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Marketing Managing

12998007

Diploma in Marketing (Level 6)

Oxford College of Marketing



CIM Professional Diploma in Marketing

Marketing Managing : Option 1

70889221

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Option 1- Implementing Quality systems in

Marketing to Improve Performance

CIM membership no: 70889221

To: XXXXXXXX – Senior Manager

From: XXXXXX – Marketing Manager

Total word count: 4945 (From task 1-4)

320 words (task 5: Justification of presentation and Report Style)

1084 words (speaker's note)

“I confirm that in forwarding this assessment for marking, I understand and have

applied the CIM policies relating to word count, plagiarism and collusion for all

tasks. This assessment is the result of my own independent work except where

otherwise stated. Other sources are acknowledged in the body of the text, a

bibliography has been appended and Harvard referencing has been used. I have not

shared my work with other candidates. I further confirm that I have submitted an

electronic copy of this assessment to CIM in accordance with the regulations.





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Content:

Executive Summary 3

Task One Cover Page 4

1.0

MQMS and Performance measuring 5

1.1 Introduction 5

1.2 Standards Brief and Outline 51.3 MQMS comparison 51.4 Recommendations 7

Task Two Cover Page 8

2.0 MQMS and Management 9

2.1 Management and leadership traits 9

2.2 Recommended Management Style 10

2.3

FMM skills gap assessment and development 11Task Three Cover Page 12

3.0 MQMS and Teamwork 13

3.1 Successful team characteristics 133.2 Employees Requirement 133.3 Management approach 14

Task Four Cover Page 15

4.0 MQMS and Budget 16

4.1 Information Sources' Evaluation 16

4.1.1

Internal sources 164.1.2 External sources 16

4.2 Justification and cost benefits analysis CBA 174.2.1 Intangible Benefits 174.2.2 Net Tangible Benefits 17

5.0 Conclusion 18

Bibliography 19

Appendix I : Organizational Brief 23

Appendix II : Description of Marketing Function 25

Appendix III : QMS Systems comparisons 26Appendix IV : Deming Questionnaire 28

Appendix V : The integrated team Development Framework 30Appendix VI : MQMS Benefit Net present value calculations 31

Appendix VII : Forecasted organizational revenues 33

Appendix VIII : MQMS costs Net present value calculations 34

Task Five Cover 6

Justification of presentation and Report Style 37





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Executive Summary

Al-Fozan Electrical Material's 'Al-Fozan' weak corporate values achievement is a result of its

weak marketing processes 'MP' which need to be improved. Even Al-Fozan has ISO-9001;

it's function was reduced to be a documentation system within finance, accounting and

inventory management and it hasn't any effect on differentMP. That generated the need for

the selection of a Marketing Quality Management System'MQMS', which could be effective

in Al-Fozan marketing business unit 'MBU' for performance improvement.

After a comparison between lean system, Deming's' total quality management TQM

approach, six sigma and theory of constraints TOC, as per the Al-Fozan's MQMS

requirements, Deming's TQM has been recommended to be the most suitable for Al-Fozan's

MBU, since Deming's guidelines will focus on different MP, it has a full scope on the

marketing business unit MBU, it has application history in sales and marketing, also it has a

team development initiative, with leadership and cross functionality involvement. But Al-

Fozan should detail each process's tasks to avoid its limitation, assess the current statusthrough Deming's questionnaire and follow the guidelines for successful implementation

results.

For successful implementation, Al-Fozan Marketing Manager's 'FMM' managerial and

leadership needed traits and skills has been assessed according to Deming's requirements for

Leadership using different skills assessment tests, which identifiedFMM's several strengths

and few skills limitation, which was a base for FMM's selling and consulting leadership

approach for Al-Fozan complicated corporate environment, and his personal development

plan PDP for his limitation's which will be based massive open online courses 'MOOC'

providers as coursera.com.

Another aspect for successful implementation is to have a successful and effective team,

where Al-Fozan Marketing team FMT has been assessed against Sheard and Kakabadse's

(2001) integrated team-development successful team characteristics with its major areas as

task, individual, group and environment, this assessment detected some critical changes to be

progressed, then different key roles and functional roles has been defined and individual

changes has been stated, these two changing aspects will be critical for successfulMQMS

implementation, also it will affect the FMM's managerial approach, afterwards an appraisal

has been stated for the FMM successful team management approach, taking in consideration

the task, individual and group's changes and aspects at each team's developing stage.

In order to build a business case, information is needed from several sources, where internal

sources and external sources has been investigated and its impact on budget where Sales

figures, Inventory cost and market trends proved to have a high impact on budget, while ERP

updates and competitors has a medium impact, while training staff has a low impact on

budget in spite of its high return benefits. Afterword intangible benefits has been stated, also

tangible benefits has been the base for a cost-benefit analysis based on Al-Fozan's forecasted

revenues after the MQMS improvement, which proved that Deming approach is beneficial.

(469 words)





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TASK 1: 1550 words





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1.0 MQMS and Performance improvement

1.1 Introduction

Al-Fozan acquired ISO-9001in 2006, but its functions was reduced to be a documentationsystem within finance, accounting and inventory management functions, in addition to the

weak corporate performance where the gross profit declined to 9% in 2013, this generated Al-Fozan's need for a marketing quality improvement process, in order to get the utmost of ISO-9001 in marketing activity quality to achieve shareholders and customers' values.

1.2 Standards Brief and Outline

All Quality management systems QMS improve the quality in its own approach (Nave,2002),

Nave (2002) stated that to choose the appropriate improvement system, you should focus on

the QMS primary effect. Using appendix III, the following table outline four different QMS.

Lean Enterprise system TQM (Deming

Approach)

Six Sigma TOC

Brief outline Mutually supportive andreinforcing set of principles, practices and methods forevolving efficient andflexible enterprises asnetworked systems creatingvalue for multiplestakeholders

Evolving system of precepts, practices,tools and techniques forimproving quality tosatisfy customer needs& expectations

Structured methods, practices and tools forreducing all sources ofvariation in order toimprove quality,satisfy customerneeds, and improvethe bottom-line

Set of ordered practices,methods and tools forimprovingthroughput in productionsystems in order tomaximize financial performance, by viewingthe production system as“chains of

interdependencies”

Focus and

Benefits

-

Reduction in flow time -

effective processes -

Uniform output -

Fast throughput

Limitation -

Statistical or systemanalysis is not valued.

-

Lack of structured process

-

System interactionnot considered

-

Process isimproved

independently

-

Minimal worker input - Data analysis not valued

Table 1.1: Adopted from (Bozdogan,2010), (Nave,2002)

1.3 Information to improve marketing processes

The following table will discuss the coherence between the different QMS and Al-Fozan

requirements.

