MBA7061 Module: Improving Business Operations at Service Adhesive Ltd

This case study examines Service Adhesive Ltd, a mid-sized company in the FMCG sector facing declining profit margins despite increasing sales revenue. The analysis delves into the company's current business operations, highlighting its strengths in product innovation and long-term market presence. The study explores Service Adhesive's strategic roadmaps, including strategic, change, and business development roadmaps, designed to improve efficiency, reduce costs, and enhance profitability. Key areas of focus include improving production processes, implementing new technologies, and fostering teamwork and employee empowerment. The case study emphasizes the importance of adapting to market changes, improving marketing strategies, and maintaining stakeholder interest to ensure sustainable business growth. The assignment provides a comprehensive overview of Service Adhesive's challenges and proposed solutions, offering insights into effective business management and strategic planning. This assignment, available on Desklib, provides a detailed analysis of the company's situation and the strategies they are implementing to improve their business performance. The analysis covers various aspects including the implementation of new technologies, team work motivation and employee empowerment.

Running head: MANAGEMENT STRATEGY
Management Strategy
Name of the Student
Name of the University
Author’s note

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Executive summary
The conducted case study analysis is based on the chosen company for the assignment which
is the Service Adhesive Limited. The current situation of the company have been analysed in
the conducted and further discussion are made regarding the key areas of improvement which
must be taken care of the management system of the company. According to that the
strategies and the techniques are drawn in such a process so that the company must target to
accomplish and make due changes for improving the overall growth of the business.

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Table of Contents
Introduction................................................................................................................................3
Case Study Description..............................................................................................................4
Current business operations.......................................................................................................4
Improvement initiative roadmap adopted by Service Adhesive................................................5
Team Work Motivation and Employee Empowerment...........................................................10

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Introduction
Every company has to go through the stages of fall and rise the companies that are
engaged in the production of products that are used in the FMCG sector, has to face stiff
competition from the market players. In such a situation the companies of that sector has to
bring continue changes in their business strategies in order to sustain in the competitive
market. Service adhesive ltd is a mid-sized company having more than 20years of experience
in the sector to produce specialist adhesive. Due to its long term presence in the market it has
earned reputation and is recognised as one of the best adhesive producer in the market, and
the company has been able to earn profit on every financial year.
Despite of the factor that it is earning profit regularly in the last few years the
company has observed that the profit margin is slowing down. The sales figure is increasing
while the profit margin is falling indicates that the company’s variable cost might have
increased. The company is looking forward to bring certain changes in the strategies to
improve the condition and to bring more efficiency in the production process.
In the modern days, every company has to make continuous changes in the strategies
so that they can sustain with the changing environment of the business world. All the aspects
of the production process is required to be improved and the sales team also has to improve
the skills to compete with the other products and to present the unique features of their
products to the customers to improve the sales figures.
The strategy of a company includes both the employees and the top management. The
performance of the organisation depends on the strategy framed by the top management and
the employees implement these. This is a team work doing which the company can achieve
the desired goal so it will be the primary objective pf the company to create a efficient team
which will help the company to achieve the top position in the market.

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Case Study Description
Current business operations
The service adhesive ltd is operating in profit from long time its presence in the
market has make the company popular among the customers. The trust that the company has
earned from the customers is paying good return to the organisation. The main strength of the
company is that it is making continuous improvement in the products. The patented adhesive
products of the company is unique in the market and the competitors has not been able to
provide same standard of products to the consumers, which made it possible for the
organisation to generate profit on consistent basis. The company has the record in developing
new products, which the other companies fail to do and that lead to the increase in the
demand of the products of service adhesive ltd. The demand of any new product always
improve the sales figures of the company and for that, the profit margin will always improve.
The company in the current stage trying to bring more improvement in the quality of
the products. The company always give importance in the innovation of new products and try
to increase the market share. The main advantage of the company is that it is carrying its
operation for a long-term which enables the company to reach to more customers and also to
earn the trust of the users. The market of adhesive business is very competitive and for that it
is very important to make changes in the features of the products. Improvising some of the
attractive features in the product of the company will further enhance the potential customers
to buy the product in the market. The long term objective of the company must be revised
year after year in order to serve the organizations in the best possible way.
The company has been successful in earning profit on continuous basis but in the past
few years it has been facing a serious problem. However, the sales of the company increased
but the profit margin of the company falls, which become a serious matter of concern for

