SESSION 2022/2023, A221 BPMN1013 (W) PRINCIPLES OF MANAGEMENT GROUP PROJECT: THE AMIGOS CLOTH PRINTING PREPARED FOR: DR. ANNUAR ASWAN BIN MOHD NOOR PREPARED FROM: GROUP 2 NAME MATRIC NUMBER MUHAMMAD HAZIQ BIN MD ASRI 294551 RIDWANA MAISARAH BINTI RAHIM 295619 NUR DAINEAH SAIYIDAH BINTI FAZAL ILAHI 294085 HARRAZ DANIAL BIN JAMAL ANUAR 295523 RABBANI MUHAMMAD RAFFI 283948 NOOR ADILLA FADZWANNIE BINTI MOHD FADZLI 295724 ANGEL NG KA CIEN 294623 NURFARIZWA NATASYAR BINTI RAZIATOL AZMAN 294857 NURUL NAJWA BINTI KASIM 295331 AMIRA ATIKAH BINTI AHMAD ZULKARNAIN 288057
TABLE OF CONTENTS 1.0 INTRODUCTION 1.1 What is management? 1 1.2 What is organization? 2 2.0 ABOUT OUR COMPANY 2.1 Background of company 3 – 4 2.2 Mission, vision and objectives of company 5 – 6 2.3 Organization Charts 7 2.4 Planning, Organizing, Leading and Controlling (POLC) of company 8 – 15 2.5 Main competitors of company 16 – 17 2.6 Strengths, Weaknesses, Opportunities and Threats (SWOT) of company 18 – 19 3.0 CONCLUSION 20 REFERENCES
1 1.0 INTRODUCTION 1.1 WHAT IS MANAGEMENT? Management is the effective and efficient achievement of organizational goals through planning, organizing, leading and controlling organizational resources. Planning is choosing appropriate goals, organizing is structuring work relationships, leading is clear vision and inspiring and controlling is monitoring and evaluating performance. All managers work in organizations. An organization is a group of people who work together and coordinate their actions to achieve various goals or desired future outcomes. Managers use organizational resources such as people, money, machines and materials to create organizational goals. Moreover, management can be defined in detail in the following categories such as management as a process, discipline of activity, group, science, art and as a profession. The concept of management is as old as man himself. A manager is a person responsible for overseeing the use of an organization's resources to achieve its goals. The three types of managerial roles are interpersonal, informational and decisional. Additionally, low-level, middle-level, and senior-level management exist. Team leaders, foremen, section leaders, and supervisors are lower-level managers. In this level of management, the lowest of the three, the manager supervises and instructs individual employees. Senior managers supervise middle managers, which are department managers, regional managers, and branch managers who are responsible for implementing management's strategic goals. Top management includes the CEO, president, vice president, and board members. Senior management must formulate strategic plans and company-wide policies and make high-level choices to set an organization's goals and direction. Communication, positivity, teamwork, and practice in real-life management settings are approaches to improve management skills.
2 1.2 WHAT IS ORGANIZATION? In principle of management, a group of people working together in one company or association which has a specific goal is known as an organization. The word is derived from the Greek word organ, also denoted as an organ which is known as one of the musical instruments. An organization is a group consisting of one or more people who cooperate, such as a firm, neighborhood association, charity, or union. Also, the process of forming or establishing something is considered an organization. From a corporate performance view, an organization has its own responsibility toward its people, planet and profit which is also known as the triple bottom line. The success of certain organizations in their sectors can be measured through a social audit. Managers in their own organization will need to operate in two organizational environments which are the task environment and the general environment, which are both made up of various stakeholders (internal and external stakeholders). For the internal stakeholders, an organization will have people which consists of employees, owners, and board of directors. Those people have both an important stake on how to operate and the ability to shape its company or association's future. As for the community of the external stakeholders, it consists of the task environment and the general environment. The task environment consists of ten groups that regularly will engage with the organization which are customer, competitors, suppliers, distributers, strategic allies, local communities, financial institution, special-interest group, government regulators and employee organization. However, a manager needs to focus more on the general environments because these forces can affect their long-term plan and decisions because it includes six forces which are economic, technological, demographic, international, sociocultural and political-legal forces.
