Advisory Report
“The Design Factory”
‘Which changes should take place at Van der Wall company to get a better
or more successful future for the Design Factory?’
Executive Summary
In this advisory report we advised the Design Factory at several areas. First,
we advised to setup a mission and vision. On this moment the Design Factory has
an idea of direction the company aims, but this idea is not converted in a
mission and vision. After set up a mission and vision, the company has to
translate this in a strategy. We advise the company to focus on the customers.
This means the Design Factory will be focusing on customer intimacy. It’s
important that the company create a good relationship with the customers.
Therefore it’s important to offer good services. The company can do this
for example by delivering the shoes on time and contact more with their
customers. Within five years the company must be healthy and living.
So we advised the company to start an e-store. This means that the company will
sell their shoes on internet. This is modern and new. With this advise we
expect the company will get a second life. To get in line with our strategy we
will offer customer a special accountwith their own password and username. We
will send newsletters with special offers if the customer wants. Regular
customers will get more advantage. It must pay out to be a Van der Wall
customer not only in terms of the quality but in the whole picture.
Not only the e-store is new, the whole advertising must go otherwise. Social
media and the whole internet will be the new playground of the Van der Wall
company. Also the stocks must decrease because stocks cost money. And certainly
with fashionable products like the shoes of Van der Wall.
For all this changes we try to avoid dismissing from personal. But it isn't
possible to keep everyone within the company. But most people will be on a
retrain program so they can do other things within the company, Van der Wall is
not for nothing a family company. But the 7 people who need to be fired will be
helped on the labor market by us.
All these changes will eventually lead to a turnover that doubles in a term of
5 years. And with this turnover the company needs to have a 8 % market share of
the online women shoe market.
Index
1.Introduction 5
1.1 Introduction of the company 5
1.2 Confronted problems 5
1.3 Central question 5
1.4 Research approach 5
1.5 Conclusion 5
2 Mission, vision and strategy 6
2.1 Introduction 6
2.2 Mission 6
2.3 Core values 6
2.4 Vision 7
2.5 Market research 8
2.6 Strategy 10
2.7 Conclusion 10
3 Performance organization 11
3.1 Introduction 11
3.2 SWOT- analysis 11
3.3Value proposition 12
3.4 Strategy map 13
3.5 Action plan 14
3.6 How are we measure the goals? 15
3.7 Summary table 16
3.8 Conclusion 16
4 Organization 17
4.1 Introduction 17
4.2 Current organizational structure 17
4.3 New organizational structure 18
4.4 Current organizational culture 19
4.5 New organizational culture 19
4.6 Business Process management 20
4.7 Conclusion 23
5 E-store 24
5.1 Introduction 24
5.2 Lay-Out 24
5.3 Payment methods 24
5.4 Prices & Discounts 24
5.5 Service 25
5.6 Conclusion 25
6 Financial Management 26
6.1 Introduction 26
6.2 Sales to retailers 26
6.3 E-store sales 28
6.4 Conclusion 29
7 Dutch Labor Law 30
7.1 Introductie 30
7.2 Ondernemingsraad 30
7.3 Reorganisatie 30
7.3.1 Ontslaan personeel 31
7.3.2 Sociaal plan 31
7.4 CAO 32
7.5 Conclusie 33
8 Conclusion 34
8.1 Introduction 34
8.2 Overall conclusion 34
9 Consulted sources 35
10 Addendums 36
1. Interim report 36
2. Current structure Van der Wall Company 36
3. New structure Van der Wall Company 36
1.Introduction
1 Introduction of the company
The Design Factory is a company that makes shoes and sales them mainly to
retailers. The Design Factory has taken over Van der Wall Company. We will
advise the Design Factory so the sales and the profit will increase.
2 Confronted problems
We analyzed a couple of problems inside the company. The problems Van der Wall
Company (and therefore the DesignFactory) is confronted with are comprehensive.
A few examples: Van der Wall company hasn’t drawn up a business plan,
there is an unclear organization structure and there are many communication
problems. This results in disappointing sales and so the company makes little
profit. A lot has to be improved and has to be changed.
We, a student team of Inholland, were asked to research the present situation
and finally to make an integrated advice for the Design Factory.
3 Central question
Before we were started to make the advisory report, we have drawn up a central
question. The question of our report is: “Which changes should take place
to get a better or more successful future for the Design Factory?”
We have divided the report in various chapters to answer the central question.
This report begins with a chapter about the mission, vision and strategy of the
company. After that there is a chapter about the balanced scorecard and the
strategy map. Chapter four is about the organization structure and culture.
Chapter five is about the E-store which we advised the company to establish. In
chapter six we have made a financial analysis after the changes and in chapter
seven we describe juridical consequences of the changes in Dutch. After those
chapters we will end with a conclusion, a consulted sources and addendums.
4 Research approach
For making this advisory report we have used various sources of information,
for example:
- Information from the casus
- Information from thelessons
- Book: ‘Integrale bedrijfsvoering’
- Book: ‘Management and organizational behavior’
- PowerPoint presentation: ‘Performance management’
- Internet
To be able to produce our advice for the Design Factory we have used many
models and instruments which we have described. After we have researched we
divided the tasks so that each team member have make a proportional
contribution of the final report.
5 Conclusion
With this advisory report, the direction of the Design Factory has a good
overview of the current problems in the company and can make decisions to make
changes to get a better and successful future.
Mission, vision
and strategy
1 Introduction
Van der Wall company has an idea of direction where the company aims for, but
this idea is not converted to a mission. We think it is better to set up a
clear mission, vision and strategy. This will make it clear what the company
aims for. That is why we describe a strategy, mission and a vision using
several instruments.
2 Mission
Before setting up the strategy, the mission and vision should be set up. From the
vision and mission we can choose a strategy.
A mission indicates the reasons the company exist, the primary goal. As
indicated, van der Wall company wants to sell high quality shoes, but have not
set up a clear mission. To improve the mission, the following questions must be
answered. First describing the situation now and then the situation of the
future when the Design Factory will have moreimpute.
What do we do?
Van der Wall company sells good quality shoes against a relative high price to
retailers. Producing the shoes there self, leads to high costs.
We think it is a good idea for the Design Factory to sell shoes on a new
market, the internet. Instead of selling the shoes only to retailers, the
Design Factory can try to sell shoes on internet. The price will be a view
euro’s higher than the price that is used for the retailers. This means
the retailers can provide their customers with a lower price than the Design
Factory. This prevents competition between us and our retail customers.
What is our purpose?
Van der Wall company offers good quality shoes to their customers. Trying to
decrease the costs, because the competitors selling price is way lower, has
failed, because departments are making unclear financial reports.
These days customers want a good quality shoe against a low price. Van der Wall
company does not connect with this market development. It is impossible trying
to compete on cost, because the competitors send their production to low wage
countries like China,
outsourcing.
Instead focusing on the costs, we think it is better to focus on the customer.
As we said above, we advise to sell the shoes on the internet. And we advise
the Design Factory to provide the customer with good service and attention.
What value do we provide?
We think competition on the price would not work, but competition at customer
service is a different story. Van der Wall isgoing to provide the customer with
good service and attention.
Why is it we exist?
Again the answer is selling a good quality shoe to the customer, but in the new
situation we see a different aspect to focus on; the customer. Trying to let
the customer feel that the company is very happy that they buy the shoes.
After answering these four questions the mission can be short, but also
powerful and usefully made.
` The Design Factory sells and produces shoes with quality at a high level.
The Design Factory gives the customer a safe feeling, with service and
attention. Every customer counts, that is why they are in first place.
The Design Factory is active at the Dutch, German, Belgium
and Luxembourg’s
shoe market, selling to retailers and on the internet. Using an advice price
the Design Factory does not compete with own retail customers on their online
market. ’
3 Core values
The questions from the mission answers the question what the company is doing
now and what they are focusing on . We think it is better to focus on other
values to make the company more successful. Beneath are the core values we
think the Design Factory should focus on.
High service level
Van der Wall company puts customers at the first place, this means keeping the
customer happy with their product. Besides the delivery of a good product, the
felicities around the shoe have to be attractive. Van der Wall company offers quick
deliveries. If the customer’s order a product before eight
o’clockthe shoe will be delivered the next day.
To create a special relationship with the customer we will create a special
account for each customer. They will have their own account with a password and
username. We will send the customer newsletters with special offers etc. if the
customer wants to. The customer will also receive a pass. Every time he/she
buys a shoe they will receive points. With these point will he/she receive a
discount.
Quality
Producing their own shoes mains van der Wall company stays at a high quality
level. Competitors send their production to low wage countries were the shoes
will be made against lower cost, but also lower quality. That is one of the
reasons van der wall company chooses to stay producing in the Netherlands.
Socially involved
Instead of sending the production to a low wage country, van der Wall company
produces their own products. A lot of discussions are about this aspect these
days. Low wage countries have different rules of no rules, while Dutch
employees are being protected. The employers who work in the low wage countries
usually have poor working conditions.
Working as a team
Looking at the conditions right now the employees are not really involved in
the produces. We think the Design Factory should change it because the
communication will be improved. If the whole company works as one, the company
will work smoother and as a team. Employees will be happier with their work and
motivation goes up.
5 Vision
To get a clear visionof the future it is important to think about what the
company wants to achieve. The vision is for long term ( 3 till 5 years), is a
challenge, realistic and feasible.
Figure 1: Vision
Source: PowerPoint hogeschool Inholland.
With the enhanced vision several aspects will be addressed, also speaking a
value gap. Sources say twenty percent of the value is visible, the other eighty
percent is invisible (value gap). The value gap is the difference between the
reality and what the company wants to achieve. Looking at financial, customer,
process and learning & growth perspective the value gap can be formulated.
The following goals are what we think the Design factory should do to make van
der Wall company successful.[1]
Financial goal
The Design Factory wants to achieve a higher sales percentage. Type one will
increase every year with ten percent. Type two will decrease ten percent every
year, because eventually this type will be removed from the range. Furthermore
we get a lot of sales from the E-store.
External goal
As said before we think the Design Factory should focus on customer loyalty.
This can be achieved with advertising, for example newsletters by mail. There
also will be a special account and a pass for each customer.
Internal goal
The Design Factory will reorganize van der Wall company. Now the shoe sell will
expand, the structure has to be updated. Creating new departments for
advertising and technology (creating awebsite and keeping it up to date).
Another goal are the faster processes, because the shoe has to be delivered
fast and on time.
Learning and growing
We think the Design Factory should reorganize van der Wall company, but there
are already a lot of employees who know a lot about the company. It is handy to
let this knowledge in the company. These employees can get a education or
course to understand better what is expected from them.
After divining those goals a clear vision can be prepared:
The Design Factory will invest a lot of time and money in van der Wall company
to make this company more successful. The Design Factory will expand their
sales with the internet. Using two types of shoes, type one and type two. The
sales of type one will grow every year with ten percent and the sales of type
two will decrease every year with ten percent. The Design Factory will be
reorganized. There will be a clear, useful and fun website for the customers
and processes will be faster, so shoes can be delivered on time. This all, to
keep the customer happy with their purchase. Some of the employees get a course
to understand the new plan and the company better. This all, will be executed
within five years.’
We made some calculations where the market share and the increasing of type one
and the decreasing sells of type two becomes visible.
