Principles of Management: DHP Stores Inc. Case Study Analysis Report

This report analyzes a case study of DHP Stores Inc., a retail company facing challenges in its marketing campaigns for new credit cards. The report identifies symptoms such as lack of customer trust and loyalty, and problems stemming from inadequate marketing materials and unclear roles within the finance and operations departments. The causes are attributed to a lack of employee interest and specialized skill gaps. Alternatives like improved communication, offering secured credit cards, and providing employee development sessions are proposed. The solution emphasizes communication, integrating marketing and underwriting, and leveraging social media to promote credit card benefits. The implementation plan includes transparent finance services, innovative features, and coordinated efforts between finance and operations to achieve business objectives and maintain customer loyalty. The report highlights the importance of applying management principles to improve marketing strategies and enhance customer relationships.

Running head: PRINCIPLES OF MANAGEMENT
Principles of management
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Table of Contents
Synopsis...........................................................................................................................................3
Symptoms........................................................................................................................................3
Problems..........................................................................................................................................4
Causes..............................................................................................................................................5
Alternatives......................................................................................................................................5
Proposed solution.............................................................................................................................6
Implementation................................................................................................................................7
References........................................................................................................................................8

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Synopsis
From the case study, it could be understood that the business organisation DHP Stores
Inc. lacked certain strengths to manage marketing campaigns for the promotion of new credit
cards to ensure customer trust and loyalty. D.H.P. Stores Inc. is a consumer based retail company
that provides good quality hardware and houseware items to the customers for fulfilling their
daily needs and requirements. Due to the immense competition in the market by Canadian Tire,
Home Hardware, etc., the organisation has planned for new credit cards delivered to the
customers. This would provide them with additional $25 credit and other benefits that could be
obtained by signing on for the first monthly bill. Ray Patton has criticised the marketers of the
company for not managing the marketing and promotional campaigns properly, which is one of
the most important things to be considered rather than focusing on seasonal promotions. The
finance and marketing departments could not properly implement the credit card promotion
campaign, and there had been criticisms related to the lack of financial functions to monitor,
collect, administer and authorize the credit card facilities (Adler, Elmhorst & Lucas, 2012). Thus,
the focus was on the promotion of credit cards to expand customer base and gain their trust and
loyalty, rather than just prioritising on the advertisements of products and services of D.H.P.
Stores Inc., Canada.
Symptoms
There could be various negative symptoms or effects created due to the lack of promoting
the program for introducing new credit card for the customers. There was lack of marketing
campaign materials and data, because of which the introduction of new credit cards could not be
done appropriately. Few symptoms of not introducing the new credit card facilities or program

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for the customers could be lesser trust and loyalty among the customers along with lack of sales
due to failure in attracting customers consistently. The other companies have given stiff
competition to D.H.P. Stores Inc., and so it is important for the company to bring out something
unique for enhancing the size of purchases per unit made by the customers as well as attract
more customers, furthermore creating a sense of trust and loyalty among them (Amine, 2015).
The business organisation is unable to create a mark because the Finance department has not
authorised the credit card facilities properly and thus the collection and administration of finance
solutions have not been managed. The Operations' role was not astonishing and good as well,
which created further complexities in implementing the credit card program properly (Barak,
2016).
Problems
Lack of management principles within the workplace of D.H.P Stores Inc. could lead to
complexities for the workers to understand their roles and responsibilities properly. From the
case study, it could be seen that Operations and Finance departments were unable to implement
the credit card program easily, because of which the performance of the company deteriorated
along with the decrease in organisational productivity. The problems faced here was lack of
marketing campaign materials for the promotion of new credit cards at the various stores of DHP
Stores Inc. in Canada (Berman et al., 2012). The company could not sustain within the business
environment because all the competitors in business had managed their credit cards, which
resulted in increasing the customers holding the credit cards much more than the non-credit
cardholders. However, the authorising, monitoring and collection of credit card facilities were
the duty of Finance department, still it was assumed that the introduction of credit card program
with the involvement of various marketing and promotional activities had been the roles of

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Operations department. Thus, one of the major problems had been lack of understanding and
clarification of clear roles and responsibilities, which would be essential for accomplishing the
organisational goals and objectives with ease (Czinkota & Ronkainen, 2013). The principles of
management were not implemented in a structured way, which created other issues related to
marketing and this led to the reduction in sales as well. Other problems faced within the
workplace had been no such interest and enthusiasm among the workers at the stores considering
that they needed to prioritise on the credit card sales more than the seasonal promotions for the
products and services of DHP Stores Inc., Canada (Kobersy et al., 2015).
Causes
The main cause of such kinds of problems was the lack of interest among the workers at
the store level. The employees were specialised in different departments, and as such, they did
possess different skills and knowledge. So, it is evident that for the finance department workers
cannot handle the implementation of credit card program properly whereas the workers in the
Operations department will not be able to manage authorisation of credit facilities, enable
monitoring, collection and administration of financial procedures. The marketing was not done
properly as well which created issues while establishing a link between the promotional and
advertising activities related to the issuing of credit cards and improve sales level (Perreault Jr,
Cannon & McCarthy, 2013). The efforts that were put during the promotion of credit cards were
quite low due to lack of skills, knowledge and expertise among the employees of DHP Stores
Inc. in Canada.