Lean Enterprise systemTQM (Deming

Approach)Six Sigma TOC

QMS purpose -

Deliver value tomultiple stakeholders -

Build Long termdynamic network -widecapability for sustained

competitive advantage

-

Meet customerexpectations -

Improve profitabilityand shareholdervalue

-

Increase customersatisfaction -

Create economicwealth (higher profitability and

shareholder value)

-

Maximizethroughput -

Improve net profits

Effectiveness on a

Marketing

(Business Un it BU )

High High Moderate moderate

Applicability and

history in marketing

Could be applied butwithout history

Could be applied with

history (Selden,P,1997)Could be appliedwithout history

Could be appliedwithout history

Marketing scale

Strategic High Moderate Partial Partial

Tactical High High Moderate Moderate

Operational High High High HighQMS improvement -

Continuous processesimprovement

-

Continuous processes

-

Continuous process

specific

-

Continuousoperational





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-

Gradual incrementalchange

improvement -

Gradual incrementalchange

improvement; -

Discrete change improvement;

-

Incremental change

Compatibility with

MQMS core concepts;Improve marketingvalues through better

management of processes as;

-

Value proposition. - Customer

segmentation,

Satisfaction andretaining.

-

Suppliers. -

Sales. - Marketing

information system. -

Team development-

Quality -

Quality Control

-

Cross-functional- Leadership and

management. -

Bench marking.

Its concept is to achievequality throughelimination of waste,stable and synchronized

flow, and flexibleadaptive enterprise tocustomer needs. It focuson all marketingoperation, process andfunctions, Emphasis oncreating customer's value propositions andexchange amongshareholders, alsoinformation Managementin networked enterprise isa critical aspect for itssuccess.

Concentrate on process

management to reducevariation to improvequality in QMS,

establish closerelationship withcustomers & suppliers,customers' expectationsdetermination, requireheavy leadershipinvolvement, workerstrainings,empowerments,fulfillment, andDifferent functionintegration fordevelopment.

Reduce all sources ofvariation throughstructured processimprovement, using

data management andteamwork, but Itconcentrate on specific process at a time.

Improve workflow inQMS, concentrate onkey leverage pointsoffering a protection

against interruption andstops, and meanwhileensure people learning.It focus on production process and its weakest point

Implementation cycle -

Identify the waste inmarketing processes

'MP' as; marketinginformation system

MkIS, inventory,delivery, order processing time,defects, workforceutilization, which

could be achievedthrough value steam

map. -

Improve throughanalysing the waste in

MP through root

cause analysis usingtools as cause andeffect diagrams.

-

Allow customer to

pull output, after

solving the root causeusing problem-solvingtechnique.

-

Plan Marketingobjective's outputs

expectation that isneeded to be

achieved. -

Do your plan, andcollect data whileyou are doing it.

- Check the collected

data and compare itto standards and

expectations. -

Act with theappropriatecorrective actions

and determine theroot cause to thevariance in results.

-

Define the process,its key

characteristicsimportant to

customer, and itsrelation to outputconditions.

-

Measure the MP with different inputs

and outputs, andrecord the data.

-

Analyse the dataidentifying everyMP's aspects.

- Improve the process

as per data collected. -

Control as per thedesired output.

-

Identify theconstraints which

hinder MP's flow. - Exploit the MP and

improve it to get theutmost of it.

-

Subordinate and pace the other MP tothe constraints

process. -

Elevate, if the

overall output is notsatisfactory, furtherimprovement isapplied.

-

Repeat for newconstraints that mayappear.

Expert needed Yes Yes No No

Evaluation for Al-

Fozan

Theoretically applicable,

but Lean system is mainlyused for manufacturing

businesses and there is norecord in trading businessthat successfully appliedthe lean system. Moreoverits main approach is toreduce waste notimproving different MP;also it needs a developedteam to conduct it whichis not available in Al-Fozan.

Applicable, since

Deming's TQM iseffective on BU scopeand it has been appliedmarketing and salesBU. And it focuses onimproving MP to reachquality through teamdevelopment,maintaining, leadership,cross functionaloperation. But Al-Fozan should detaileach process's tasks toavoid its limitation.

Even it has a rigid

improvement structure,it isn't effectivelyapplicable, since sixsigma is mainly for plant floor withmoderate applicabilityon marketing as a BUlevel, also it has adiscrete improvement,and the MP

improvement is aseparate process.

TOC is exclusive for

the plant floor, Whichmakes it not applicableat Al-Fozan Business.

Table 1.2: Adopted from (Bozdogan,2010) ,(Manktelow,2014)





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1.4 Recommendations

Al-Fozan's most suitable MQMS will be Deming's TQM, since it mainly focuses on MP

beside its Al-Fozan's evaluation stated in table 1.2, But Al-Fozan needs to implement a

structured detailed processes for each MP to avoid its limitation (Table 1.1).

A questionnaire (Appendix III) based on Deming 14-step should be conducted with Al-

Fozan's employees, backed-up with census in depth internal interview with managers

discussing the questionnaire's results, then different MP should be designed taking in

consideration the following guidelines:

# Aspect Action required

1 Create a constant purpose

Al-Fozan MQMS process should have structured MP implemented for the purpose to achievethe following values:

- Shareholder's value to increase profit and dividends. (Simkin and Dibb,1998). -

Customer's value increasing satisfaction and customers' life time (Cross and Smith,1997). Moreover these values should be constantly communicated to the team.

2 New Quality philosophy

Al-Fozan should Motivate to produce more with fewer inputs, which is a good quality

productivity measure, but several caveats must be taken in consideration as; Marketing planning process quality and the risk within for each market in GCC, also it should focus on moredifferentiated products as wiring accessories due to its higher profits, high return customersegments as contractors, and to understand the diminishing return on investment.

3Cease inspection and Focus

on process

All MP should be carefully designed, but a fast Strategic advantage cycle SAC is an importantMP (Palmer et al.,2011). Where Al-Fozan needs to have an adequate MkIS in place (Jobber,2013): Internal reports, Market intelligence, Marketing decision support, and Marketing

research processes. These processes will enhance Al-Fozan's value proposition.

4Don't award business on

Price alone

Al-Fozan has a good evaluation Supplier price/quality criteria has been conducted. Hence noaction required.

5 Improve constantly

Using Plan-Do-Check-Act Deming cycle as Illustrated in table 1.2 Al-Fozan needs to apply it onseveral MP especially, reporting processes since it doesn't exist, and product/market strategiesdue to current weak strategies.

6 Institute Training Due to current modest calibers in Al-Fozan, a development plan should be in place.

7 Institute Leadership Al-Fozan's managerial responsibility must be to MP quality, also Managers should act as a teamcouches with Participative and transformational leadership.

8 Drive out FearEmployees should have better communication which could be measured through employees'contribution level in decision making and mistakes' blaming level.

9Breakdown Barriers

Between Departments

Departments' should cooperate to develop the MP's quality through periodical Cross functionalmeetings.

10

Eliminate Slogans,

Exhortations, and targets

the workforce

Manager should encourage employees to detail task's process, expected outcome, how to achieveresults and appraisal system, and then negotiate a common ground for implementation.

11 Eliminate Numerical Quotes Management by numerical budget achievement. Even it should be process based budget.

12Remove Barriers to Pride of

workmanship

AL-Fozan should eliminate judgment of individual and transform employees to aim for better process quality and performance, though listening to productive ideas.