3 2.0 ABOUT OUR COMPANY 2.1 BACKGROUND OF COMPANY Amigos is a company engaged in the retail clothing sector. Starting with our focus on paying attention to young people who have a concentration in the fashion sector and we see enormous market potential, we started this company to provide quality fashion products affordable to the public, especially young people who follow the development of fashion, in the development of style, fashion is considered a necessity in social and community life, along with the rapid growth of the times, the fashion industry is believed to have a value that continues to increase and has a large market, this industry continues to develop in the world as well as Asia especially Southeast Asia such as Malaysia, Indonesia and also Singapore, This development encourages young people to tend to follow and become human beings with consumptive behavior. Seeing this phenomenon and with various research results that young people are willing to spend whatever money they have to pay as long as they get the goods they want, we think carefully that society, especially young people, needs affordable fashion products at affordable prices, young people can share their money for other things, at inexpensive costs they can also buy more fashion products, so our company can be considered as helping to turn the economy wheel amidst the inflation that occurs in the world, especially Southeast Asia, by offering the latest products that are produced at low production costs, we believe that the economic turnaround will run faster and post-Covid-19 economic conditions can recover soon. Low costs are not an excuse for us not providing good product quality, and we are committed to low production costs. We continue to deliver decent products that the broader community can even like by following the latest fashion trends; with the presence of this company, we can immediately drive economic conditions and provide fashion products to the
4 public at relatively affordable prices. Still, following existing fashion trends to meet market needs and helping those who want to follow fashion trends with good product quality but still reasonable prices, these things make us compelled to establish this company and are committed to enlarging this company so that later it will benefit the wider community and become a successful company with our company in various countries after later expanding in multiple countries to become an international company and grow to have a global market cap.
5 2.2 MISSION, VISION AND OBJECTIVES OF COMPANY VISION In the clothing retail industry, especially clothing, we strive to be a company that promotes innovation in the fashion industry. The company's growth and development must proceed with the renewal of creative ideas from many heads. However, in execution, it still prioritizes the values of good corporate management. We strive to be a company that benefits the wider community and can be reached by the youth market sector that has loyalty to fashion, consumer satisfaction, and business partners; employee welfare is a big responsibility that we hold and are responsible for, with the hope that this company will be known to the public globally. MISSION A. Become a company that provides high-quality products, provides reasonable customer satisfaction, becomes a company with values that offers good service to consumers B. Companies that provide products following fashion trends but still pay attention to the needs of the fashion industry market that provide innovation with good planning and structure. C. In innovating, pay attention to environmental aspects, try as much as possible not to pollute the environment, manage waste properly and pay attention to the environment so that it remains sustainable amid product innovations that are widely marketed. OBJECTIVE OF COMPANY 1. Provide high-quality product quality assurance and have qualified quality control to provide good quality products to consumers so that they can maintain the value of the company's quality
6 2. Producing innovations and products that can be maturely used by consumers and can be said to be suitable for use, trials, and strict supervision of product inspection before they are marketed are standards in maintaining product quality and the company's good name 3. Providing welfare guarantees to all employees without exception, giving appreciation to exemplary employees, good business partners, and loyal customers with gifts that are considered able to maintain good relations and make the company's image continuously better 4. Keep abreast of fashion trends to continue to innovate and be able to adapt to market needs, trying to increase profits and become a big company by expanding to various countries 5. Being a company that prioritizes human values, companies may focus on fashion trends and increasing or marginal profits but still pay attention to other objects such as the environment, employee welfare, and the company's benefits to the surrounding community and the socialhuman sphere.
