EU Design
“EU Design’s Rise in the Apparel and Fashion Industry”
Current Management Style EU Design’s management style was founded in a very small business environment. There was little standardization of individual tasks. In a small business, everyone on staff is expected to be involved in all day-to-day business activities. This creates a very informal relationship between workers and management. In addition to the small business aspect, EU Design is in a creative industry. Many of the people in this industry are not trained or educated in formal business practices. A creative mindset takes precedence over the structure of the business. For EU Design, quality of product is not an issue at the present time. The company is ISO 9000 certified with SA8000 accreditation. However, growing into a larger company requires a more formal management style to ensure this quality is kept up to standard. EU Design needs to develop a mission statement and corporate vision for the employees to have a common goal as a move toward a more formal management style. Without a defined mission statement, employees will have their own ideas of the company’s goals. Once a mission statement and business strategy is established, EU Design needs to identify which performance metric is most essential to the continued growth of the company.
Balanced Scorecard
While financials such as return on capital and cash flow are imperative to the sustainability of a company, customer-related metrics such as quality and timeliness of delivery are of upmost importance to keep the clients who will provide the profit. Customer feedback and surveys will provide the measurement of the value being created for clients. This will help EU Design’s management focus more on what the client’s actual needs are instead of focusing on what they perceive customer needs to be. An example of the balanced scorecard would resemble the exhibit below:
Objectives
Measures
Financial perspective
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Current Management Style EU Design’s management style was founded in a very small business environment. There was little standardization of individual tasks. In a small business, everyone on staff is expected to be involved in all day-to-day business activities. This creates a very informal relationship between workers and management. In addition to the small business aspect, EU Design is in a creative industry. Many of the people in this industry are not trained or educated in formal business practices. A creative mindset takes precedence over the structure of the business. For EU Design, quality of product is not an issue at the present time. The company is ISO 9000 certified with SA8000 accreditation. However, growing into a larger company requires a more formal management style to ensure this quality is kept up to standard. EU Design needs to develop a mission statement and corporate vision for the employees to have a common goal as a move toward a more formal management style. Without a defined mission statement, employees will have their own ideas of the company’s goals. Once a mission statement and business strategy is established, EU Design needs to identify which performance metric is most essential to the continued growth of the company.
Balanced Scorecard
While financials such as return on capital and cash flow are imperative to the sustainability of a company, customer-related metrics such as quality and timeliness of delivery are of upmost importance to keep the clients who will provide the profit. Customer feedback and surveys will provide the measurement of the value being created for clients. This will help EU Design’s management focus more on what the client’s actual needs are instead of focusing on what they perceive customer needs to be. An example of the balanced scorecard would resemble the exhibit below:
Objectives
Measures
Financial perspective
-