Advance Diploma Leadership and Management: Key Processes, Strategies, and Improvements

This article discusses the key processes and strategies of A.C. Gilbert, a toy making company, and suggests improvements for performance. It covers topics such as operational system, product/service delivery, review strategy, monitoring of performance, analysis of variances, and services of specialists.

Running head: ADVANCE DIPLOMA LEADERSHIP AND MANAGEMENT
Advance Diploma Leadership and Management
Name of the Student:
Name of the University:
Author’s Note:

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Table of Contents
Task 1...............................................................................................................................................3
Key System and Processes...............................................................................................................3
Operational System......................................................................................................................3
Product/Service Delivery.............................................................................................................3
Review Strategy of Key Processes..................................................................................................4
Analysis of Key Strategies...............................................................................................................5
Monitoring of Performance of Key Processes.............................................................................5
Evaluation of the Review Program..............................................................................................6
Suggestion for Further Improvements.............................................................................................6
Analysis of Variances......................................................................................................................7
Strength and Weaknesses of A.C. Gilbert before 1960...................................................................8
Services of Specialists...................................................................................................................10
Task 2.............................................................................................................................................11
Performance Improvement Strategy..............................................................................................11
Individual Briefing and Consultation Services..............................................................................13
Team Briefing............................................................................................................................13
Analysis of the Strategy.............................................................................................................13
Leading the Session.......................................................................................................................14
Risk Analysis of the Strategy........................................................................................................14

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Cost Benefit Analysis....................................................................................................................15
Reference.......................................................................................................................................16

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Task 1
Key System and Processes
Operational System
As per the case study which is provided in the assessment is related to A.C. Gilbert which
was a toy making company and specialized in making train sets for boys. The operational
structure of the business is appropriate considering the overall size of the business. The
management of the company first of all puts emphasis on effective planning so as to ensure that
the visions and models for the toys can be converted into actual toys for the company (Hammer
2015). The planning stage is an important step in operational management of the company as
appropriate designs for toys are selected from the planning process. On the basis of the design
and model which is to be manufactured the necessary raw materials are purchased for entering
the manufacturing stage (Poelmans, Reijers and Recker 2013). All of these processes are
reviewed by the top-level management of the company in order to ensure that there is a smooth
operation in business.
Product/Service Delivery
After the manufacturing process for the toys are completed in A.C. Gilbert, the
distribution and marketing team of the company takes charge. The distribution of the toys is
generally done in two ways which are direct order from customers and orders from retailers. The
sales team is responsible for securing the customer and also effective marketing of the products.
The toys which are manufactured are delivered to the retailers for direct sales to the customers of
the business. The company is known to have an effective customer service system and after sales
service record which is clearly shown in the case study which is shown in assessment.

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Review Strategy of Key Processes
In order to analyze the strategies which are related to the key processes of the business
which is operational activities and Product/Service Delivery. The business can identify the Key
results areas (KRAs) and Key Performance Indicators (KPI) for ensuring that the strategies
which are implemented for such processes are being followed or not as per the goals of the
business (Chua et al. 2013). The review strategy of the business will be including the following
measures:
 KRAs: The key results area of the business for measuring the operational performance of
the business are quality of the products, cost per products, raw material consumed. The
overall efficiency of the workers can also be considered to be key results area (Zin et al.
2013). In case of product delivery or sales team, the efficiency of the sales team is one of
the key results areas which can be appropriately be achieved by proper implementing
proper training program.
 KPIs: The key performance indicators of the business can be the increase in the profits of
the business, increase in the sales volume of the company, ease of availability of
financing sources (Parmenter 2015). All of these can be achieved through efficient
operational structure of the business. In case of Product delivery structure, the
performance indictors of the business will be reputation of the business among
customers, lesser amount of complaints or returns for products.
 Financial Performance of the Business: The financial performance measures which can
be reviewed by the management by considering the financial indicators of the business
which are net profit, share value of the company, returns on investments. In addition to

