86/100

86

62/66

93

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Marketing Managing : Option 1

and how he think and take actions.

Technical skills for


Al-Fozan

FMM should have electrical engineering


background with a Diploma in marketing
DCIM.

Developing
Individual and
delegation

FMM constantly develops, coaches and


encourages his team. Also he provides
trainings for higher performance. Later he
delegates authority to them at certain
situation.
Social skills
FMM should influence for high performance,
good communicator, be a change catalyst,
and manage conflicts on objective trait. All
over all he should be an example to all the
aspect he expect from Al-Fozan employees.
Table: 2.1 adopted from (Palmer et al,2011), (Griffin, R,2009)

Cameron (2011), FMM is in top


quartile; he is extremely selfaware and open to feedback from
others
FMM is an electrical engineer
and he is in pursue to Diploma in
marketing from chartered
institute. Moreover he possesses
adequate knowledge in ISO-9001
standard.
FMM had experience as a
freelancer in team developing,
which will be an asset in getting
high performance out of Al-Fozan
marketing team.
FMM's listening skills need to be
developed since his extrovert
personality tends to make him a
talker more than listener.

85/100

85

90/100

90

75/100

75

2.2 The Recommended style of leadership and management


Al-Fozan environment is complicated, since there are a lot of different ethnicity modest
skilled old employees with young managers in charge, low salary schemes, high managers'
turnover, and no promotion for old employees, which illustrate that leadership style could be
selling to make change that they aren't aware of its benefits, also consulting to get the utmost
of their market experience, which could be illustrated as follows:
Style

Characteristics

Situations

- FMM unable to reveal all


necessary information.
Selling
- Logical clear problem.
- Employees' don't share
organisational MQMS goals.
Leaders presents
- FMM Don't have enough
problem, gets
relevant information.
suggestions, but
- Unclear problem which need
retain the final say
to be discussed.
Consult
- Will result weak employees'
commitment.
As introducing a new product to
the market.
Table 2.2: Adopted from (Sherratt et al.,2012)
Leaders make
decision and
motivate people to
accept

Strengths

Limitations

- Employees' awareness for


decision's reasons.
- better commitment that
autocratic Leadership.
- Better staff performance
- Motivated employees
- Advantage of employees'
ownership to decision
- Effective for complex
situation

- One-way communication may


result employees' acceptance.
- Doesn't encourage staff's
initiative and commitment.
- Longer time to reach decision.
- Staff could be immature to
formulate opinion.
- Could turn easily to selling style

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Marketing Managing : Option 1

2.3 FMM skills gap assessment and development

Trait
Motivation
individuals

Plan, Set and


brief goals

Score
%

To decrease the MQMS budget, FMM will depend on solution as; massive open online
courses 'MOOC' providers as coursera.com, private studies as DCIM and on-the-job learning.
FMM developed a personal development plan 'PDP' for all the skills with score lower than
85%. As follows:

83

70

Development Plan

Measure

Time scale

Emotional intelligence will be developed through


studying and applying of the following courses:
- University of Washington's introduction to public
speaking
- university of Pennsylvania's better leader richer life
- Case Western Reserve University's
- Inspiring leadership through emotional intelligence.
These skills set will be developed through studying and
applying of the following:
- Project management in marketing DCIM's module.

- Whetten &
Cameron (2011)
assessment
questionnaire.
- HR 360
appraisals.

11 weeks (total)

- Project management professional certificate.

Communication
skills

75

- Introduction to Operations Management from


university of Pennsylvania
Social skills will be developed through studying and
applying MOOC as
- Wesleyan university's Social Psychology.
- University of Amsterdam's Introduction to
communication science.
- Stanford university's organizational analysis

- Locke and
Latham (1984)
assessment
questionnaire.
- HR 360
appraisals.

11 weeks
10 weeks
8 weeks
6 months (total)
6 months
3 moths
15 weeks
10 weeks (total)

- HR 360
appraisals.

7 weeks
7 weeks
10 weeks

Table 2.3 : PDP

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TASK 3: 1155 words

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Marketing Managing : Option 1

3.0MQMS and Teamwork


3.1 Successful team characteristics
Al-Fozan team will be successful when it is transformed to an 'Effective team' (Sheard and
kakabadse,2001), which its performance is met through development of nine key factors,
these factors could be divided into 4 major areas as follows;
Area

Task

Key factor
Clearly defined
goals
Priorities

Roles and
responsibility
Individual

Self-awareness

Effective team
Understand
MQMS
objectives
Cohesive team
alignment
Agreed and
understood by
individuals
Appropriate
behavior to
team's need

Al-Fozan Marketing Team 'FMT' Evaluation


Organizational values aren't clear for most of the team, which negatively
affected the MP main objective leading gross profit depression below 10%.
There are barriers between BUs, that appears in stock cost's variation
between BU, since they don't place collective order with lower price, instead
each BU compete to have a better price with the same supplier.
MP isn't detailed and there are no clear job descriptions with responsibilities,
task to be achieved, reports format for data collected or even what to collect.

