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First of all I’d like to name the grounds and reasons for introducing changes.
Grounds:
- increasing production costs (labor fees, transportation, raw materials and so on)
- tough competition (the market was saturated because new organizations penetrated and new products appeared on the market
- market changes (changing market trends, different marketing and pricing policies, different target audiences segmentation)
Reasons:
- declining sales and profitability
- retirement of the managing director
- the managerial system of Darlings was not efficient
- the system of organizing and controlling was not efficient too
- lack of diversification (of advertising, channels of distribution and so on)
- inefficient distribution of resources
As a result Darlings faced a lack of flexibility and the company didn’t react to new market trends and changes.
After the change the new organizational structure had 5 departments formed by functional principle:
- Marketing controlled by Anne Davis,
- Sales controlled by Bob Lee,
- Production held by Richard Elvin,
- Finance, which was newly created,
- Personnel controlled by Pauline Dormer.
All these directors joined the board. Marketing department was subdivided into 2 subdivisions according to the product principle:
- boxed chocolate and
- chocolate bars.
They changed their marketing approach and focused on different brands to maintain export and to promote their product on the domestic market. The position of advertising and marketing managers didn’t exist any longer. Sales department had 1 division - export sales which was responsible for expanding their export campaigns. Production and finance spheres were separated; their responsibilities were shared according to the matrix principle. Warehouse and cocoa and sugar buyers were responsible to the production and to the finance directors, master confectioners were responsible to the production director. It was almost the only position that hadn’t been changed because all the confectioners worked in one team from the very beginning and it was unreasonable to make any changes in this department in order to keep their traditions of production.
After these changes Darlings achieved a positive result.
- all top managers had clear and separated responsibilities
- they could develop new products because 2 specialized brand divisions had appeared
- the position of a finance director was created which meant the financial operations of the company would be put under control
- more efficient purchasing and warehousing were accomplished
These were the main changes.
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| Give a brief history of Darlings’ Chocolates plc and explain why Colonel Darling chose a sole proprietorship to start his business. | | | Introduce 4 candidates applying for the position of the Finance Director of Darlings’ Chocolates PLC, paying attention to the strengths and weaknesses of every applicant. |