6 Market research
Trends
We investigated the shoe market. We especially looked at the trends and
expectations for the future. This is relevantfor the choices that have to be
made.
The following trends are important for the shoe market.
• Reorientation in brand stores;
• There is a rise in shop- in-shops and lifestyle stores;[2]
• Shoes, sports and fashion shops are entering more and more on each
other’s area[3];
• The life cycles of 'fashion' collections are shrinking. [4]The
collection may change six times a year;
• A growing number of consumers buying clothes and shoes on the
internet.[5]
The last bullet is very important; A growing number of consumers buys clothes
and shoes on the internet. Currently 5 to 6 percent of the shoes are bought
online. That percentage will increase to 20 percent by 2015. In 2020 is
expected that a third pair of shoes will be bought online. Shops have to deal
with a lower turnover in the future. Shops outside the center are getting a hard
time. The number of stores will therefore decrease. Marketing is getting
increasingly important within the online sales.[6]
Reorientation
We advise the Design Factory to take another look at the market once in a
while, because we think it is important to play along with market changes. A
market change can mean a change, for example we see a grow in the E-market so
we advise to sell shoes on the internet.
Rise in shop- in shop and lifestyle stores
The brand owner sells their brand in a shop that is not their own. For example
sneakers, Sport shops sells Adidas, Nike, Puma etc. in one shop. This happens
more and more, because it has alot of advances like shared costs, shared
marketing and speed to the market.
This is an trend where the Design Factory has to deal with. Most of the
retailers are the shops described above. They do not only buy shoes at the
Design Factory, but also with other retailers. This means the shoes of the
Design Factory are in stores with different brands.
Shoes, sports and fashion shops are entering more
These days more shops are entering the shoe market, especially the E-market. A
veritable explosion in the footwear market took place last year. Not only new
stores in the market also retailers who were already active on the shoe market
are going to expand on the internet.
The life cycles of ‘fashion’ collections are shrinking
Fashion changes a lot these days, this is called fast fashion. It is important
shoe branches react on fast fashion. Consumers want to buy what is fashionable.
Retailers must buy new creations and new designs in a short period of time. We
advise the Design Factory to have new collections more than twice a year,
because consumers want a fashionable shoe.
E-market
Nowadays the consumer wants something special for their money. The shoe market
is trying to focus on quality and service and competition for customers has
increased. The wages of the consumer do not rise along with the inflation.[7]
As said above, the customers who buy shoes on internet has increased. The reason
therefore are the developments in technology. This creates a new kind of user,
who have otherkind of wishes and different buying behavior.[8]
Because of this development 5 to 6 percent of the shoes are purchased online.
In 2015, this percentage is estimated at 20 percent and by 2020 one in three
shoes are sold online. In practice, the emergence of online stores visible, for
example Zalando and Brandos. Stores are expected to have a hard time, mainly
stores outside the center. The number of stores will decrease. A spokesman of
the ING says: “The hunt for online market share and increasing growth in
this segment may therefore result in a consolidation and leaving 3 to 4 large
(inter) national parties, the Dutch online shoe market to dominate”.[9]
Target
The age group that buys lady shoes is between fifteen and sixty-four years.
Research from the CBS shows these numbers. The average expenditure for this age
group of shoes is hundred thirty-one euro. Fifteen percent of the total shoe
market is spent on the E-market. For the design factory we think the market
share should raise every year. In 2013 we expect a market share on the E-market
of shoes from eight percent.
We think the sales price should grow with inflation, because the purchasing
cost will also rise with inflation. This way the Design Factory does not have
to be worried about the inflation, because the extra costs from purchasing will
be paid back with sales. Nowadays the inflation factor is 1,021 percent. A
clear explanation of this is viable in the financial analysis.
Orient
Customers have the possibility to orientonline. For example; A customer sees a
shoe online, a shoe he/she wants to have. This customer is going to look for a
store that sells these shoes, the Design Factory’s retailers in this
case. This means selling shoes online has positive influents for the retailers.
We think skipping this market would not be a good idea. Customers cannot
oriented or buy the shoes at home. If the Design Factory will not be active on
the market, they will miss all the customers buying online and as described
above, this will be many.
7 Strategy
Now there is a better view on the mission and vision the strategy can be made.
Using the following model.
Figure 2: Strategy
Source: https://www.gielismt.nl/publicaties/methoden/4b-brochure/slot.html
Van der Wall company is at the moment focusing on price and quality, mainly on
the quality. This means van der Wall company is focusing on product leadership.
Competing with the competitor on delivering the best quality shoe.
Now van der Wall company is taking over by the Design Factory we think the main
focus should be on the customers. Creating a special relationship with the
customer. This means the Design Factory will be focusing on customer intimacy.
Creating such a good relationship with the customer that they choose the Design
Factory, because they feel secure buying a shoe.[10]
8 Conclusion
Now van der Wall has been taking over by the Design Factory we think a lot of
changes should be made. The strategywill change from product leadership to
customer intimacy. The core values are high service level, quality, socially
involved and working as a team. An important change, which we think should be
made, is selling shoes on the internet. It is important for customers to orient
and buy shoes at home.
Performance organization
1 Introduction
It is important to formulate goals. Especially for the employees, because of
that they know what the company wants to achieve in a certain period. The employees
will be more involved in reaching the goals and they will feel more responsible
for the results of the company. In this chapter we will answer the following
question: How do we achieve our goals and how are we going to measure them?
2 SWOT- analysis
In the following figure you can see an overview of the strengths, weakness,
opportunities and treats Van de Wall company is facing. Through the
SWOT-analysis we can make better decisions. It also helps with making the value
proposition and the strategy map. We will explain the SWOT- analysis below.
Figure 3: SWOT- analysis
Strengths
The strengths within the factory is producing good quality shoes. The factory
produces the shoes themselves. They are not produced in low wage countries
where quality is less. Competitors do this. Therefore the Design Factory can
distinguish itself. The factory is also going to distinguish itself by offering
good service. Later in this chapter we will explain more on this matter.
Anotherstrength is that the sales of shoe type 2 runs very well. We have made
some calculations. The calculations you can find in the financial analysis and
in the appendices. The contribution margin is higher than the contribution
margin of shoe type 1. Shoe type 2 makes more profit compared with type1. [11]
Weakness
Within the company we have noticed that several things can be improved. We have
analyzed the problems the company is facing. The communication, structure and
culture can be improved. In chapter 4 we give advice on how to improve these
matters. There is no clear mission, vision and strategy. In this chapter we
give advice on the strategy. Out of the strategy we can formulate the mission,
vision and goals. We have described this in chapter 2. In the calculations we
have made, we noticed that sales of shoe type 1 has decreased. The contribution
margin is low. And therefore the profit is low. [12]
Opportunities
We investigated the shoe market. A growing number of consumers buys clothes and
shoes on the internet. This is a great opportunity for the Design Factory. We
think it is a very good idea to sell the shoes also online. The factory will
enter a new market with new customers. The trend is that a lot of fashion
stores are working together. This is also important for the factory. The Design
Factory can work together with fashion stores. The fashion stores can advertise
for the Design Factory by giving their customers a newsletter about the shoes.
[13]
Treats
There are afew treats the factory has to deal with. There are competitors who produce
their shoes in low wage countries. There price is therefore lower. Their cost
price is lower. The factory must compete against this. That’s why the
Design Factory is focusing on offering good services. The life circle of
fashion is shrinking. Customers want often new collections. Instead of four
times per year they want six times per year a new collection. This is a treat
because the factory has twice a year new collections. In the autumn and the
spring. We think it is better that the company change the collection four time
a year. Each season there will be a new collection. In this way the factory can
satisfied their customers. Another treat is that there are developments in the
market. The current trend is that the people want to spend less money for good
quality shoes. The Design Factory offers good quality for a high price. [14]
3 Value proposition
The value proposition gives a clear picture of how we think the Design Factory
must positioning itself. Through the value proposition we can easily fill in
the strategy map in paragraph 3.3.
Figure 4: Value proposition
Decrease
We recommend to sell less of shoe type 1. The last few years the sales has
decreased. The contribution margin is very low. There is not made much profit
on these shoes. We made some calculations. We advise to sell 10% less each
year, because eventually this typewill be removed from the assortment.
Create
We did some market research. A growing number of consumers buys clothes and
shoes on the internet. That’s why we came with the idea to sell the shoes
also online. This is a new market and the factory will sell more shoes because
there will be new customers.
Increase
Shoe type 2 has an higher contribution margin than shoe type 2. We recommend to
sell 10% more each year. Therefore more profit can be made.
Do not
We advise to not compete against low prices.
4 Strategy map
Through the strategy map we will formulated goals. There are four points of
views. These are: financial, customer, internal and learn and grow. We will
formulate a goal for each point of view and we will explain them.
Figure 5: Strategy map
|Strategy map |
|Point of view | Goals |
|Financial |Higher sales percentage |
|Customer |Loyalty and service |
|Internal |Deliver on time |
|Learn and grow |Market share: new market |
E-store |
Financial
In the last few years the sales has decreased. Especially the sales of shoe
type 1. This is mainly due to the competition. Competitors produce their shoes
in low-wage countries. The DesignFactory cannot compete against this. The sale
price cannot be reduced. Also, the Design Factory distinguishes itself through
high quality. It is important that the sales increase. The turnover will rise.
Therefore we advise to formulated the following goal for the Design company:
Achieving a higher sales percentage. As we said before the sales of shoe type 1
has decreased. Within five years we think it is better to sell less of these
shoes. We have made some calculations and the percentage will lie around 10%
per year. Shoe type 2 sells better and that is why we think it is better to try
selling more of these shoes. Around 10% more per year. The contribution margin
is higher. Therefore more profit can be made.
Customer
To sell more shoes, the design company needs new customers. Previously, the
shoes were only sold to retailers. We think it is better to sell the shoes also
to customers, on the internet. It is important to put the customers at the
first place. Good service is important because then you will keep your
customers and the sales will increase. Therefore we advise to formulated to
following goal: Offering good service. We think it is better that the design
company focuses on customer intimacy. Customer satisfaction is very important.
Therefore we can formulate that the customer satisfaction must lie around 95%
within five years’ time. Satisfied customers continue to buy the shoes at
the design company. Satisfied customers will create also “word of mouth
advertising”. Sales willincrease. It is important to have good contact
with the customers. We noticed that the number of visits to major customers,
the retailers, is limited. For a good customer relationship the think it is
important to have more contact with the customers.
Internal
The most important part of providing good service is to deliver on time.
That’s why we formulated this as a goal. Internally, things must change
to achieve this goal. Internal processes must be aligned properly. And the
Internal processes must get faster. 95% of the shoes should be delivered on
time. This leads to high customer satisfaction and sales will increase.
Learn and grow
The Design Factory will grow by selling shoes online. This is a new market with
new customers. The Design Factory needs employees dealing with the online shoe
selling. In order to avoid too many redundancies we advise to retrain a part of
the employees. It is important to keep employees that are already working in
the factory instead of accepting new employees. Because they already have much
experience within the company. In the next few years the factory will sell more
shoes and the factory need these employees again. It is important to have a
good market share on the internet. Because there are more stores who sells
their shoes online. We have made some calculations. In five years’ time
recommend to have a market share of 8% on internet.