Employees have negative attitude for working creatively due to the


punishments, managers don't share information and operate with silo
mentality, which makes individuals think always about the bad part of their
action's consequences.
Leadership
Catalytic
Manager deals always as commanders for their teams to achieve their targets,
also they rely on the numerical system to evaluate their team's performance,
rather than measuring their team process achievement and quality.
Group dynamics Social system
Cooperation and organization between individual is minor and each depend
established and
on himself to finish the tasks, moreover employees don't share healthy
Group
accepted
sociable relationships.
Communication Open dialogue
Employees discuss problems and solutions in a formal approach and they
discuss the symptoms without addressing the cause, even feedbacks are
formal and there is no room for constructive criticism, these reasons slow the
decision making process.
Context
Influenced but
Due to the unclear organizational values, the teams just follow the direction
not controlled
of managers resulting a task focused team, as sales quota, minimizing costs
by organization
task, etc.
Environment
Infrastructure
Stable support
Current ERP system's features isn't fully used, where employees use what
from
they need from it to finish their tasks, it is used to facilitate the tasks rather
organization
than a data-center acting as Marketing information system. Moreover
infrastructure
Company don't have any training program to develop the employees.
Table 3.1 Effective team factors, Adopted from (Sheard and Kakabadse,2001) and (wheelan,1999)

3.2 Employees Requirement


A 'Successful teams are result of carful design, structure and maintenance', (Palmer et al.,
2012), the current team has a significant gap in MP due to the absence of CRM specialist
role. In the following are some roles that are important to be recruited to build a team.
Functional
Role
FMM

Marketing
specialists

Sales

Expected Contribution for MQMS


implementation
- Design different market MQMS processes.
Provide speciality through activities as per
Deming's approach. Motivate and drive the team
toward the MQMS process quality. Monitor
measure and control MQMS different processes.
And assure that corporate values are met.
- They conduct different MP related to customers as
market and customer's satisfaction surveys, product
approvals, competitors' analysis, lead generation,
and coordination with sales teams. Also he acts as a
plant since he is the source of the intelligence,
ideas and activities that deliver the organisational
values.
- They should encompass a Shaper and evaluator

Change required
Full evaluation for market manager in table 2.2, with
PDP in table 2.3

Motivation is a key aspect for Marketing personal, since


he considered being the core function for AL-Fozan
MkIS. Where motivation could be achieved from the
appreciation through other functions' appreciation.

They need to understand that good sales process results


Page 13 of 36

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Managers

for sales processes as per standards, also monitor


the cash collection processes and coordinate
customers' credit limits with Finance.

Salesmen

- They are an implementers and completers for the


sales process. Since they initiate and follow up the
customers' requirements.
- they act as a monitor evaluators for all MP
results.
- They act as resources investigators, where their
process in the MQMS is a constant evaluation for
supplier products quality, not just price
comparisons.
- He is a team worker who is dedicated to monitor
the MP and different way to improve it.

Financial
Controllers
Purchasing
Specialists

Customer
Service
specialist
Table 3.2 (sherratt et al. 2011), (Piercy,2002), (Belbin,2010)

good revenues, and if results isn't pleasant, they have to


amend the process. Also they need to understand the
market information gathering process importance for
better market decision.
They should collaborate their effort with marketing
specialists for more effective MP, and better
organizational values achievements.
They need to understand, that a lot of MP's benefits are
intangible.
They need to coordinate marketing specialist for price
indicators, and market data that could be useful to
enhance their decision making and standards.
He should be sociable and unassertive where he
coordinates different teams' efforts to further
improvement of MQMS.

3.3 Management approach


'Integrated team-development framework' (Sheard and Kakabadse,2001) is a model embody
all aspects for the development of successful team, since it has been based on Tuckman,
Kubler Ross, and Adair's team development aspects, which could enhance the FMM
understanding of team's development stages and advise specific approach to each stage as
follows.
Forming

Storming

FMM will conduct a meeting in Al-Fozan five Saudi


territory and the 3 abroad countries explaining the new
MQMS objective and detail each MP, this may result a
shock on the individual level, but FMM should stress
on MQMS importance for delivering organizational
values also its different tasks and objective priority
should be clear to all employees in table 3.2.

It is expected that marketing specialist will have several


conflicts with sales managers and salesmen, these
conflicts should be brought to open. FMM should focus
on the positive aspects that make them integrate their
processes toward integrated MQMS, through defining
each ones task and responsibilities, which considered
being a key aspect for further development. Also he
shouldn't expect a lot of development at this stage.
Moreover he should be sure at this stage that all sales
managers and key employees are bought into MQMS'
process to avoid opt-out and norming/storming cycle
(Appendix III)

Performing

Norming

Team member are settled on the process quality,


constantly contributing to the process, and
communicating openly and effectively. FMM should
be an example of effective communicator who brief,
instructing and appraising and give feedbacks, simply
he lead by example. Also FMM should work on
keeping those individuals through different motivation
techniques.

When Team start to recognize each other's' styles.


Some harmony and cohesiveness begin to develop
between individuals. At this stage FMM should
encourage sales people, market specialist and other
members to use their skills and contribute in open
communication to gather and sort information that
could improve the different MP further. Moreover
FMM will have a functional MkIS and aligned team for
better decision.
Table 3.4: Adopted form (Palmer et al, 2011), (Sheard and Kakabadse,2001).

Page 14 of 36

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TASK 4: 1104 words

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4.0MQMS and Budget


4.1 Information Sources' Evaluation
Information sources required to determine the budget for implementation of the quality
standard, since marketing budget requires information from inside the organization and from
outside the organization (Sherratt et al.,2012). In the following is information's impact
evaluation for internal and external sources on budget.

