In the Bengaluru market Career builder Pvt. Ltd had shown good performance in the past along with consistently increasing market share but the turnover of the company had reduced recently along with a decline in market share. While the number of MBA aspirants was growing at a rate of 15-20% per annum the market share of the company had declined by 4% in the 6 month period from 1 Jan, 2006 to 30 Jun, 2006. The Bengaluru region’s contribution to overall profit declined from 17.55% in 2005 to 11.5% in 2006 till July. The senior management at Bengaluru has been unstable with 4 changes in the Regional Manager position in Bangalore in the past 2 years. As a result of these fluctuations there was lack of employees with relevant experience for the position and a new position of Deputy Regional Manager was created in the Bangalore centre. Despite some measures taken by the new manger the revenues still declined which led to a performance rating of ‘average’ given to him. This along with the recruitment of an Army Major for the position of Regional manager had led to dissatisfaction and thus the resignation of the Deputy Regional Manager. The company is now faced with challenges of increasing the revenues in a competitive market environment with the entry of new players in the market and also to maintain the employee satisfaction. Problems
There has been lack of coordination between the top management and the regional centers. The appointment of Major was the reason for resentment among Bengaluru team. It can be attributed to autocratic type of management by Khanna. Internal Problems
* Promotion was not aligned properly with the competencies required. The promotion of Ms Blossom as regional manager despite having the competencies and then demoting her shows the unstructured way of promotion. * Similar things happened for Malhotra where a new post was created for him and was appointed as deputy regional manager skipping the post of branch head. Performance Appraisal System
* There was a flaw in the appraisal system. The revenue generation was considered as the major criteria for appraisal. * The performance ratings of Mr. Malhotra were impacted due to this as he was evaluated on the revenue and number of enrolments that was an outcome of the strategies followed during the tenure of Ms Blossom. Hence lagging criteria played a major role during appraisal. * Moreover his performance was measured on the basis of 6 months. He had implemented various innovative and creative ideas which would have shown results in future and hence these factors were ignored during his appraisal.
* The company did not have alternative for regional manager post. They recruited people who lacked competencies. A better recruitment along with succession planning was required
* Career Builders did not update itself with the ongoing market demands. There was an increase in the number of aspirants and hence the competitors. The company could have designed new packages for students through innovation and suitable discounts could have been provided. * The company have not done enough for marketing and brand building. Ms Blossom did not utilize the full money deputed for promotional activities. * There was no benchmarking done with competitors and external market related to fee structure and brand awareness.
Options and evaluation :
Market share, employee satisfaction, customer satisfaction, costs incurred are some of the parameters used to evaluate the various options as given below : 1) Market analysis to evaluate the competitor’s strengths for higher market share and necessary feedback incorporated in current management practices * The benchmarking of the fees taken by the competitors, the qualifications of the faculty would result in some expenses but will provide an important feedback to highlight the...
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