5 Action plan
How are we going to achieve our goals? Several measures must be taken to
achieve the goals.Financial
The sales of shoes type two must increase with 10% in a period of five years.
To achieve this, we believe the Design Factory must enter a new market. A
growing number of consumers buys shoes on the internet. Currently 5 to 6
percent of the shoes are bought online. That percentage will increase to 20
percent by 2015. This gives the Design Factory new customers and the sales will
increase. There are also other companies that sells shoes online. There must be
a lot of advertising, so people will know that we are selling the shoes online.
The company produces only women shoes. The target group are women between 15 to
64 years. The Design Factory must especially advertise in women's magazines,
women's sites and women shops. [15]
Customer
At the customers point of view we advise to focus on service. The new strategy
that we have formulated for the Design Factory is to focus on customer
intimacy. Good contact with the customer comes first. Therefore it is important
to offer good services. In which ways can the Design Factory offer good
service? We thought about this and we think that first of all it is important
to deliver the shoes on time. The design company must offer quick deliveries.
If the customers’ orders a product before eight o’clock the shoe
will be delivered the next day. This is an example of a good service. If a
problem arises within the factory, and the shoes cannot be delivered on time
the customer will receive an e-mail. And the shoes will be shipped as soon
aspossible. To buy the shoes online the customer has his own username and
password. The customer must enter his email address. Once a month the factory
sends a newsletter. This contains information about the shoes with prices and
possible discounts. The customer can choose whether he wants to receive the newsletter
or not. This is required by the law. Once a customer has registered he can use
an online customer card. With this card the customer can save for discount. We
advise to give discount in certain periods. For example in December because
this is a celebration month and people will buy a lot. In the newsletter the
factory can let the customers know that they can get a discount with a special
code. For example DECFREE. Customers can fill in this code when they buy shoes
and they will get a discount. If a collection is not completely sold out it is
better to give discounts on these products. The stock will go down also. There
are many costs related for shipping the products. Therefore we have chosen that
the customer has to pay for the shipping costs. In contrast, the company will
deliver products on time. If the customer is not satisfied with the product he
can send it back for free.
Internal
In order to deliver products on time, the processes in the company must get
faster. The machines should be faster. The employees have to work hard and feel
responsible for the products to be delivered on time. Computer systems must be
purchased to manage the online sales as good as possible. The factoryalso needs
a good inventory system to avoid no-sales.
Learn and grow
We recommended to have a market share of 8% within 5 years. It is important to
advertise a lot. Like we said before the Design Factory must especially
advertise in women's magazines, women's sites and women shops. By offering good
service there will arise also “word to mouth advertising”. The
employees should be informed about the changes within the company. Managers
must ensure that employees feel involved and feel responsible. As a result,
they will perform better. This belongs to the chapter culture 2.5. Employees
must grow with the company.
6 How are we measure the goals?
How do you know if you have reached your goals? And how can you measure this?
Financial
We recommend to sell 10% less of shoe type 1 and 10% more of shoe type one per
year. How can the factory measure this? We have made a calculation over five
years. This calculation should be compared with the actual calculations. This
way you can see if the goal is achieved. If not, there must be analyzed what
went wrong and the goal can be changed.
Customer
We have advised to reach a customer satisfaction of 95%. This percentage is
high but realistic because the factory is going to focus on customer intimacy.
High customer satisfaction is important. How can the factory measure this? We
ask our customers about their experience, to fill out reviews and about their
satisfaction. Through samples the factory can calculate the percentage
ofcustomers that are satisfied. Through the reviews the factory can also find
out where the customer is not satisfied about. The company can improve these
things.
Internal
We recommend that 95% of the shoes should be delivered on time. How can the
factory measure this? The administration must track how many products are not
shipped on time. Also it is important to know why these products are not
shipped on time. The processes can be improved.
Learn and grow
We recommend to have a market share of 8%. How can the factory measure this?
There must be a market research about how many shoes are sold on the entire
internet market. The sales of the Design Factory you have to divide by the
sales of the entire internet market.
7 Summary table
In the following table we made a summary of the last paragraphs. This table
gives you a clear picture about the strategy map, balanced scorecard and the
action plan.
Figure 6: Summary table[16]
9 Conclusion
We have made a SWOT-analysis. Through this we could make the value proposition
and the strategy map. There are a few things that are really important to make
the factory successful again. First of all we think it is better to sell less
of shoe type 1. The last few years sales has decreased. It is better to sell
more of shoe type 2. Because the contribution margin of shoe type 2 is higher.
Therefore the profit will increase. To sell more shoes of type 2 we came with
the idea to sell shoes on the internet. We did amarket research. Online sales
is increasing. Also in the shoe market. In 2020 is expected that a third pair
of shoes will be bought online. This is a great opportunity. The Design Factory
has to advertise a lot. The target group has to know they can order the shoes
on the internet. To distinguish from other company we think it is better to
focus on costumer intimacy. The Design Factory has to offer good service. They
have to satisfied their customers.
Organization
1 Introduction
In this chapter we will describe the organization of the Van der Wall Company.
First we have researched and analyzed the current organization structure of the
Van der Wall Company. In paragraph 2.2 you will read about this. Then in
paragraph 2.3 we will describe an improved organizational structure and we will
give an explanation about the new chart. In paragraph 2.4 we will give a
description about the current organizational culture and in paragraph 2.5 we
will describe the improved corporate culture. In paragraph 2.6 we will give a
description about business process management. Finally we will close this
chapter with a conclusion.
2 Current organizational structure
The analysis about the current organization structure shows that the Van der
Wall company has chosen an organizational structure of departments built around
the different groups of activities. In other words: the structure is based on a
F-construction and that means that every department is based on the same
functions.[17]
We referto Addendum 2, this will show the current organization chart of the Van
der Wall company. The organization chart shows how reconciliation is made
between workers who perform different tasks in the company.
The organization chart shows that there are two managing directors at the top:
managing director Leo van der Wall and deputy managing director Frits de Vries.
Both directors are responsible for a number of staff departments:
- The Accounts/controlling department (with the Reception as its
sub-department)
- The Facilities Service department
- The Personnel department
- The Purchasing department (with the Raw materials warehouse as its
sub-department)
- The Sales department (with Invoicing as its sub-department)
- The Design department (with the Quality control as its sub-department)
- The Production department (with five sub-departments: Punching
sub-department, Stitching sub-department, Assembly sub-department, Finishing
sub-department and the Warehouse sub-department) More in particular, the
Warehouse sub-department is where the finished products are stored.
Within the board, the managing director Leo van der Wal focuses primarily on
the general interests of the Van der Wall company such as representing the
company externally, finance and staff. Leo gets support in the staff by a small
Personnel department, which is managed by Van den Berg. The deputy managing
director Frits de Vries is the operations manager and focuses primarily on
internal business operations, such asproduction, warehouse and planning.
The structure based on a F-construction has the advantage to achieve advantages
by economy of scale.This creates the opportunity for cost saving. At this
organization structure machines can be used efficiently. This results in less
fixed costs per product.
The disadvantage of this construction is that each department is focused on one
part of the process. This results in less overview and departments will have to
deal with targets. The result of less overview is that the communication
between the departments sometimes will be difficult. Every department is only
engaged with their own work.
In principle, the board meets once per week, but this is not respected. Because
the managing directors are so busy that the meetings expire. The management
team (head of sales Klaas Huibers, controller Roel Raaf, head of personnel Ben
van den Berg and the managing director Leo van der Wal and duty managing
director Frits de Vries) meets once every two weeks but also this often
expires. Also there are no meetings with middle management so they
haven’t got an overview of the company. We can conclude the F-
construction isn't working because of the lack on holding meetings.
Also the communication between the middle management and the employees can be
improved. Because of the fact that the employees don't know anything about the
goals of the company.
Mintzberg has developed five models for a company. We can describe Van der Wall
company as a machine bureaucracy according tothe theory of Mintzberg. The
machine bureaucracy occurs especially in companies with mass production. There
are many employees who have relatively easy work[18]. Van der Wall company has
the structure machine bureaucracy because they produce a lot of shoes and the
most functions from the employees are small and simple.
A few important structural characteristics of the machine bureaucracy are much
use of authority and a strong centralization of decisions. These
characteristics are missing at Van der Wal company.
3 New organizational structure
Like you have read before the organizational structure can be better. We advise
to make some changes in the chart. We don’t advice to make changes in the
construction: the F-construction is a good construction for this company.
Like you can have read in chapter one about the mission, vision and strategy we
have advised to make changes in the production and sales of the types of shoes.
We have advised to increase the production and sales of type 2 shoes with 10 percent
per year also we advised to decrease the production and sales of type of shoes
1 with 10 percent per year. We also advise to establish an E-store where
customers can buy our shoes directly online.
If the Van der Wall company follows our advice than they need to change the
structure and the organizational chart. You can see the new chart in Addendum
3. There are changes in the departments and the compositions of the
departments.
New departments:
- The first change that thecompany has to make is to change the board of the
company. Now there are two managing directors at the top. In the old structure
there is a board of directors but it is not explicitly present. We advise to
appoint a board of director, so it is explicitly present.
The two directors are two members of the board and the managers of the other
departments have also to be represent in the board of directors. So the board
of directors will consist 12 members. The board is the highest governing body
of the company and is responsible for the daily guidance. The board is
accountable to the supervisory board.
- The company has to establish an Information and Communication Technology
(ICT)- department. In this department employees will work on the website from
the e-store.
- The company has to establish a Marketing department. In this department
employees has to examine the market opportunities in the footwear industry, has
to draw up marketing plans and have to develop advertising material and
campaigns.
In the Marketing department there has to establish a sub-department Service.
- The company has to establish a Research and Developing (R&D) department.
In this department employees research new production technologies.
If the company decides to follow our advice then in principle the company have
to engage new employees for the new departments. We advise to not to engage new
employees but to retrain employees from other current departments. On this way
there is no need for new employeesand there will be less displaced employees.
Changes old departments:
- We advise the company to change the Production department. We advise to
establish a separate warehouse department. On this way there is separation of
functions between the production department and the warehouse department. Also
we advise to establish a sub-department planning of the production department.
The tasks of the planning department are to plan the production so the
logistics will be better tuned with the other departments.
- The company has to establish a sub-department packaging finished products of
the department finished products. For this sub-department there haven’t
to appoint new employees. If the company follows our advice to make more shoes
of type 2 and less shoes of type 1 than the employees in the assembly and finishing
department of shoe type 1can work in this new sub-department.
- We advise the company to change the Accounts/controlling department in
Financial Administration department. The tasks of the financial administration
are to record the bookkeeping. A sub-department of the financial administration
is the accounts/controlling department. The tasks of this department is to
check the bookkeeping.
Other sub-departments are: debtors department and creditors department.
Also we advise to remove the sub-department Reception of the Financial
Administration department because this department doesn’t fit the
Financial Administration department. The company has to establish a
separatereception department.
- We advise the company to change the personnel department in Human Resources
Management (HRM). In the current organizational structure there is a personnel
department with a manager. A HRM department is a more comprehensive department
than a personnel department. The tasks of the HRM department are:
- keep up to date pay rolling;
- keep up to date personnel administration (personnel policy);
- keep up to date the sick leave of the employees.