4.1.1 Internal sources


Source
Sales Figure

Staff
training
costs

Monetary
motivational
cost
ERP update

Inventory
cost

ISO-9001
Renewal
Table 4.1

Evaluation
(Why it is important?)
Al-Fozan usually bases its marketing spending on sales revenues, which illustrate the importance of
revenues' analysis to indicate the current profitability and the contribution margin for each product
range, the seasonal variation in the GCC market. Even marketing budget shouldn't be based on sales
budget. These analyses will be inputs in designing several MP, which are responsible to improve the
MQMS effectiveness, through enhanced customers' segment targeting that enhance profitability, to
illustrate the importance of MQMS to senior management.
Al-Fozan has modest calibers due to its low salary schemes; moreover there is no employees'
development process due to low rate of return in the last period, but developing employees is a key
aspect of Deming TQM. Since it is a key aspect it will be included, But the employees' development
plan will be limited on sales managers and key individual for the first two years to increase the ROI in
these years, and those trained personal will conduct what they learn to their teams.
Revenues will increase with the MQMS development, which result higher bonus for sales and marketing
employees due to the current scheme, which may reduce the ROI of such investment, to avoid that a new
bonus scheme should be used.
Several processes need to be embedded within the ERP system as; visits, quotation, purchasing orders,
and CRM marketing intelligence reports, several reports should be standardized through the system, that
needs investment to update the current limited tasks ERP.
ABC analysis (selective inventory control), shows that there is a wrong stock mix which result a high
stock quantity of slow moving items and hinder the purchasing for other product ranges since the overall
stock value is fixed (owner policy), this could affect the implementation of MQMS, since some products
availability will be affected resulting a customer dis-satisfaction. That will lead to extra-promotional
activities to move this slow stock.
Renewal cost of ISO-Certificate to maintain the registration, which includes registrar cost and training
cost.

Impact on
Budget

High

Low

High

Medium

High

Low

4.1.2 External Sources


Source
Competitors

Market
trends and
opportunities

PESTEL
analysis
Customers

Evaluation
(Why it is important?)
Due to the pure competition environment of Al-Fozan's product, competitor's market penetration level
and relationship with customers is crucial, which will affect the design of Al-Fozan CRM process,
where Al-Fozan could invest more in giveaways or promotions in order to develop or maintain its
relation. Also it could affect the pricing levels, sector, size, and product portfolio.
GCC countries dedicated US$1.8 trillion for regional development with average annual development
9% (Deloitte, 2013), that will generate a lot of electrical supplies opportunities, that emphasis the need
for a structured intelligence reporting process. Since these processes will give knowledge about new
product that could be supplied to upcoming new projects; as railways' products, led lighting, UPS
systems and high voltage equipment. This will increase the budget of market intelligence.
The most effective is the new labor law regulations and expenses accompanied to the new amendment
have higher fees on the expats, which increased the expenses and decreased profit margin.
Customer satisfaction report is crucial which needed to be detailed and integrated to the daily task of
marketing specialists and salesmen, which is a pre-alarm for customer churn rate.

Impact on
Budget

Table 4.2

Page 16 of 36

Medium

High

High
Low

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4.2 Justification and Cost benefits analysis CBA


In the following is a Deming TQM budget's justification through forecasted benefits analysis,
most of MQMS's benefits is intangible (sheratt et al.,2012). The following is an illustration to
tangible and intangible analysis followed by CBA for the tangible part.

4.2.1 Intangible Benefits


Aspect

Benefits

ERP System
Staff Morals
Brand Image
Performance
measure
Inventory Cost
management
Suppliers
relation
Constantly
improve

MQMS intelligence process through ERP system will act as a data center that hold knowledge for better
decision making
MQMS employee development process will increase the employees' morals, which generate a healthy
learning environment, where they collaborate to increase their knowledge. This will result higher
individual's productivity.
MQMS aims to customer satisfaction, which result Al-Fozan's better market position which will increase
customer retention and increase customer life value.
MQMS standardized processes defined a certain performance standard that could be implemented
monitored and controlled. So that for any result deviation, the variance could be easily detected and
amended.
MQMS's supplier evaluation process and intelligence process will provide purchasing department
knowledge that could increase Al-Fozan negotiation power, inventory cost planning and management,
which will increase customer value and shareholder value.
MQMS supplier evaluation process will advise the suppliers who should be maintained.
MQMS will provide a core for further improvement in all MP.

4.2.2 Net Tangible Benefit


In order to evaluate the MQMS monetary benefits, Al-Fozan is in need of 'discounted cash
flow model' (Horngren, et al., 2012) as Net present value NPV. According to NPV Calculated
as per appendix V the benefits' monetary values are as follows:
Aspect

Benefits

Staff time
saving
Staff
Retentions
Staff
Productivity
Inventory
Costing

ERP system will save reporting time for salesmen, sales manager and FMM
(Appendix: V)
The employees' development plan and involvement in decision making will retain
talents, which will decrease the training cost of new employees.
Due to the MQMS processes and motivational scheme, it is expected that the
productivity of the system will increase with annual rate of 5% annually.

Profitability
improvement
Total

NPV for 5
years
investment
(SAR)
1,643,241.60
3,569,741.28
2,366,267.90

It is expected that the average inventory purchasing cost decrease by 5%.


MQMS MkIS processes will help increasing profitability through better product mix,
increase market share and new product development based on the customers' need
analysis.

