Comprehensive Analysis: Management Innovation and Improvements Report

This report provides a comprehensive analysis of management innovation and continuous improvement strategies within a business context. It begins by examining the core functions of a business, including supply chain, operational systems, and product/service delivery, highlighting their significance in achieving strategic goals. The report then delves into analyzing key systems and processes, such as key result areas (KRAs) and key performance indicators (KPIs), alongside financial performance measures and service level agreements. Measurement tools like budgets and performance reports are discussed to monitor business performance effectively. The report then addresses variances in KRAs, market share, reputation, stability, profit and sales, and proposes strategies for adapting to market changes, including seeking marketing professional advice and establishing R&D departments for innovation and product development. The report also includes a discussion of performance improvement strategies, threats to the business, and action plans for transition, communication, and evaluation.

Running head: MANAGEMENT INNOVATION AND CONTINOUS IMPROVEMENTS
Management Innovation and Continuous Improvements
Name of the Student:
Name of the University:
Author’s Note

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Table of Contents
Task 1...............................................................................................................................................2
Functions of the Business............................................................................................................2
Analyze Key Systems and Process..............................................................................................3
Measurement Tools.....................................................................................................................5
Question 4....................................................................................................................................6
Question 5....................................................................................................................................7
Question 6....................................................................................................................................8
Assessment 2...................................................................................................................................9
Performance Improvement Strategy Report................................................................................9
Performance Improvement Strategy..........................................................................................10
Threats to the Business..............................................................................................................12
Assessment 3.................................................................................................................................13
Part 1- Action Plan- Transition and Communication Plan........................................................13
Contingency Plan- Translation and Communication.................................................................14
Evaluation and Continuous Improvement Schedule..................................................................15
Evaluation of the Results...........................................................................................................16
Conclusion.....................................................................................................................................16
Bibliography..................................................................................................................................17

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Task 1
Functions of the Business
Supply chain: The management of AC Gilbert aims to effectively follow establish a distribution
system which can meet the requirements of the business and also reach to customers far and wide
in the regions for the purpose of enhancing the sales of the business. The of the company follows
a protocol of distributing products when the business receives their orders. The management of
the company has formulated strategy of appropriately segregating the duties of the supply chain
between the sales and distribution team. The responsibility to get in touch with the customers and
sell the product is the duty of the sales team while distributing the product from the warehouse to
the customers is the responsibility of the distribution team. The business can also sell goods to
retailers so that they can supply the goods to the customers. The supply chain model which is
followed by the business of AC Gilbert is appropriate as the same is based on the demand of the
customers. The supply chain model is also formulated with a view to effectively support the
operations of the business and also meet the high demand for the products which is offered by
the business which would contribute to profitability of the business.
Operational System: The operational system which is established by the management of the
company aims to reduce the operational costs of the business and thereby also ensure that the
same does not have severe impact on the profitability of the business. However, it is the policy of
the management of the company to increase the expenses which is incurred on advertisement so
that proper promotion is given to the product which is offered by the business. The operational
process also aims to ensure that the business is able to adapt to the changes which are taking
place in toy industry. One key component of the operational plan is effective planning so that
new and more innovative toys can be created by the business. It is after the planning process that

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new designs are produced on the basis of new toys are created by the business. The news toys
which are created by the business are the appropriately promoted by the business so that
appropriate demand can be created in the market. The operational plan also includes different
processes which is actually required for creating a new a toy. The operational plan also insists on
having a review system which would be the responsibility of the top-level management of the
company.
Product/Service Delivery: The business of AC Gilbert has one of the best product delivery and
sales systems which makes the business an appropriate choice for customers due to the quality of
toys and the additional services which is provided by the business. Once the toys are created and
packed, the same are sent to the distribution unit so that the same can be distributed to customers
as and when the same are ordered in the business. The management follows a two-way process
for ensuring that the toys are effectively distributed and the same are direct demand from the
customers and orders from retailers. The products which are offered by the business are
generally delivered in bulks when the same is being delivered to retailers so that the business is
able to enhance the sales of the business and thereby also increase the profits of the business. The
company has been able to gain positive image in the market due to its effective customer services
and a very efficient sales and distribution system. This is the reason that the business is able to
create an appropriate demand in the market and thereby also enhance the revenue of the business.
Analyze Key Systems and Process
The management of the company has formulated appropriate procedures for the purpose
of ensuring that the strategic goal of the business is appropriate followed in the operational
process of the business. The following measures are disclosed by the management of the
company which would be followed by the business are provided below in details:

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 KRAs: The key result areas is considered to be one of the important factors which helps a
business to determine the performance in terms of product’s quality, cost per products,
raw material consumed. One of the areas which can be included in the key results area of
the business is the efficiency level of employees. The sales team is one of the main
functioning unit for getting customers and therefore the efficiency of the employees in
such a team is a KRA for the business and the same can be further improved by proper
training.
 KPIs: The key performance indicator is another important factor which the management
consider for judging the performance of the business and the key performance indicators
of the business which are normally there are profits, increase in the sales volume of the
company, ease of availability of financing sources. The KPIs are considered to be
important as the same can have an impact on the efficiency of the business.
 Financial Performance of the Business: The financial performance of the business can
be determined by considering key estimates which are important indicators of
performance of the business and some of the estimates which are considered to be
important are net profit, share value of the company, returns on investments. Another
means which is available to the management of the company is by computing key
financial ratios for ascertaining the performance of the business.
 Sample Service Level Agreement: This refers to the service agreement which is allowed
by the service provider to the customer. This agreement is the basis on which appropriate
services are provided to the customers. A sample for the same is presented below:
Authority Name and Signature Date

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Sales Manager 15.06.18
Marketing Executives 15.06.18
Measurement Tools
The strategy for monitoring the business of AC Gilbert can be done in an effective manner by
implementing the following tools which are discussed below:
 Budgets: Budget is an effective tool which is used for monitoring performance and
directing the activities of the business. The targets are set by the management and these
targets are too be followed by the employees of the business and on the basis of the same
the performance of the employee or department would be measured.
 Performance reports: These refers to reports which are prepared by each department
under the operational structure of the company on a monthly or weekly basis. This is also
used for exercising control over the operations of the business.
In case of product delivery services which is followed by the business, the following control
measures are followed:
 Customer Satisfaction Index: The customer satisfaction index refers to the satisfaction
level of the customers of the business. This index is an efficient means for receiving
feedbacks from the customers and the management of the company can make changes in
accordance with the feedback which is received from the customer.

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 Number of Returns: This is a report which is formulated by the management showing
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.
The important role of the business is to identify the key measures which are associated with
the business and formulate strategies so that the business is able to strengthen the operations and
remove all weaknesses from the operational process of the business. 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.
Question 4
The variances which can be identified in the KRAs of the business are listed below in details:
 Quality and Design: The business offers such products which are of best quality and
therefore, the same are also popular among the consumers of the business. It is on the
basis of the quality of the products that the prices for the products are set by the
management of the company. In case any variances arise than the same can be measured
by quality control checks and appropriate measures needs to be provided for the same.
 Sales: The sales of the business have shown a decline which is mainly due to the change
in taste and preference pattern of the consumers and changes which has taken place in the
market. The changes in the sales of the business are mainly negative and shows variance
in the revenue which is generated by the business.
 Profits: As shown in the case study the sales of the business declines and thereby the
business earns losses. The losses which is earned by the business is mainly due to fall in
the sales of the business. The business earned a loss of $ 5.7 million in 1963 which is a