- We advise the company to change the Purchasing department. Now there is a
sub-department Raw materials warehouse of the purchasing department. We advise
to remove the sub-department because it is better to establish a separate
warehouse department raw materials and a separate warehouse department finished
goods . On this way there is a separation of functions.
Results of the reorganization
This reorganization has several consequences for the employees. We advise to
retrain some employees of the assembly and sewing department so they can work
on the new departments, like the service department. This means for some
employees that they will get another position and another place of work.
Also we advise the company to reorganize the Design department. Now, there are
9 employees working on the design process. These employees are spent too much
time on designing of the shoes. The company has bought a CAD-system which can
reduce the design process but the designers have no idea how this systems
works. We advise the company togive 2 employees a course, so they know how the
system works. The company has to fire the other 7 employees. This must result
in reducing the time of design.
5 Current organizational culture
Besides the organizational structure, we have also researched and analyzed the
current organization culture of Van der Wall Company. This analysis shows that
the organization culture can be improved. The culture should be support the
strategy. Because there wasn’t a good strategy the culture didn't support
the strategy. The organization culture is supported by several factors, such as
the enforce performance driven behavior and the motivation of the personnel.
There are no meetings with middle management and high management so the middle
management hasn’t an overview of the organization. By missing the
overview they can’t transmit the targets of the employees. The employees
don’t know what is expected of them. This results in not good motivation
of the employees. This motivation has to be improved so the culture in the
organization will automatically be improved.
6 New organizational culture
The management team (board, high and middle) will need to make some changes to
provide the culture a more positive setting. The behavior of the employees has
to be improved to get a better organizational culture.
The communication between the middle management and high management has to be
improved so that the communication about the middle management and the
employees will be improved. Also thecommunication between the departments has
to be improved. The employees will know better what is expected of
them. The communication about the high management and middle management can be
improved to make arrangements in the area of work meeting. We advise to company
to have meetings two or three times
a week.
Also good job descriptions are important for the culture in the company.
Usually, the contents of the function are defined in a job description. Besides
that the different tasks are defined in the job description.
On this moment good job descriptions are missing. This results in the fact that
most of the employees don’t know his/her tasks because it isn’t
documented. If there are good job descriptions than the employees knows what is
expected of them and they know their responsibilities. This will be results in
a increasing of the motivation.
Summarized we advise the company to make clear job descriptions and based on
this a reward- and job valuation system. This so that each employee with the
same function, gets the same wages.
Another thing for a higher motivation of the employees are good secondary
working conditions. Examples from secondary working conditions are: to provide
possibilities for training and education, travel compensation and enough
flexibility. We advise the company to introduce possibilities for training and
education, so that employees can grow to a higher function within the company.
When the board takes these measures the organizational culture will bebetter
and there are more motivated employees to work together strategic goals. The
improving of the culture isn’t one step, but will take a long time to be
optimal.
7 Business Process management
In this paragraph we describe some processes of the departments.
In the interim report we have described that the efficiency has to be improved
in the company. In the new organizational structure we have advised to
establish a department planning. This department have to plan the production so
the turnaround time would be shorter and the stocks would be lower. This
results in better logistics.
The stock of the products is a problem so the company can work with the same
quantitative results with a smaller stock.
Statistical forecasting:
To reduce stock cost you must improve your prediction statistics, broken down
month by month and try to supply more like the Just In Time principle this
allows the company to react more quickly and efficiently.
Statistics allow us to locate the moment of maximum capacity, by this you will
be able to use them better, and times of minimum capacity in the company can
direct efforts toward other goals like search for new customers, improve the
communication with the oldest customer and reorganization.
- Maximum capacity moments: find versatility in the workforce , to each
low-skilled workers with various basic tasks to direct efforts. Achieving such
as a operator who is helping at the end of the day in the e-store to dispose of
sending before theclosing time. By this the company increase in productivity
without more costs
- Minimum capacity moments: gives the possibility to reduce the staff using
temporal contracts or sending employees on courses.
Both points show the times of greatest stress as well as the normal
running/production of the company, allowing better plan purchases to advantage
of greater liquidity saving in financing costs by buying only what is necessary
Distribution:
Must try to minimize the time your product was in the company.
- Production: producing just enough to fulfill our normal sales or contract
sales, and according to our statistics add the required volume for our physical
store. Therefore is the communication between orders-warehouse-production
important for winning time.
Considering that we have an online store the main disadvantage is the immediacy
with witch the costumer gets from a physical store, so we need to minimize this
time to get more immediacy with the customer:
- Subcontract the distribution: obtain a cost that only increases if the sales
also increases, it´s being perfectly acceptable, fit our level business
savings costs.
- Establish good relationships with our suppliers of services will enable our
new approach negotiate pickup times per day and week to meet our demand.
- Create a direct info: quick channel between the ICT dept- warehouse-winning
production and the distributor.
By fulfilling this things you will get a economic advantage.
The mainobjective is to reduce the first year 10% of store cost, eventually
reducing its volume by half in 5 years. We have the disadvantage of not being
able to absorb large increases in demand immediately. The fact is that your
shoes are fashionable so if your products aren't sold before the next
production line you will lose money.
Improvements in company communication:
We will propose some solutions to the different obstacles that you are in
business communication.
At the first we need change the company mindset, anyone can have good ideas and
we could take following steps:
- We are all people, managers, coordinators, associates, partners… This
is equal to the entire world and not their “status”
-Break the differences between the various communications, downward, upward and
horizontal communication to create a single global. This can encourage the use
of global communication tools as blog or forum, where all the links in the
organization can participate as if they where one.
-Conducts workshops which encourage communication and input from all parts of
the organization.
-Encourages people of different status within the organization are present in
different forum. Invite friends who do not have a responsibility to
“Boards of Directors”, as management tries to spend time with
people of all links. Listen to the whole world, everyone has something to
contribute.
We divide the communication in three different types (down, upward and
horizontal) and explain the improvements that could work ineach one.
Improving Communication down:
-Promotes confidence that people know. We have never met anyone
“bad”, either directly or “nondirective” only people
who do not really know. When people really know many myths fall. Encourages
parties, dinners, casual dining where people can really know without being subjects
to status. This will improve confidence.
- Difference information, which are communicated to business, what is
information you can read if you like. As a newspaper everyone reads what he
wants, but there must be a “press page” that is required reading
and somehow you know you´re reading.
- Do not put on mandatory reporting, more than a weekly communication is
requires to read too much information and the organization can´t digest
-Give information at the right time. Informal information flies, formal
information should be quick and agile.
Improving Upward communication:
-Reward those who give publicity negative feedback in the official media. Blog,
forums, councils, meetings…
-Do not surround yourself with people who tell you what you hear in the face
and say another thing in the back. That´s the worst. Staff dispenses not
say things to the face.
Improving Horizontal communication:
-Performs semi-annual workshops and department inter department where people
have to be given feedback of the things that have happened in the last
semester. What also was evaluated qualitatively and quantitatively.
-Organize once a year a festive meeting ( can be a weekend , activityto do in
group etc) for senior officials , which have to interact among themselves and
improve their team spirit and interpersonal relationships.
Tools at our disposal:
-Billboards: It is an economic resource and very effective. The aspects
taken into account given the time to apply is that they are located in a high
traffic of the company, that information should be directed so that its reading
can be simple and that the contents need updating.
-Public letters: It's fast and it generates a high impact on the
sender. They are widely used to report results, achievements or
significant changes to the entire organization. Should be short and dynamic
- Magazines institutional: Facilitates the convergence of information from
different areas of the company, generating a horizontal channel of
communication between different sectors. It is important for employees to
participate in such initiatives, either as interviewees or columnists for
certain issues, as 'being part' is a factor that contributes
significantly to motivation.
- Box of communications: It gives the opportunity for all members of the company
free to express themselves to management to get their opinions and suggestions.
- Meetings: They are an important space to discuss and reflect on what happens
in the company. Its advantage is that it allows a direct and dynamic
interaction.
In addition to traditional methods, the Internet created a range of new tools,
including newsletters, intranet or discussion forums.
-Newsletters: Its advantage is that they do not require a paper therefore are
more economical. Its contents are similar to those of internal magazines.
- Intranet: This is an internal network that allows all employees to be
connected simultaneously. Its main advantage is the immediacy.
- Discussion Forums: Help promote the participation of employees and attract
the interest of workers in the issues concerning the organization.
'Basically, most strategies are implemented are those that meet three
criteria: those that are massive, simultaneous and unequivocal. That is, to
reach all employees at the same time and with the same message, what means are
used Non-which outweighs the written word. But that is only one dimension, and
internal communication is at least three-dimensional, so to speak. In the
institutional dimension, we must add the Interpersonal and Intrapersonal (which
outweigh the spoken word and thought, respectively)
Regardless of the tools or resources that are chosen, it is essential to an
ongoing evaluation process. This will have greater control over the
direction and results of strategies and methodologies applied and, if
necessary, adjust accordingly.
In the paragraph about the new organizational structure we have described that
we advise to establish a marketing department. We have described the tasks of
the marketing department: to draw up marketing plans, to develop advertising
material and campaigns.
Marketing performances
Marketing department aims to boostdemand for our products with minimal
investment, trying to vent all our stock in any way possible. First we need
technical and marketing activities of low cost, directly or zero, but which can
get very good results.
Low cost marketing online:
- Development our website: at first , no need to develop an overly complex web
or modern design. What is important, however, have an internet presence from
the moment we take our baby steps. There will be time later to make
improvements. For saving more costs we need find workers in the company with
skills in web design to propose the design or outsourcing but this will cost
money. Encourage their use offering discounts and promotions in exclusive for
the web give the possibility to customize the product.
- Link our website: once we have completed our first web design, the most
important thing is to get other sites linking to us. Links pointing to our site
is one of the most important parameters that google takes the time to assess
their importance To begin, we ask all our acquaintances who have their own
website to out a link on their website. Maybe even affiliation marketing is a
serious option.
- Open our twitter account: regardless of the value we place on twitter as a
marketing tool , is important to record our own, this way we ensure that we who
have a control, on what is said of our company in this social network. If you
also want to use our account to perform marketing activities, surely you will
thank our users and mostimportantly increase our presence on the net.
- Subscribe by e-mail: there are many webs startups presents before having a
product ready, or even in beta so it can be tested by the public. In this case
they usually do is put in the center of a web form that offers the possibility
to receive information on the progress of the project and be alerted when they
finally see the light of our service. It´s very easy and effective way to
keep our hearing hooked from the first minute.
- Our profile on facebook: we should have our own personal space on facebook.
Maybe at first we don´t have mucho to contribute to this network, but
it´s important to have presence in the main channels of online marketing
since the early stages of our project
- Create a blog: what are going to recommend is that if we develop our blog we
do under our own corporate domain. (www.nameofthecompany/blog)
- Google alerts: is the easiest way we know to start monitoring our brand.
Google alerts through google news, and google blos collect everything that is
said in the web about us, and send it to us at intervals that you specify to
our e-mail inbox.
- Business cards: included in our most basic contact information.
- Measuring our statistics: to do this, nothing better than having a
statistical analysis service such offered for free through google analytics.
Among other things we can measure not only the daily visits, but what are the
search terms most used to meet, how we are growing. What is the mostpopular
content on our site, and so on.