76,896,435.56

84,475,686.34

Page 17 of 36

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The cost incurred for 5 years investment is as follows


Aspect

NPV for 5 years


(SAR)
311,148.00

Staff training costs

4,385,000.00
12,030,492.27
220,350.00
16,946,990.27

ERP update
Monetary motivational cost
ISO-9001 Renewal
Total

The return on investment ROI calculation will be as follows:

(
(

)
)

5.0Conclusion
Deming TQM process is the most suitable system for developing MP, since it help in
developing shareholders and customers' values effectively, also with an adequate FMM's
leadership approach, FMT's successful effective team development, and Deming principals'
right implementation, Al-Fozan could achieve 13% gross profit (Appendix V), and 398.5%
ROI deployed.

Page 18 of 36

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- Bibliography
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Marketing Managing : Option 1

Bozdaogan, K (2010b) "Towards An Integration Of The Lean Enterprise System, Total


Quality Management, Six Sigma And Related Enterprise Process Improvement Methods".
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Avita Business Institute (2014) The Six Sigma Method or Demings? [online]
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Griffin, R (2009): Fundamental of managements, Skills of effective manager questionnaire


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April 2014]
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Appendix I: Organizational Brief


Al-Fozan Electrical Materials 'Al-Fozan' was established in 1983 as privet corporate and a
part of Al-Fozan Group. In 2003, Madar Electric Material was formed to act as the abroad
BUs in the GCC region. Al-Fozan has main Saudi Arabia's warehouses located in Dammam,
Riyadh and Jeddah. Also it has a warehouse in Qatar, Bahrain and United Arab Emirates. It
has 22 Distribution Branch outlets in different provinces in KSA too.
Product Profile:
Al-Fozan deals trade in electrical wires and cables, wiring accessories, and conduits. Also
95% of its sales is accounted to electrical wires and cables, even though its margin is
diminishing over time due to its market is moving towards pure competition. Its sales figure is
presented as follows.
Sales Figures:
2012

North Province KSA


South Province KSA
Central Province
KSA
East Province KSA
West Province KSA
Qatar
Bahrain
UAE
Total

2013

Sales
Margin
GP
%
Sales
Margin
%
(MSAR) (MSAR) %
T.SALES (MSAR) (MSAR) GP
T.SALES
33.9
4.1
12.0
9%
37.0
5.0 13.4
9%
39.1
3.9
10.0
11%
39.5
4.5 11.5
10%
50.9
78.1
48.2
55.7
11.0
44.9
361.71

6.7
7.0
6.0
7.2
0.1
3.6
38.6

13.1
9.0
12.5
12.9
1.1
8.0
11%

14%
22%
13%
15%
3%
12%
100%

54.5
84.3
55.4
64.2
13.0
49.3
397.188

8.0 14.7
8.7 10.3
7.8 14.1
5.3
8.2
0.1
1.0
4.3
8.6
43.6 11%

Al-Fozan's customers are as follows:

Sales
Retailers

MEP Contractors

End Customer

14%
24%
62%

Page 23 of 36

14%
21%
14%
16%
3%
12%
100%

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Competitors:
Al-Fozan main competitors per territory are as follows:

Leader

Follower 1

Follower 2

South Province KSA


Central Province
KSA

Fahd Elmidaas
Olayan Group

Al-Fozan
ALABDULKARIM

East Province KSA

AL-ABDULKARIM

Al-Fozan

West Province KSA

Modern Oceans Electricals

Al-Tharw

Al-Fozan

Qatar

Elsewedy

Electro-trade

Al-Fozan

Bahrain

BICC
Abu Dhabi maritime &
mercantile international

Al-Fozan
AL-JALAL
TRADING EST.

Everest
Al Zubair General
Trading(Dubai)

North Province KSA

UAE

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Appendix II: Description of Marketing Function


The marketing department activities is reduced to a sales support function , where the CRM
specialist or the sales manager support the sales team in pre-qualifying their product to
consultancies, also to negotiate the credit limits to new customer. There are no intelligence
activities, or communication activities.
The Marketing teams skills' are modest, in terms of negotiation skills, communication and
education. Where most of the salesmen are not engineers even most of Al-Fozan material
needs engineering knowledge.
Al-Fozan Marketing Department consists of 48 employees mainly dedicated to sales activates
with the following hierarchy:

Sales Manager West


Provience

6 Salesmen,
1 Sales Support,
0 CRM specialist
6 Salesmen,

Sales Manager East


Provience

1 Sales Support,
0 CRM specialist
1 Salesmen (Bahrain)

Sales Manager North


Provience

Marketing & Sales


Manager

Sales Manager South


Provience

Sales Manager Central


Provience

6 Salesmen,
1 Sales Support,
0 CRM specialist
6 Salesmen,
1 Sales Support,
0 CRM specialist
6 Salesmen,

1 Sales Support,
0 CRM specialist
1 Salesmen,

Sales Manager Qatar

1 Sales Support,
0 CRM specialist
5 Salesmen,

Sales Manager UAE

1 Sales Support,
0 CRM specialist

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Appendix III: QMS Systems comparisons


This is a comparison between 4 quality improvement systems adopted from (Bozdogan, 2010)
Lean thinking
History

Goal

Defining feature

Since late 1940s (emphasis


on developments since mid1990s)
- Deliver value to multiple
stakeholders
- Build Long term dynamic
network-wide capability
for sustained competitive
advantage
Mutually supportive and
reinforcing set of principles,
practices and methods for
evolving efficient and
flexible enterprises as
networked systems creating
value for multiple
stakeholders