13Encourage Education and

self-improvementIncentive schemes for self-development should be implemented to encourage self-development.

14 Take actions fortransformation

Management should be committed to the MP development.

Table 1.2: Adopted from (Manktelow , J ,2014), (Sherratt et al,2012),





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Task 2:1137 words





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2.0 MQMS and Management

2.1 Management and leadership traits

'Managers cannot be successful without being good leaders and leaders can't be successful

without being good managers' (Whetten & Cameron,2011,p17), in the following an

assessment of Al-Fozan marketing manager's needed skills to implement Deming MQMS,

using different management and leadership's traits based on several skills' assessment

questionnaire (Griffin, R,2009), and a critical evaluation for marketing manager's skills with

respect to these traits.

Traits & Skills for

Deming's MQMS

Implementation

Type

DescriptionEvaluation of Al-Fozan

Marketing Manager 'FMM'Score %

M a

n a g e m e n t

L e a d e r s h i p

Motivation It is a leadership more than managerial trait tomotivate; FMM should motivate individualsto follow different MQMS processes for better productivity, through realistic MQMSgoal setting, and being proud of their

contribution to the organizationaldevelopment, drive out fear, and expresstheir ideas about processes improvement.

According to Whetten &Cameron (2011) assessmentquestionnaire, FMM is in thesecond quartile, since He isrelatively capable of identifying performance problems and cantake motivational steps to correctthem, and he needs minorimprovement.

99/120 83

Plan, Set and briefgoals

FMM should take more managerial approachto goal setting since he is responsible fordesign different MQMS processes' flow and

standards to achieve MP quality, as CRM,order handling, and sales processes, withSMART objectives. And focus on MP's

effectiveness rather than numericalachievements; also he should integrateLeadership approach to brief the proceduresto assure everyone knows his part of the task.

According to Locke and Latham(1984) goal setting assessment,FMM goal setting approach

could generate successful plansfor Al-Fozan. Moreover his careerachievements reinforce theassessment results.

61/88 70

Organizing andcoordinating tasks

FMM is responsible for building, managingteam's efforts and insures MQMS tasks are

allocated correctly; also he should work inlowering barriers between departments toassure coordination between marketing andother functions for better customer valuedelivery.

According to Hackman (1990)assessment, FMM possesses highability of using team effort, alsoaccording to Roosevelt (1991)assessment he effectively managediversity and conflict in the work place.

36/40 90

Monitor andControl MP quality

FMM sets effective quantitative and

qualitative measures for the MP as visits'numbers and information needed from eachvisit, also manage activities cost. Also heevaluates the MP's result as per thesemeasures.

According to Hills and Jones(2013) assessment, FMM hasstandards and values about thecontrol in organizations. Alsoaccording to American Society ofQuality Control assessment FMM

possesses a good knowledge ofquality control.

39/40 99

Disseminatenecessaryinformation

FMM assures the information is disseminatedto assist the processes improvement as visits'numbers, market analysis, competitors'analysis and customer satisfaction reports,also internal process performances report.

Human resource's assessmentindicated that FMM used tohandle Elsewedy Group'smarketing Intelligence unit and hehas experience in classificationand dissemination of informationaccording to each individual's

need and level of involvement.

86/100 86

Self-awareness FMM should know his strengths, weakness According to Whetten & 62/66 93





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2.3 FMM skills gap assessment and development

To decrease the MQMS budget, FMM will depend on solution as; massive open onlinecourses 'MOOC' providers as coursera.com, private studies as DCIM and on-the-job learning.FMM developed a personal development plan 'PDP' for all the skills with score lower than85%. As follows:

Trait S c o r e

%

Development Plan Measure Time scale

Motivationindividuals

83 Emotional intelligence will be developed throughstudying and applying of the following courses:

-

Whetten &Cameron (2011)assessmentquestionnaire.

-

HR 360appraisals.

11 weeks (total)

-

University of Washington's introduction to publicspeaking

11 weeks

-

university of Pennsylvania's better leader richer life-

Case Western Reserve University's 10 weeks

-

Inspiring leadership through emotional intelligence. 8 weeksPlan, Set and brief goals

70 These skills set will be developed through studying andapplying of the following:

-

Locke and

Latham (1984)assessmentquestionnaire.

-

HR 360appraisals.

6 months (total)

-

Project management in marketing DCIM's module. 6 months

-

Project management professional certificate. 3 moths

-

Introduction to Operations Management fromuniversity of Pennsylvania

15 weeks

Communicationskills

75 Social skills will be developed through studying andapplying MOOC as - HR 360

appraisals.

10 weeks (total)

-

Wesleyan university's Social Psychology. 7 weeks

-

University of Amsterdam's Introduction to

communication science.

7 weeks

-

Stanford university's organizational analysis 10 weeks

Table 2.3 : PDP





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TASK 3: 1155 words





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3.0 MQMS and Teamwork

3.1 Successful team characteristics

Al-Fozan team will be successful when it is transformed to an 'Effective team' (Sheard and

kakabadse,2001), which its performance is met through development of nine key factors,

these factors could be divided into 4 major areas as follows;

Area Key factor Effective team Al-Fozan Marketing Team 'FMT' Evaluation

Task

Clearly definedgoals

UnderstandMQMSobjectives

Organizational values aren't clear for most of the team, which negativelyaffected the MP main objective leading gross profit depression below 10%.

Priorities Cohesive teamalignment

There are barriers between BUs, that appears in stock cost's variation between BU, since they don't place collective order with lower price, insteadeach BU compete to have a better price with the same supplier.

Individual

Roles andresponsibility

Agreed andunderstood byindividuals

MP isn't detailed and there are no clear job descriptions with responsibilities,task to be achieved, reports format for data collected or even what to collect.

Self-awareness Appropriate behavior toteam's need

Employees have negative attitude for working creatively due to the punishments, managers don't share information and operate with silomentality, which makes individuals think always about the bad part of theiraction's consequences.

Group

Leadership Catalytic Manager deals always as commanders for their teams to achieve their targets,also they rely on the numerical system to evaluate their team's performance,rather than measuring their team process achievement and quality.

Group dynamics Social systemestablished andaccepted

Cooperation and organization between individual is minor and each dependon himself to finish the tasks, moreover employees don't share healthysociable relationships.

Communication Open dialogue Employees discuss problems and solutions in a formal approach and theydiscuss the symptoms without addressing the cause, even feedbacks areformal and there is no room for constructive criticism, these reasons slow thedecision making process.

Environment

Context Influenced butnot controlled by organization

Due to the unclear organizational values, the teams just follow the directionof managers resulting a task focused team, as sales quota, minimizing coststask, …etc.

Infrastructure Stable supportfromorganizationinfrastructure

Current ERP system's features isn't fully used, where employees use whatthey need from it to finish their tasks, it is used to facilitate the tasks ratherthan a data-center acting as Marketing information system. MoreoverCompany don't have any training program to develop the employees.