Other marketing measures:
- Word of mouth marketing: get recommendations that our customers recommend our
products to family friends… ( we need quality, take care with the
production mistakes.)
- Get customer database: at least basic information such name address, phone,
age, occupation, e-mail address etc. to classify our customers and treat each
one as needed.
- Customers feedback: being constantly attentive to their opinions, comments,
suggestions and complains. By Passively and actively way. Allows us to improve
our product and our costumes communication.
- Reward brand loyalty: with exclusive discounts .
9 Conclusion
The F-structure is the best structure in this company but there need to be some
changes in the set-up. By the new set-up we can lower our stocks and so lower
our closing sales. Every marketing will help you in the start to get some name
on the internet. The internet is a big place so it's important to me represent
every were so you will target a big target.
E-store
1 Introduction
As you already read in chapter 2 and 3, one of the trends in the market is that
people buy more clothes online. As company being you need to indent so good as
possible on these trends. That's why we give the advise to start an E-store.
With this advice you use the market strategy 'market development'
with this strategy you sell your existing products (shoes) on a new
market(internet). We already told inchapter 4 how we advertise it so in this
chapter we will only tell what we think are some core values for a good
E-store. There are a lot of benefits on starting an E-store[19] we will put
them in a row:
• Your store is always open so people don't need human help to buy shoes;
• Everyone can find you;
• Faster contact with your customers by social media & newsletters;
• No variable selling costs.
•
2 Lay-Out
Because we like you to aim for customer intimacy the website should be just in
that style. That means the e-store should be user friendly. Wherefore there need
to be a clean lay-out the website should not be hard to figure out. Products
must be clearly visible and need a professional look. So there need to be a
little description, the sizes in match with the stock should be clearly shown
and also the colours and if the customer clicks on another colour the shoe
picture must change in that colour. The shoe picture must be made in a clear
light from more sides so the shoe will represent themselves attractive as
possible. That also means that the background should be white.
3 Payment methods
The customer have to choose their payment method so if they like to pay with
PayPal they pay with that but if they like to pay with ideal they pay with
ideal. The more payment methods the e-store offers the how larger the targeted
market is.
4 Prices & Discounts
All prices on the site are the same as the company offers to retailers. Because
we can offer thislow price the shipping costs will be for the customer. This
looks not like the strategy customer intimacy but what you can offer them is a
free shipping back if the shoe don't fit or if they don’t like them on a
better view. Therefore customers always know they get the right size.
Also we like to recommend a discount system for regular customers. Regular
customers can make an account with their personal data. This will give two
advantages, first we building up a customer base and second the customer never
have to fill in there date anymore. We recommend to give regular customers a 5%
discount on their next order till a max of their previous order. So if they
order the first time for 100 euro then they get 5 euro discount on their next
order. This brings along the advantage that customers like to use their
discount so if they order one time they certainly will order a second time and
so on.
If you have built up a customer base you can indent on the buying behaviour of
your customers. You can make newsletters what you can send every quarter of a
year or every month. You can send newsletters if there is some clearance sale.
In December you can give all customers who already ordered for a lot of money a
free shipping order. It's possible to ask for the demands of the customer by
surveys. There are a lot of possibilities to let customers buy more by your
e-store if you have built up your customer base.
5 Service
These days delivery time become more and more important. The rule for
orderingin the same county is often: 'order today before four
o’clock, tomorrow delivered at your home'. This is a market standard
for the clothing market online so this will be your minimum delivery time. If
you won't follow up this line you will lose customers. Next do this there need
to be a service desk. This service desk will answer e-mails from costumers and
they need to be accessible some hours a day for calls.
6 Conclusion
If you start an E-store you will not only have more sales, you also will have
more view on what kind of costumers buy your shoes. You will also see trends in
the market more quickly and even respond to them. Equal to costumer intimacy
there need to be a service desk and also a special department on the side for
regular customers. All with all a E-store will have a lot of advantages and the
most important one is to generate more turnover.
Financial Management
1 Introduction
In this chapter we will describe the expected financial situation if the
company will follow our advises. If the company follows our advice it will
start an E-store and try to decrease sales of type of shoes 1 with 10 % and
increase sales of shoe type 2 with 10 %. For the following figures applies that
A, B and C are type 1 shoes, D, E and F are type 2 shoes.
2 Sales to retailers
The sales to retailers will give you in 2008 a turnover of 14.292.576. But we
like to decrease the sales of products with a low contribution margin and like
to increase the products with a highcontribution margin. So first you need to
know the contribution margin per shoe type, this is given in “Figure 1:
Contribution margins” below.
Figure 1: Contribution margins
This table will learn you why we like you to sell shoe type 2 (D,E,F) more than
shoe type 1 (A,B,C). But it's not realistic to say from tomorrow on the company
doesn't sell type 1 anymore. So you need to slide the sales of shoe type 1 to
shoe type 2. So as we advised in our vision statement, 10 % decrease by 10 %
increase is realistic.
The table below is the amount of sales to retailers till 2013 if we follow up
this '10 % rule'. In the first column are the years till 2013, the
second column are the sales to retailers of shoe A (type 1) and in the third
column are the sales to retailers of shoe B (type 1), the other columns are the
sales to retailers of shoe C (type 1), D, E and F (type 2).
Figure 2: Sales to retailers
To calculate your turnover we only need to know your sales price. Because the
inflation in the Netherlands was 2,1%[20] in 2008-2009 we used this number for
every year. So the next sales prices till 2013 should be applied.
Figure 3: Sales price
If we multiply this two tables with each other we get the turnover till 2013
from retailers by shoe in “figure 4: Turnover by shoe”. In the
first column you can see again the years till 2013. In the second, the fourth,
the sixth, the eighth, the tenth and the twelfth you see the turnover of the
shoes A, B and C (type 1) and shoes D, E and F (type 2). Inthe third column you
see the percentage of the shoe out of the total turnover. So in 2010 is the
turnover of shoe B 23% of the total turnover and in 2013 is it just 17% of the
total turnover.
Figure 4: Turnover by shoe
We can find the total turnover of the company till 2013 in “Figure 5:
Total turnover” below. If you can see, your turnover in 2013 will be
approximately the same as in 2008 but the sales of the shoes with a higher
contribution margin are increased over the years so your profit will be also
increased because we have got lower variable costs to make the shoes.
Figure 5: Total turnover
3 E-store sales
To know how many shoes you will going to sell with the E-store we need to
calculate a few things. First we need to know how big our targeted population
is. After that we need to know how many money they spend per year. We think the
targeted population are women that are between the age of 15-64 because people
under de 15 don't buy their clothes in internet shops and this will be also
true for people above the age of 64. In the table[21] on the right is the
amount of women in the Netherlands.
Figure 6: Population
We have found a research were they have discovered that people in the Netherlands
spend about 131 Euros per year on shoes .[22] Of this amount they spend 15 % on
the internet or 15 % of the Dutch women buy their shoes on internet, the amount
is the same. If we multiply our targeted population (amount) with the 131 euros
andmultiply this number(spend on shoes) with the 15 % we will see how big the
total market (through internet) is. It's shown below.
Figure 7: Total Internet market
Figure 8: Market share internet
The world population increases so the amount of women in the Netherlands also
is increasing by year. Because we now know how big the women shoe market is we
can calculate how much turnover is for your company. In our advised vision
stands that we like to aim for a market share of 8 % in 2013. We need to build
up this number because you don't get a market share for free. Shown in
“Figure 8: Market share internet” is the market share per year.
Figure 9: Turnover E-store
If we multiply the targeted market share with the women shoe market we will get
your total expected turnover from the internet till 2013. We think an 8 %
market share is realistic and provocative. We take the year 2008 to reorganize
the company and setting up all things behind the scenes.
The turnover is important but what might be even equal important is where the
turnover will come from. So what kind of shoes do we sell to get the turnover
we expect.
We calculated this based on the turnover from retailers. As example if in 2009,
9 % of your turnover comes from shoe type A than it's the same for the e-store.
So the rates of the turnover of the retailers and the e-store is equal. In the
table below everything is clearly displayed.Figure 10 : Turnover E-store
If we divide this amounts with the sales prices(figure 3: Sales prices) then we
should know how many shoes there will be sold. It's displayed in the table
below.
Figure 11: Sales E-store
4 Conclusion
We recommend to start an e-store not only because of the benefits what is
mentioned in a previous chapter but also because of the financial perspective.
The turnover of the company will almost double. This is shown in the table on
the right. For this extra turnover there don't need to be a lot of extra costs
because of the low costs to keep up an e-store. Next to this there is also the
slide of the shoes with the lower margin to the shoes with the higher margin.
So as we mentioned before there will be lower variable costs and sequential to
this the profit will increase.
Dutch Labor Law
1 Introductie
Om de veranderingen binnen het bedrijf door te voeren hebben wij meerdere malen
te maken met “het Recht”. In dit hoofdstuk zullen wij de opties en
procedures omschrijven van rechtoorzakelijke problemen waar wij mee te maken
hebben. Wij behandelen de ondernemingsraad, de reorganisatie binnen het bedrijf
en de CAO in deze branche.
2 Ondernemingsraad
[23] Elke organisatie met ten minste 50 werknemers moet een ondernemingsraad
hebben. Van der Wall heeft op dit moment 255 werknemers in dienst. [24]Volgens
artikel 6 WOR moet deze ondernemingsraad uit 9 leden bestaan doordat van der
Wall 255 werknemers heeft. Deze ondernemingsraad moet opkomenvoor de belangen
van de werknemers. Dus in het geval van ontslag, van personeel komt de
ondernemingsraad op voor de belangen van de ontslagen werknemers; zij kunnen
bijvoorbeeld eisen dat er een goed sociaal plan is opgesteld zodat de ontslagen
werknemer een grotere kans heeft op de arbeidsmarkt.
[25]Volgens artikel 25 WOR moet de ondernemingsraad in staat worden gesteld
advies uit te brengen over een belangrijke inkrimping, uitbreiding of andere
wijziging van de werkzaamheden van de onderneming. Aangezien wij adviseren om
de dames schoen type 1 minder te verkopen en type 2 meer te gaan verkopen moet
de ondernemingsraad hier eerst advies over kunnen uitbrengen. Verder moet zij
dit ook over besluit tot belangrijke wijziging in de organisatie/verdeling van
bevoegdheden binnen de onderneming. Wij adviseren de werknemers van de afdeling
“Production “ te verplaatsen naar de ICT afdeling indien zij de
capaciteiten hiervoor beschikken, zo niet is er genoeg plek op de nieuwe
distributie afdeling. Hiervoor is ook een advies nodig van de ondernemingsraad.
Aangezien wij adviseren de organisatiestructuur iets aan te passen zal de
ondernemingsraad ook advies moeten geven over het goedkeuren van het veranderen
van de organisatiestructuur.
[26]Als het advies van de ondernemingsraad niet overeenstemt met het besluit
van de ondernemer of als er feiten/omstandigheden bekend zijn geworden die het
besluit van toen zouden veranderen, kan de ondernemingsraad beroep instellen
bij de ondernemingskamer van hetgerechtshof te Amsterdam. Als de
ondernemingskamer het beroep goedkeurt, dan heeft de ondernemer zijn besluit
niet in redelijkheid kunnen maken, zal het de ondernemer zijn besluit geheel of
ten dele in moeten trekken zodat de gevolgen van het besluit ongedaan worden
gemaakt of als het nog niet is ingevoerd wordt er een verbod op gelegd.
