Principles of Management for DHP Stores Inc - myassignmenthelp

Question: Discuss about thePrinciples of Management for DHP Stores Inc. Answer: Synopsis From the case study, it could be understood that the business organisation DHP Stores Inc. lacked certain strengths to manage marketing campaigns for the promotion of new credit cards to ensure customer trust and loyalty. D.H.P. Stores Inc. is a consumer based retail company that provides good quality hardware and houseware items to the customers for fulfilling their daily needs and requirements. Due to the immense competition in the market by Canadian Tire, Home Hardware, etc., the organisation has planned for new credit cards delivered to the customers. This would provide them with additional $25 credit and other benefits that could be obtained by signing on for the first monthly bill. Ray Patton has criticised the marketers of the company for not managing the marketing and promotional campaigns properly, which is one of the most important things to be considered rather than focusing on seasonal promotions. The finance and marketing departments could not properly implement the cred it card promotion campaign, and there had been criticisms related to the lack of financial functions to monitor, collect, administer and authorize the credit card facilities (Adler, Elmhorst Lucas, 2012). Thus, the focus was on the promotion of credit cards to expand customer base and gain their trust and loyalty, rather than just prioritising on the advertisements of products and services of D.H.P. Stores Inc., Canada. Symptoms There could be various negative symptoms or effects created due to the lack of promoting the program for introducing new credit card for the customers. There was lack of marketing campaign materials and data, because of which the introduction of new credit cards could not be done appropriately. Few symptoms of not introducing the new credit card facilities or program for the customers could be lesser trust and loyalty among the customers along with lack of sales due to failure in attracting customers consistently. The other companies have given stiff competition to D.H.P. Stores Inc., and so it is important for the company to bring out something unique for enhancing the size of purchases per unit made by the customers as well as attract more customers, furthermore creating a sense of trust and loyalty among them (Amine, 2015). The business organisation is unable to create a mark because the Finance department has not authorised the credit card facilities properly and thus the collect ion and administration of finance solutions have not been managed. The Operations' role was not astonishing and good as well, which created further complexities in implementing the credit card program properly (Barak, 2016). Problems Lack of management principles within the workplace of D.H.P Stores Inc. could lead to complexities for the workers to understand their roles and responsibilities properly. From the case study, it could be seen that Operations and Finance departments were unable to implement the credit card program easily, because of which the performance of the company deteriorated along with the decrease in organisational productivity. The problems faced here was lack of marketing campaign materials for the promotion of new credit cards at the various stores of DHP Stores Inc. in Canada (Berman et al., 2012). The company could not sustain within the business environment because all the competitors in business had managed their credit cards, which resulted in increasing the customers holding the credit cards much more than the non-credit cardholders. However, the authorising, monitoring and collection of credit card facilities were the duty of Finance department, still it was assumed that the introdu ction of credit card program with the involvement of various marketing and promotional activities had been the roles of Operations department. Thus, one of the major problems had been lack of understanding and clarification of clear roles and responsibilities, which would be essential for accomplishing the organisational goals and objectives with ease (Czinkota Ronkainen, 2013). The principles of management were not implemented in a structured way, which created other issues related to marketing and this led to the reduction in sales as well. Other problems faced within the workplace had been no such interest and enthusiasm among the workers at the stores considering that they needed to prioritise on the credit card sales more than the seasonal promotions for the products and services of DHP Stores Inc., Canada (Kobersy et al., 2015). Causes The main cause of such kinds of problems was the lack of interest among the workers at the store level. The employees were specialised in different departments, and as such, they did possess different skills and knowledge. So, it is evident that for the finance department workers cannot handle the implementation of credit card program properly whereas the workers in the Operations department will not be able to manage authorisation of credit facilities, enable monitoring, collection and administration of financial procedures. The marketing was not done properly as well which created issues while establishing a link between the promotional and advertising activities related to the issuing of credit cards and improve sales level (Perreault Jr, Cannon McCarthy, 2013). The efforts that were put during the promotion of credit cards were quite low due to lack of skills, knowledge and expertise among the employees of DHP Stores Inc. in Canada. Alternatives Communication is an effective way of resolving management conflicts and ensures that the operations and finance department workers interact with each other and establish a link between the marketing strategy with the business aims and objectives. Communicating with each other can sometimes result in conflicts and misunderstanding due to different views and opinions that may further result in issues during the marketing and promotional activities (Rudani, 2013). It is important to identify the issue as an opportunity to turn that weak area into strengths to facilitate the marketing process and ensure successful relationship with the customers along with providing them with additional benefits like 30-day free credit and even $25 credit after generating the first monthly bill. Secured credit cards should be offered for ensuring profitable access to the customer segments and even make the credit value act as an important marketing channel too (Soll, Keeney Larrick, 2013). Providing development sessions can enhance their potential skills and make them knowledgeable and focused on how to promote the credit cards as well as attract more customers regularly, furthermore create a positive mindset among them. The developmental sessions could be managed to proper monitoring of employee performances, and this would help in enhancing their level of effort, allow them to get more focused on fulfilling their marketing roles and responsibilities. Proposed solution Among these three proposed solutions, communication is the most effective solution for marketing and promoting the credit card program, attract more customers and create loyalty among them too. It can make the employees focus on the products based on the consumer needs. It would thereby deliver better value propositions and create a predictable customer base as well. The problem related to the lack of marketing and promotion of credit card materials will be overcome by combining both marketing and underwriting (Williams, 2013). The marketing message promoted should make adjustments so that the accounts do not incur cost more than a certain limit. By offering secured credit cards, it would generate more profit for the customers without any added risks and even manage the credit value as an effective marketing channel for DHP Stores Inc. The skilled and knowledgeable employees would be able to able to think beyond the major benefits offered by debit cards such as no need to pay bills, protection against fraud activities and overspending risks. There is emergence of risks asscociated with the debit cards like mini-exodus, which has given enough opportunities for DHP Stores Inc to provide new accounts to the reward portfolios of the customers (Barak, 2016). This would resolve issues and even allow the customers to gain additional benefits while making monthly purchases. Better communication could be promoted by the involvement of social media as well. Implementation The finance department should provide easy, intuitive as well as transparent services that are possible with the introduction of new credit cards. The credit card program implemented should deliver good marketing messages to people and would avoid any annual fee and penalty rates. As the competitors are also accustomed with the marketing of new credit cards, it would be important for DHP Stores Inc to offer innovation regarding the valuable features offered. To ensure that more customers are inclined to the organisation, the social media channels are involved as well in promoting the credit card facilities and benefits that can be gained by the customers. The management must maintain credible sources of information and data that can be used for promoting the new credit card and ensure that the Finance and Operations work in coordination to accomplish the business aims and objectives easily (Czinkota Ronkainen, 2013). Furthermore, it would facilitate the customers' services, enhance the amount of purchases made by customers and maintain customer loyalty too. References Adler, R., Elmhorst, J. M., Lucas, K. (2012).Communicating at work: Principles and practices for business and the professions. McGraw-Hill Higher Education. Amine, L. S. (2015). 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Consumer misunderstanding of credit card use, payments, and debt: causes and solutions.Journal of Public Policy Marketing,32(1), 66-81. Williams, C. (2013).Principles of management. South-Western Cengage Learning.