Table 3.1 Effective team factors, Adopted from (Sheard and Kakabadse,2001) and (wheelan,1999)

3.2 Employees Requirement

A 'Successful teams are result of carful design, structure and maintenance', (Palmer et al.,

2012), the current team has a significant gap in MP due to the absence of CRM specialist

role. In the following are some roles that are important to be recruited to build a team.

Functional

Role

Expected Contribution for MQMS

implementation

Change required

FMM -

Design different market MQMS processes.

Provide speciality through activities as perDeming's approach. Motivate and drive the team

toward the MQMS process quality. Monitor measure and control MQMS different processes.And assure that corporate values are met.

Full evaluation for market manager in table 2.2, withPDP in table 2.3

Marketingspecialists

-

They conduct different MP related to customers asmarket and customer's satisfaction surveys, productapprovals, competitors' analysis, lead generation,

and coordination with sales teams. Also he acts as a

plant since he is the source of the intelligence,ideas and activities that deliver the organisational

values.

Motivation is a key aspect for Marketing personal, sincehe considered being the core function for AL-FozanMkIS. Where motivation could be achieved from theappreciation through other functions' appreciation.

Sales -

They should encompass a Shaper and evaluator They need to understand that good sales process results





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Managers for sales processes as per standards, also monitorthe cash collection processes and coordinatecustomers' credit limits with Finance.

good revenues, and if results isn't pleasant, they have toamend the process. Also they need to understand themarket information gathering process importance for better market decision.

Salesmen -

They are an implementers and completers for thesales process. Since they initiate and follow up the

customers' requirements.

They should collaborate their effort with marketingspecialists for more effective MP, and betterorganizational values achievements.

FinancialControllers

-

they act as a monitor evaluators for all MPresults.

They need to understand, that a lot of MP's benefits areintangible.

PurchasingSpecialists

- They act as resources investigators, where their

process in the MQMS is a constant evaluation for

supplier products quality, not just pricecomparisons.

They need to coordinate marketing specialist for priceindicators, and market data that could be useful toenhance their decision making and standards.

CustomerServicespecialist

-

He is a team worker who is dedicated to monitorthe MP and different way to improve it.

He should be sociable and unassertive where hecoordinates different teams' efforts to furtherimprovement of MQMS.

Table 3.2 (sherratt et al. 2011), (Piercy,2002), (Belbin,2010)

3.3 Management approach

'Integrated team-development framework' (Sheard and Kakabadse,2001) is a model embody

all aspects for the development of successful team, since it has been based on Tuckman,

Kubler Ross, and Adair's team development aspects, which could enhance theFMM

understanding of team's development stages and advise specific approach to each stage as

follows.

Forming StormingFMM will conduct a meeting in Al-Fozan five Sauditerritory and the 3 abroad countries explaining the newMQMS objective and detail each MP, this may result ashock on the individual level, but FMM should stresson MQMS importance for delivering organizationalvalues also its different tasks and objective priority

should be clear to all employees in table 3.2.

It is expected that marketing specialist will have severalconflicts with sales managers and salesmen, theseconflicts should be brought to open. FMM should focuson the positive aspects that make them integrate their processes toward integrated MQMS, through definingeach ones task and responsibilities, which considered

being a key aspect for further development. Also heshouldn't expect a lot of development at this stage.Moreover he should be sure at this stage that all salesmanagers and key employees are bought into MQMS'

process to avoid opt-out and norming/storming cycle(Appendix III)

Performing NormingTeam member are settled on the process quality,constantly contributing to the process, andcommunicating openly and effectively. FMM should be an example of effective communicator who brief,instructing and appraising and give feedbacks, simplyhe lead by example. Also FMM should work onkeeping those individuals through different motivation

techniques.

When Team start to recognize each other's' styles.Some harmony and cohesiveness begin to develop between individuals. At this stage FMM shouldencourage sales people, market specialist and othermembers to use their skills and contribute in opencommunication to gather and sort information thatcould improve the different MP further. Moreover

FMM will have a functional MkIS and aligned team for better decision.

Table 3.4: Adopted form (Palmer et al, 2011), (Sheard and Kakabadse,2001).





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TASK 4: 1104 words





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4.0 MQMS and Budget

4.1 Information Sources' Evaluation

Information sources required to determine the budget for implementation of the quality

standard, since marketing budget requires information from inside the organization and from

outside the organization (Sherratt et al.,2012). In the following is information's impact

evaluation for internal and external sources on budget.

4.1.1 Internal sources

Source Evaluation

(Why it is important?)

Impact on

Budget

Sales Figure Al-Fozan usually bases its marketing spending on sales revenues, which illustrate the importance ofrevenues' analysis to indicate the current profitability and the contribution margin for each productrange, the seasonal variation in the GCC market. Even marketing budget shouldn't be based on sales budget. These analyses will be inputs in designing several MP, which are responsible to improve theMQMS effectiveness, through enhanced customers' segment targeting that enhance profitability, toillustrate the importance of MQMS to senior management.

High

Stafftrainingcosts

Al-Fozan has modest calibers due to its low salary schemes; moreover there is no employees'development process due to low rate of return in the last period, but developing employees is a keyaspect of Deming TQM. Since it is a key aspect it will be included, But the employees' development plan will be limited on sales managers and key individual for the first two years to increase the ROI inthese years, and those trained personal will conduct what they learn to their teams.

Low

Monetarymotivationalcost

Revenues will increase with the MQMS development, which result higher bonus for sales and marketingemployees due to the current scheme, which may reduce the ROI of such investment, to avoid that a new bonus scheme should be used.

High

ERP update Several processes need to be embedded within the ERP system as; visits, quotation, purchasing orders,and CRM marketing intelligence reports, several reports should be standardized through the system, thatneeds investment to update the current limited tasks ERP.

Medium

Inventorycost

ABC analysis (selective inventory control), shows that there is a wrong stock mix which result a highstock quantity of slow moving items and hinder the purchasing for other product ranges since the overall

stock value is fixed (owner policy), this could affect the implementation of MQMS, since some products

availability will be affected resulting a customer dis-satisfaction. That will lead to extra-promotionalactivities to move this slow stock.

High

ISO-9001Renewal

Renewal cost of ISO-Certificate to maintain the registration, which includes registrar cost and trainingcost.

Low

Table 4.1

4.1.2 External Sources

Source Evaluation

(Why it is important?)

Impact on

Budget

Competitors Due to the pure competition environment of Al-Fozan's product, competitor's market penetration leveland relationship with customers is crucial, which will affect the design of Al-Fozan CRM process,where Al-Fozan could invest more in giveaways or promotions in order to develop or maintain itsrelation. Also it could affect the pricing levels, sector, size, and product portfolio.

Medium

Markettrends andopportunities

GCC countries dedicated US$1.8 trillion for regional development with average annual development9% (Deloitte, 2013), that will generate a lot of electrical supplies opportunities, that emphasis the needfor a structured intelligence reporting process. Since these processes will give knowledge about new product that could be supplied to upcoming new projects; as railways' products, led lighting, UPSsystems and high voltage equipment. This will increase the budget of market intelligence.