7 2.3 ORGANIZATION CHARTS Diagram 1
8 2.4 PLANNING, ORGANIZING, LEADING AND CONTROLLING (POLC) OF AMIGOS CLOTH PRINTING COMPANY 2.4.1 Planning Planning is a process of selecting aims and finding out the course of action needed to achieve them. It also sets long term and short-term goal. In management, there are three types of planning which is strategic, tactical, and operational. Planning assists in critically assessing the goal to figure out its viability. It eases decision making and allows setting a period by predicting when the company can achieve the goal. a. Strategic Planning Strategic planning is a long-term goal used by top management. Strategic planning entails analyzing competitive opportunities and threats, as well as the organization’s strength and weakness and deciding how to position the organization to compete effectively in their environment. For example, Haziq (CEO of Amigos Cloth Printing) have set up a company’s goal to provide high-quality product quality assurance and have qualified quality control to provide good quality products to consumers so that they can maintain the value of the company's quality b. Tactical Planning Tactical planning is intermediate-term (one to three years) planning aimed at developing relatively concrete and specific means of putting the strategic plan into action. Middle-level managers are often involved in tactical planning. As part of our goal of becoming the leader of printing industry in around Asia. Middle managers must devise a strategy to attract customers’ attention by improving customers’ standards and producing high-quality products at affordable prices. However, to consistently become a top industry is not effortlessness way. The company should take a risk and needs to
9 have backup p planning which is do collaboration with another company and a having good investor to strengthen this printing business. c. Operational Planning Operational planning is a type of short-term planning (less than a year) that aims to generate specific activities that promote tactical and strategic goals. It assists managers and department heads in explicitly defining their daily obligations, duties, and activities. An example, the first line manager does to ensure the line of manufacturing runs smoothly. 2.4.2 Organizing Identifying and classifying the work that needs to be done, outlining, and distributing authority and responsibility, and building relationships are all parts of organizing in Amigos Printing Cloth. This process is done to help employees operate more effectively. To accomplish company objectives, organizing is fundamental in our business since it increases output, cuts down on waste, prevents work overload, limits work duplication, and makes efficient delegation feasible. a. Organizing Process
10 i. Identification of activities The operations that are conducted by the Amigos Cloth Printing are determined by this purpose. The creation of cloth and product sales are the two primary objectives of our business activity. As a result, identifying the organization's diverse functions is a crucial stage in how they operate. ii. Grouping activities Once the activities of Amigos have been identified, then there is a necessity that our company are grouped. The activities in Amigos are grouped in several ways. The activities which are like nature can be grouped as one and a separate department can be created. The activities related to production can be subdivided into specific jobs such as operation, marketing, accounting, and finance department. iii. Assignment of responsibilities After Amigos Cloth Printing has finished the process of identifying, classifying, and arranging all activities into distinct jobs, each employee enters the picture because they will be given the duties of managing the activities associated with the distinct jobs. iv. Grating authority In accordance with the precise duties allocated to each employee, they must be granted the required authority to perform their duties to ensure their effectiveness and, in turn, the performance of the Amigos Cloth Printing. v. Establishing Relationship Since every person in the company needs to be familiar with their manager and co-workers, this is a crucial aspect of how the Amigos Cloth Printing operates. This creates a system of connections within the company that makes it easier to make sure that there are good
11 connections. To make task delegation easier, each employee must establish and maintain good relationships with their co-workers. b. Organization Chart (refer diagram 1) c. CEO background and job description: Name: Muhammad Haziq Bin Md Asri Graduation: Bachelor of Business Administration (Logistic & Transport) Job description: Muhammad Haziq is our CEO to oversee daily business activities for our organization. He is in charge of developing a positive workplace culture, gives our executive team inspiring leaderships, builds a strong relationship working with the board of directors, and chart the direction for corporate strategy. (Betterteam, 2019). He must create an implement operational policy, a strategic plan, and high-level decision about Amigos Cloth Printing’s policy and strategy. On the other hand, he must function as the company main representative and foster an atmosphere that rewards exceptional performance and upright behavior. In order to ensure that all legal and regulatory documentation are filed and to ensure that laws and regulations are being followed, he must oversee the company's financial operations, including budgeting, reporting and auditing.
12 4.3 Leading The third essential management task is leading. It is the potential to persuade people to share your perspective. Leading is the method of persuading an organization's members to adopt a positive mindset toward their jobs and objectives. After a leader has planned and organized according to that strategy, they usually take the lead in getting others to corporate. The functions of inspiration, coordination, communication, and direction are considered to be included in the leading processor system. A leader's responsibility is to motivate others to perform their best for the benefit of the organization. For instance, Haziq, the CEO of The Amigos Cloth Printing, can forbid employees from making pointless purchases to boost company profits. Motivation can be authoritarian or participative, and a leader must determine which to use based on organizational culture and the employee's history of cooperative conduct. Our organization inspires its employees by keeping them motivated so that they can accomplish their jobs properly. If employees are encouraged by their wants, they will try to do their work more effectively and do so. The following tactics can be used by managers to motivate their employees: a. Give an award to the employees who generate profit. Employees should be awarded prizes if they hit their sales targets that are set by top management or accomplish a specific set of activities. For instance, The Amigos Cloth Printing might award bonuses to staff members for a productive year. Due to the possibility of monetary compensation, rewarded bonuses can boost overall team productivity and create high performances teams. In addition, incentive travel will boost the loyalty of staff members to your business. For example, our organization may offer free travel to employees who help the company achieve more profit in the current year. From this, it encourages our staff to put in more effort to accomplish the targets.
