You were recently hired as a manager of a company (a firm) that is facing a numb

Question

You were recently hired as a manager of a company (a firm) that is facing a number of managerial issues and subsequently finding it difficult to make economic profit. The issues include the following:

Resource misallocation

Manager-worker problems

Threat of competitor’s takeover

Government regulations

Poor pricing and output decisions

From your experience and the knowledge gained from this course, critically analyze how each of the above can impact firms’ sustainability and identify the appropriate strategic steps you will apply to revamp this company.

Directions:

The essay should be formatted as follows:

Times New Roman, 12 point font size and double-spaced

Page limit: 8-10 pages (excluding cover page and reference page)

Insert page numbers

Include cover and reference pages

This rubric will be used to assess your term paper: term project paper rubric

Explanation / Answer

Some basic traits/ qualities / charecterstics of a good company

Any company,s performance generally depend on the type and mind set of work force working in a company. Hiring or recruiting educationlly qualified, technically skilled and showing a traits of internally motivated employees are big assets for any organization or a company.

Managerial issues faced by a company to a company I got recruited as a manager.

Resources Misallocation

Resources misallocation means that resources are not put to their best, most effective, or efficient use. In such a situation, re-allocating them (i.e., using them in a different “mix”) could either (i) produce a better/greater outcome, or (ii) obtain the same outcome while saving some of the resources.

What’s special about the use of the term misallocation in economics is that economists distinguish two types of efficiencies: productive (or X–)efficiency, and allocative efficiency. The former refers to the (efficient) use of resources to produce given goods and services. The latter refers to which goods and services should be produced, and who should get to consume them. I will mostly concerned with is this latter notion of efficiency.

Thus, when economists speak of misallocation of resources, they mostly refer to the fact that resources are being used to produce the wrong things (even if these things are produced efficiently) and/or end up with the wrong consumer, i.e., with someone who values the things less than someone else.

Let’s look at an example: Suppose we recognize that “road capacity” is a limited resource in a city. If everyone has equal access to the road, the road might get congested by all kind of different people using the road. Among these users may be some people for whom the use of the road at that given time is very important, e.g., they are trying to get a patient to a hospital; trying to get to their work on time; or trying to catch a plane that leaves in 30min. For others the use of the road might be less critical at this given moment in time: someone driving to the shopping center to buy groceries (which could be done at any other point in time) or driving to the beach for fun. Because access to the freeway does not distinguish between any of these users, we’d expect a random mix of these uses on the road at any given point in time.

we would say that this outcome is a misallocation of the (scarce) resource ‘road capacity’. The allocation would be more efficient (in the sense of who uses the road) if those with the highest “use value”—e.g., rushing a patient to the hospital or catching a place—are given highest priority to use the road while those with lower use value—e.g, driving to the grocery store or beach—have lower priority and should stay off the road when their driving slows everyone else down. Economists measure the “use value” by the user’s willingness to pay, and an efficient use of a resource occurs when those with the highest willingness to pay get to use the resource, while some others with a lower willingness to pay may be excluded when the resource is limited, or scarce.

Manager worker problems

Reasons Why Attitude Is More Important to Your Company Than Aptitude

Ideally we want to hire people with both the right attitude and the right aptitude. However, if I can only choose one of those two I will choose the person with the right attitude every time.

This approach is backed up by studies which have shown that our 80 percent of our success is based on our EQ, compared to 20 percent for our IQ. This means that aptitude only accounts for a paltry 20 percent of our success.

1. It's easier to train aptitude than attitude.

When people have the right attitude they are both motivated and adaptable which makes them more open to learning new skills. With the right attitude and enough effort most new skills can be mastered quickly. Whereas improving attitude is often about changing behaviors which is always much more difficult to do, as people need to want to change and without the right attitude this is unlikely to happen.

2. Attitude can impact overall performance.

When people have the wrong attitude, getting them to fit into the organization can be like trying to bang a square peg through a round hole. They can just clash with the culture of the organization, disrupt teamwork, causing unrest and impacting overall performance.

According to Gallup surveys into employee engagement only around 30 percent of staff are engaged, with 50 percent disengaged and the remaining 20 percent are actively disengaged. These are usually the people with the worst attitude, not just content with being disengaged; they are looking to increase disengagement amongst the rest of the staff.

We often see this in sports where highly skilled players just don't fit in with their teammates, causing issues and discontent. Consequently, they are let go and then almost immediately team performance improves. There's even a term for this, "addition by subtraction."

As leaders, we're looking to create teams where the sum of the whole exceeds the sum parts and it's a good attitude that makes this possible.

3. The right attitude can overcome obstacles.

We've all heard the saying "when the going gets tough, the tough get going." Well if it were about having the right aptitude then saying would be 'when the going gets tough, the smart get going'. But it's not.

We're always going to face challenges, difficult times, and it's in these moments that things like determination, tenacity and resilience come to the fore. Having the right skills but lacking the will to use them isn't going to help us overcome the challenges and achieve success.

When hiring, we need to focus on attitude just as much as on the technical skills sets. However, most interview questions are focused on aptitude, and we need to make sure that we ask the right questions to uncover their attitude, such as their honesty, initiative, determination, tenacity, and resilience, etc.