High

PESTELanalysis

The most effective is the new labor law regulations and expenses accompanied to the new amendmenthave higher fees on the expats, which increased the expenses and decreased profit margin.

High

Customers Customer satisfaction report is crucial which needed to be detailed and integrated to the daily task ofmarketing specialists and salesmen, which is a pre-alarm for customer churn rate.

Low

Table 4.2





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4.2 Justification and Cost benefits analysis CBA

In the following is a Deming TQM budget's justification through forecasted benefits analysis,

most of MQMS's benefits is intangible (sheratt et al.,2012). The following is an illustration to

tangible and intangible analysis followed by CBA for the tangible part.

4.2.1 Intangible Benefits

Aspect Benefits

ERP SystemMQMS intelligence process through ERP system will act as a data center that hold knowledge for betterdecision making

Staff MoralsMQMS employee development process will increase the employees' morals, which generate a healthylearning environment, where they collaborate to increase their knowledge. This will result higherindividual's productivity.

Brand Image

MQMS aims to customer satisfaction, which result Al-Fozan's better market position which will increase

customer retention and increase customer life value.

Performancemeasure

MQMS standardized processes defined a certain performance standard that could be implementedmonitored and controlled. So that for any result deviation, the variance could be easily detected andamended.

Inventory Costmanagement

MQMS's supplier evaluation process and intelligence process will provide purchasing departmentknowledge that could increase Al-Fozan negotiation power, inventory cost planning and management,which will increase customer value and shareholder value.

Suppliersrelation

MQMS supplier evaluation process will advise the suppliers who should be maintained.

Constantlyimprove

MQMS will provide a core for further improvement in all MP.

4.2.2

Net Tangible Benefit In order to evaluate the MQMS monetary benefits, Al-Fozan is in need of 'discounted cash

flow model' (Horngren, et al., 2012) as Net present value NPV. According to NPV Calculated

as per appendix V the benefits' monetary values are as follows:

Aspect Benefits NPV for 5

years

investment

(SAR)

Staff time

saving

ERP system will save reporting time for salesmen, sales manager and FMM(Appendix: V)

1,643,241.60

Staff

Retentions

The employees' development plan and involvement in decision making will retain

talents, which will decrease the training cost of new employees. 3,569,741.28

Staff

Productivity

Due to the MQMS processes and motivational scheme, it is expected that the productivity of the system will increase with annual rate of 5% annually.

2,366,267.90

Inventory

CostingIt is expected that the average inventory purchasing cost decrease by 5%.

76,896,435.56Profitability

improvement

MQMS MkIS processes will help increasing profitability through better product mix,increase market share and new product development based on the customers' needanalysis.

Total 84,475,686.34





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The cost incurred for 5 years investment is as follows

Aspect NPV for 5 years(SAR)

Staff training costs 311,148.00

ERP update 4,385,000.00

Monetary motivational cost 12,030,492.27

ISO-9001 Renewal 220,350.00

Total 16,946,990.27

The return on investment ROI calculation will be as follows:

(

)

( )

5.0 Conclusion

Deming TQM process is the most suitable system for developing MP, since it help in

developing shareholders and customers' values effectively, also with an adequate FMM's

leadership approach, FMT's successful effective team development, and Deming principals'

right implementation, Al-Fozan could achieve 13% gross profit (Appendix V), and 398.5%

ROI deployed.





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Appendix I: Organizational Brief

Al-Fozan Electrical Materials 'Al-Fozan' was established in 1983 as privet corporate and a

part of Al-Fozan Group. In 2003, Madar Electric Material was formed to act as the abroad

BUs in the GCC region. Al-Fozan has main Saudi Arabia's warehouses located in Dammam,

Riyadh and Jeddah. Also it has a warehouse in Qatar, Bahrain and United Arab Emirates. Ithas 22 Distribution Branch outlets in different provinces in KSA too.

Product Profile:

Al-Fozan deals trade in electrical wires and cables, wiring accessories, and conduits. Also

95% of its sales is accounted to electrical wires and cables, even though its margin is

diminishing over time due to its market is moving towards pure competition. Its sales figure is

presented as follows.

Sales Figures:

2012 2013

Sales(MSAR)

Margin(MSAR)

GP%

%T.SALES

Sales(MSAR)

Margin(MSAR) GP

%T.SALES

North Province KSA 33.9 4.1 12.0 9% 37.0 5.0 13.4 9%

South Province KSA 39.1 3.9 10.0 11% 39.5 4.5 11.5 10%

Central ProvinceKSA 50.9 6.7 13.1 14% 54.5 8.0 14.7 14%

East Province KSA 78.1 7.0 9.0 22% 84.3 8.7 10.3 21%

West Province KSA 48.2 6.0 12.5 13% 55.4 7.8 14.1 14%

Qatar 55.7 7.2 12.9 15% 64.2 5.3 8.2 16%Bahrain 11.0 0.1 1.1 3% 13.0 0.1 1.0 3%

UAE 44.9 3.6 8.0 12% 49.3 4.3 8.6 12%

Total 361.71 38.6 11% 100% 397.188 43.6 11% 100%

Al-Fozan's customers are as follows:

62%

24%

14%

Sales

Retailers MEP Contractors End Customer





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Competitors:

Al-Fozan main competitors per territory are as follows:

Leader Follower 1 Follower 2 North Province KSA

South Province KSA Fahd Elmidaas Al-Fozan

Central ProvinceKSA Olayan Group

AL-ABDULKARIM

East Province KSA AL-ABDULKARIM Al-Fozan

West Province KSA Modern Oceans Electricals Al-Tharw Al-Fozan

Qatar Elsewedy Electro-trade Al-Fozan

Bahrain BICC Al-Fozan Everest

UAEAbu Dhabi maritime &mercantile international

AL-JALALTRADING EST.

Al Zubair GeneralTrading(Dubai)





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Appendix II: Description of Marketing Function

The marketing department activities is reduced to a sales support function , where the CRM

specialist or the sales manager support the sales team in pre-qualifying their product to

consultancies, also to negotiate the credit limits to new customer. There are no intelligence

activities, or communication activities.

The Marketing teams skills' are modest, in terms of negotiation skills, communication and

education. Where most of the salesmen are not engineers even most of Al-Fozan material

needs engineering knowledge.