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clear indication that variances has occurred 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. However, the management of the
company needs to take steps for making more improvements in the same so that the
efficiency and profits for the business can be further enhanced. The product/ service
delivery system is shown to be appropriate and thereby such is appropriately shown in the
efficiency of the sales and distribution department.
 Business Growth: As per the case study, after 1960, there was a significant change in the
product line of the business and it was a policy introduced to diversify the business which
was expected to bring about growth and development in the business. However, it was
repetitive losses suffered by the company which lowered the market valuation of the
business, hence the planned target of growth could not be achieved. Therefore, in this
aspect as well the business has achieved negative results.
Question 5
a. Market Share: The business had an immensely strong market reputation for toys and the
train sets manufactured 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.
Question 6
In case the business had existed and adapted to the changes in the market place, the
management should have sought 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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Assessment 2
Performance Improvement Strategy Report
Distribution Strategy
The business of AC Gilbert has the best supply chain system which involves effective
distribution system. The company has delivery trucks so that the demand and supply
requirements of the business are meet in an effective manner. The distribution system is based on
the orders which is placed by the customers and also the sales which is made by online sales
team. The main stakeholders of the business are the retailers, customers and employees who are
working for the organization and therefore the needs of such stakeholders must be considered in
the decisions which is taken by the business. The management of the company undertakes every
step for ensuring that the product is delivered as soon as possible to the customers and there is
not delay in services provided by the business.
Competitiveness
The performance improvement strategies which are formulated by the business is for the
purpose of achieving the goals and objectives of the business and also for adapting to the
changes in the toy industry and ensuring that the business is able to face competitive pressure in
market. The management of AC Gilbert can combat the competitive pressure by implementing a
proper and efficient operating system where the employees of the business has the efficiency of
handling all situations in an effective manner. The supply chain of the business is quite effective

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which creates value for the business and also the customers. The supply chain of the business is
one of the internal strengths of the business and this can help in generation of more revenue in
operations of the business.
Performance Improvement Strategy
Improvement of Management Team: The management of the company needs to formulate
appropriate strategic plans so that changes can be brought about in the operational structure of
the business. In order to do so the business needs to conduct a market analysis which can include
SWOT analysis and Benchmarking techniques to identify the competitive advantages of the
competitors and on the basis of the results which have been obtained by the business formulate
strategies so that appropriate measures can be undertaken by the management of the company.
The focus of the management team is to effectively manage the operations of the business and
effectively increase the sales of the business.
Role: The role of the management team is to effectively coordinate the operations of the
business so that the changes which has taken place in the toy industry can be adapted.
Furthermore, the management team would also be supervising the operations of the business and
would also providing directions towards the activities which would help the business to
effectively respond to the goals and objectives of the business.
Marketing Team: The management of the company needs to focus on making changes in the
marketing structure of the business. The focus of the marketing team is to enhance the sales of
the business and also create a brand name for the business in the market. The management of the
company needs to incorporate new products and also make changes in the product of the
business. The marketing team of the business would also be deciding what sort of advertisement
needs to be undertaken for promoting the products of the business. The marketing team would

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also be deciding the frequency of the advertisements and the media which is to be used for the
purpose. The management needs to formulate an aggressive marketing plan which involves using
television media, social media as well as newspaper and magazine.
Role: The role of the marketing team will be important as they would be directly responsible for
attracting more customers to the business and effectively promoting the products which is
offered by the business. The marketing team would be deciding the media which is used for
advertising the products and how much needs to be the intensity of advertisement undertaken by
the business. The marketing team would also be looking to effectively promote the operations of
the business so that the sales and profitability of the business can be enhanced.
Production Team: The strategy of further diversifying the product line and use of effective
advertisement will help the management of the company to achieve success in the market in
terms of revenue generation. The production team would be formulating appropriate innovative
strategies so that new products can be developed and thereby the business will be making
changes in the quality, prices and packaging of the team so that appropriate demand can be
created in the market. The key result areas on which the management of the company would
which is formulated by the business will be sales, profits, variety of products, customer
feedbacks.
Role: The role of the production team is to get as creative as possible in making toys and ensure
that the business moves from Train sets to exciting race cars and action figures. The production
team would be undertaking innovative practices so that a competitive edge can be derived in the
market and the sales of the business can be maximised.
Implementing New strategies