Strategic Quality and System Management
Understanding and application of quality and systems management in an organization
Company profile
Emirates integrated telecommunications company (EITC) also knows as du is located in Abu Dhabi. The company offers the services of internet connectivity, mobile and fixed calls to people, industries and offices (About Us, 2015). In addition, it also offers the career services to the broadcasters for the link of satellite. EITC has a total number of 56 markets in UAE. Also, it offers its products to 3000 dealers and also has a platform for online shopping. It has also launched many platforms for entertainment like du live, du Arena, du Forum and The du World Music Festival (du(company), 2013). Moreover, the company has received many business awards, certifications and honors. Due to increasing competition in the telecommunication market, EITC is trying its best to provide quality services to the people and manage and maintain their position.
Importance of effective operations management in achieving organizational objectives
Strategic management objectives
Strategic management objectives are the objectives that a company must accomplish in order to reach their goals and to be successful. The objectives generally are market standing, innovation, productivity, social responsibility and financial resources. The strategic management objectives of EITC are
Internal control management
The internal control management of EITC ensures that all the internal operations like documentation, assets, share holders investments and proper handling of orders are carried out in proper way. The internal management achieves the objectives in risk management, efficiency and reliability of operations and follow up of laws and regulations.
Risk management
The company adopts to maintain the risk management as a core competency. By risk management it reaches the goals by increasing the management of activities (both external and internal) and managing the uncertainty or any unfavorable condition at any times.
Operations management
Operations management is defined as the operations which are carried out in planning the resources and activities to fulfill the strategic management objectives. (Dhoul, 2014) The operations management which are carried out in achieving the EITC Company’s strategic management objectives are
Cost
Cost is a very important organizational objective for the EITC Company as cost always varies on the quantity of products and the type of products. It can surely affect the profit of EITC Company
Flexibility
It is another operations objective as it is very important for a company to change itself according to the new requirements, produce products according to the various demands of the customer and provide quality as well
Quality
Quality means that the product produced must satisfy the requirements of the customer, must be durable and reliable. Quality is very important as it is the only factor that makes a company different from its competitors.
The success of existing operations management processes in meeting organization’s overall strategic management objectives
On focusing on the operations management objectives of the EITC Company, I have noticed that by providing the objectives like quality, flexibility and cost the company can easily meet the entire management objectives. Because if the variations in cost, ability to meet new requirements and best quality are managed in a proper, the company can easily reach its goal and objectives the operation management system can be broken down into inputs, processes and outputs
EITC inputs
Labour
Labour is one of the inputs of the EITC Company. Labour works hard and transforms their input to satisfy the customers.
Equipment
Equipment is another input which is very necessary because proper equipment is needed to carry out the services like broad band network and the installation of towers.
ETIC process
Controls
- Production control
- Cost control
Resources
- Materials
- Energy
- Knowledge
Output
Satisfied Customers
The EITC Company satisfies its customers by providing quality with the help of inputs like labour and equipment.
Product Quality
The company provides quality products to its customers with effective control and resource management.
Pareto Principle
By using the Pareto Principle I analyzed that the following controls and resources must be evaluated on priority and must be selected for the overall effect (Haughey, 2014)
Cost control (Control)
The management of cost is the key success point of any company. The cost on resources and equipment should be managed in a proper way. The profit can also be analyzed easily by the use of effective cost control.
Knowledge (Resources)
The people in an organization must know that what they are doing or they must have the knowledge of the work. It is a very important factor because processes cannot be carried out in a proper way if the people in the management team have no knowledge about the operations.
The effectiveness of the operations management system was analyzed by the SWOT and Fishbone analysis.
SWOT analysis
Strengths
Talk, surf and watch package
The users can call anywhere in the world by using du broadband network at very low rates. They can watch what they want and they are also given five accounts with antivirus free.
Du TV+
This feature allows the user to watch TV in HD or any other quality they want. The users can also record their favorite program to watch them later
Reasonable price
Du offers reasonable price to both the local and global customers. This is the reason that many people are shifting from other networks to the du network.
Weakness
Du is the telecommunication company that has some weaknesses too.
Small business units
Du Company is developed but it still has small business units
Signal Problem
The signal of the network does not read everywhere in the United Arab Emirates (UAE) yet.
Less customers
Du still has not a lot of customers because of the awareness problem. People are not aware of the services that du is providing.
Opportunities
Lack of telecommunication companies
Due to the lack of telecommunication companies in UAE, people are using the du network too as du offers low price and better quality (Du SWOT analysis, 2013). It offers many packages to its customers too.
Technology
Du Company offers better rates with better quality thus providing a better technology to the customers. In this era, people prefer low rates for telecommunication and du company id fulfilling the demands of people in a very good way.
Threats
Price structure
As there are only two telecommunication companies in UAE so the competition is very tough for Du Company. The other company follows the pricing strategy of Du Company and tries to compete.
Competition
Competition is a part of every business. Du Company will have to face competition when more telecommunication companies will enter the market. The company will have many competitors and it will have to work harder for its success among them
Alternative pricing strategy
Due to the increased competition Du Company will have to establish another pricing structure. It is offering low rates but something other than this should also be planned for its future success.
Fishbone analysis
The fishbone analysis was used to analyze the causes of weaknesses in the du company (Fishbone(ishikawa) Diagram, 2013). The causes are
Lack of Promotion
The reason that Du Company has less customers is promotion. Promotion is very important to run the business successfully. When the packages of the company will be advertised people will be attracted towards it.
Lack of signal towers
The reason that the signals are not reaching everywhere is the lack of towers. The company needs to install more signals towers at many places so that the signals may reach and people may use it.
Conclusion
The implications from my evaluations indicate that the chosen controls and resource are meeting the strategic management objectives of the du company. As mentioned above that Risk management is one of the strategic objectives of the company. Risk management is achieved by the efforts of labor, with the use of appropriate equipments and the most important point is that people with the knowledge of field can easily manage the risks that occur. The other strategic objective which is internal control management is also achieved by the struggle of the employees and by the cost controlling process. The costs are calculated and the record is kept to present to the higher authorities when needed. This shows that the controls and resources chosen are fulfilling the requirements in order to carry out the processes in achieving the objectives of strategic management.
Bibliography
About Us. (2015, June 4). Retrieved August 15, 2016, from Du Company: http://www.du.ae/about-us
Dhoul, T. (2014, April 30). What is operations management? Retrieved August 15, 2016, from Top Mba: http://www.topmba.com/mba-programs/what-operations-management
Du SWOT analysis. (2013, September 6). Retrieved August 15, 2016, from SWOT analysis 24.com:
du(company). (2013, May 5). Retrieved August 15, 2016, from Wikipedia: https://en.wikipedia.org/wiki/Du_(company)
Fishbone(ishikawa) Diagram. (2013, May 4). Retrieved August 15, 2016, from ASQ: http://asq.org/learn-about-quality/cause-analysis-tools/overview/fishbone.html
Haughey, D. (2014, June 5). Pareto analysis step by step. Retrieved August 15, 2016, from Project Smart: https://www.projectsmart.co.uk/pareto-analysis-step-by-step.php
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