Al-Fozan Marketing Department consists of 48 employees mainly dedicated to sales activates

with the following hierarchy:

Marketing & SalesManager

Sales Manager West

Provience

6 Salesmen,

1 Sales Support,0 CRM specialist

Sales Manager EastProvience

6 Salesmen,

1 Sales Support,

0 CRM specialist

1 Salesmen (Bahrain)

Sales Manager North

Provience

6 Salesmen,

1 Sales Support,0 CRM specialist

Sales Manager SouthProvience

6 Salesmen,

1 Sales Support,

0 CRM specialist

Sales Manager CentralProvience

6 Salesmen,

1 Sales Support,

0 CRM specialist

Sales Manager Qatar

1 Salesmen,

1 Sales Support,

0 CRM specialist

Sales Manager UAE

5 Salesmen,

1 Sales Support,

0 CRM specialist





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Appendix III: QMS Systems comparisons

This is a comparison between 4 quality improvement systems adopted from (Bozdogan, 2010)

Lean thinking TQM (Deming

Approach)

Six Sigma TOC

History Since late 1940s (emphasison developments since mid-1990s)

Since early 1980s Since mid-1980s Since mid-1980s

Goal -

Deliver value to multiplestakeholders

-

Build Long term dynamicnetwork -wide capability

for sustained competitive

advantage

-

Meet customerexpectations

-

Improve profitability and

shareholder value

-

Increase customersatisfaction

-

Create economicwealth (higher

profitability and

shareholder value

-

Maximize throughput - Improve net profits

Defining feature Mutually supportive andreinforcing set of principles, practices and methods forevolving efficient andflexible enterprises as

networked systems creatingvalue for multiplestakeholders

Evolving system of precepts, practices,tools and techniquesfor improving qualityto satisfy customer

needs & expectations

Structured methods, practices and tools forreducing all sources ofvariation in order toimprove quality, satisfy

customer needs, andimprove the bottom line

Set of ordered practices,methods and tools forimprovingthroughput in production systems in

order to maximizefinancial performance, by viewing the production system as“chains of

interdependencies”

Core concepts - Eliminate waste towardsthe goal of creating value.

-

Ensure stability and

synchronized flow. -

Evolve and efficientflexible and adaptive

enterprise

- Concentrate on processmanagement to

reduce sources ofvariation.

- Establish close

links to customers& suppliers

-

Ensure heavyleadershipinvolvement

-

Develop an open

organisation -

Workers trainingsand empowermentand fulfilment.

- Reduce all sources ofvariation.

-

Structured process

improvement. -

Data drivenmanagement

-

Emphasize teamwork

- Improve workflow(throughput) in the production system

-

Concentrate on keyleverage points(constraints) offering

greatest performanceimprovements

-

Protect productionline againstinterruptions

-

Ensure people learn

better and faster

Focus -

Focusing on all enterpriseoperations, processes and

functions -

Emphasis on creatingrobust value propositionsand value exchangesamong stakeholders

-

Managing complexinterdependenciesthroughout the networkedenterprise (information

flows, knowledgesharing, network -wide

learning & capability- building)

-

Determiningcustomer

expectations -

Focus on core business processes

-

Integration ofdesign,

development & productionoperations

-

Establishing

strong links tosuppliers

-

Concentration onspecific prioritized

business processes -

Focus on reducing allsources of variation toimprove quality,increase efficiency &

shorten cycle time

-

Concentration on production processes

-

Focus on the weakest

point (constraint)impeding workflowand causing bothdelays & inefficiency

Implementation -

Top-down directive process involving

-

strong leadership support& engagement

- Using structured process

(frameworks, roadmaps)

for enterprise-levelcontinuous improvement& planned systemic

-

Top-downdirective processinvolving heavymulti-level

management

participation

-

Using a portfolioof practices, tools& techniques to

-

Top-down directive process involvingstructured managementengagement (project

champions, sponsors) -

Using DMAIC (Define,

Measure, Analyse,Improve, Control) asthe dominant

-

Top-down directive process involvingmanagement participation

- Using structured

process employing

focusing steps (toremove constraints),ten-step Decalogue





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change -

Use of outside experts(providing facilitation,mentoring, training,

implementation services)or internally managed

process

implementcontinuousimprovement

-

Use of outside

experts (providingfacilitation,

mentoring,

training,implementationservices) or

internallymanaged process

implementation method -

Largely internallymanaged process withsupport/facilitation by

outside experts

for system-widemanagement, and“drum- buffer -rope” production

scheduling methodfor managing

production line

-

Mostly internallymanaged processwith

support/facilitation by outside experts

Mode of

Improvement

and Change

Continuous processimprovement; gradualincremental change; plannedsystemic enterprise change& realignment

Continuous processimprovement;gradual incrementalchange

Continuous processspecific improvement;incremental change (indiscrete small orlarge steps)

Continuous operationalimprovement;incremental change

Enterprise scale

Strategic Full Partial Little LittleTactical Full Moderate Moderate Partial

Operational Full Full Full FullEnterprise Scope

Networkedenterprise

Full partial partial little

Core Enterprise Full moderate partial partial

Business Unit Full Full moderate moderateFactory Floor Full Full Full Full





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Appendix IV: Deming Questionnaire

This questionnaire were conducted to 8 Sales manager and 33 salesman all over Marketing

and sales business units head, among several other questions in random order. And the

average of each question mean values is displayed in the Assignment under Mean value

column.

DemingFactor

Question1 2 3 4 5

1 Bad5 Excellent

Creating Constancy of Purpose

1

1 Top management makes Marketing long-term plans

2 Top management provides for research and development to meet customer needs

3 Top management Promotes employee trainings/ education

Adopting the new philosophy

2

4Top management is committed to MQMS process Quality improvement as a way to increase profit

5 top management is committed to setting objectives for quality improvement

6 Top management is committed to continuous quality enhancement as a primary goal

Ceasing reliance on mass inspection

3

7 Suppliers use statistical quality control techniques

8 Quantitative and qualitative market data analysis is constantly and systematically gathered.

9top management support the belief that quality must be "built into" the product not "inspectedinto" it

Ending the practice of awarding business based on price tag alone

4

10 supplier selection is based on both quality and price rather than price only

11 suppliers are involved in the product/service development process

12 Long-term relationships are developed with suppliers.

13 there is reliance on a few dependable suppliers

Improving constantly the system of production or service

5

14 Customers‟ requirements are analyzed in the process of developing a product/se rvice

15 Customers‟ feedback is used to continually improve the product/service

16 Top management manager MkIS to improve the product/service

Instituting training

6

17 Employees are trained in statistical improvement techniques

18 Employees are trained in quality-related matters

19 Employees are trained in specific work-related skills

20 Supervisors are trained in statistical improvement techniques

Instituting leadership

7

21 Supervisors help their employees on the job

22 Supervisors work to build the trust of their employees

23 Supervisors lead in a way that is consistent with the aims of the organization

24 Supervisors are viewed as coaches by their employees

Driving out fear

8

25 Employees express new ideas related to improving work methods

26 Employees seek their supervisors‟ assistance when unsure of their tasks interfere with quality 27 Employees feel they have job security





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Breaking down barriers among departments

9

28 Different departments have compatible goals

29 In the product/service design process there is teamwork among departments

30 There is good communications among departments

Eliminating slogans and targets

10

31 Top management provides its workers with the methods/procedures to meet goals

32Top management, not the hourly workers, is responsible for removing obstacles that causedefects/errors

33Top management does not use vague slogans (for example, “Do It Right The First Time”) incommunicating with its employees

