Assignment/Project Front Sheet: CIM Membership Number

Assignment/Project Front Sheet
CIM Membership
Number
12998007
Unit Title
Marketing Managing
Level/Award
Diploma in Marketing (Level 6)
Accredited Study
Centre
Oxford College of Marketing
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marking, I understand and have applied the CIM policies relating to word count,
plagiarism and collusion for all tasks. This assignment/project is the result of my
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sources are acknowledged in the body of the text/and a bibliography is appended.
The work that I have submitted has not been previously accepted in substance for
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candidates.
I hereby give consent for my assignment/project, if accepted, to be available for

CIM use in relation to dissemination of best practice and, or, other appropriate
purposes. It is on the understanding that all studying member numbers would be
removed prior to use for the purposes of full anonymity.
Tick here to opt out
Candidate Number :
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June 2014
CIM Professional Diploma in Marketing

Marketing Managing : Option 1
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
Task One Cover Page
1.0 MQMS and Performance measuring
1.1Introduction
1.2Standards Brief and Outline
1.3 MQMS comparison
1.4 Recommendations
Task Two Cover Page
2.0 MQMS and Management
2.1 Management and leadership traits
2.2 Recommended Management Style
2.3 FMM skills gap assessment and development
Task Three Cover Page
3.0 MQMS and Teamwork
3.1 Successful team characteristics
3.2 Employees Requirement
3.3 Management approach
Task Four Cover Page
4.0 MQMS and Budget
4.1 Information Sources' Evaluation
4.1.1 Internal sources
4.1.2 External sources
4.2 Justification and cost benefits analysis CBA
4.2.1 Intangible Benefits
4.2.2 Net Tangible Benefits
5.0 Conclusion
Bibliography
: Organizational Brief
Appendix I
: Description of Marketing Function
Appendix II
: QMS Systems comparisons
Appendix III
: Deming Questionnaire
Appendix IV
: The integrated team Development Framework
Appendix V
: MQMS Benefit Net present value calculations
Appendix VI
: Forecasted organizational revenues
Appendix VII
Appendix VIII : MQMS costs Net present value calculations
Task Five Cover Page
Justification of presentation and Report Style
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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 different MP. 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 AlFozan should detail each process's tasks to avoid its limitation, assess the current status
through 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 identified FMM'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 successful MQMS
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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1.0MQMS and Performance improvement

1.1 Introduction
Al-Fozan acquired ISO-9001in 2006, but its functions was reduced to be a documentation
system 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 AlFozan's need for a marketing quality improvement process, in order to get the utmost of ISO9001 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
Brief outline
Mutually supportive and

reinforcing set of principles,
practices and methods for
evolving efficient and
flexible enterprises as
networked systems creating
value for multiple
stakeholders
Focus and
Benefits
Limitation
TQM (Deming
Approach)
Evolving system of
precepts, practices,
tools and techniques for
improving quality to
satisfy customer needs
& expectations
Six Sigma
TOC
Structured methods,
practices and tools for
reducing all sources of
variation in order to
improve quality,
satisfy customer
needs, and improve
the bottom-line
Set of ordered practices,

methods and tools for
improving
throughput in production
systems in order to
maximize financial
performance, by viewing
the production system as
chains of
interdependencies
- Fast throughput
- Reduction in flow time
- effective processes
- Uniform output
- Statistical or system
analysis is not valued.
- Lack of structured
process
- System interaction
not considered
- Process is
improved
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 system
QMS purpose
Effectiveness on a
Marketing
(Business Unit BU)
Applicability and
history in marketing
Marketing scale
Strategic
Tactical
Operational
QMS improvement
- Deliver value to
multiple stakeholders
- Build Long term
dynamic network-wide
capability for sustained
competitive advantage
High
TQM (Deming
Approach)
- Meet customer
expectations
- Improve profitability
and shareholder
value
Six Sigma
TOC
High
- Increase customer
satisfaction
- Create economic
wealth (higher
profitability and
shareholder value)
Moderate
- Maximize
throughput
- Improve net profits
moderate
Could be applied but