We need to ask them about challenges they have overcome, how they dealt with failure or how they dealt with situations which were beyond their current capability.

People can fake attitude in an interview, and we need to make sure that we probe these areas, and listen to the language used, to try and understand their true attitude. Do they answer in the past tense, do they have specific examples and can go into details. If they can't then the probably don't have the attitude we're looking for.

We also need to understand the attitude of our organization and look to hire people that are a good fit. We need to create a template for the attitude that we are looking for. To do this, we should look at our top performers and see what are the attitudes that they possess. What are the soft skills that make them successful

The impact on hiring people with the wrong attitude is significant. According to the research 46 percent of new hires fail within the first 18 months and 89 percent of these fail because of attitude. This means that 40 percent of all new hires fail because of issues with their attitude.

As I said at the start, I would love to hire staff with both the right attitude and aptitude, but if I can only get one of those, then I am taking attitude every single time.

Threat of competitor takeover

Any product, technology or service we give to the market advanced, innovative, customer specific, unique and preferably attractive packaging materials has to be to place our product.

We need compare the other competitor market share over the years for volume and financial share share in over all market. Always keep watch on quality parameters on our product.

Government Regulations

Credit ratings provide retail and institutional investors with information that assists them in determining whether issuers of bonds and other debt instruments and fixed-income securities will be able to meet their obligations. In issuing letter "grades," credit rating agencies (CRAs) provide objective analyses and independent assessments of companies and countries that issue such securities. Here is a basic history of how the ratings and the agencies developed in the U.S. and grew to aid investors all over the globe.

Who regulates them?

The Securities and Exchange Board of India (Credit Rating Agencies) Regulations, 1999 empowers SEBI to regulate CRAs operating in India. In fact, SEBI was one of the first few regulators, globally, to put in place an effective and comprehensive regulation for CRAs. SEBI’s CRA regulations have been used as model by other regulators in the emerging Economies. SEBI has also prescribed a Code of Conduct to be followed by the rating agencies in the CRA Regulations. However, SEBI administers the activities of CRAs with respect to their role in securities market only.

In addition to SEBI, the following regulatory agencies are involved in the regulatory mechanism of CRA’s in India:

a. Reserve Bank of India (RBI)

b. Insurance Regulatory and Development Authority (IRDA)

c. Pension Fund Regulatory and Development Authority (PFRDA)

The following regulations regarding functioning and affairs of Credit Rating Agencies in India have been prescribed by SEBI :

· Conditions for setting up a Credit Rating Agency : Certain conditions have been prescribed by SEBI, for granting certificate of registration which is to be complied by the body corporate.

· Process of getting Certificate of Registration : The body corporate which fulfils the required eligibility criteria and which wants to commence activities as a credit rating agency shall make an application to SEBI for the grant of certificate of registration.

· Obligations of Credit Rating Agency towards SEBI : SEBI has fixed certain obligations and informational requirements which must be properly obliged by credit rating agencies.

· Conditions to be followed while assigning ratings : SEBI has prescribed certain conditions for credit rating agency, which must be fulfilled during the process of rating

. · Restrictions on ratings : Certain restrictions have been placed by SEBI on rating of securities issued by promoters or by certain other persons.

· Inspection and Investigation by SEBI : SEBI has right to inspect/ investigate the books of accounts, records and documents of credit rating agency and for this purpose SEBI may appoint one or more persons as inspecting officers.

· Liability in case of default : Under the SEBI (Procedure for Holding Enquiry by Enquiry Officer and Imposing Penalty) Regulations 2002, if a credit rating agency fails to comply with any condition subject to which a certificate has been granted or contravenes any of the provisions of the act or these regulations or any other regulation made under the act, then such credit rating agency shall be dealt with in the manner provided under the Securities and Exchange Board of India (Procedure for holding Enquiry by Enquiry Officer and Imposing Penalty) Regulations, 2002.

- In the US, Credit rating agencies (CRAs) are regulated by the SEC (Securities Exchange Commission) since 2006 and another layer was added in 2010 with the Dodd-Franck act. Internal processes, track-record of ratings actions, business practices (to ensure the analyst independancy), criteria disclosures are the key point of attention.

- In Europe, CRA are regulated by the ESMA (European Securities and Markets Authorities) which is part of the European Commission. The European regulation came later, ie after the 2007-2009 crisis. The lateste act related to CRA regulation is called CRA3, issued mid 2013. This act mainly requires a rotation of CRAs on securitisation operations, information disculosure on some structured finance operations (the credit quality and performance of the underlying assets of the structured finance instrument, the structure of the securitisation transaction, the cash flows, any collateral supporting a securitisation exposure and sufficient information to produce stress tests) and the oblligation to have two CRAs for some big structures finande operations.

Poor pricing and output decisions.

Product performance in market always associated with quality, uniqueness, target customer and affordable price. If product is out performed in market output of product in production will get increase over a period of time.

To summarise: a right man at right place and at right time will alway boon to perform well with the team bring the company into good economic performance.

The issues faced by company, viz.,

Resources in a work place or a company must allocated on priority basis in a proper way. The resources like man power, work place environment, finacial allocation,

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