Eliminating numerical quotas

11

34 Work standards are based on quality and quantity rather than quantity alone

35 Work standards are set based on process capability studies

36 Numerical quotas are not given higher priority than quality of workmanship

Removing barriers to pride in workmanship

12

37 Performance appraisals are not used to rank employees38 The quality of the working environment is good

39 There is adequate documentation on how to do the job

40 There is no pressure for short-term results

41 Top management sets realistic goals for its employees

Instituting education and self-improvement

13

42 There are programs to develop teamwork among employees

43 There are programs to develop effective communications among employees

44 There are programs to develop employees‟ conflict resolution skills

45 There are programs to broaden employees‟ skills for future organizational needs

Taking action to accomplish the transformation

14

46 Top management takes action toward executing its quality improvement policies

47 Top management makes its quality improvement policies visible to all employees

48Top management relies on internal or external consultants to implement its qualityimprovement policies

Adopted from (Tamimi,N et al, 1995)





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Appendix V: the integrated team Development Framework

Figure 3.1: the integrated team Development Framework





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Appendix VI: MQMS benefits Net present value calculations

- Saving due to ERP report saving time: No. of

employees

Average Hour rate

SARHours saved monthly

Annually

Saving

Sales Support 7 128.57 4 43,200.00

Salesmen 33 204.55 4 324,000.00Sales Managers 7 271.43 4 91,200.00Marketing

Manager1 425.00 4 20,400.00

Total (SAR) 478,800.00

o Net present value for 5 years Year 2015 2016 2017 2018 2019

Present Value of Benefits (year) 419,907.60 368,197.20 323,190.00 283,449.60 248,497.20Present Value of Benefits 1,643,241.60

- Gain due to productivity increased 3%

No. ofemployees Average Hour rateSAR Hours Gain due to 3%productivity increase Annually saving

Sales Support 7 128.57 5.8 62,208.00Salesmen 33 204.55 5.8 466,560.00Sales Managers 7 271.43 5.8 131,328.00Marketing Manager 1 425.00 5.8 29,376.00

689,472.00

o Net present value for 5 years: Year 2015 2016 2017 2018 2019

Present Value of Benefits (year) 604,666.94 530,203.97 465,393.60 408,167.42 357,835.97Present Value of Benefits 2,366,267.90

-

Saving due to Employees retention: Based on HR analysis the productivity of the new employees compared to full developed

employee is 50% over the beginning 6 months (576 hours of productivity), also the turnover

percentage in marketing is 30%. Taking in consideration that Al-Fozan could retain

employees for 5 years, the following is what is saved every two years.

No. of

employees

Average Hour rate

SAR

Our lost every two years

Sales Support 7 128.57 155,520.00Salesmen 33 204.55 1,166,400.00Sales Managers 7 271.43 328,320.00Marketing Manager 1 425.00 73,440.00

1,723,680.00o Net present value for 5 years

Year 2015 2016 2017 2018 2019

Present Value of Benefits (year) 1,511,667.36 0.00 1,163,484.00 0.00 894,589.92Present Value of Benefits 3,569,741.28

- Gain due to higher market share, amended product mix and better

costing. 2015 2016 2017 2018 2019

Percentage gain as gross profit due to higher

market share (2%) and higher wiring

accessories product mix

1.00% 1.39% 1.77% 2.15% 2.52%

Percentage gain from new purchasing power 3% 3% 3% 3% 3%397,000,000 436,700,000 480,370,000 528,407,000 581,247,700





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15,880,000 19,175,100 22,931,712 27,205,921 32,060,138

o Net present value for 5 years Year 2015 2016 2017 2018 2019

Present Value of Benefits (year) 13,926,760.00 14,745,651.90 15,478,905.94 16,105,905.64 16,639,212.08Present Value of Benefits 76,896,435.56





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Appendix VII: Forecasted organizational revenues

Revenues (Forecasted) without process improvement

SAR 2015 2016 2017 2018 2019

Revenues (Forecasted) without amendment 397,000,000.00 432,730,000.00 471,675,700.00 514,126,513.00 560,397,899.17

Wires share of revenues 0.95 0.95 0.95 0.95 0.95

Wiring accessories share of revenues 0.05 0.05 0.05 0.05 0.05

Wires share of revenues % 377,150,000.00 411,093,500.00 448,091,915.00 488,420,187.35 532,378,004.21

Wiring accessories share of revenues % 19,850,000.00 21,636,500.00 23,583,785.00 25,706,325.65 28,019,894.96

Wires share of GP (AVG PRFT ~ 10%) 37,715,000.00 41,109,350.00 44,809,191.50 48,842,018.74 53,237,800.42

Wiring accessories share of GP (AVG PRFT ~20%) 3,970,000.00 4,327,300.00 4,716,757.00 5,141,265.13 5,603,978.99

Total GP 41,685,000.00 45,436,650.00 49,525,948.50 53,983,283.87 58,841,779.41

Gross Profit/Year % 10.50% 10.50% 10.50% 10.50% 10.50%

Revenues (Forecasted) with process improvement

SAR 2015 2016 2017 2018 2019

Revenues (Forecasted) without amendment 397,000,000.00 436,700,000.00 480,370,000.00 528,407,000.00 581,247,700.00

Wires share of revenues % 0.85 0.8 0.75 0.7 0.65

Wiring accessories share of revenues % 0.15 0.2 0.25 0.3 0.35

Wires share of revenues 337,450,000.00 346,184,000.00 353,756,775.00 359,888,559.10 364,258,634.46

Wiring accessories share of revenues 59,550,000.00 86,546,000.00 117,918,925.00 154,237,953.90 196,139,264.71Wires share Contribution margin % (AVGPRFT ~ 10%) 33,745,000.00 34,618,400.00 35,375,677.50 35,988,855.91 36,425,863.45Wiring accessories Contribution margin%(AVG PRFT ~20%) 11,910,000.00 17,309,200.00 23,583,785.00 30,847,590.78 39,227,852.94

Total GP 45,655,000.00 51,927,600.00 58,959,462.50 66,836,446.69 75,653,716.39

Gross Profit/Year % 11.50% 11.89% 12.27% 12.65% 13.02%

Delta GP due to amendments 1.00% 1.39% 1.77% 2.15% 2.52%





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Appendix VIII: MQMS costs Net present value calculations

MQMS costs 2015 2016 2017 2018 2019

Training CostISO training 40,000.00 100,000.00

Soft skills Training 64,000.00 90,000.00 90,000.00 90,000.00

ERP updates 5,000,000.00

Bonus 3,374,500.00 3,461,840.00 3,537,567.75 3,598,885.59 3,642,586.34

ISO Certificate

registration

150,000.00 150,000.00

Total Costs – year SAR 8,628,500.00 3,461,840.00 3,627,567.75 3,938,885.59 3,732,586.34

Present Value of Costs

(year) 7,567,194.50 2,662,154.96 2,448,608.23 2,331,820.27 1,937,212.31

Present Value of Costs 16,946,990.27





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Task 5: 320 words





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Justification of presentation and Report Style

- Report Style:

The report design and style based on the 'psychology of persuasion' (Hogan, K, 2004)

techniques, where it has been designed in outcome-based thinking with target audiences' need

as a major objective to be achieved as; higher profits for shareholders through increasing

customer satisfaction through MQMS for the different MP. It used two important persuasion

laws as; Reciprocity law by emphasizing the corporate values from the target audiences and

why MQMS is important to develop it through the CBA's illustration of how beneficial is the

MQMS implementation. Also Contrast law by tables comparisons where different aspects

are put together to illustrate the relative differences; asMQMS selection process where

different QMS put together in a table to find the most suitable one, FMM skills 'assessment

where a comparison between managerial and leadership traits description and the current

strengths and limitation has been measured to illustrate the currentFMM capability which

was the foundation for the PDP and FMT evaluation which helps illustrating the key changed

needed for successful team development.

