Management Case Study

Management Case Study



Management Case Study

Introduction

The paper discusses the case study that identify the issues and suggestion about the company Richmond toys. The focus is towards the development of new product Athletic toys and the shareholders/executive issues.

Risks

Management Structure

Within the framework, of the management process flows, which gets distributed among the participants of the function and control problems. From this position, the organizational structure of a form of division and cooperation of management, under which the management process aimed at achieving the goals of the organization. Hence, the governance structure includes all the goals, distributed among the various units, which provide a link between the coordination of their implementation (Wensley,1996,37-46).

The management structure has a huge impact on all aspects of management, as associated with the key concepts of management - goals, functions, process, mechanism of operation, the power of people. Therefore, managers at all levels attach great importance to the principles and methods of forming structures, the choice of the type or combination of types of structures, to study trends in their construction, evaluation of their compliance with the goals and objectives get solved. The management structure of Richmond toys comprise of sic executive directors with the functional responsibilities. The board is chaired by the CEO, and there is not separate chairman. It is important for the company to be listed in the local stock market so that the governance code requires the half of the board including, the independent, non executive directors. One of the major concern of the shareholders is that they want to see the non executive directors appointed whether or not Richmond toy gains a listing, they are not unhappy about the way the board get runs over the last couple pf years because the other directors defer far too much to the chief executive's view. The shareholders believe that an increased presence of the non executives could be useful control on the board activities.

Another aspect is that the shareholders are not happy with the directors; remuneration package. The basic salaries have increases and the directors are also paid bonuses of maximum 20% of their salaries. There is no remuneration committee because the salaries get set by the chief executive and the finance director. The CEO argues that the alternative products have the strategy significance for Richmond toys since the success justifies the company seeking a stock market listing.

Developing the New Athletic Girl Toy

The company plans to come up with a new toy named as athletic girls. The toys will be sold in the package with a number of accessories. The product launch will start by a cartoon series on the American and European television about the Athletic girls. This will happen to create awareness and demand of the product. This product will be the first toys that will not be manufactured in house. One of the two directors of the company is doubtful about the success of this product. This view gets expressed keeping inv view the doubts that the product will not be ...