[27]Artikel 27-1 WOR geeft aan dat voor een aantal van de door hem voorgenomen
besluiten er instemming van de ondernemingsraad nodig is. Aangezien wij
adviseren een duidelijkere functieomschrijving voor de werkzaamheden te
formuleren, zodat alle werknemers duidelijk begrijpen wat er van hun verwacht
wordt, met hieraan een beloning- of functiewaarderingssysteem gekoppeld, is
hier ook instemming van de ondernemingsraad nodig. Verder is het plan om
regelingen te treffen op het gebied van personeelsopleiding, ook hier is
instemming van de ondernemingsraad nodig voordat het besluit kan worden
uitgevoerd. Het personeel wordt op een andere manier opgeleid, de design
afdeling krijgt een cursus zodat zij met een computerprogramma kunnen werken.
Voor de regeling op het gebied van het aanstellen, ontslag of bevordering van
werknemers is instemming nodig. [28]Deze te nemen besluiten dienen schriftelijk
voorgelegd te worden aan de ondernemingsraad.
[29]De ondernemer kan zijn besluit zonder instemming van de ondernemingsraad
alsnog doorvoeren, dit gebeurt via de kantonrechter. De kantonrechter zal dan
toestemming geven indien de beslissing van de ondernemingsraad onredelijk
is.Hoewel dit niet erg handig is aangezien de ondernemer dan een zeer
verslechterde band krijgt met de ondernemingsraad/werknemers.
[30]De ondernemer is volgens artikel 31 WOR verplicht alle informatie die de
ondernemingsraad nodig heeft om haar taak te vervullen aan haar te verstrekken.
Deze gegevens dienen ook schriftelijk te worden overhandigd.
3 Reorganisatie
In de reorganisatie lijkt het ons verstandig om een aantal personeelsleden te
ontslaan, dit zal nodig zijn aangezien wij wat afdelingen aan willen passen.
Een aantal personeelsleden zullen wij omscholen en zij zullen een nieuwe
functie krijgen. Aangezien wij een nieuwe afdeling starten, schoenen zelf
verkopen op internet, zal hier ook personeel voor nodig zijn. Schoenen zullen
ingepakt moeten worden en de verzending moet worden verwerkt. Verder is er
personeel nodig voor de klantenhelpdesk. Een aantal personeelsleden zullen
slechts tijdelijk een nieuwe functie krijgen in de e-store afdeling. Aangezien
wij verwachten in de eerste jaren niet veel te verkopen op internet en met de
jaren mee steeds meer zullen na een aantal jaren weer werknemers nodig zijn in
de productie etc.
1 Ontslaan personeel
[31]Het ontslag van een werknemer kan via de kantonrechter of via het UWV
WERKbedrijf. Er zijn dan verschillende manieren om aan het einde van een
arbeidsovereenkomst te komen, dit kan door middel van een:
- “Van rechtswege” Automatisch einde arbeidsovereenkomst;
- Wederzijds goedvinden;
- Opzegging (eenzijdigontslag);
- Ontbinding via kantonrechter.
In ons rapport adviseren wij om slechts zeven werknemers te ontslaan. Wij
ontslaan deze werknemers van de “design”afdeling omdat wij het gaan
moderniseren. Wij gaan een computerprogramma gebruiken voor het ontwerpen van
de schoenen. Wij verwachten dat dit veel sneller zal gaan. Hiervoor moeten de 2
over gebleven werknemers wel op cursus om te leren omgaan met het
computerprogramma.
Voor het ontslaan van dit personeel (opzegging, eenzijdig ontslag) is er een ontslagvergunning
nodig bij het UWV WERKbedrijf, tenzij het ontslag op staande voet zou zijn
(dwingende reden) of het ontslag wordt geregeld door middel van wederzijds
goedvinden (beëindigingsovereenkomst). Aangezien het geen dwingende reden
is, zal er een ontslagvergunning nodig zijn. Als de ondernemer hier geen
toestemming voor krijgt kan hij/zij het ontslag aanvragen bij de kantonrechter
op grond van een gewichtige reden.
De procedure van het ontslagvergunning gaat als volgt:
- De werkgever vraagt bij de het UWV WERKbedrijf een ontslagvergunning aan,
hiervoor is een motivatie nodig, voor de reorganisatie van het bedrijf
(veranderen van omstandigheden).
- De werknemer moet hierop reageren.
- UWV Werkbedrijf verleent het vergunning wel of niet, dit is 6 weken geldig.
- De werkgever kan de arbeidsovereenkomst opzeggen of niet.
Bij het ontslag ontvangt de werknemer vaak een ontslagvergoeding, dit kan via
de kantonrechtersformule worden berekent of hetkan overeengekomen worden tussen
de werkgever en werknemer, dit laatste gebeurd vaak wanneer de overeenkomst ten
einde is gebracht door middel van wederzijds goedvinden.
Volgens artikel 16, lid 4, van de CAO van de schoen- en lederwarenindustrie
geldt een opzegtermijn voor de werkgever van 3 maanden voor de werknemers van
de “design” afdeling.
2 Sociaal plan
Een sociaal plan wordt opgesteld voor werknemers die ontslagen worden of
werknemers die een andere functie krijgen. Dit is ook vaak een eis van de
ondernemingsraad om in te stemmen met het besluit. In deze reorganisatie zal
een krimpfunctie plaatsvinden,de ondernemingsraad dient wel in staat gesteld te
worden advies te geven over deze maatregel. Binnen de productie afdelingen
wordt gekort op werknemers dus een aantal zullen een andere functie krijgen. De
werknemers krijgen cursussen aangeboden zodat zij verstand hebben van de
functies die zullen moeten worden ingevuld binnen de ICT/E-store afdeling.
Verder bevat het sociaal plan de volgende punten:
- Interne ondersteuning door werkgever bij het vinden van een nieuwe baan
- Externe outplacementondersteuning bij het vinden van een nieuwe baan
- Zoekperiode naar een nieuwe baan
- Hoogte van de ontslagvergoeding
4 CAO
[32]Wil de werkgever een arbeidsovereenkomst aangaan met een werknemer dan moet
deze arbeidsovereenkomst aan de voorwaarde van deze CAO voldoen.
Volgens artikel 3 van de CAO van de schoen- en lederwarenindustrie is het
mogelijk dat eenwerknemer meer verdient dan in de CAO staat aangegeven. Met het
probleem van de vrouw die minder verdient dan haar collega, maar wel genoeg
verdient, is dus in principe niets mis. Wel kan ze zich beroepen op
discriminatie aangezien de collega met de zelfde functie een man is.
Binnen de afdeling “raw material warehouse” bevindt zich een
probleem met twee van de drie werknemers. Geert Vermeij, die niet lid is van de
CAO toepasselijk voor de Design Factory, verdient € 35,- per maand minder
dan het bedrag dat is afgesproken in de CAO. Hij heeft de CAO doorgenomen en
eist een salarisverhoging tot het bedrag dat in de CAO staat aangegeven. Als de
CAO algemeen verbindend is verklaard, heeft Geert Vermeij recht op het in de
CAO vastgestelde salaris. Volgens artikel 1 betreft deze CAO iedere werknemer
in dienst van voornoemde werkgever, met uitzondering van thuiswerkers, wat
betekent deze CAO ook voor de arbeidsovereenkomst tussen de Design Factory en
Geert Vermeij geldt ondanks dat hij niet lid is van de CAO. En volgens artikel
3, lid 1, moet de arbeidsovereenkomst voldoen aan de in de CAO aangegeven
eisen. Dus Geert Vermeij heeft recht op de loonsverhoging van € 35,-.
Frans de Vries verdient op dit moment meer dan wat in de CAO staat aangegeven.
En in artikel 3 van de CAO staat aangegeven dat de loon in gunstige zin afwijkt
van de overeenkomst, gehandhaafd blijven. Hier hoeft dus niets aan veranderd te
worden.
Francien Jansen is toen zij haar contract tekende bij Van der Wall
schriftelijkovereengekomen dat zij niet bij de concurrent of voor haar zelf zou
gaan werken in de zelfde markt. Toch heeft ze een nieuwe baan bij een concurrent
van ons. Volgens artikel 7:653 lid 1 BW is in het geval van Francien Jansen
spraken van een concurrentie beding. Als dit in redelijkheid wordt gezien dat
Francien de ex-werkgever beconcurreert zal zij bij haar nieuwe werkgever weg
moeten en zal de Design Factory eventueel een schadevergoeding ontvangen.
Een werknemer in de “accounts” afdeling is op het moment thuis
vanwege stress. Wij willen haar vervangen via een ex-uitzendbureau werknemer
die wij een contract aan willen bieden (omdat hij zo goed was) tot de werknemer
met stress weer kan werken. Verder willen wij een proeftijd aangaan met de
werknemer van het uitzendbureau. Volgens artikel 15, lid 4, van de CAO van de
schoen- en lederwarenindustrie geldt dat bij het aangaan van een arbeidsovereenkomst
voor bepaalde tijd een proeftijd kan worden overeengekomen. Aangezien hier een
arbeidsovereenkomst wordt aangegaan kan dat dus. De proeftijd bedraagt in dit
geval een maand aangezien de arbeidsovereenkomst voor bepaalde tijd eindigt
door een gebeurtenis waarvoor geen kalenderdatum vaststaat (het beter worden
van de werknemer).
5 Conclusie
Bij de aanpassingen die wij adviseren in dit project komt de Nederlandse
wetgeving nog vaak om de hoek kijken. De onderneming moet onder andere rekening
houden met de CAO van de schoen- en lederwarenindustrie die geldt voor alle
werknemers. Ook moet de onderneming deondernemingsraad bij een aantal besluiten
betrekken, zoals bij een belangrijke inkrimping, uitbreiding of andere
wijziging van de werkzaamheden van de onderneming, in staat stellen advies te
geven over het voor te nemen besluit. De ondernemingsraad moet bij sommige
besluiten instemmen voordat het besluit daadwerkelijk kan worden genomen en de
ondernemingsraad heeft recht op alle informatie die de ondernemingsraad nodig
heeft om haar taak te vervullen aan haar te verstrekken. Het ontslaan van het
personeel wordt over het algemeen gedaan via het UWV WERKbedrijf of via de
kantonrechter. Dit kan ook via wederzijds goedvinden, dit gebeurd via een
beëindigingsovereenkomst.
Conclusion
1 Introduction
In this report we advised the Design Factory how to give van der Wall company a
more successful future on the market. We have investigated the weaker points of
the Design Factory and made a financial analysis. From this research we can
point out where improvements are possible. On these points of improvement we
have given an advice and explained what the positive results can be if the
Design Factory follows our advice.
2 Overall conclusion
Research has shown that the Design Factory has ideas for the future, this means
there is thought about the mission and vision. We think that the Design Factory
can improve at this point and set up a mission and vision that is clear for
both direction and employees.
Before we advised the Design Factory about the strategy, we have made amarket
research. From this market research it became clear the Design Factory has
opportunities on the E-market. That is why we advise the Design Factory to grab
this chance and sell shoes to retailers and on the internet. We saw another
opportunity on the market the Design Factory can focus on, this is customer
intimacy. Because the Design Factory produces shoes itself it is impossible to
compete on costs. What they can do is make the customer number one, that is why
we advise ‘customer intimacy’ as strategy.
