¶ … Capellon
My work as a management consultant means that I must analyze and assess the marketing sector of the pharmaceutical company in a continuous and ongoing fashion. This means that I need to provide help in shedding light on the company's top management as a means of comprehending how the activity of this department is evolving in reference to concrete strategies, goals which are not realized and fundamental performance indicators which report smaller values when compared with the exact same period of the previous year. This paper will look at the unique case of Capellon, a company which is currently in a marked decrease in sales, despite a marked financial and staff push to increase their sales. This paper will discuss the unique needs and stressors of this company and will determine the specific weaknesses which are leading it to be so dysfunctional. Finally, the paper will discuss a particular, multi-faceted solution for the company.
Goals of the Marketing Department
In order to discover if a company issue originates with the marketing department and how to best illuminate this issue, one needs to pinpoint the objective involved and the necessary level of accomplishment. Thus, interviews need to be conducted with the company leaders and all managers. In this case, the following goals were revealed: bolstering sales by 20%, bolstering the number of pharmacies that carry the product by 15% and bettering all relations with business associates.
It was also useful to engage in concerted sales analyses to demonstrate that these goals were not realized: the feedback from sales managers reported our competitors thriving at the expense of our own products. Promotional activities were used as a means of pushing the product forward, but the results continued to be less than what many of us anticipated. This meant that the product manager needed to step up his game and his results and work harder to engage in marketing tactics that could really move the product forward. Essentially, this analysis meant that our competitors had a marketing manager who was more in touch with effective marketing techniques.
Situation Analysis
One of the biggest problems that was revealed was with the marketing team: communication was strong, the budget was increased, but sales not only didn't increase, they were less than the year before. All of these extra efforts had caused a decrease in sales, something that no one had expected. The one thing that could be certain was that there was internal unrest and unproductive changes within the department. In fact, interviews revealed that the long time manager of the nursing department had in fact moved on to a competing company, something which no doubt shook the overall morale of the company. The replacement manager (a group product manager) proved to be an unsuccessful collaboration as this manager ended up leaving the company as well for a competitor. Thus, a marketing manager was hired from an outside agency. This new manager still needed time to become acclimated, and it was found that her altogether different working style required the rest of the team members be able to adjust for a particular period of time. As expected, many of the team members in place proved themselves to be resistant to change, and a range of disagreements then surfaced. This was the point when pressure began to mount and become largely unmanageable: meetings became longer and more contentious, nerves were on edge, and communication became more riddled with conflict. This manifested as an increased employee turnover within departments, particularly within the marketing department. For instance, a common trend that would manifest in this department would be when people would be hired, treated badly, and would then leave for positions elsewhere.
Problem Diagnosis
The most aggravated issues within the company happened on a strategic, tactical, and operational level (Davila et al., 2012). Poor management was one of the most overwhelming issues faced by the company: this made staffing feel like a revolving door, and kept productivity at an all-time low. Another fixed manifestation of the problem was that there was constant upper-level management interference with the marketing manager. On the one hand, this was understandable, as the marketing department needed as much help as they could get; on the other hand, it made this manager feel micromanaged as if there was absolutely no trust involved. The problem became even more aggravated with surveillance cameras were put in marketing offices -- a blatant form of distrust. To make matters worse, more long meetings were scheduled and employee satisfaction rates plummeted.
Solutions
One of...
Solution Identification To identify a solution, one must understand the nature of the problems. In addition to what has already been identified, it is worth noting that failure to reach the original objectives is not just an execution problem, but a problem with the objectives themselves. A 20% increase in sales would in most mature businesses be considered phenomenal in nature. So the failure to reach an unrealistic goal is hardly
Risk & Reward Worst Case Scenario Kent (2008) discusses risk and notes that entrepreneurs seek to reduce risk. Entrepreneurism is risky because entrepreneurs do not know what they are doing. This may have been something Peter Drucker said, but the reality is a little more complex. Entrepreneurial activity is risky because there are few established givens -- sales are not well-established, products and process may not be refined -- and building a
Management Initially, the problem was identified as being related to the new manager, who brought with him a leadership style and ideas about marketing that did not align with the prevailing culture within the marketing department. The result was that despite an increase in budget, the performance of the marketing unit regressed, losing sales rather than meeting the target of increasing by 20%. Another problem was that the company's marketing seemed
Consultant Cover Letter CEO, Capellon Pharmaceuticals This memo serves as an introduction to my consulting services and a briefing of the work I have just completed for Capellon. I met with Alexi Parsons two weeks earlier to outline a plan for my consultation and to set this day as the target for completion of my research. Below, I describe my perspective of the challenges Capellon faces, my research findings, and my recommendations
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