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“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.
1
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 - Increasing profitability
and revenue
- Return on assets
-Increased sales revenue
- Profit ratio
Customer perspective - Customer loyalty
- Attaining new customers
- Orders from current
customers
- Orders from new
customers
Internal perspective - Adherence to schedule
- Customer driven
products
- Productivity
- Ratio of actual delivery
times to planned schedule
- Ratio of on time
deliveries