13 b. Provide positive enforcement Another strategy to promote a team environment that is encouraging for your team is to set goals and personal attributes that all employees may work toward. You can accomplish this by making sure that every team member receives appreciation when they meet your expectations. Setting clear expectations for what success looks like for each team member is one of the best ways for leaders to use their influence to promote positive reinforcement. When a leader makes it a priority to assist each team member in achieving their goal, motivation is frequently the result. This can be accomplished by leaders awarding people for good work or applauding them when they go above and beyond to achieve one of their objectives. c. Communication Positive communication between team members and leaders can help build trust. Communication is essential for transparency, trust, and overall success. It might result from team leaders sharing their personal achievements and experiences with the organization. By communicating their own values, beliefs, and goals to the team, leaders can use these as a guideline for everyone to help reach common goals. The Amigos Cloth Printing Company employs an open management approach and has a transparent workplace. It is convenient for everyone to talk to one another and share their ideas. It implies that workers can speak with the top management. Everyone has unrestricted access, from lower management to up. 2.4.4 Controlling Controlling consists of vindicating whether everything occurs in conformities with the plans espoused, instructions issued, and principles established. Controlling ensures that there is
14 effective and effective application of organizational coffers to achieve the planned pretensions. Controlling measures, the divination of factual performance from the standard performance discovers the causes of similar diversions and help in taking corrective conduct. Controlling as an operation function involves the following way. a. Concurrent control Concurrent controls are adjustments you make as the game is being played out. Concurrent control is, in many respects, a condensed version of the control process. It is conducted in real time. This may include major problems, such as interrupting production when a printing press for shirts experiences a breakdown. This is when, in the analogy of the machine breakdown trip, the machine breakdown buddies association may learn where the breakdown occurred. Making modest adjustments to charges as a consequence of budget coordination in real time as charges come in is an example of contemporaneous control. b. Feed forward control Before carrying out the game plan, feed forward control involves setting up a benchmark. According to Bateman and Snell (2013), this is the pre-operational control process used to guarantee that planned actions are carried out appropriately. It includes policies, procedures, and regulations. Managers who demand gloves and safety precautions during shirt production are an example of a feed forward control process used by Amigos cloth printing. This rule aids in ensuring that the game strategy will be properly carried out. In addition to needing leverage for building offices, this may also include a commitment to covering outside the scaffolding. c. Feedback control Feedback control makes modifications as you build future game strategies using data from earlier decisions. This is the foundation of organizational learning. Some businesses demand post-mortem analyses for each significant project they complete. For instance, amigos cloth
15 printing has a closed - circuit tv control system in each area of the store to oversee its operations. According to reports, workers will be protected from the risks that attract. As their mesh is an effort to control the security issue, this constitutes a feedback control mechanism. Although not necessarily effective management, this is an illustration of excellent feedback control.
16 2.5 MAIN COMPETITORS OF COMPANY The Amigos is a newly built company in Malaysia’s clothing industry. H&M, Zara and Uniqlo are the three largest international clothing retailers, each with more than 2,000 stores worldwide. Competing companies target similar markets but use different strategies in their business models to control the distribution of product lines. The three apparel retailers take different approaches to material ownership, manufacturing sourcing, and ancillary brand handling. Here's a look at each company, what their focus is, who their customers are, and how they've grown their brands over the years. One of the competitors is H&M. H&M, or Hennes & Mauritz, is the oldest of the three. Founded in Sweden in 1947, the discounter has a reputation for affordable prices and has grown over the years to become one of the biggest names in fashion. H&M is listed in Sweden and the United States. Launched in Sweden in 1974. H&M has grown significantly in recent years. As of February 2022, it had 4,167 stores worldwide, far ahead of Zara and Uniqlo. H&M has also penetrated the U.S. market much more than its rivals, with 548 stores open. H&M says it will launch thousands of products over the next few years. Meanwhile, H&M has had to close some stores as many customers shop online, reflecting a shift in retail from brick-and-mortar sales to a more e-commerce-based model. While H&M is best known as an off-price retailer, it also owns COS, the Collection of Style. COS sells quality products at a higher price than H&M. H&M also owns six other brands: Monik, Weekday, H&M Home, &Other Stories, A found and Ariket. Part of H&M strategy to grow sales is to offer customers a curated selection of products sold as designer collaborations with household names such as Versace and Alexander Wang. By offering these products in H&M stores, the company is cementing its reputation by partnering with valuable figures in the fashion industry and offering its customers additional product lines to buy that differ in look and style from the company's main designs.
