Principles of Management

Principles of Management MBA & BBA (Case Studies & Examples) Lectures 1 By: Farhan Mir

Lecture Administration • Case Studies • C.F. Martins (Guitar Company) • Lipschultz, Levin & Gray (CPA Firm) • KFC (Fast Food Resturant) • Managers in Spotlight • Mr. Rehman Fraz Khan (Regional Manager –KFC) • Mr. Asad Hussnain Bukhari (Manager Operations –Area Multan) • Mr. Khurram Raza Zaidi (Branch Manager Bank Alflah Vehari Road Multan)

Lipschultz, Levin & Gray -The People’s Company The new way of looking at working environment

Lipschultz, Levin & Gray • Introduction • A Chartered Professional Accounting Company offering variety of financial services to individuals and small & Large organizations • Stephen P. Seigel is the CEO facing new yet challenging tasks • Offer Financial consultancy to variety of organizations and their people throughout the world • Over 50 years of services for the accounting, tax and consultancy needs of these organizations

Lipschultz, Levin & Gray -The People’s Company • The Focus on People • The norms of the organization are based upon people involvement and participation • Creative, talented & diversified employees are the key components of company’s overall posture • To have a unique and creative way of providing financial services company focuses on acquiring and maintainning group-based and friendly human resources

Lipschultz, Levin & Gray -The People’s Company • Some significant changes at the company • The use of non-conventional ways to achieve the tasks • The dull CPA work is carried out with new exciting ways • Innovation is there every where in the company especially in the arrangements of things • An example is a miniature “Golf Course” • The idea is to create openness in the office environment where people could interact with each other

Lipschultz, Levin & Gray -The People’s Company • The Different look about the company • The interior is quite unique and different • The giant abacus (ancient computer) • A welcome wall with something about business, innovation and commitment • The setting is based on fun and exciting environment but employees are well focused on their tasks • The tend to set new standards almost everyday, where to be “great” is not enough • The core of the company is based on services offered with • Integrity, Confidentiality, Honesty and Openness

Lipschultz, Levin & Gray -Discussion Questions • Keeping professional excited about work that can be routine and standardized is a major challenge for Siegel. How could he use technical, human, and conceptual skills to maintain an environment that encourages innovation and professionalism in his CPA firm? • What Management Roles would Siegel will be playing? • Made a presentation to potential clients • assessed the feasibility of adding a new consulting service • Kept employees focused on the company’s commitment to customers

Lipschultz, Levin & Gray -Discussion Questions • What can you tell about LLG’s emphasis on customer service and innovation? In what ways does the organization support its employees in servicing customers and in being innovative? • Would LLG’s approach work for all CPA firms? Why or Why not? What could other managers learn from Steven Siegel?

C. F. Martins –the famous guitar company The story about successful management and leadership

C. F. Martins –the famous guitar company • Introduction • Started in 1883 in United states offering acoustic guitars • That makes Martin one of the longest continually owned and operated family businesses in America • Martin acoustic guitars—considered the world over to be the finest you can play • longevity is sustained due to • Quality • Innovation • Excellence

C. F. Martins –the famous guitar company • The focus on quality • A Martin guitar, because it is crafted with the best raw materials, and made by world-renowned skilled craftspeople, becomes a magical sensual experience—to completely satisfy your personal aesthetics • Throughout these years the management and employees have not compromised on quality • The tools and techniques have changed but the quality standards have remain at the same dazzling hights

C. F. Martins –the famous guitar company • The Core Survival Features • Martins have also remained socially responsible and ethical by utilizing legal natural materials rather alternative wood species • Martin used partially damaged woods for for their guitars • It follows the CITES guidelines (Convention for International Trade in Endangered Species of Wild Fauna and Flora

C. F. Martins –the famous guitar company • Martins as a Leader • Chris the owner travels around the world to hold instructional clinics • Although company is rooted in past but Chris is ready to use non-conventional means • Chris launched a low priced model in 1990s and that paid off for Martins • Chris thought if Martins worship it past then there will be no Martin left to worship • Under his guidance company sales went up • His management style is known as friendly and personal, yet firm and direct

C. F. Martins –the famous guitar company- Discussion Questions • Which Management skills- conceptual, human, or technical- do you think would be most important for Chris martin? • How might a commitment to social responsibility affect the way managers perform the managerial functions? • What management roles would Chris be playing as he • Visits Martin dealership arround the world

C. F. Martins –the famous guitar company- Discussion Questions • Chris made the statement that “If Martins just worship its past without trying new things, there won’t be a Martin left to worship.” What are the implications for managers throughout the company as they plan, organize, lead and control?