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this, the management can use tools like Ratio analysis, trend analysis and financial
analysis in order to measure the financial performance of the business (Yu et al. 2013).
 Sample Service Level Agreement: This is an agreement which is established between a
service provider and a customer. On the basis of such ab agreement transactions of goods
and services are provided to customers. A sample service level agreement is shown
below:
Authority Name and Signature Date
Sales Manager 15.06.18
Marketing Executives 15.06.18
Analysis of Key Strategies
Monitoring of Performance of Key Processes
The monitoring of performance of operational processes of A.C. Gilbert can be done by
applying the following tools which are discussed below:
 Budgets: One of the important tools which is generally used in most of the company to
monitor performance and also formulate plans is budgets (Brunelli et al. 2015). The
targets which are set by the management acts as guidelines for measuring the
performance of the business.
 Performance Reports: This is a report which are prepared by each department under the
operational structure of the company on a monthly or weekly basis (Yin et al. 2014).

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Such reports are used by businesses to monitor the performance of the business for a
period and any variances which are noticed can be adjusted with appropriate measures.
The monitoring for Delivery services of the business can be monitored by tools which are
given below:
 Customer Satisfaction Index: This an index which shows whether the customers are
satisfied with the services of the business or not. This index is an efficient means for
receiving feedbacks from the customers and also involves rating of the services which are
provided by the customers. The management can measure the effectiveness of the sales
teams with the help of such an index.
 Number of returns: A report which shows the returns of goods from customers or retailers
for poor quality, defective products or bad services is good source for identifying the
deficiencies of processes and thereby helping the management in monitoring such
processes.
Evaluation of the Review Program
As discussed in the above paragraphs, the important role of the management of A.C.
Gilbert is to first of all identify the key measures of performance and also identify the
weaknesses present in the overall management of the company. In addition to this, the business
can use policies and tools such as Budgets, ratio analysis, trend analysis, customer satisfaction
index to review the overall performance of the business. Therefore, it can be said that the review
strategy of the business is an efficient one and is estimated that the same will also be able to
monitor the performance of the processes and also apply control measures on the same.

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Suggestion for Further Improvements
The management can bring about further improvements in the key processes of the
business by adopting the following suggested measures:
1. Appointment of a Quality Control supervisor whose main role will be to monitor the
processes and also ensure quality standards are maintained.
2. Internal Checks can be initiated to promote monitoring, transparency and accountability
of the supervisors of key processes which can be on a quarterly basis.
3. Applications of security cameras and weekly performance reports is an important
measure to promote monitoring and effective management of the business.
Analysis of Variances
As per the plan and organizational structure of the business, the Key results areas of the
business are to be considered and any variances are to be investigated. As the business
environment of the toy industry changes as shown in the case study in the era of sixties, the taste
and preference of the customers also changes and more emphasis on advertisement became the
criteria for success. The variances which can occur in KRAs are given below:
 Quality and Design: As per the case study, the business is engaged in making engineering
sets, trains set which are generally for the boys. The quality of the products which are
manufactured by the business are of good quality as indicated in the case study.
Variances in quality can be assessed quality control checks.
 Sales: The sales of the business have decreased which is shown in the case study due to
the changes in the preference of customers and the changes in markets (Walker and

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Lloyd-Walker 2014). This is a reason for the variances from the plans which were set by
the management.
 Profits: As shown in the case study the sales of the business declines and thereby the
business earns losses. The business earned a loss of $ 5.7 million in 1963. Therefore,
variances arise as the plan of the management was to earn a revenue of $ 20 million in
1963.
 Product Delivery Service: The delivery services as demonstrated by the case study shows
the structure for delivery services is appropriate for the management and therefore no
variances can be expected from such an area.
 Business Growth: As per the case study, after 1960, the business started to change the
product line and further diversify the business which was expected to bring about growth
and development in the business but repetitive losses suffered by the company lowered
the market valuation of the business, hence the planned target of growth could not be
achieved.
Strength and Weaknesses of A.C. Gilbert before 1960
a. Market Share: The business had a strong and positive reputation in the market for toys
and the train sets manufactured by the company was preferred and therefore the business
had high market valuation.
b. Reputation: This was one of the strengths of the business as the company enjoyed good
reputation due to the effective after sales services provided by the business.
c. Stability: Due to the intense competition, the market was dynamic and as per the analysis
of the case study the business was stable in the fifties.