Core concepts

- Eliminate waste towards


the goal of creating value.
- Ensure stability and
synchronized flow.
- Evolve and efficient
flexible and adaptive
enterprise

Focus

- Focusing on all enterprise


operations, processes and
functions
- Emphasis on creating
robust value propositions
and value exchanges
among stakeholders
- Managing complex
interdependencies
throughout the networked
enterprise (information
flows, knowledge
sharing, network-wide
learning & capabilitybuilding)
- Top-down directive
process involving
- strong leadership support
& engagement
- Using structured process
(frameworks, roadmaps)
for enterprise-level
continuous improvement
& planned systemic

Implementation

TQM (Deming
Approach)
Since early 1980s
- Meet customer
expectations
- Improve
profitability and
shareholder value
Evolving system of
precepts, practices,
tools and techniques
for improving quality
to satisfy customer
needs & expectations

Six Sigma

TOC

Since mid-1980s

Since mid-1980s

- Increase customer
satisfaction
- Create economic
wealth (higher
profitability and
shareholder value
Structured methods,
practices and tools for
reducing all sources of
variation in order to
improve quality, satisfy
customer needs, and
improve the bottom line

- Maximize throughput
- Improve net profits

Set of ordered practices,


methods and tools for
improving
throughput in
production systems in
order to maximize
financial performance,
by viewing the
production system as
chains of
interdependencies
- Improve workflow
(throughput) in the
production system
- Concentrate on key
leverage points
(constraints) offering
greatest performance
improvements
- Protect production
line against
interruptions
- Ensure people learn
better and faster

- Concentrate on
process
management to
reduce sources of
variation.
- Establish close
links to customers
& suppliers
- Ensure heavy
leadership
involvement
- Develop an open
organisation
- Workers trainings
and empowerment
and fulfilment.
- Determining
customer
expectations
- Focus on core
business processes
- Integration of
design,
development &
production
operations
- Establishing
strong links to
suppliers

- Reduce all sources of


variation.
- Structured process
improvement.
- Data driven
management
- Emphasize teamwork

- Concentration on
specific prioritized
business processes
- Focus on reducing all
sources of variation to
improve quality,
increase efficiency &
shorten cycle time

- Concentration on
production processes
- Focus on the weakest
point (constraint)
impeding workflow
and causing both
delays & inefficiency

- Top-down
directive process
involving heavy
multi-level
management
participation
- Using a portfolio
of practices, tools
& techniques to

- Top-down directive
process involving
structured management
engagement (project
champions, sponsors)
- Using DMAIC (Define,
Measure, Analyse,
Improve, Control) as
the dominant

- Top-down directive
process involving
management
participation
- Using structured
process employing
focusing steps (to
remove constraints),
ten-step Decalogue
Page 26 of 36

Candidate Number :
Board :

70889221
June 2014

change
- Use of outside experts
(providing facilitation,
mentoring, training,
implementation services)
or internally managed
process

Mode of
Improvement
and Change

Enterprise scale
Strategic
Tactical
Operational
Enterprise Scope
Networked
enterprise
Core Enterprise
Business Unit
Factory Floor

Continuous process
improvement; gradual
incremental change; planned
systemic enterprise change
& realignment

CIM Professional Diploma in Marketing


Marketing Managing : Option 1
implement
continuous
improvement
- Use of outside
experts (providing
facilitation,
mentoring,
training,
implementation
services) or
internally
managed process
Continuous process
improvement;
gradual incremental
change

implementation method
- Largely internally
managed process with
support/facilitation by
outside experts

Continuous process
specific improvement;
incremental change (in
discrete small or
large steps)

for system-wide
management, and
drum-buffer-rope
production
scheduling method
for managing
production line
- Mostly internally
managed process
with
support/facilitation
by outside experts
Continuous operational
improvement;
incremental change

Full
Full
Full

Partial
Moderate
Full

Little
Moderate
Full

Little
Partial
Full

Full

partial

partial

little

Full
Full
Full

moderate
Full
Full

partial
moderate
Full

partial
moderate
Full

Page 27 of 36

Candidate Number :
Board :

70889221
June 2014

CIM Professional Diploma in Marketing


Marketing Managing : Option 1

Appendix IV: Deming Questionnaire


This questionnaire were conducted to 8 Sales manager and 33 salesman all over Marketing
and sales business units head, among several other questions in random order. And the
average of each question mean values is displayed in the Assignment under Mean value
column.
Deming
Factor

Question

1
5

Bad
Excellent

Creating Constancy of Purpose


1

Top management makes Marketing long-term plans

Top management provides for research and development to meet customer needs

Top management Promotes employee trainings/ education

4
5

Adopting the new philosophy


Top management is committed to MQMS process Quality improvement as a way to increase
profit
top management is committed to setting objectives for quality improvement

Top management is committed to continuous quality enhancement as a primary goal


Ceasing reliance on mass inspection

Suppliers use statistical quality control techniques

8
9

Quantitative and qualitative market data analysis is constantly and systematically gathered.
top management support the belief that quality must be "built into" the product not "inspected
into" it
Ending the practice of awarding business based on price tag alone

10

supplier selection is based on both quality and price rather than price only

11

suppliers are involved in the product/service development process

12

Long-term relationships are developed with suppliers.

