Overcome of the problems

The Human Resources Department at Prime’s can resolve the limitation that they face in many ways, using a range of methods. Prime’s already use quality assurance systems. Like nearly every organisation Prime’s also feels that quality should be at the top of the list when it comes to aims and missions. Prime’s also abides by the four Total Quality Management principles. Prime’s have a high commitment in making sure that their customers’ needs are fulfilled to the most that they possibly can.

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In every store they have a customer service department that deals with customer complaints and problems. Also Prime’s staffs are fully trained to treat customers in the right way, and to look after them. They are also trained to listen and respond to any complaints or views the customers share with the staff. Prime’s staffs are continuously making improvements on their products and the services they offer. Prime’s are improving their brand name by improving their packaging, and the quality of their product. Prime’s are also continuously offering new services to existing and new customers.

This is an overview of how Prime’s works, this was identified using TQM, Total Quality Management. Another approach that the H. R. Department could use to be effective and efficient and be able to resolve conflict is the use of Quality Circles. A quality circle consists of a small group of people, therefore Prime’s management could organise a small team of people that could form a quality circle. It would be preferable if the team consists of people who are trained to make effective decisions, and solve problems.

So it would be ideal if Prime’s Human Resources Department could arrange the team so that the team is made up of volunteers who want to help work on specific issues, that are causing problems within the H. R. Department and within Prime’s itself, in a Prime’s store. Every Prime’s store should have to have their own quality circle made up of the supervisors. This would be good for Prime’s because each supervisor will know how their department works and to what quality their department works at. Prime’s Human Resources Department could try improving the communications system they have with each department.

This will not only resolve conflicts, but help Prime’s H. R. Department in the future when they are trying to get their views and ideas across to the other departments in Prime’s. The Human Resources Department at Prime’s can improve communications in many ways; one way is by incorporating the use of ICT in their communication. They could also discuss all decisions and ideas they have with every other department at Prime’s before taking further action on them ideas and decisions. 5. 0 Porters 5 Forces i. Potential Threat of New Entrants

Economies of scale – Prime is going to reduce the threat of new entrants by setting targets for reducing costs by 25%, defects by 50% and order-to-delivery time by half to ten months for its production. This will achieve through massive investments in IT, first with the development of the customer service system. Capital Requirements – The huge investment required to build service facilities to compete with large commercial space by create ting a significant barrier to entry for any competitor challenges. ii. Bargaining Power of Buyers

Prime is able to reduce the threat of its competitive market and commercial buyers with the merger of production and services. In an effort to meet its defense commitment in providing good customer facilities the store requires to enhance the buyers power. Prime has to install a Catalyst software for its warehouse support system, thereby resulting in an increased number of daily work orders being processed and considerable labour cost savings.

Bargaining Power of Suppliers Prime store is able to reduce the bargaining power of its product suppliers, because it offers the quality products from three manufacturers; General Food Co. , Pratt & Whitney, and Poker. These three types of store are designed to the different specifications but offer nearly identical performance giving each product the option of using the manufacturer of their choice. iv. Threat of Substitute products As the market evolves, its seems that both production and service are going in very different strategic directions with Prime store continuously staying with their product development because the other giant store always try to develop the new products.

In response to this threat, Prime is able to reduce the threat of Substitute products by its decision to utilize Information systems in cutting costs and make product cheaper to customers. v. Industry Competitors However with the products new emphasis on cost and with Prime store new Information systems design parameters, which have shifted from being performance based to being cost based; these changes should substantially stabilize its manufacturing process and maintain the current market share. [task1, task2] 6.

0 International expansion plan: As part of its international expansion program, Prime store, is currently in the planning stages of establishing production facility overseas. I am going to present a proposal to the steering committee comparing the advantages and disadvantages of starting operations in France. There are many factors to consider in this comparative analysis. Such as discussion of the different countries’ currencies, trade policies, and cultural variables that may affect operations and profitability in each country.

I have tried to mention the situation by concluding with a recommendation and supporting rationale as to business facilities in France. Barriers: The following barriers are going to consider if Prime store required expanding their business at France. They are: Political and legal influence: The political relations between Prime’s country of headquarters (or other significant operations) and another one may, through no fault of the Prime’s, become a major issue. Certain issues in the political environment are particularly significant.

France has relatively strict government, whose policies may change dramatically if new leaders come to power by democratic or other means. Culture: Culture is part of the external influences that impact the consumer. That is, culture represents influences that are imposed on the consumer by other individuals. Although France employees perceive prime as being more employee-orientated than average France employers, some of the cultural issues were the fact that the manager roles in Prime are subtle and that Prime managers tend to have a long term approach to management.