without history
Could be applied with

history (Selden,P,1997)
Could be applied
without history
Could be applied
without history
High
High
High
- Continuous processes
improvement
Moderate
High
High
- Continuous
processes
Partial
Moderate
High
- Continuous process
specific
Partial
Moderate
High
- Continuous
operational
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- Gradual incremental
change
Compatibility with
MQMS core concepts;
Improve marketing
values through better
management of
processes as;
- Value proposition.
- Customer
segmentation,
Satisfaction and
retaining.
- Suppliers.
- Sales.
- Marketing
information system.
- Team development
- Quality
- Quality Control
- Cross-functional
- Leadership and
management.
- Bench marking.
Implementation cycle
Its concept is to achieve

quality through
elimination of waste,
stable and synchronized
flow, and flexible
adaptive enterprise to
customer needs. It focus
on all marketing
operation, process and
functions, Emphasis on
creating customer's value
propositions and
exchange among
shareholders, also
information Management
in networked enterprise is
a critical aspect for its
success.
- Identify the waste in

marketing processes
'MP' as; marketing
information system
MkIS, inventory,
delivery, order
processing time,
defects, workforce
utilization, which
could be achieved
through value steam
map.
- Improve through
analysing the waste in
MP through root
cause analysis using
tools as cause and
effect diagrams.
- Allow customer to
pull output, after
solving the root cause
using problem-solving
technique.
Yes
Theoretically applicable,
but Lean system is mainly
used for manufacturing
businesses and there is no
record in trading business
that successfully applied
the lean system. Moreover
its main approach is to
reduce waste not
improving different MP;
also it needs a developed
team to conduct it which
is not available in AlFozan.

improvement
- Gradual incremental
change
Concentrate on process
management to reduce
variation to improve
quality in QMS,
establish close
relationship with
customers & suppliers,
customers' expectations
determination, require
heavy leadership
involvement, workers
trainings,
empowerments,
fulfillment, and
Different function
integration for
development.
- Plan Marketing
objective's outputs
expectation that is
needed to be
achieved.
- Do your plan, and
collect data while
you are doing it.
- Check the collected
data and compare it
to standards and
expectations.
- Act with the
appropriate
corrective actions
and determine the
root cause to the
variance in results.
Yes
Applicable, since
Deming's TQM is
effective on BU scope
and it has been applied
marketing and sales
BU. And it focuses on
improving MP to reach
quality through team
development,
maintaining, leadership,
cross functional
operation. But AlFozan should detail
each process's tasks to
avoid its limitation.
Table 1.2: Adopted from (Bozdogan,2010) ,(Manktelow,2014)
Expert needed
Evaluation for AlFozan
improvement;
- Discrete change
Reduce all sources of
variation through
structured process
improvement, using
data management and
teamwork, but It
concentrate on specific
process at a time.
- Define the process,

its key
characteristics
important to
customer, and its
relation to output
conditions.
- Measure the MP
with different inputs
and outputs, and
record the data.
- Analyse the data
identifying every
MP's aspects.
- Improve the process
as per data collected.
- Control as per the
desired output.
No
Even it has a rigid
improvement structure,
it isn't effectively
applicable, since six
sigma is mainly for
plant floor with
moderate applicability
on marketing as a BU
level, also it has a
discrete improvement,
and the MP
improvement is a
separate process.
improvement;
- Incremental change
Improve workflow in
QMS, concentrate on
key leverage points
offering a protection
against interruption and
stops, and meanwhile
ensure people learning.
It focus on production
process and its weakest
point
- Identify the
constraints which
hinder MP's flow.
- Exploit the MP and
improve it to get the
utmost of it.
- Subordinate and
pace the other MP to
the constraints
process.
- Elevate, if the
overall output is not
satisfactory, further
improvement is
applied.
- Repeat for new
constraints that may
appear.
No
TOC is exclusive for
the plant floor, Which
makes it not applicable
at Al-Fozan Business.
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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 AlFozan'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
Create a constant purpose
New Quality philosophy
Cease inspection and Focus