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service adhesive ltd. The issue came in to the observation of the company in the last few
years (Woodcock 2017). The company is trying to solve the situation by bringing changes in
the strategies of the production process. The fall in the profit margin occurs due to the rise in
the variable cost related with the production process. The management feel that the company
now requires changes in the production process and should try to produce innovative
products at cheap cost. Realising the need of the change in the production process the
company decided to implement new technology, which will make the production easier and
cheaper. Improvisation of the new technology in the market will automatically increase the
possibility of the company to stay ahead among the other competitors in the market. Then
implementation of the technology will furthest improve the potentiality of the products in the
market. Implementation of new technologies will further help the company to increase the
production at large scale. Hence, the sale of the company will also increase which will further
lead to an increase in the revenue or the income of the company.
Applying new techniques or strategies will further enhance the growth of the business
and recruitment of talented employees in Service Adhesive Limited will further foster
tremendous growth in the development of the organization. Effectiveness in the work force of
the company will further increase the overall productivity along with overall sales of the
company. Stringent marketing strategy of the company must be adopted in that case to attract
the potential customers in the market. Improvisation in the marketing strategy of Service
Adhesive Limited will further take this company to the top notch.
Some of the key elements must be considered by the internal management system of
the company in order to build an effective team or work force. The team must have strong
communication and understanding in order to generate accuracy and transparency ion the
communication where there must not have any kind of communication gap.

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Improvement initiative roadmap adopted by Service Adhesive
The various roadmaps that the business follows are stated below
 Strategic roadmap
 Change roadmap
 Business development roadmap
 Business intelligence roadmap
 Data strategy roadmap
 Start-up roadmap
 Enterprise architecture roadmap
Strategic road map
The strategic roadmap communicates the business vision. The strategic roadmap
design the mission of the organisation based on which the company carry on its process of
operation. The strategic roadmap should give emphasis on the long-term goals of the business
and includes the features of the product and the improvements required to bring in the
products (Bender et al. 2018).
The service adhesive ltd has adopted the strategic roadmap of changing the production
process for which the company has decided to implement new machines and trying to
improve the skills of the labours so that they can produce more innovative items that makes
the product of the company more demanding in the market. The strategic roadmap generally
developed by the senior level stakeholders and it should be accessible to every employee that
they can apply these strategies effectively and help the organisation to achieve its desired
objective (Zornoza et al. 2015). The efficiency in the business will further drag the potential

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stakeholders in the market and further the interest of the stakeholders in the company must be
maintained. If the interest of the stakeholders of the company is increase then the company
will be further able to increase the growth of the business on long run perspective. The
investors will be interested in the company to further make potential investment which will in
increase the value of the shares of Service Adhesive Limited. This will be an opportunity for
the company to make potential investments in order to generate huge return out of investment
by the upper level management of the company. Hence the decision taken upper level
management of the company plays significant role in that case.
In the present situation, the main objective of the company is to reduce the cost and to
improve the profit margin. The profit margin of the company is needed to be enhanced in
such a way that it fulfil the basic requirement or rather the needs in the organizations in that
case. The production process must be enhanced in that case to deliver the customer on a large
scale by maintain the product quality will automatically drag the potential customers in the
market. There lies the chance of the company to increase the profitability position and further
revising the strategies if there lies glitches within the internal management of the company.
Change road map
For sustained growth the company has to undergo various change process to adapt
with the changing environment of the business world the company has to take steps so that it
can compete with the other competitors. Like the strategic roadmap the change roadmap also
requires the team work of the management and the employees (Rostamzadeh et al. 2015).
The long term change roadmap includes the factors like the team restructures and the
introduction of new technology in the business. This roadmap is particularly important for the
team leaders who are responsible for the implementing the change process in the team.