The report also reflected an 'assertive behavior' (Sherratt et al, 2012) since it focus on the

problem not the people where it stated a constructive criticism forFMM and FMT with non-

exaggerating style, also illustrated that the basic essence ofMQMS is the acknowledgement,

encouragement and collaboration of individuals' point of views to detail theMQMS different

processes, and it was logical, clear and analytical where it stated the general concepts and its

key aspect that needed for successful implementation.

- Presentation style

The presentation design designed to be a 'powerful presentation' (Hogan, K, 2004). Where itwas a brief presentation of the report findings stating its main objectives, also in the

beginning it made a futuristic 'vivid picture' (Hogan, K, 2004) of the MQMS implementation,

with corporate's benefits in the centered. Also it used appropriate visuals and followed

corporate identity manual.



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1. The are a lot of heresy about ‘why we do business?’, but we all will agree that the

main two values of doing business is shareholders financial gain and customers

value,

2. but in order to sustain and develop these values we have to have sets of effective

processes, as purchasing process, team development process, and above all of this

the marketing process, which contain sales, market intelligence, communication,

and product development processes. Where to sustain shareholder values as profit

margin and dividends and customers’ values, we have to continually monitor, control

and develop these process. Simply as B. Franklin said “Without continual growth and

progress, such words as improvement, achievement and success have no meaning”.

3. The Fact is even though Al-Fozan is ISO-9000 certified we haven’t yet gotten the

utmost of these standards in the marketing Quality system management MQMS, butthe question is what is the benefits of investing in MQMS?

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The benefit is more than 30 million with a cost of 1 million !! And the following will

illustrate that, but before we jump into the plan we have to understand why Deming has

been chosen to improve Al-Fozan

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All Quality management systems QMS improve the quality in its own approach,

but to choose the appropriate a marketing quality system MQMS, you should

focus on its primary effect. Which makes the systems applicability as follows

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“A bad system will defeat a good person every time.” – Deming, that is why we willillustrate Deming’s system key aspects to improve the MQMS. And we should stick to its

description and evaluate Alfozan’s processes according to its guidelines and questionaireresults, this is an overview for each Deming’s aspect, for further illustration you can goin the report for table 1.2:

1 - Al-Fozan MQMS process should have structured MP implemented for thepurpose to achieve the following values:

Shareholder's value and Customer's value, Moreover these values should beconstantly communicated to the team.

2- Al-Fozan should Motivate to produce more with fewer inputs, whether theseinputs is time, material or effort.

3- All MP should be carefully designed, where the effort should be in detailingeach aspect rather than inspection, which will enhance Al-Fozan's valueproposition.

4 - Al-Fozan has a good evaluation Supplier price/quality criteria has beenconducted. Hence no action required.

5 - Using Plan-Do-Check-Act Deming cycle as Illustrated in table 1.2, Al-Fozanneeds to apply it on all MP

6 - Due to current calibers limitation in Al-Fozan, a development plan should be inplace.

7- Al-Fozan's managerial responsibility must be to MP quality, also Managersshould act as a team couches with Participative and transformational leadership.

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8 - Employees should have better communication which could be measured

through employees' contribution level in decision making and mistakes' blaming

level.

9 - Departments' should cooperate to develop the MP's quality through

periodical Cross functional meetings.

10- Manager should encourage employees to detail task's process, expected

outcome, how to achieve results and appraisal system, and then negotiate a

common ground for implementation.

11 - Management by numerical budget achievement. Even it should be process

based budget.

12 - AL-Fozan should eliminate judgment of individual and transform employees

to aim for better process quality and performance, though listening to productive

ideas.

13 - Incentive schemes for self-development should be implemented to

encourage self-development.

14 - Management should be committed to the MP development.

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'Managers cannot be successful without being good leaders and leaders can't be

successful without being good managers'

FMM skills 'assessment where a comparison between managerial and leadership

traits description and the current strengths and limitation has been measured to

illustrate the current FMM capability which will be the basic foundation for the

personal development plan, for indepth illustration of assessment process check

table 2.1 and for indepth view of PDP check table 2.3

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Al-Fozan environment is complicated, since there are a lot of different ethnicity

limited skills old employees with young managers in charge, low salary schemes,

high managers' turnover, and no promotion for old employees, which illustrate

that leadership style could be selling to make change that they aren't aware of its

benefits, also sometime consulting to get the utmost of their market experience,

but all comes with benefits and limitation as follows:

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To decrease the MQMS budget, FMM will depend on solution as; massive open

online courses 'MOOC' providers as coursera.com, private studies as DCIM and

on-the-job learning. FMM developed a personal development plan 'PDP' for all

the skills with score lower than 85%. As follows:

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A successful team is an effective team, which its performance is met through

development of nine key factors, for an in-depth evaluation of current Al-Fozan

Marketing team, kindly check table 3.1.

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•'You build your people, your people will build your business‘, A 'Successful

teams are result of carful design, structure and maintenance’ the current team

has a significant gap in MP due to the absence of CRM specialist role. In the

following are some roles that are important to be recruited to build a team. Also

to check the change needed from each role kindly check table 3.2.

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'Integrated team-development framework' (Sheard and Kakabadse,2001) is a

model embody all aspects for the development of successful team, since it has

been based on Tuckman, Kubler Ross, and Adair's team development aspects,

which could enhance the FMM understanding of team's development stages and

advise specific approach to each stage as follows:

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Marketing manager should take in consideration 'the forming out-out' and the

norming/storming cycle", where some key individuals never enter storming, as

they retreat into denial, even though the team is functional, this could lead that

the team will not perform as it should perform, that is why they needed to be

bought in the process.

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Information sources required to determine the budget for implementation of the

quality standard, since marketing budget requires information from inside the

organization and from outside the organization. In the following is information's

impact evaluation for internal and external sources on budget. For in-depth

understanding kindly check table 4.1. and 4.2

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In order to evaluate the MQMS monetary benefits, Al-Fozan is in need of

'discounted cash flow model' as Net present value NPV. According to NPV

Calculated as per appendix V the benefits' monetary values are as follows:

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The cost incurred for 5 years investment is as follows

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I can have your questions now


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