on process
Don't award business on

Price alone
Improve constantly
Institute Training
Institute Leadership
Drive out Fear
Action required
Al-Fozan MQMS process should have structured MP implemented for the purpose to achieve
the 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.
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 more
differentiated products as wiring accessories due to its higher profits, high return customer
segments as contractors, and to understand the diminishing return on investment.
All MP should be carefully designed, but a fast Strategic advantage cycle SAC is an important
MP (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.
Al-Fozan has a good evaluation Supplier price/quality criteria has been conducted. Hence no
action required.
Using Plan-Do-Check-Act Deming cycle as Illustrated in table 1.2 Al-Fozan needs to apply it on
several MP especially, reporting processes since it doesn't exist, and product/market strategies
due to current weak strategies.
Due to current modest calibers in Al-Fozan, a development plan should be in place.
Al-Fozan's managerial responsibility must be to MP quality, also Managers should act as a team
couches with Participative and transformational leadership.
Employees should have better communication which could be measured through employees'
contribution level in decision making and mistakes' blaming level.
Departments' should cooperate to develop the MP's quality through periodical Cross functional
meetings.
Breakdown Barriers
Between Departments
Eliminate Slogans,
Manager should encourage employees to detail task's process, expected outcome, how to achieve
10 Exhortations, and targets
results and appraisal system, and then negotiate a common ground for implementation.
the workforce
11 Eliminate Numerical Quotes Management by numerical budget achievement. Even it should be process based budget.
Remove Barriers to Pride of AL-Fozan should eliminate judgment of individual and transform employees to aim for better
12
process quality and performance, though listening to productive ideas.
workmanship
Encourage Education and
Incentive schemes for self-development should be implemented to encourage self-development.
13
self-improvement
Take actions for
Management should be committed to the MP development.
14
transformation
Table 1.2: Adopted from (Manktelow , J ,2014), (Sherratt et al,2012),
9
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Task 2:1137 words
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2.0MQMS 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.
Leadership
Traits & Skills for

Deming's MQMS
Implementation
Management
Type
Description
Motivation
It is a leadership more than managerial trait to

motivate; FMM should motivate individuals
to follow different MQMS processes for
better productivity, through realistic MQMS
goal setting, and being proud of their
contribution to the organizational
development, drive out fear, and express
their ideas about processes improvement.
Plan, Set and brief

goals
FMM should take more managerial approach

to goal setting since he is responsible for
design different MQMS processes' flow and
standards to achieve MP quality, as CRM,
order handling, and sales processes, with
SMART objectives. And focus on MP's
effectiveness rather than numerical
achievements; also he should integrate
Leadership approach to brief the procedures
to assure everyone knows his part of the task.
FMM is responsible for building, managing
team's efforts and insures MQMS tasks are
allocated correctly; also he should work in
lowering barriers between departments to
assure coordination between marketing and
other functions for better customer value
delivery.
FMM sets effective quantitative and
qualitative measures for the MP as visits'
numbers and information needed from each
visit, also manage activities cost. Also he
evaluates the MP's result as per these
measures.
Organizing and
coordinating tasks
Monitor and
Control MP quality
Disseminate
necessary
information
FMM assures the information is disseminated

to assist the processes improvement as visits'
numbers, market analysis, competitors'
analysis and customer satisfaction reports,
also internal process performances report.
Self-awareness
FMM should know his strengths, weakness
Evaluation of Al-Fozan
Marketing Manager 'FMM'
Score
According to Whetten &