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The service adhesive ltd is following the change roadmap policy in order to get an
advantage over the competitors. Th main reason for the company to take the change roadmap
is to improve the falling percentage of the profit margin. The company in the last few years
realised the necessity of change in the strategy as the company wants to earn more profit from
its business operations (Santoro et al. 2018).
Service adhesive after staying in the market for such a long period it realised that it
become essential for the company to go through a change policy and to frame a new strategy
that will raise the profit margin and at the same time will improve the existing reputation in
the market. As per the competitions in the market, the company needs to give tough
competition to its competitors by applying the stringent policy and as also by analysing the
overall market conditions (Wiengarten et al. 2016).
Capability roadmap
The capability roadmap helps the organisation to plan the process of executing the
new projects that the company wants to introduce in the company. In plotting the large scale
capabilities, a company wants to check whether the company will be capable enough to
handle the changes in the policy that the company wants to implement in the next few years.
The service adhesive ltd has also prepared a changing roadmap to check the capacity
of the company to adapt with the changes that the company wants to introduce. The company
will make changes in the production process so the capacity roadmap that has been prepared
by the company will be based on the production process only.

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Business development roadmap
The business development roadmap highlights the essential task that contributes to the
increase in the revenue figure of the company and market share growth within one-year
period. The marketing and operation team is related with the business development road map.
The business development team plays an important role in the profit generating capacity of
the organisation (Pollack and Matous 2019).
The strategy of the company is to develop its business for which it framed a business
development framework. The company is facing some threats that it thinks can be controlled
through an efficient business development plan. The company also focuses on improving the
production process and thereby try to manage the problem of falling profit margin. In the
business development, process the company collaborate both the sales and the production
team, which leads to the development of the organisation and the company, will be able to
create more innovative products for their clients (Tian, Cordery and Gamble 2016).
Business intelligence roadmap
For business intelligence, roadmap strategy the company wants to maximise their
effort on organisational decisions and growth. The business intelligence roadmap visualizes
and communicates all the aspects of the business intelligence that includes from data mining
to querying and reporting (Inkinen 2016).
The business intelligence roadmap of the service adhesive ltd also contains all the
three aspects of the business intelligence, which includes the data mining, and reporting
process of the organisation (Svalestuen et al. 2015). The company through data mining try to
find out the real reason of the fall in the profit margin and at the same time it reports to the

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top management about the necessary step to take to prevent the occurrence of such situation
in future.
Data strategy roadmap
The data strategy road map is essential to organise all the data of the organisation in
one place and to utilise these data to get some information, which will affect the operation of
the business (Aga, Noorderhaven and Vallejo 2016).
Service adhesive also made a data storage road map to analyse the performance of the
company. By utilising data the company will be able to find out the result of the previous
years and based on that past records can be able to make a comparison of the past
performance with the current performance. The data strategy roadmap also enables the
company to take decision based on the past performance and the company can also detect the
mistake that it has done in the past (DeCenzo, Robbins and Verhulst 2016).
Based on the following roadmaps the company try to solve the problem of fall in the
profit margin. It also set up certain business strategy that will bring changes in the existing
structure of the company and will help the organisation to achieve its desired objective
(Göçer, Hua and Göçer 2015).
Team Work Motivation and Employee Empowerment
The service adhesive limited being a reputed company always give priority to their
employees. The company realised that to improve the efficiency of the organisation it is
required to keep the employees motivated and to empower them so that they can take correct
decisions which will be beneficial for the company (Hussinki et al. 2017).
The ways in which the company motivates the various teamwork are stated below

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Share the vision of the organisation with each member
If the employees are aware of the vision of the company then it will bring prosperity
and success for each team member, motivation and empowerment become an indivisible part
of all the activities of the employees.
The service adhesive company also share their vision to all the employees and the
various teams so that they always remain focus and be very clear about their respective duty.
Communication with staffs
It is very essential to create an environment where two way of communication will
exist. If the employees find it difficult to communicate with the top management then it will
create a gap between the management and the operation team. The smooth running of the
operation will never be possible without an effective communication system (Bloom, Sadun
and Van Reenen 2015).
The company service adhesive Pvt ltd has also structured their organisation in such
manner that the employees can easily communicate with the management and can give their
suggestions regarding the production process or the process of marketing. The company has
always give importance to the fact that without a proper communication system the company
will never be able to produce innovative products neither it will be able to generate more
revenue.
Appreciate the employees
One of the important need of any team is the need of being appreciated. Appreciation
is reward, which is more encouraging, then money. The effectiveness of the team will
improve with appreciation. The company should show its gratitude for the contribution that
the team provide (Beauchamp, McEwan and Waldhauser 2017).