13

there is reliance on a few dependable suppliers


Improving constantly the system of production or service

14

Customers requirements are analyzed in the process of developing a product/service

15

Customers feedback is used to continually improve the product/service

16

Top management manager MkIS to improve the product/service


Instituting training

17

Employees are trained in statistical improvement techniques

18

Employees are trained in quality-related matters

19

Employees are trained in specific work-related skills

20

Supervisors are trained in statistical improvement techniques


Instituting leadership

21

Supervisors help their employees on the job

22

Supervisors work to build the trust of their employees

23

Supervisors lead in a way that is consistent with the aims of the organization

24

Supervisors are viewed as coaches by their employees


Driving out fear

25

Employees express new ideas related to improving work methods

26

Employees seek their supervisors assistance when unsure of their tasks interfere with quality

27

Employees feel they have job security


Page 28 of 36

Candidate Number :
Board :

70889221
June 2014

CIM Professional Diploma in Marketing


Marketing Managing : Option 1

Breaking down barriers among departments


9

28

Different departments have compatible goals

29

In the product/service design process there is teamwork among departments

30

There is good communications among departments


Eliminating slogans and targets

31
10

32
33

11

Top management provides its workers with the methods/procedures to meet goals
Top management, not the hourly workers, is responsible for removing obstacles that cause
defects/errors
Top management does not use vague slogans (for example, Do It Right The First Time) in
communicating with its employees
Eliminating numerical quotas

34

Work standards are based on quality and quantity rather than quantity alone

35

Work standards are set based on process capability studies

36

Numerical quotas are not given higher priority than quality of workmanship
Removing barriers to pride in workmanship

12

37

Performance appraisals are not used to rank employees

38

The quality of the working environment is good

39

There is adequate documentation on how to do the job

40

There is no pressure for short-term results

41

Top management sets realistic goals for its employees


Instituting education and self-improvement

13

42

There are programs to develop teamwork among employees

43

There are programs to develop effective communications among employees

44

There are programs to develop employees conflict resolution skills

45

There are programs to broaden employees skills for future organizational needs
Taking action to accomplish the transformation

46

Top management takes action toward executing its quality improvement policies

Top management makes its quality improvement policies visible to all employees
Top management relies on internal or external consultants to implement its quality
48
improvement policies
Adopted from (Tamimi,N et al, 1995)
14

47

Page 29 of 36

Candidate Number :
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70889221
June 2014

CIM Professional Diploma in Marketing


Marketing Managing : Option 1

Appendix V: the integrated team Development Framework

Figure 3.1: the integrated team Development Framework

Page 30 of 36

Candidate Number :
Board :

70889221
June 2014

CIM Professional Diploma in Marketing


Marketing Managing : Option 1

Appendix VI: MQMS benefits Net present value calculations


-

Saving due to ERP report saving time:

Sales Support
Salesmen
Sales Managers
Marketing
Manager

No. of
employees
7
33
7

Average Hour rate


SAR
128.57
204.55
271.43

425.00

4
4
4

Annually
Saving
43,200.00
324,000.00
91,200.00

20,400.00

Hours saved monthly

Total (SAR)

o
Year

Present Value of Benefits (year)


Present Value of Benefits

2015

2016

2017

2018

2019

419,907.60
1,643,241.60

368,197.20

323,190.00

283,449.60

248,497.20

Gain due to productivity increased 3%

Sales Support
Salesmen
Sales Managers
Marketing Manager

No. of
employees
7
33
7
1

Average Hour rate


SAR
128.57
204.55
271.43
425.00

Hours Gain due to 3%


productivity increase
5.8
5.8
5.8
5.8

Annually saving
62,208.00
466,560.00
131,328.00
29,376.00
689,472.00

Net present value for 5 years:

Year
Present Value of Benefits (year)
Present Value of Benefits

478,800.00

Net present value for 5 years

2015

2016

2017

2018

2019

604,666.94
2,366,267.90

530,203.97

465,393.60

408,167.42

357,835.97

Saving due to Employees retention:

Based on HR analysis the productivity of the new employees compared to full developed
employee is 50% over the beginning 6 months (576 hours of productivity), also the turnover
percentage in marketing is 30%. Taking in consideration that Al-Fozan could retain
employees for 5 years, the following is what is saved every two years.

Sales Support
Salesmen
Sales Managers
Marketing Manager

No. of
employees
7
33
7
1

Our lost every two years


155,520.00
1,166,400.00
328,320.00
73,440.00
1,723,680.00

Net present value for 5 years

Year
Present Value of Benefits (year)
Present Value of Benefits

Average Hour rate


SAR
128.57
204.55
271.43
425.00

2015
1,511,667.36
3,569,741.28

2016
0.00

2017
1,163,484.00

2018
0.00

2019
894,589.92

Gain due to higher market share, amended product mix and better
costing.

Percentage gain as gross profit due to higher


market share (2%) and higher wiring
accessories product mix
Percentage gain from new purchasing power

2015
1.00%

2016
1.39%

2017
1.77%

2018
2.15%

2019
2.52%

3%
397,000,000

3%
436,700,000

3%
480,370,000

3%
528,407,000

3%
581,247,700

Page 31 of 36

Candidate Number :
Board :

70889221
June 2014

CIM Professional Diploma in Marketing


Marketing Managing : Option 1
15,880,000

19,175,100

22,931,712

27,205,921

32,060,138

Net present value for 5 years

Year
Present Value of Benefits (year)
Present Value of Benefits

2015
13,926,760.00
76,896,435.56

2016
14,745,651.90

2017
15,478,905.94

2018
16,105,905.64

2019
16,639,212.08

Page 32 of 36

Candidate Number :
Board :