Cameron (2011) assessment
questionnaire, FMM is in the
second quartile, since He is
relatively capable of identifying
performance problems and can
take motivational steps to correct
them, and he needs minor
improvement.
According to Locke and Latham
(1984) goal setting assessment,
FMM goal setting approach
could generate successful plans
for Al-Fozan. Moreover his career
achievements reinforce the
assessment results.
99/120
83
61/88
70
According to Hackman (1990)

assessment, FMM possesses high
ability of using team effort, also
according to Roosevelt (1991)
assessment he effectively manage
diversity and conflict in the work
place.
According to Hills and Jones
(2013) assessment, FMM has
standards and values about the
control in organizations. Also
according to American Society of
Quality Control assessment FMM
possesses a good knowledge of
quality control.
Human resource's assessment
indicated that FMM used to
handle Elsewedy Group's
marketing Intelligence unit and he
has experience in classification
and dissemination of information
according to each individual's
need and level of involvement.
According to Whetten &
36/40
90
39/40
99
86/100
86
62/66
93
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and how he think and take actions.
Technical skills for

Al-Fozan
FMM should have electrical engineering

background with a Diploma in marketing
DCIM.
Developing
Individual and
delegation
FMM constantly develops, coaches and

encourages his team. Also he provides
trainings for higher performance. Later he
delegates authority to them at certain
situation.
Social skills
FMM should influence for high performance,
good communicator, be a change catalyst,
and manage conflicts on objective trait. All
over all he should be an example to all the
aspect he expect from Al-Fozan employees.
Table: 2.1 adopted from (Palmer et al,2011), (Griffin, R,2009)
Cameron (2011), FMM is in top

quartile; he is extremely selfaware and open to feedback from
others
FMM is an electrical engineer
and he is in pursue to Diploma in
marketing from chartered
institute. Moreover he possesses
adequate knowledge in ISO-9001
standard.
FMM had experience as a
freelancer in team developing,
which will be an asset in getting
high performance out of Al-Fozan
marketing team.
FMM's listening skills need to be
developed since his extrovert
personality tends to make him a
talker more than listener.
85/100
85
90/100
90
75/100
75
2.2 The Recommended style of leadership and management

Al-Fozan environment is complicated, since there are a lot of different ethnicity modest
skilled 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 consulting to get the utmost
of their market experience, which could be illustrated as follows:
Style
Characteristics
Situations
- FMM unable to reveal all

necessary information.
Selling
- Logical clear problem.
- Employees' don't share
organisational MQMS goals.
Leaders presents
- FMM Don't have enough
problem, gets
relevant information.
suggestions, but
- Unclear problem which need
retain the final say
to be discussed.
Consult
- Will result weak employees'
commitment.
As introducing a new product to
the market.
Table 2.2: Adopted from (Sherratt et al.,2012)
Leaders make
decision and
motivate people to
accept
Strengths
Limitations
- Employees' awareness for

decision's reasons.
- better commitment that
autocratic Leadership.
- Better staff performance
- Motivated employees
- Advantage of employees'
ownership to decision
- Effective for complex
situation
- One-way communication may

result employees' acceptance.
- Doesn't encourage staff's
initiative and commitment.
- Longer time to reach decision.
- Staff could be immature to
formulate opinion.
- Could turn easily to selling style
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2.3 FMM skills gap assessment and development
Trait
Motivation
individuals
Plan, Set and

brief goals
Score
%
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:
83
70
Development Plan
Measure
Time scale
Emotional intelligence will be developed through

studying and applying of the following courses:
- University of Washington's introduction to public
speaking
- university of Pennsylvania's better leader richer life
- Case Western Reserve University's
- Inspiring leadership through emotional intelligence.
These skills set will be developed through studying and
applying of the following:
- Project management in marketing DCIM's module.
- Whetten &
Cameron (2011)
assessment
questionnaire.
- HR 360
appraisals.
11 weeks (total)
- Project management professional certificate.
Communication
skills
75
- Introduction to Operations Management from

