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Re-Organization and Decision Making

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Re-Organization and Decision Making
Ryan C. Larnett
Date

Re-Organization and Decision Making An individual that runs an effective operation and is our company must possess the strong decision-making skills. Time and again there will be many decisions that come along that are not popular, but necessary in order to ensure that the business survives. Creativity is definitely in aspect that is needed in the business world because of the ability to open mind to changes that can benefit the operation. Today we discuss the effects of cutting operating expenses in order to take the business from failure.
Solving The Problem
In our learning team discussion that took place in the previous weeks we were tasked with recommending creative solutions to prevent layoffs the employees. One creative solutions that was recommended was cutting operating expenses; this can be a great preventative measure in saving employees’ jobs. Upon reviewing the process of fleet management one is able to see creative solutions that are taking place in this rising industry in South Africa.
The involvement of companies to handle fleet services is a very creative solution for companies that do not want to deal with the hassle. These companies are expanding their primary functions outside of providing fleet management alone. “The fleet management industry in South Africa is a rather static one, especially at the top end of the market where companies perform a one-stop service in the form of full maintenance leasing.” (Ryan, 2012, para. 1.)
Expense Modification Benefits I stated before the paper, cutting operating expenses must provide savings for the company and the ability to keep employees employed. This provides many benefits for the middle income customer. “One-fifth of American workers have bad jobs. They endure low wages, poor benefits, schedules that change with little—if any—notice, and few opportunities for advancement. The conventional wisdom is that many companies have no choice but to offer bad jobs—especially retailers whose business models entail competing on low prices.” (Ton, 2012, para.1) Ton is explaining that there is a model that can be used to protect employees jobs as well as cut unnecessary operating costs to create a viable working solution for all. “Highly successful retail chains—such as QuikTrip convenience stores, Mercadona and Trader Joe’s supermarkets, and Costco wholesale clubs—not only invest heavily in store employees but also have the lowest prices in their industries, solid financial performance, and better customer service than their competitors.” (Ton, 2012, para. 2) Low prices and quality service always keep customers coming to the stores and that is what these companies focus on.
Business Decision Implementation Sound business decisions are to cornerstone of success for companies in today’s society. Ton has shown that managing operating costs successfully can boost sales. With borders he goes on to explain that the lack of knowledgeable at adequate staffing cost the company potential revenue that could have been made had this issue not occurred. “We estimated that the company’s profits would have been 25% higher without phantom stockouts. Misplaced products also frustrate customers and reduce employees’ productivity.” (Ton, 2012, para. 17) On the other hand, Mercadona, QuikTrip, Trader Joe’s, and Costco: “These retailers are highly regarded by customers and industry peers. In addition to healthy sales and profit growth, they have substantially higher asset and labor productivity than their competitors.” (Ton, 2012, para. 22) In order to make decisions that produce a win-win situation for employees and employers there needs to be adequate executive management. These executives need to possess the training necessary to make great decisions for the best interests of the company in these four stores have determined that treating their employees with dignity and respect in terms of wages does just that. Without proper training the stores may still make profits, but the profits will be significantly lower because of the bad treatment customers will receive from ill trained staff members.
Conclusion
Creative solutions are a great way to gauge the effectiveness of the leader in any situation. The business can either thrive or perish based on the solution provided and critical the ship decision-making skills. Cutting operating expenses to going to make all of the necessary changes to the company before affecting the most important part of the business, the employees. Look to all of the successful long-standing businesses that exist today and they possess these two skills amongst other rare crucial skills for survival. Have a great day and thank you for your time.

References
Ryan, E. (2012). Cutting costs through fleet management. Accountancy SA,
29-30,32,34. Retrieved from http://search.proquest.com/docview/1152095947?accountid=458.
Ton, Z. (2012) Why “Good Jobs” Are Good for Retailers. Retrieved from http://hbr.org/2012/01/why-good-jobs-are-good-for-retailers.

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