70889221
June 2014

CIM Professional Diploma in Marketing


Marketing Managing : Option 1

Appendix VII: Forecasted organizational revenues


Revenues (Forecasted) without process improvement
SAR

2015

2016

2017

2018

2019

397,000,000.00

432,730,000.00

471,675,700.00

514,126,513.00

560,397,899.17

Wires share of revenues

0.95

0.95

0.95

0.95

0.95

Wiring accessories share of revenues

0.05

0.05

0.05

0.05

0.05

377,150,000.00

411,093,500.00

448,091,915.00

488,420,187.35

532,378,004.21

Wiring accessories share of revenues %

19,850,000.00

21,636,500.00

23,583,785.00

25,706,325.65

28,019,894.96

Wires share of GP (AVG PRFT ~ 10%)

37,715,000.00

41,109,350.00

44,809,191.50

48,842,018.74

53,237,800.42

3,970,000.00

4,327,300.00

4,716,757.00

5,141,265.13

5,603,978.99

41,685,000.00

45,436,650.00

49,525,948.50

53,983,283.87

58,841,779.41

10.50%

10.50%

10.50%

10.50%

10.50%

Revenues (Forecasted) without amendment

Wires share of revenues %

Wiring accessories share of GP (AVG PRFT ~20%)


Total GP

Gross Profit/Year %

Revenues (Forecasted) with process improvement


SAR

2015

2016

2017

2018

2019

397,000,000.00

436,700,000.00

480,370,000.00

528,407,000.00

581,247,700.00

Wires share of revenues %

0.85

0.8

0.75

0.7

0.65

Wiring accessories share of revenues %

0.15

0.2

0.25

0.3

0.35

Revenues (Forecasted) without amendment

Wires share of revenues

337,450,000.00

346,184,000.00

353,756,775.00

359,888,559.10

364,258,634.46

Wiring accessories share of revenues


Wires share Contribution margin % (AVG
PRFT ~ 10%)
Wiring accessories Contribution margin
%(AVG PRFT ~20%)

59,550,000.00

86,546,000.00

117,918,925.00

154,237,953.90

196,139,264.71

33,745,000.00

34,618,400.00

35,375,677.50

35,988,855.91

36,425,863.45

11,910,000.00

17,309,200.00

23,583,785.00

30,847,590.78

39,227,852.94

Total GP

45,655,000.00

51,927,600.00

58,959,462.50

66,836,446.69

75,653,716.39

11.50%

11.89%

12.27%

12.65%

13.02%

1.00%

1.39%

1.77%

2.15%

2.52%

Gross Profit/Year %
Delta GP due to amendments

Page 33 of 36

Candidate Number :
Board :

70889221
June 2014

CIM Professional Diploma in Marketing


Marketing Managing : Option 1

Appendix VIII: MQMS costs Net present value calculations

MQMS costs
Training Cost
ISO training
Soft skills Training
ERP updates
Bonus
ISO Certificate
registration
Total Costs year SAR
Present Value of Costs
(year)
Present Value of Costs

2015

40,000.00
64,000.00
5,000,000.00
3,374,500.00
150,000.00

2016

2017

2018

2019

90,000.00

100,000.00
90,000.00

90,000.00

3,461,840.00

3,537,567.75

3,598,885.59
150,000.00

3,642,586.34

8,628,500.00

3,461,840.00

3,627,567.75

3,938,885.59

3,732,586.34

7,567,194.50
16,946,990.27

2,662,154.96

2,448,608.23

2,331,820.27

1,937,212.31

Page 34 of 36

Candidate Number :
Board :

70889221
June 2014

CIM Professional Diploma in Marketing


Marketing Managing : Option 1

Task 5: 320 words

Page 35 of 36

Candidate Number :
Board :

70889221
June 2014

CIM Professional Diploma in Marketing


Marketing Managing : Option 1

Justification of presentation and Report Style


-

Report Style:

The report design and style based on the 'psychology of persuasion' (Hogan, K, 2004)
techniques, where it has been designed in outcome-based thinking with target audiences' need
as a major objective to be achieved as; higher profits for shareholders through increasing
customer satisfaction through MQMS for the different MP. It used two important persuasion
laws as; Reciprocity law by emphasizing the corporate values from the target audiences and
why MQMS is important to develop it through the CBA's illustration of how beneficial is the
MQMS implementation. Also Contrast law by tables comparisons where different aspects
are put together to illustrate the relative differences; as MQMS selection process where
different QMS put together in a table to find the most suitable one, FMM skills 'assessment
where a comparison between managerial and leadership traits description and the current
strengths and limitation has been measured to illustrate the current FMM capability which
was the foundation for the PDP and FMT evaluation which helps illustrating the key changed
needed for successful team development.
The report also reflected an 'assertive behavior' (Sherratt et al, 2012) since it focus on the
problem not the people where it stated a constructive criticism for FMM and FMT with nonexaggerating style, also illustrated that the basic essence of MQMS is the acknowledgement,
encouragement and collaboration of individuals' point of views to detail the MQMS different
processes, and it was logical, clear and analytical where it stated the general concepts and its
key aspect that needed for successful implementation.

Presentation style

The presentation design designed to be a 'powerful presentation' (Hogan, K, 2004). Where it


was a brief presentation of the report findings stating its main objectives, also in the
beginning it made a futuristic 'vivid picture' (Hogan, K, 2004) of the MQMS implementation,
with corporate's benefits in the centered. Also it used appropriate visuals and followed
corporate identity manual.