university of Pennsylvania
Social skills will be developed through studying and
applying MOOC as
- Wesleyan university's Social Psychology.
- University of Amsterdam's Introduction to
communication science.
- Stanford university's organizational analysis
- Locke and
Latham (1984)
assessment
questionnaire.
- HR 360
appraisals.
11 weeks
10 weeks
8 weeks
6 months (total)
6 months
3 moths
15 weeks
10 weeks (total)
- HR 360
appraisals.
7 weeks
7 weeks
10 weeks
Table 2.3 : PDP
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TASK 3: 1155 words
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3.0MQMS 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
Task
Key factor
Clearly defined
goals
Priorities
Roles and
responsibility
Individual
Self-awareness
Effective team
Understand
MQMS
objectives
Cohesive team
alignment
Agreed and
understood by
individuals
Appropriate
behavior to
team's need
Al-Fozan Marketing Team 'FMT' Evaluation

Organizational values aren't clear for most of the team, which negatively
affected the MP main objective leading gross profit depression below 10%.
There are barriers between BUs, that appears in stock cost's variation
between BU, since they don't place collective order with lower price, instead
each BU compete to have a better price with the same supplier.
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.
Employees have negative attitude for working creatively due to the

punishments, managers don't share information and operate with silo
mentality, which makes individuals think always about the bad part of their
action's consequences.
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 system
Cooperation and organization between individual is minor and each depend
established and
on himself to finish the tasks, moreover employees don't share healthy
Group
accepted
sociable relationships.
Communication Open dialogue
Employees discuss problems and solutions in a formal approach and they
discuss the symptoms without addressing the cause, even feedbacks are
formal and there is no room for constructive criticism, these reasons slow the
decision making process.
Context
Influenced but
Due to the unclear organizational values, the teams just follow the direction
not controlled
of managers resulting a task focused team, as sales quota, minimizing costs
by organization
task, etc.
Environment
Infrastructure
Stable support
Current ERP system's features isn't fully used, where employees use what
from
they need from it to finish their tasks, it is used to facilitate the tasks rather
organization
than a data-center acting as Marketing information system. Moreover
infrastructure
Company 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
FMM
Marketing
specialists
Sales
Expected Contribution for MQMS

implementation
- Design different market MQMS processes.
Provide speciality through activities as per
Deming'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.
- They conduct different MP related to customers as
market and customer's satisfaction surveys, product
approvals, 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.
- They should encompass a Shaper and evaluator
Change required
Full evaluation for market manager in table 2.2, with
PDP in table 2.3
Motivation is a key aspect for Marketing personal, since

he considered being the core function for AL-Fozan
MkIS. Where motivation could be achieved from the
appreciation through other functions' appreciation.
They need to understand that good sales process results

Page 13 of 36
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Managers
for sales processes as per standards, also monitor

the cash collection processes and coordinate
customers' credit limits with Finance.
Salesmen
- They are an implementers and completers for the

sales process. Since they initiate and follow up the
customers' requirements.
- they act as a monitor evaluators for all MP
results.
- They act as resources investigators, where their
process in the MQMS is a constant evaluation for
supplier products quality, not just price
comparisons.
- He is a team worker who is dedicated to monitor
the MP and different way to improve it.
Financial
Controllers
Purchasing
Specialists
Customer
Service
specialist
Table 3.2 (sherratt et al. 2011), (Piercy,2002), (Belbin,2010)
good revenues, and if results isn't pleasant, they have to

amend the process. Also they need to understand the
market information gathering process importance for
better market decision.
They should collaborate their effort with marketing
specialists for more effective MP, and better
organizational values achievements.
They need to understand, that a lot of MP's benefits are
intangible.
They need to coordinate marketing specialist for price
indicators, and market data that could be useful to
enhance their decision making and standards.
He should be sociable and unassertive where he
coordinates different teams' efforts to further
improvement of MQMS.
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 the FMM
understanding of team's development stages and advise specific approach to each stage as
follows.
Forming
Storming
FMM will conduct a meeting in Al-Fozan five Saudi