Kentucky Fried Chicken (KFC) The Global company that serves you with same quality and care throughout the world

Kentucky Fried Chicken (KFC) • Introduction • KFC is based in Kentucky, and is the world’s most popular chicken restaurant chain. • Founded by Colonel Harland Sanders in 1939. • 8 million customers each day. • KFC Division is run by Cheryl Bachelder, President and Chief Concept Officer.

Kentucky Fried Chicken (KFC) • KFC is part of Yum! Brands, Inc., which is the world's largest restaurant system with over 32,500 KFC, A&W All-American Food™,Taco Bell, Long John Silver's and Pizza Hut restaurants in more than 100 countries and territories. • KFC has more than 13,700 restaurants in more than 100 countries and territories around the world.

Kentucky Fried Chicken (KFC)-Products

From $105 to 7.2 Billion in 50 years • Colonel Harland D. Sanders perfects secret blend of 11 herbs and spices in Corbin, Ky., and restaurant. • 1952, Col. Sanders started franchising his recipe door to door financed by his $105.00 SS Check • 1964, Col Sanders had more than 600 franchised outlets in the US and Canada. • 1964, Sold his interest in his company for $2 million to a group of investors. • 1966, KFC went public • 1971, KFC was acquired by Heublein Inc. for $285 million. • 1982, Heublein & KFC Inc. was acquired by RJ Reynolds • 1986, RJ Reynolds & KFC, was acquired by PepsiCo, Inc. $840 million. • 1997, PepsiCo, Inc. spined-off of its qsr’s into independent Tricon Global Restaurants. • 2002, Tricon changed it's corporation name to Yum! Brands, Inc. . • NOW: • Yum Brands, Inc. is the world's largest restaurant company in terms of system units with nearly 32,500 in more than 100 countries and territories. • Yum! Brands, Inc., is a Fortune 300 company • Yum! Brands, Inc. global system sales totaled more than $22 billion in the year 2001. • Current Market Cap value on the NYSE is 7.2 Billion

KFC- Fighting its ways through Success and Controversies • Standardization & Quality • Global company so restaurants worldwide • Maintaining quality standards worldwide is one of the successes of KFC • Numerous restaurants have the same approach of making and selling products with slight variation (e.g. Standard Uniform per Country)

KFC- Fighting its ways through Success and Controversies • In Pakistan • Initially was subjected to questions raised about the way in which the chickens were used in the food • Fat people filing suits against the fast food companies like KFC, MacDonald's and King Burger • Now find itself in a fresh controversy • Wild Life supporters are protesting against KFC and specially the way it “kills” the Chicken for Halal food

Managers in Spotlight Inside stories about three professionals who have progressed into top management within few years

Mr. Asad Husnain Bukhari (The Beginning of a Promising Career) • Introduction • Got his MBA (MIS) degree in 2001 from Institute of Management Sciences • Was Class CR • Cool-Minded & Cooperative • Mature & Progressive • Immense Human Skills (Ability to work with variety of people with extraordinary ease) • Joined a Software House as a System Analyst and Designer and worked on variety of projects especially Online Development • Was always Interested in Learning so did part-time teaching in private institutes and at BZU as well

Mr. Asad Husnain Bukhari (The Early Days at NADRA) • Joined NADRA in 2002 • Joined NADRA as an Assistant Director at one of its Swift Registration Centre • As Assistant Director (Incharge of the center) he was actively involved in the management functions especially planning of overall centre • Since NADRA was shifting (molding itself) into a role model Public organization in Pakistan so an Incharge like Asad also was heavily involved in the Leading role • A NSRC (Swift Center) is financially independent Unit and has to support itself financially so Controlling remains a definite part of any Assistant Director’s Job