17 The second competitor is Zara. Zara is the youngest of the trio formed in Spain in 1975. The company is owned and flagship by textile giant Inditex. Zara's ownership of the steps of its supply chain enables a faster turnaround of products; Zara can design a product and have it in stores a month later. Zara has 2,001 stores. As of June 2022, Zara has 99 stores in the United States, and most of its global stores are located in Spain, with a total of 406 stores (including Zara Home). Zara's strategy is to offer more available products than its competitors. While most clothing retailers produce 2,000 to 4,000 different garments to sell to the public, Zara's production is much higher, producing more than 10,000 a year. This unique aspect of the company's strategy allows Zara to target more customers with unique tastes. Last but not least, Uniqlo is one of the competitors for The Amigos. Uniqlo was acquired by Fast Retailing in November 2005 and was originally founded in Japan in 1949. Uniqlo has opened 2,000 stores in more than 25 markets around the world. Uniqlo entered the US market in 2006; as of May 2022, there are 43 stores in the US. Uniqlo's distribution channel focuses on the country of origin; 812 Uniqlo stores are located in Japan. Uniqlo's distribution strategy focuses on the timing of product launches in stores, creating new products not by volume but by demand. In response to changes in Japanese fashion trends, UNIQLO has tailored designs specifically for the minimalist style popular in Japan. This affects Uniqlo's attractiveness to western distribution channels and is likely the main reason for the low number of stores in the US.
18 2.6 STRENGTHS, WEAKNESSES, OPPORTUNITIES AND THREATS (SWOT) OF COMPANY. Strengths Amigos is a retail clothing company that aims to provide affordable, high-quality fashion products to young people in Southeast Asia, particularly in Malaysia, Indonesia, and Singapore. The company is focused on following the latest fashion trends and meeting the needs of the market, while also maintaining reasonable prices and good product quality. In order to achieve this, Amigos is committed to low production costs and maintaining good quality control. The company also aims to expand its market and increase profits, while focusing on employee welfare and maintaining good relationships with business partners. The ultimate goal of the company is to become a successful international company with a global market presence. Amigos is also committed to being environmentally responsible in its product innovation and waste management. Weaknesses Our main weakness is that we are establishing a new company, therefore we have no loyal customers yet. We need to spend time on marketing our business so that we can get our name out there, which will allow our business to grow. Also, because there are only four of us running the company, we will have little time to focus on gaining the skills and experience of t-shirt design, so as our business grows, we will need to hire more employees. Opportunities If our finances permit it, we may eventually increase both our store and the products we offer. The part of northern Malaysia is a fantastic location for our company because of the abundance of institutions like colleges and universities. Our offering is simple. Our offering is a t-shirt, not an ever-evolving smart phone. Because our business is just starting out in its life cycle,
19 technology will only benefit it. Additionally, the media will benefit our company because we may produce, and market T-shirts based on the current media. Threats Every tree would be our biggest rival. They design everything from hats and outfits to mugs and key chains. For more than 20 years, all trees have provided services to both big and small businesses in Malaysia. They have established a reputation as the top local supplier of promotional and corporate gifts thanks to their wealth of knowledge. Name brand clothing companies including Hanes, Nike, Lacoste, Champion, and North Face are among the suppliers for the business. Every tree primary marketing strategy is to offer their goods at reasonable costs and with prompt service. Because we intend to sell custom-made T-shirts as well, online businesses like CustomInk.com could possibly have an impact on our business.
20 3.0 CONCLUSION The Amigos is a newly built company in Malaysia’s clothing industry. Even though our company is still new in this industry and has no loyal customers, we managed to be one of the companiesthat can sit together with other famous companiessuch as ZARA, H&M and Uniqlo. The Amigos not only focus on clothing fashion, but we also give our customers an opportunity to customize the cloth with their own design. In order to keep The Amigos, reach its objectives, vision and mission, we are currently using POLC techniques (Planning, Organizing, Leading & Controlling) into our business framework. These techniques were used to ensure that our company are compliance with Malaysia’s laws and regulation, give guidance for decision-making, and a streamline internal processes throughout our business. Moreover, The Amigos were determined to beat its rival which are ZARA, Uniqlo and H&M. So, we have used the SWOT analysis (Strengths, Weakness, Opportunities, Threats) to identify our deficiency and develop plans for our future. From the analysis, we get to know what we should improve or what we should do in order to make sure our company is famous all over the world. Last but not least, The Amigos Company hopes to achieve our vision and mission in the targeted year and prioritize it to gain success of our organizational strategies. Our ultimate goal is to conquer the Asean market. Along with these goals, we sincerely want to fulfill our own goals. Our goal is to ensure that our company continues to thrive not only for the next five or ten years, but also for generations to come.
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