territory and the 3 abroad countries explaining the new
MQMS objective and detail each MP, this may result a
shock on the individual level, but FMM should stress
on MQMS importance for delivering organizational
values 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 several

conflicts with sales managers and salesmen, these
conflicts should be brought to open. FMM should focus
on the positive aspects that make them integrate their
processes toward integrated MQMS, through defining
each ones task and responsibilities, which considered
being a key aspect for further development. Also he
shouldn't expect a lot of development at this stage.
Moreover he should be sure at this stage that all sales
managers and key employees are bought into MQMS'
process to avoid opt-out and norming/storming cycle
(Appendix III)
Performing
Norming
Team member are settled on the process quality,

constantly contributing to the process, and
communicating openly and effectively. FMM should
be an example of effective communicator who brief,
instructing and appraising and give feedbacks, simply
he lead by example. Also FMM should work on
keeping 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 should
encourage sales people, market specialist and other
members to use their skills and contribute in open
communication to gather and sort information that
could 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).
Page 14 of 36
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TASK 4: 1104 words
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4.0MQMS 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
Sales Figure
Staff
training
costs
Monetary
motivational
cost
ERP update
Inventory
cost
ISO-9001
Renewal
Table 4.1
Evaluation
(Why it is important?)
Al-Fozan usually bases its marketing spending on sales revenues, which illustrate the importance of
revenues' analysis to indicate the current profitability and the contribution margin for each product
range, 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 the
MQMS effectiveness, through enhanced customers' segment targeting that enhance profitability, to
illustrate the importance of MQMS to senior management.
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 key
aspect 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 in
these years, and those trained personal will conduct what they learn to their teams.
Revenues will increase with the MQMS development, which result higher bonus for sales and marketing
employees due to the current scheme, which may reduce the ROI of such investment, to avoid that a new
bonus scheme should be used.
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, that
needs investment to update the current limited tasks ERP.
ABC analysis (selective inventory control), shows that there is a wrong stock mix which result a high
stock 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-promotional
activities to move this slow stock.
Renewal cost of ISO-Certificate to maintain the registration, which includes registrar cost and training
cost.
Impact on
Budget
High
Low
High
Medium
High
Low
4.1.2 External Sources

Source
Competitors
Market
trends and
opportunities
PESTEL
analysis
Customers
Evaluation
(Why it is important?)
Due to the pure competition environment of Al-Fozan's product, competitor's market penetration level
and 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 its
relation. Also it could affect the pricing levels, sector, size, and product portfolio.
GCC countries dedicated US$1.8 trillion for regional development with average annual development
9% (Deloitte, 2013), that will generate a lot of electrical supplies opportunities, that emphasis the need
for 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, UPS
systems and high voltage equipment. This will increase the budget of market intelligence.
The most effective is the new labor law regulations and expenses accompanied to the new amendment
have higher fees on the expats, which increased the expenses and decreased profit margin.
Customer satisfaction report is crucial which needed to be detailed and integrated to the daily task of
marketing specialists and salesmen, which is a pre-alarm for customer churn rate.
Impact on
Budget
Table 4.2
Page 16 of 36
Medium
High
High
Low
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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 System
Staff Morals
Brand Image
Performance
measure
Inventory Cost
management
Suppliers
relation
Constantly
improve
MQMS intelligence process through ERP system will act as a data center that hold knowledge for better
decision making
MQMS employee development process will increase the employees' morals, which generate a healthy
learning environment, where they collaborate to increase their knowledge. This will result higher
individual's productivity.
MQMS aims to customer satisfaction, which result Al-Fozan's better market position which will increase
customer retention and increase customer life value.
MQMS standardized processes defined a certain performance standard that could be implemented
monitored and controlled. So that for any result deviation, the variance could be easily detected and
amended.
MQMS's supplier evaluation process and intelligence process will provide purchasing department
knowledge that could increase Al-Fozan negotiation power, inventory cost planning and management,
which will increase customer value and shareholder value.
MQMS supplier evaluation process will advise the suppliers who should be maintained.
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
Staff time
saving
Staff
Retentions
Staff
Productivity
Inventory
Costing
ERP system will save reporting time for salesmen, sales manager and FMM
(Appendix: V)
The employees' development plan and involvement in decision making will retain
talents, which will decrease the training cost of new employees.
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.
Profitability
improvement
Total
NPV for 5
years
investment
(SAR)
1,643,241.60
3,569,741.28
2,366,267.90
It is expected that the average inventory purchasing cost decrease by 5%.