Page 36 of 36

1. The are a lot of heresy about why we do business?, but we all will agree that the
main two values of doing business is shareholders financial gain and customers
value,
2. but in order to sustain and develop these values we have to have sets of effective
processes, as purchasing process, team development process, and above all of this
the marketing process, which contain sales, market intelligence, communication,
and product development processes. Where to sustain shareholder values as profit
margin and dividends and customers values, we have to continually monitor, control
and develop these process. Simply as B. Franklin said Without continual growth and
progress, such words as improvement, achievement and success have no meaning.
3. The Fact is even though Al-Fozan is ISO-9000 certified we havent yet gotten the
utmost of these standards in the marketing Quality system management MQMS, but
the question is what is the benefits of investing in MQMS?

The benefit is more than 30 million with a cost of 1 million !! And the following will
illustrate that, but before we jump into the plan we have to understand why Deming has
been chosen to improve Al-Fozan

All Quality management systems QMS improve the quality in its own approach,
but to choose the appropriate a marketing quality system MQMS, you should
focus on its primary effect. Which makes the systems applicability as follows

A bad system will defeat a good person every time. Deming, that is why we will
illustrate Demings system key aspects to improve the MQMS. And we should stick to its
description and evaluate Alfozans processes according to its guidelines and questionaire
results, this is an overview for each Demings aspect, for further illustration you can go in
the report for table 1.2:

1 - Al-Fozan MQMS process should have structured MP implemented for the


purpose to achieve the following values:
Shareholder's value and Customer's value, Moreover these values should be
constantly communicated to the team.
2- Al-Fozan should Motivate to produce more with fewer inputs, whether these
inputs is time, material or effort.
3- All MP should be carefully designed, where the effort should be in detailing
each aspect rather than inspection, which will enhance Al-Fozan's value
proposition.
4 - Al-Fozan has a good evaluation Supplier price/quality criteria has been
conducted. Hence no action required.
5 - Using Plan-Do-Check-Act Deming cycle as Illustrated in table 1.2, Al-Fozan
needs to apply it on all MP
6 - Due to current calibers limitation in Al-Fozan, a development plan should be in
place.
7- Al-Fozan's managerial responsibility must be to MP quality, also Managers
should act as a team couches with Participative and transformational leadership.

8 - Employees should have better communication which could be measured

through employees' contribution level in decision making and mistakes' blaming


level.
9 - Departments' should cooperate to develop the MP's quality through
periodical Cross functional meetings.
10- Manager should encourage employees to detail task's process, expected
outcome, how to achieve results and appraisal system, and then negotiate a
common ground for implementation.
11 - Management by numerical budget achievement. Even it should be process
based budget.
12 - AL-Fozan should eliminate judgment of individual and transform employees
to aim for better process quality and performance, though listening to productive
ideas.
13 - Incentive schemes for self-development should be implemented to
encourage self-development.
14 - Management should be committed to the MP development.

'Managers cannot be successful without being good leaders and leaders can't be
successful without being good managers'
FMM skills 'assessment where a comparison between managerial and leadership
traits description and the current strengths and limitation has been measured to
illustrate the current FMM capability which will be the basic foundation for the
personal development plan, for indepth illustration of assessment process check
table 2.1 and for indepth view of PDP check table 2.3

Al-Fozan environment is complicated, since there are a lot of different ethnicity


limited skills old employees with young managers in charge, low salary schemes,
high managers' turnover, and no promotion for old employees, which illustrate
that leadership style could be selling to make change that they aren't aware of its
benefits, also sometime consulting to get the utmost of their market experience,
but all comes with benefits and limitation as follows:

To decrease the MQMS budget, FMM will depend on solution as; massive open
online courses 'MOOC' providers as coursera.com, private studies as DCIM and
on-the-job learning. FMM developed a personal development plan 'PDP' for all
the skills with score lower than 85%. As follows:

10

A successful team is an effective team, which its performance is met through

development of nine key factors, for an in-depth evaluation of current Al-Fozan


Marketing team, kindly check table 3.1.

11

'You build your people, your people will build your business, A 'Successful
teams are result of carful design, structure and maintenance the current team
has a significant gap in MP due to the absence of CRM specialist role. In the
following are some roles that are important to be recruited to build a team. Also
to check the change needed from each role kindly check table 3.2.

12

'Integrated team-development framework' (Sheard and Kakabadse,2001) is a


model embody all aspects for the development of successful team, since it has
been based on Tuckman, Kubler Ross, and Adair's team development aspects,
which could enhance the FMM understanding of team's development stages and
advise specific approach to each stage as follows:

13

Marketing manager should take in consideration 'the forming out-out' and the
norming/storming cycle", where some key individuals never enter storming, as
they retreat into denial, even though the team is functional, this could lead that
the team will not perform as it should perform, that is why they needed to be
bought in the process.

14

Information sources required to determine the budget for implementation of the


quality standard, since marketing budget requires information from inside the
organization and from outside the organization. In the following is information's
impact evaluation for internal and external sources on budget. For in-depth
understanding kindly check table 4.1. and 4.2

15

16

In order to evaluate the MQMS monetary benefits, Al-Fozan is in need of


'discounted cash flow model' as Net present value NPV. According to NPV
Calculated as per appendix V the benefits' monetary values are as follows:

17

The cost incurred for 5 years investment is as follows

18

19

20

21

I can have your questions now

22

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