Mr. Asad Husnain Bukhari (The Guy proved himself not ordinary) • Successes at NSRCs • His three centers were declared as the best among the various NADRA centers in Pakistan many times (a proof of his Efficiency & Effectiveness) • Became famous for identifying corruption cases at NADRA • An Opportunity knocked at the door • NADRA wanted to establish centers in foreign offices in major countries like US & UK • Conducted a test for the foreign posts and employees from 74 NADRA centers applied • Asad Bukhari topped the test and was appointed at a center in UK

Mr. Asad Husnain Bukhari - Getting into Higher Ranks • Regional Manager Operations • On his return was appointed as the Regional Manager Operations (Multan) • Not only was looking forward the overall operations of the region with audit and control of the region centers but was appointed as incharge of the NADRA’s special project of Automatic Billing Machine known as “NADRA KIOSKs”

Mr. Asad Husnain Bukhari-Deputy Manager NICOP Directorate • Has recently promoted as the Deputy Manager NICOP (National ID Card for Overseas Pakistani) Project • His Strengths as a Manager • Pinpoint Planning & Vision • Well Documented • Team based Management Approach • Very Technical (Technically Sound i.e. knows or can develop techniques or methods to accomplish any task) • Patient yet Progressive (Continuous Improvement) • Professionalism & Interpersonal Skills

Mr. Khurram Raza Zaidi- Intellectualism with Style and Confidence • Introduction • Did his Masters in Business Administration with specialization in Information Systems • Was the better students in the sessions • Confident • Focus was on Skills rather on grades • Was doubtfully the best as far as the communication skills are concerned • Always focused on acquiring new skills • Did many additional courses

Mr. Khurram Raza Zaidi- A jump start at one of the leading Banks • Started his career at Bank Alfalah • Was inducted in as a MTO (Management Trainee) and was subsequently hired as a Credit Officer • Always was interested in the field of Financial Analysis and therefore settled in quickly • Was the youngest MTO of his batch at that time • He was very technical & intelligent and was able to adjust with different Managers during his early days at the Bank

Mr. Khurram Raza Zaidi- Success was on his way • Success at Bank Alfalah • After two years of rigorous efforts was appointed as the Credit Manager in 2003 • Again was the youngest Credit Manager at Bank Alfalah • In 2005 was promoted to open a Branch of the Bank and was the youngest branch manager • In 2006 was given the charge of another Branch that was much bigger in volume • His success key factors were • Hard Work • Technical Competency • His attitude with People

Mr. Khurram Raza Zaidi- Bisecting the Managerial Position • As a Branch Manager • He is engaged in all managerial functions • The planning is mostly done on annual basis (where they set goals and general guidelines to achieve those goals) • On the way to achieve those goals he has to perform all other managerial functions i.e. • He has to generate & control resources, lead & monitor so on and so forth

Mr. Khurram Raza Zaidi- Bisecting the Managerial Position • Planning: Involves defining desitnation i.e. making budgets of human and non-human resources. • Organizing: the resources needed to get to the destination defined in the first phase. This involves identification and taking the desired resources (both human and material resources). • Leading: on the way, there are definitely ups and downs. Some times your team gets stuck. You have to motivate them and have to remain ahead them. • Control: Basically involves measuring performances in banking. In banking either you achieve your goals or not. There is nothing in between. This involves appraising the performance and identifying loopholes etc.

Mr. Khurram Zaidi- Highlighting some Issues & Remedies • The first and far most important problem is keeping the team motivated on the way to achieve targets. If you have 30-35 people working under you, you need to be ahead of them and at least should have 30-35 perspectives of looking at things. • Keeping focus: Being at a centre of decision making, you come across numerous focus busters, mood destructors and spirit killers. But you have to stick to "Flush Technique" to drain out such negative forces. Focus I suppose is the life blood of any achievement. • Updation of Knowledge Base: As a manager to better manage things, You are supposed to be a good learner. Being the leader of the team, You need to be ahead of your team mates. • Striking the Balance: Pre-occupation some times makes it difficult to strike a balance in personal and official life. But I think at the start of career, you need to sacrifice your social life a bit to get long-term gains

Principles of Management