MQMS MkIS processes will help increasing profitability through better product mix,
increase market share and new product development based on the customers' need
analysis.
76,896,435.56
84,475,686.34
Page 17 of 36
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The cost incurred for 5 years investment is as follows

Aspect
NPV for 5 years

(SAR)
311,148.00
Staff training costs
4,385,000.00
12,030,492.27
220,350.00
16,946,990.27
ERP update
Monetary motivational cost
ISO-9001 Renewal
Total
The return on investment ROI calculation will be as follows:
(
(
)
)
5.0Conclusion
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.
Page 18 of 36
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- Bibliography
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Bozdaogan, K (2010b) "Towards An Integration Of The Lean Enterprise System, Total

Quality Management, Six Sigma And Related Enterprise Process Improvement Methods".
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Avita Business Institute (2014) The Six Sigma Method or Demings? [online]
http://www.sixsigmaonline.org/six-sigma-training-certification-information/articles/the-sixsigma-method-or-deming%E2%80%99s.html [Accessed 1 April 2014]
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Griffin, R (2009): Fundamental of managements, Skills of effective manager questionnaire

[online], http://college.cengage.com/cgibin/business_assessment.cgi?TEST=1&ASSESS_FILE=/business/griffin_fundamentals/3e/st
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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. It
has 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
North Province KSA

South Province KSA
Central Province
KSA
East Province KSA
West Province KSA
Qatar
Bahrain
UAE
Total
2013
Sales
Margin
GP
%
Sales
Margin
%
(MSAR) (MSAR) %
T.SALES (MSAR) (MSAR) GP
T.SALES
33.9
4.1
12.0
9%
37.0
5.0 13.4
9%
39.1
3.9
10.0
11%
39.5
4.5 11.5
10%
50.9
78.1
48.2
55.7
11.0
44.9
361.71
6.7
7.0
6.0
7.2
0.1
3.6
38.6
13.1
9.0
12.5
12.9
1.1
8.0
11%
14%
22%
13%
15%
3%
12%
100%
54.5
84.3
55.4
64.2
13.0
49.3
397.188
8.0 14.7
8.7 10.3
7.8 14.1
5.3
8.2
0.1
1.0
4.3
8.6
43.6 11%
Al-Fozan's customers are as follows:
Sales
Retailers
MEP Contractors
End Customer
14%
24%
62%
Page 23 of 36
14%
21%
14%
16%
3%
12%
100%
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Competitors:
Al-Fozan main competitors per territory are as follows:
Leader
Follower 1
Follower 2
South Province KSA

Central Province
KSA
Fahd Elmidaas
Olayan Group
Al-Fozan
ALABDULKARIM
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
Abu Dhabi maritime &
mercantile international
Al-Fozan
AL-JALAL
TRADING EST.
Everest
Al Zubair General
Trading(Dubai)
North Province KSA
UAE
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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:
Sales Manager West

Provience
6 Salesmen,
1 Sales Support,
0 CRM specialist
6 Salesmen,
Sales Manager East

Provience
1 Sales Support,
0 CRM specialist
1 Salesmen (Bahrain)
Sales Manager North