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d. Profit: As per the case study, the company was earning appropriate profits prior to 1960
and the business had created a brand name for itself in the market.
e. Sales: The sales which was achieved by the business was appropriate as the products
offered by the A.C. Gilbert were in demand and also the after sales services were
excellent and hence this can be considered to be a strength of the business.
f. Ability to adapt to changes: The ability of the business to adapt to changes is a weakness
as the business has one major product line which is engineer sets.
g. Customer service standards: The business has an effective policy regarding customer
services and therefore such can be considered as strength of the business.
h. Innovation: The business does not make changes in product line and therefore from the
innovative point of view such can be considered as a weakness.
i. Employee Performance: The performance of the employees as shown in the case study
shows that the employees are a strength in the business management.
j. Production and Manufacturing: The production and manufacturing system of the
company can be considered to be a strength of the business.
One of the missed opportunities of the business which the management can have used to
strengthen the market position of the business is diversification of products. The business should
have moved to action figures and dolls for girls for increasing the sales revenue of the business.
The business also missed opportunities where the business can effectively promote the product
by television advertisements.
Action Plan
Milestone: Action and/or objective Date Person
responsibl
Budget or
resources

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(to achieve all the strategic aims and
objectives of physical or human
resourcing)
e (wherever
applicable)
Appointment of Quality Control Supervisor 20th June
2018
Operational
Manager of
the business.
Quality Control
Reports and
Quality
Management
practices
Weekly performance reports with
application of tools like ratio and trend
analysis
23rd June Departmental
Managers
Initiation of the
planning, charts
and other kinds of
ordinary
requirements.
Installation of Security Cameras 25th June Operational
Manager
Monitoring
records
Services of Specialists
In case the business had survived the changes and adapted to some extent to the changes
in the market in the sixties, the management should have seek advice from marketing
professionals so as to come up with innovative strategies to effectively promote the products and
also attract the generation to the products offered by the business. In addition to this, the
management should have set up a R&D department for innovation and further developments of
products offered by the business.

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Task 2
Performance Improvement Strategy
The performance improvement strategies which can implemented by the business for
overall improvement in the management of the company are discussed below which relates to
significant areas of business.
 Strategic Goals: The management of the company should emphasis on formulating plans
for effective strategic management of the business. In order to do so the business needs to
conduct a market analysis which will consider SWOT analysis and Benchmarking
techniques to identify the strengths of the competitors and accordingly develop plans for
improvements in the operational structure of the company (Hill, Jones and Schilling
2014). The strategic goals will be focusing on the bring about improvements in
operational structure and also further diversifying the products which are offered by the
business (Goetsch and Davis 2014). This can improve the financial positions of the
company and reestablish the business in the eyes of the public. Beside this, the business