We have formulated financial, internal, customers an learning and growing goals
into a stagey map. We advise the Design Factory to work with these goals and
trying to achieve them. We think it is a good idea to sell more shoes with the
focus on service and loyalty. To keep customers happy the shoes should be
delivered on time. And above all a higher market share, achieved through the
E-market. Also market research has shown a increasing important at design by
customers. We advise to change the collection instead of twice a year, four
times per year.
We have examined the structure of the company and came to the conclusion the
Design Factory has a F-construction. At this point we agree and advice the
company to keep this construction, but to add some improvements. We advise to
add the fallowing departments, namely the board of direction, ICT-department,
Marketing department and a Research and development department. Also we advise
the company to make some changes in other departments.Furthermore we advise
retraining for some employees of the sewing and assembly departments so they
can work at other departments. The design department has bought a CAD- system,
but the employees have no idea how this system works, besides this system can
reduce the design process. We advise to dismiss seven employees from this
department and send the other two employees on a course.
We research the culture and came to the conclusion that the culture and the new
structure not connect. We advise the Design Factory to hold meeting, because
this will improve the communication between high management and middle
management. Also good job description are important and a proper planning.
Furthermore we advise good secondary working conditions. With this improvement
the motivation of the employees will improve and motivation of employees is an
important factor for customer intimacy.
The financial analysis has shown a low net profit at type one and a higher net
profit at type two. We advise to decrease the sales of type one with ten
percent per year and increase the sales of type two with ten percent per year.
Also the financial analysis shows high stock, we advise to use a proper
planning to decrease the stock.
With our advice we think the company will be a lot more successful at the
market then the Design Factory is now.
Consulted sources
Literature
- Integrale bedrijfsvoering
Visbeen, G. (2010), Integrale bedrijfsvoering, de basis voor een
besturingsmodel, AlkmaarInternet address list
October, 2011
https://www.aedem.nl/Essentie/Value_Gap
October, 2011
//wiki.answers.com/Q/What_is_shop_in_shop_in_retail
October, 2011
https://www.ing.nl/Images/ING_Online_schoenenjacht_augustus_2011_tcm7-91113.pdf
October, 2011
https://www.leslink.nl/0%200%200%200%20Mode%20en%20milieu/Mode%20en%20milieu.htm
October, 2011
https://www.rabobank.nl/images/non-food_schoenen_mrt2011_2936093.pdf?ra_resize=yes&ra_width=800&ra_height=600&ra_toolbar=yes&ra_locationbar=yes
October, 2011
https://www.nuzakelijk.nl/e-business/2580030/online-schoenenverkoop-groeit-hard.html
October, 2011
https://www.rijksoverheid.nl/onderwerpen/creatieve-industrie/creatieve-industrie-in-nederland/trends-en-ontwikkelingen
October, 2011
https://www.gielismt.nl/publicaties/methoden/4b-brochure/slot.html
October, 2011
https://www.dnb.nl/binaries/De%20Nederlandse%20economie%20in%202008-2010_tcm46-211169.pdf
October, 2011
https://www.cbs.nl/NR/rdonlyres/9A0E2D35-B9B6-4BB0-B6D5-C9727B3F0181/0/2011k1b15p37art.pdf
October, 2011
https://www.hbd.nl/pages/14/Bestedingen-en-marktaandelen/Schoenenzaken.html?branche_id=24&hoofdonderwerp_id=14&displayBrancheDropdown=false
October, 2011
https://www.antwoordvoorbedrijven.nl/regel/ondernemingsraad?gclid=CP2p3oab1KsCFcJG3godCUI2NA
October, 2011
https://www.salarisnieuws.nl/images/stories/CAO/51/5101-Schoen-%20en%20lederwarenindustrie/CAO%20Schoen-%20en%20lederwarenindustrie%20juli%202010%20t,%20juni%202012.pdf
Other sources
-PowerPoint presentations Management and Organizational Behavior
Addendums
1. Interim report
2. Current structure Van der Wall Company
3. New structure Van der Wall Company
Addendum 1: Interim Report
Interim report
The Design Factory
Ciska Bakker
Josu Fresno
Wendy Musman
Nick Schavemaker
Tessa Schut
Denzel Vlootman
Group 1, 2F4
16 September 2011
1. The problems of the Van der Wall
An explanation about the problems that are viewed in mind map.
In appendix 1 there is a mind map about the different problems the Van der Wall
Company is confronted. In this part of the interim report we have described an
explanation of the relations reflected in the mind map.
Internal problems
Van der Wall company is suffering from several internal problems. In the mind
map there are nine internal problems which we will describe below.
No business plan
Van der Wall company does not have a business plan. This leads to an unclear
vision and the company has no strategic goals. Because of this the employees
does not know what the company wants. They do not know which course the company
sails.
Unclear organizational structure
There is an unclear organizational structure. In some cases there is no job
description. This applies especially to the production manager. It is also not
clear who is responsible for what. The directors have too much work. They do
not delegate enough. Therefore it is important to have a good structure so
everybody knowswhat to do. This is much more efficient.
At Van der Wall company there are shallow functions. Van der Wall does not give
enough space. Employees are not getting the power they actually should have.
Van der Wall would love to do everything by himself. Because of this there
cannot be worked efficient and optimal.
Wrong organization culture
The organization culture does not match the understanding of the current
company. Van der Wall company is not a small family business anymore. The
company had grown, but the organization culture has stayed the same. Staff
trips are increased. This leads to higher costs but delivers nothing.
Bad logistics
Also the logistics is bad at Van der Wall. The turnaround times are too long.
There are too many processes during the production of the woman shoes. Because
of this there are long delays and large among stocks.
No efficient work
The efficiency at Van der Wall is very weak. Not all machines are optimally
used. So the production capacity is underutilized. 10% of the machines are not
used. Also in certain times employees are very busy and in other times they
have less work to do. This is also an example that they do not work efficient.
Communication problems
Good communication is a necessary aspect to run a company. This can be managed
trough consultation., for example, holding a meeting.
Van der Wall tries to hold meetings at least once a week, but this often fails.
The board is too busy and cannot manage to hold the meeting. Leo van derWall
and Frits de Vries see each other regularly at work and discuss subjects.
The management team has a meeting once every two weeks, but there are no
meeting with middle management or a meeting from management to board. Since
team meetings are not present, middle management do not have an overview of the
company. Therefore a lot of the work from middle management ends up to be at
the boards desk. Middle management is working hard, but do not know what the
purpose of their work is.
Consequences of the lack of meetings are already visible at the heads of the
production department, mister De Kleijn and mister Boogert. De Kleijn is
responsible for shoes type one and Boogert has the responsibility of shoes type
two. This was an idea of van der Wall, but is not appreciated by de Vries.
Another problem is the conflict between De Kleijn and Boogert about the
machines, because the machines are used for both shoes. De Vries and the
production managers are having a meeting once a week, but do not come with
solutions.
No functioning management system
According to manager Roel de Raaf, the company has a bad management system.
This means the company has many departments, but they do not match. The
starting product goes through several department to become an end product. The
departments has to work together and communicate to have an overall view.
Financial reporting does not meet the requirements
The controller, Roel Raaf, has been disappointment with the financial analyses.
Theinformation is not available or not available on time. It is hard to see
where cost savings could be a possibility. There is no proper information of
the company, this makes it hard to make an, for example, efficient planning.
Not having the right machines
Van der Wall company has a mix of machines, old once and new once. The old
machines are very labor intensive. For example the sewing machines are very old
and always in use. The problem is that new machines are impossible to buy. De
Vries likes to buy machines that improve the processes.
External problems
Van der Wal company is suffering from several external problems. In the mind
map are five external problems which we will describe below.
Does not Outsourcing
The competitors in the design marked move the production abroad, to low-wage
countries. This means their production process is cheaper. Van der Wall company
produce the shoes their selves, therefore it is hard to compete with the cost
price.
No interesting value proposition
In one of the blocks you can read ´No interesting value
proposition´. Van der Wall company produces two types of shoes:
high/fashion ladies´ shoes in the popular consumer price category from 25
euro to 50 euro (type 1) and classic, more exclusive ladies´ shoes in the
price category from 60 euro to 175 euro (type 2). This is not an interesting
value proposition because the company produces only ladies’ shoes.
Developments in the market
The developments in the market are a problem for the Van der Wallcompany. The
current trend is that the people want to spend less money for good quality
shoes. On this moment Van der Wal don not respond for the market.
Financial problems
Van der Wall company is suffering from several financial problems. In the mind
map there are three financial problems which we will describe below.
No good cost control
A good cost control is very important for a company because you get a better
insight into all costs. By Van der Wall, this is wrong. The costs are not
controlled resulting in unnecessary expense is incurred. The many costs which
are made resulting in the bad turnover.
Unnecessary expenditures
In one of the blocks you can read ´unnecessary expenditures’. Van
der Wall Company has many unnecessary costs. For example: In 2006 Van der Wall
company has bought a CAD system but it does not works good so there are many
costs for this system which are unnecessary.
Out of balance capital structure
In one of the blocks you can read ´Out of balance capital
structure’. This is a result of too much ad hoc lending. Due to the lack
of proper information from the entire organization and a regularly recurring
work pressure in the accounts department, the periodic and annual overviews
needed to control all operational activities and make plans for the future
cannot be produced. This is a big problem for Van der Wall company.
2. An overview of the problems and the causes
An explanation about the problems and the causes in the mind maps.
In appendix 2there are mind maps about the different problems and the causes
the Van der Wall Company is confronted. In this part of the interim report we
have described an explanation of the relation between the causes and the
problems reflected in the mind map.
Internal problems
No business plan
One of the nine internal problems Van der Wall company is facing is that they
not have a business plan. The main cause is that the company has grown but the
organization remains the same as before, when it was a small family business.
Therefore there is no business plan that meets the current state of affairs. It
is important to have a business plan because then everybody knows which course
the company wants to sail. Now it is unclear what the strategic goals are and
what their vision is for the next few years. Nobody has thought about strategic
goals and a vision.
Unclear organization structure
Van der Wall company has an unclear organization structure. The causes are that
there is an unclear job description. Nobody knows who is responsible for what.
There is no coordination or a good communication between the departments. Also
there are shallow functions. The employees do their work but do not have a
sense of responsibility. All these causes have everything to do with the fact
that the company has grown but the organization remains the same as before,
when it was still a small family business.
Wrong organization culture
In the first mind map we explained that there is a wrong organization
culture.The organization culture still fits a small family business. Like we
have said before, the company has grown but the culture has remained the same.
The mentality has stayed the same. Everyone still has the mentality of a small
family business. The cause of this is that there is no business plan. Nobody
really knows what the company wants and what the goals are.
No efficient work
The efficiency is weak. One of the causes for this is that there is no proper
planning. If there was a better planning the turnaround time would be shorter
and the stocks would be lower. Another cause is that the company is still using
old machines. Compared to newer machines the old machines need more time to
produce shoes. And also there is more waste and loss. The last cause is that
the job descriptions are unclear. Nobody know exactly what to do and nobody
knows their responsibilities. A lot of work ends on the desks of the directors.