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Alternatives
Communication is an effective way of resolving management conflicts and ensures that
the operations and finance department workers interact with each other and establish a link
between the marketing strategy with the business aims and objectives. Communicating with each
other can sometimes result in conflicts and misunderstanding due to different views and opinions
that may further result in issues during the marketing and promotional activities (Rudani, 2013).
It is important to identify the issue as an opportunity to turn that weak area into strengths
to facilitate the marketing process and ensure successful relationship with the customers along
with providing them with additional benefits like 30-day free credit and even $25 credit after
generating the first monthly bill. Secured credit cards should be offered for ensuring profitable
access to the customer segments and even make the credit value act as an important marketing
channel too (Soll, Keeney & Larrick, 2013).
Providing development sessions can enhance their potential skills and make them
knowledgeable and focused on how to promote the credit cards as well as attract more customers
regularly, furthermore create a positive mindset among them. The developmental sessions could
be managed to proper monitoring of employee performances, and this would help in enhancing
their level of effort, allow them to get more focused on fulfilling their marketing roles and
responsibilities.
Proposed solution
Among these three proposed solutions, communication is the most effective solution for
marketing and promoting the credit card program, attract more customers and create loyalty
among them too. It can make the employees focus on the products based on the consumer needs.

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It would thereby deliver better value propositions and create a predictable customer base as well.
The problem related to the lack of marketing and promotion of credit card materials will be
overcome by combining both marketing and underwriting (Williams, 2013). The marketing
message promoted should make adjustments so that the accounts do not incur cost more than a
certain limit. By offering secured credit cards, it would generate more profit for the customers
without any added risks and even manage the credit value as an effective marketing channel for
DHP Stores Inc. The skilled and knowledgeable employees would be able to able to think
beyond the major benefits offered by debit cards such as no need to pay bills, protection against
fraud activities and overspending risks. There is emergence of risks asscociated with the debit
cards like mini-exodus, which has given enough opportunities for DHP Stores Inc to provide
new accounts to the reward portfolios of the customers (Barak, 2016). This would resolve issues
and even allow the customers to gain additional benefits while making monthly purchases. Better
communication could be promoted by the involvement of social media as well.
Implementation
The finance department should provide easy, intuitive as well as transparent services that
are possible with the introduction of new credit cards. The credit card program implemented
should deliver good marketing messages to people and would avoid any annual fee and penalty
rates. As the competitors are also accustomed with the marketing of new credit cards, it would be
important for DHP Stores Inc to offer innovation regarding the valuable features offered. To
ensure that more customers are inclined to the organisation, the social media channels are
involved as well in promoting the credit card facilities and benefits that can be gained by the
customers. The management must maintain credible sources of information and data that can be
used for promoting the new credit card and ensure that the Finance and Operations work in

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coordination to accomplish the business aims and objectives easily (Czinkota & Ronkainen,
2013). Furthermore, it would facilitate the customers' services, enhance the amount of purchases
made by customers and maintain customer loyalty too.
References
Adler, R., Elmhorst, J. M., & Lucas, K. (2012). Communicating at work: Principles and
practices for business and the professions. McGraw-Hill Higher Education.
Amine, L. S. (2015). A study of the diffusion, acceptance and marketing of credit cards in the
Middle East. In Proceedings of the 1989 Academy of Marketing Science (AMS) Annual
Conference(pp. 89-92). Springer, Cham.
Barak, M. E. M. (2016). Managing diversity: Toward a globally inclusive workplace. Sage
Publications.
Berman, E. M., Bowman, J. S., West, J. P., & Van Wart, M. R. (2012). Human resource
management in public service: Paradoxes, processes, and problems. Sage.
Czinkota, M. R., & Ronkainen, I. A. (2013). International marketing. Cengage Learning.
Kobersy, I. S., Barmuta, K. A., Muradova, S. S., Dubrova, L. I., & Shkurkin, D. (2015). The
system of the methodological principles of management of enterprise development.
Mediterranean Journal of Social Sciences, 6(3 S4), 25.
Perreault Jr, W., Cannon, J., & McCarthy, E. J. (2013). Basic marketing. McGraw-Hill Higher
Education.
Rudani, R. B. (2013). Principles of management. Tata McGraw-Hill Education.

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Soll, J. B., Keeney, R. L., & Larrick, R. P. (2013). Consumer misunderstanding of credit card
use, payments, and debt: causes and solutions. Journal of Public Policy &
Marketing, 32(1), 66-81.
Williams, C. (2013). Principles of management. South-Western Cengage Learning.