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can also adopt business process re-engineering to improve the operational structure and
product line from the scratch.
 Description of Proposed Process: The management of the company needs to focus on
making changes in the operational process of the business. The management of the
company needs to incorporate new products and also make changes in the product of the
business. The management can focus on action figures which are popular in television
and also include dolls for girls so that the business can widen the target population of the
company. In addition to this, the management needs to put more emphasis on
advertisement and innovation programs for creating a buzz in the market.
 Description of the Improvements Expected: The strategy of further diversifying the
product line and use of effective advertisement will ensure that the business effectively
combat the competitive pressure of the business. The management needs to formulate an
aggressive marketing plan which involves using television media, social media as well as
newspaper and magazine. This will provide the business an opportunity to widen the
reach of the business and thereby attract more customers. An effective innovation
program will allow the business to develop new products and might also help the
business to gain competitive advantage.
 KRAs, KPIs and Targets: The key result areas under the improvement plan which is
formulated by the business will be sales, profits, variety of products, customer feedbacks.
The key performance indicators of the business will be improvements in overall sales
volume of the business, increase in profitability of the business, diversification and
quality improvements of the product lines which are offered by the company. The target
of the company will be to improve the market valuation of the company and thereby also

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improve the reputation of the business. The goal of the business should to develop a
business and establish a brand name for the business in the market.
Individual Briefing and Consultation Services
Team Briefing
The management of the company needs to effectively communicate the plans which are
formulated by the management to improve the overall structure of the business. This can be done
in an annual or monthly meeting of the management where different team leaders or supervisors
are present. In such a meeting the management can introduce a plan for improving the business
structure and make wide spreads improvements. The management needs to inform the marketing
depart about the aggressive sales strategy of the business and the role of the marketing
executives and the sales team can be explained with a help of presentation. In addition to this, the
management will be allocating significant roles to different departments and the management can
shuffle the teams to get the best combination and ensure that right man is present for the right
job. In addition to this, the management can also recruit new employees which will also be a
matter of discussion with the Human Resource Manager of the company.
Analysis of the Strategy
The management then needs to encourage the employees of the business to consider the
strategy which is formulated and provide any strengths, weaknesses, suggestions and feedbacks
which are associated with the strategy. The supervisors are to review the roles which each
department needs to play in the improvement strategy which is formulated by the management
and ask for clarification in case of any doubt. The role of communication in this area is
significantly important so as to ensure that very individual understand the role which is to be

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played for achieving the goals of the business (Michael, Storey and Thomas 2017). For such a
purpose, even the employees need to consider their roles and also the pros and cons which are
associated with the strategy which is developed by the top-level management.
Leading the Session
The meeting will be encouraging group discussions so as to enable the subordinates of
the company to take part in the decision-making process of the management. Another option
which the management has regarding improvement strategy is cutting all the costs and following
the trends of the market and produce only one product which will minimize the cost drastically
and ensure profits of the business. But this strategy can goo wrong as well inn case the product
introduced fails to create the desired impact.
In order to develop ideas which are creative in nature the management can take help from
experts or engage more in innovative thinking and taking necessary steps for implementation of
these ideas. The risks which are associated with implementation of innovative idea is that it can
lead to a failure which the management of A.C. Gilbert need to accept and still take the risk. This
is the only way through which the management of the company will be able to create a
competitive advantage for itself in the market. In such cases, effective monitoring of the
activities is required so as to ensure the plan is being carried out with cost minimization and
reduction in wastage.
Risk Analysis of the Strategy
As per the improvement strategy which is formulated by the management of A.C. Gilbert,
the overall risks of the business are related to failure to effectively manage the expenses and
failure in innovative programs. In addition to this, there is also the risk of competitors who offer

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similar products in the market. In addition, the business will also be requiring significant amount
of funds for making the proposed changes in marketing and innovative structure of the business.
Due to the lower market valuation and recent loss trend of the business, the management might
have a difficult time procuring the funds from different sources. However, the risks can be
overcome with risk management policies in certain cases. Therefore, the management should
proceed with the improvement plan as formulated.
Cost Benefit Analysis
The strategy which is formulated by the management of A.C Gilbert is sound one as it
targets the deficiencies which the business was unable to cope up previously. Cost Benefit
Analysis of the business will allow the first to calculate the breakeven point of sales which the
business needs to achieve in order to continue its operations. This can be further improved if the
business can maximize the sales of the company. This is the reason for which the management
has selected aggressive marketing policy to provide a boast to sales of the company.

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