Bad logistics
The cause of the bad logistics that there is no proper planning. If there was a
better planning the turnaround time would be shorter and the stock would be
lower.
Communication problems
The cause of the communication problems are the canceled meetings. The board
has too much work to do and do not understand that it is very important to hold
a meeting. They think it is enough to speak to each other if they casual meet,
for instance in the hallway. What they do belongs at a family business. Now
they have grown to a bigger company and it is important hold ameeting, because
you can cover all important items. A casual meeting is unprepared and may not
cover everything that should be discussed.
No functioning management system
The cause of not having a management system is the lack of consultation between
the departments. Employees have no clue what purpose they are working for,
because there is no vision. It is hard to communicate from department to
department without having an overall view of the company. The lack of meetings
causes problems again.
Financial reporting does not meet the requirements
There are several causes of this problem. At first the departments do not
deliver information on time or do not deliver them at all. The cause of this is
not having a system. Having a system is important, at all-time people can put
information in their own section and other departments can read it. At this
moment the employees who have to deliver the information are not suitable for
the job. This becomes clear through the thoughts of the controller. He cannot
see any points where he can cut the costs, because the information is out of
order.
Not having the right machines
Van der Wall company is not modernized. The company has to work with old
machines. Old machines are more labor intensive and work slower than new
machines, they slow down the process.
External problems
No interesting value proposition
One of the external problems Van der Wall company is confronted is that they
have no interesting value proposition. The most importantcause is that the
company produces only ladies’ shoes in two types (high/fashion
ladies’ shoes and more exclusive ladies’ shoes). Because they
produces one type shoe they haven’t a high market share and that results
in disappointing sales.
Developments in the market
An another external problem Van der Wall company is confronted are the
developments in the market. On this moment people want to spend less money for
good quality shoes. The competitors comply with this by offering cheap shoes.
Van der Wall produces mainly exclusive expensive shoes. They does not enough
market research. If they know how the market is than they can produce shoes
which people want to buy.
Outsourcing
These days the customer wants a good quality product for a low price.
Competitors let the products made in a low-wage county, which means their cost
price is lower and their selling price can decrease. Van der Wall wants to
deliver a good quality product and that is why he is producing his shoes in the
Netherlands. That is the main cause of this problem.
Financial problems
No good cost control
One of the financial problems Van der Wall company is confronted is that they
haven’t a good cost control. Like we have said before a good cost control
is very important for a company because the company gets on this way a better
insight into all costs. Because there is no ERP-system the company has no system
to keep all the costs. On this moment the costs are not controlled and this
results in unnecessary expenses.An another thing is that the cost price is too
high. If the company can the costs be held in control than there is more
insight in the costs and this makes it possible to determine where cost savings
could be possible for the reduction of the cost per unit and linked to this,
the sales price per unit.
Unnecessary expenditures
A second financial problem Van der Wall company is confronted is that the
company has many unnecessary expenditures. The cause of this problem is that
the management has no knowledge about some systems what results in expensive
expenditures. An example is that the company has bought a CAD system but it
does not works good. Hereby there are unnecessary costs for the system.
Out of balance capital structure
A third financial problem is the out of balance of the capital structure. The
cause of this problem is that the company has too much ad hoc lending. An
another cause is the lack of proper information (on time) from the entire
organization.
3. The overall problem
In this part we give a description of the overall problem the company is
facing.
Like you can read before, the company is confronted with many problems. There
is one overall problem and which is the following: The van der Wall company
started in 1963 as a small family business with a few employees. There were a
few things unnecessary for example a good business plan, a good organization
structure and organization culture. Over the years, the company has grown more
and more, which resultsin more and more employees.
Now the Van der Wall is a big company with two hundred and fifty employees. It
is necessary that there is a good business plan with a clear mission and vision
and strategic goals so the employees know what is asked from them in the
business. Like we have said before there isn’t a business plan.
It is also necessary that there is a good organization structure and
organization culture. On this moment this is missing in the company.
The company has grown more and more but the organization had remained the same
as when it was a small family business. That is a big problem because the
organization structure and –culture which they are in the company, belong
to a small business and not to a big business.
There will be some things must be changed so that the organization fits a big
company.
4. Sub questions
In this chapter we will form a couple of sub questions we want to answer. With
this answers we are able to give an integrated advice to the Van der Wall
company. This are the main:
1. What will be the goals and targets of Van der Wall company?
2. What will be the structure of the Van der Wall company?
3. How are we going to measure the performances of the Van der Wall company?
5. Research
In our research we set up another few questions to find out the answers of the
sub questions in the last chapter. When we answer those questions well enough
the answer of the sub questions would be easier.
The points we are going to researchto answer sub question 1 are:
- Mission;
- Possibilities External and Internal Environment;
- Vision;
- Strategy;
- Core values;
- BHAG.
The points we are going to research to answer sub question 2 are:
- Organization structure;
- Business culture;
- Potential changes of departments.
The points we are going to research to answer sub question 3 are:
- Financial;
- Customer;
- Internal;
- Learning and Growth.
6. Instruments
For our research we need some instruments. In this chapter we will describe the
instruments we think are necessary for our research.
For sub question one we think the next instruments are necessary:
- Enhanced Vision;
- Value Gap;
- Improve Shareholder Value;
- Strategy map;
- DESTEP;
- 5-Powermodel of Porter;
- SWOT-Analysis.
For sub question one we think the next instruments are necessary:
- Organogram / Organizational Chart;
- Mintzberg.
For sub question one we think the next instruments are necessary:
- Balanced Scorecard;
- Strategy map.
Appendix 1: An overview of the problems the Van der Wall company is confronted.
Appendix 2: An overview of the problems and causes the Van der Wall company is
confronted
Addendum 2: Current structure Van der Wall Company
Addendum 3: New structure Van der Wall Company
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[1] Source: https://www.aedem.nl/Essentie/Value_Gap
[2] Source : ://wiki.answers.com/Q/What_is_shop_in_shop_in_retail
[3] Source :
https://www.ing.nl/Images/ING_Online_schoenenjacht_augustus_2011_tcm7-91113.pdf
[4] Source : https://www.leslink.nl/0%200%200%200%20Mode%20en%20milieu/Mode%20en%20milieu.htm
[5] Source:
https://www.rabobank.nl/images/non-food_schoenen_mrt2011_2936093.pdf?ra_resize=yes&ra_width=800&ra_height=600&ra_toolbar=yes&ra_locationbar=yes
[6]Source: https://www.nuzakelijk.nl/e-business/2580030/online-schoenenverkoop-groeit-hard.html
[7]Source:
https://www.ing.nl/Images/ING_Online_schoenenjacht_augustus_2011_tcm7-91113.pdf
[8] Source:
https://www.rijksoverheid.nl/onderwerpen/creatieve-industrie/creatieve-industrie-in-nederland/trends-en-ontwikkelingen
[9] Source:
https://www.nuzakelijk.nl/e-business/2580030/online-schoenenverkoop-groeit-hard.html
https://wiki.answers.com/Q/What_is_shop_in_shop_in_retail
[10] Source : Powerpoint hogeschool Inholland
https://www.gielismt.nl/publicaties/methoden/4b-brochure/slot.html
[11]Source: Financial analysis
[12] Source: Appendices: Interim report
[13]
Source:https://www.nuzakelijk.nl/e-business/2580030/online-schoenenverkoop-groeit-hard.html
[14] Source: https://www.rabobank.nl/images/non-food_schoenen_mrt2011_2936093.pdf?ra_resize=yes&ra_width=800&ra_height=600&ra_toolbar=yes&ra_locationbar=yes
[15] Source:
https://www.nuzakelijk.nl/e-business/2580030/online-schoenenverkoop-groeit-hard.html
[16] Source: Powerpoint Management and Organisational Behaviour
[17] Source: Visbeen, G. (2010), Integrale bedrijfsvoering , de basis voor een
besturingsmodel, Alkmaar (page 48)
[18] Source: Visbeen, G. (2010), Integrale bedrijfsvoering , de basis voor een
besturingsmodel, Alkmaar (page 87)
[19] https://www.actiekrant.nl/zakelijk/9-webwinkel-starten-voordelen-nadelen.html
[20] Source:
https://www.dnb.nl/binaries/De%20Nederlandse%20economie%20in%202008-2010_tcm46-211169.pdf
[21] Source:
https://www.cbs.nl/NR/rdonlyres/9A0E2D35-B9B6-4BB0-B6D5-C9727B3F0181/0/2011k1b15p37art.pdf
[22] Source:
https://www.hbd.nl/pages/14/Bestedingen-en-marktaandelen/Schoenenzaken.html?branche_id=24&hoofdonderwerp_id=14&displayBrancheDropdown=false
[23] Source:
https://www.antwoordvoorbedrijven.nl/regel/ondernemingsraad?gclid=CP2p3oab1KsCFcJG3godCUI2NA
[24] Artikel 6 WOR - Wetteksten Hoger Onderwijs, Noordhoff Uitgevers, Editie
2010/2011
[25] Artikel 25 WOR - Wetteksten Hoger Onderwijs, Noordhoff Uitgevers, Editie
2010/2011
[26] Artikel 26-1 WOR - Wetteksten Hoger Onderwijs, Noordhoff Uitgevers, Editie
2010/2011
[27] Artikel 27-1 WOR - Wetteksten Hoger Onderwijs, Noordhoff Uitgevers, Editie
2010/2011
[28]Artikel 27-2 WOR - Wetteksten Hoger Onderwijs, Noordhoff Uitgevers, Editie
2010/2011
[29] Artikel 27-4 WOR - Wetteksten Hoger Onderwijs, Noordhoff Uitgevers, Editie
2010/2011
[30] Artikel 31 WOR - Wetteksten Hoger Onderwijs, Noordhoff Uitgevers, Editie
2010/2011
[31] Drs. Marius Winter, Gouden Handdruk 2011, 12e editie,
[32] Source:
https://www.salarisnieuws.nl/images/stories/CAO/51/5101-Schoen-%20en%20lederwarenindustrie/CAO%20Schoen-%20en%20lederwarenindustrie%20juli%202010%20t,%20juni%202012.pdf
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Artikel 16, lid 4
Beëindiging van de dienstbetrekking
De in lid 2 en 3 gestelde opzegtermijnen zijn niet van kracht voor
sleutelfunctionarissen. Voor sleutelfunctionarissen geldt een opzegtermijn voor
de werknemer van drie maanden en voor de werkgever van vijf maanden, ongeacht
de duur van de arbeidsovereenkomst op de dag van opzegging.
Sleutelfunctionarissen zijn kaderfunctionarissen, verfmengers, modelleurs,
looimeesters en productontwikkelaars, en voor wie geldt dat zij op korte
termijn moeilijk vervangbaar zijn.
Artikel 3
Verplichtingen werkgever. (2)
Lonen en andere arbeidsvoorwaarden, die in voor de werknemer gunstige zin van
de bepalingen van deze overeenkomst afwijken, blijven gehandhaafd.
Artikel 1 (VRAAG 2)
Definitie
4. Werknemer:
Iedere werknemer in dienst van voornoemde werkgever, met uitzondering van
thuiswerkers. Voor $%y†‡‰Š?œ?4 s Ó
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