Provience
Marketing & Sales

Manager
Sales Manager South

Provience
Sales Manager Central

Provience
6 Salesmen,
1 Sales Support,
0 CRM specialist
6 Salesmen,
1 Sales Support,
0 CRM specialist
6 Salesmen,
1 Sales Support,
0 CRM specialist
1 Salesmen,
Sales Manager Qatar
1 Sales Support,
0 CRM specialist
5 Salesmen,
Sales Manager UAE
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
History
Goal
Defining feature
Since late 1940s (emphasis

on developments since mid1990s)
- Deliver value to multiple
stakeholders
- Build Long term dynamic
network-wide capability
for sustained competitive
advantage
Mutually supportive and
reinforcing set of principles,
practices and methods for
evolving efficient and
flexible enterprises as
networked systems creating
value for multiple
stakeholders
Core concepts
- Eliminate waste towards

the goal of creating value.
- Ensure stability and
synchronized flow.
- Evolve and efficient
flexible and adaptive
enterprise
Focus
- Focusing on all enterprise

operations, processes and
functions
- Emphasis on creating
robust value propositions
and value exchanges
among stakeholders
- Managing complex
interdependencies
throughout the networked
enterprise (information
flows, knowledge
sharing, network-wide
learning & capabilitybuilding)
- Top-down directive
process involving
- strong leadership support
& engagement
- Using structured process
(frameworks, roadmaps)
for enterprise-level
continuous improvement
& planned systemic
Implementation
TQM (Deming
Approach)
Since early 1980s
- Meet customer
expectations
- Improve
profitability and
shareholder value
Evolving system of
precepts, practices,
tools and techniques
for improving quality
to satisfy customer
needs & expectations
Six Sigma
TOC
Since mid-1980s
Since mid-1980s
- Increase customer
satisfaction
- Create economic
wealth (higher
profitability and
shareholder value
Structured methods,
practices and tools for
reducing all sources of
variation in order to
improve quality, satisfy
customer needs, and
improve the bottom line
- Maximize throughput
- Improve net profits
Set of ordered practices,

methods and tools for
improving
throughput in
production systems in
order to maximize
financial performance,
by viewing the
production system as
chains of
interdependencies
- Improve workflow
(throughput) in the
production system
- Concentrate on key
leverage points
(constraints) offering
greatest performance
improvements
- Protect production
line against
interruptions
- Ensure people learn
better and faster
- Concentrate on
process
management to
reduce sources of
variation.
- Establish close
links to customers
& suppliers
- Ensure heavy
leadership
involvement
- Develop an open
organisation
- Workers trainings
and empowerment
and fulfilment.
- Determining
customer
expectations
- Focus on core
business processes
- Integration of
design,
development &
production
operations
- Establishing
strong links to
suppliers
- Reduce all sources of

variation.
- Structured process
improvement.
- Data driven
management
- Emphasize teamwork
- Concentration on
specific prioritized
business processes
- Focus on reducing all
sources of variation to
improve quality,
increase efficiency &
shorten cycle time
- Concentration on
production processes
- Focus on the weakest
point (constraint)
impeding workflow
and causing both
delays & inefficiency
- Top-down
directive process
involving heavy
multi-level
management
participation
- Using a portfolio
of practices, tools
& techniques to
process involving
structured management
engagement (project
champions, sponsors)
- Using DMAIC (Define,
Measure, Analyse,
Improve, Control) as
the dominant
process involving
management
participation
- Using structured
process employing
focusing steps (to
remove constraints),
ten-step Decalogue
Page 26 of 36
Candidate Number :
Board :
70889221
June 2014
change
- Use of outside experts
(providing facilitation,
mentoring, training,
implementation services)
or internally managed
process
Mode of
Improvement
and Change
Enterprise scale
Strategic
Tactical
Operational
Enterprise Scope
Networked
enterprise
Core Enterprise
Business Unit
Factory Floor
Continuous process
improvement; gradual
incremental change; planned
systemic enterprise change
& realignment

implement
continuous
improvement
- Use of outside
experts (providing
facilitation,
mentoring,
training,
implementation
services) or
internally
managed process
Continuous process
improvement;
gradual incremental
change
implementation method
- Largely internally
managed process with
support/facilitation by
outside experts
Continuous process
specific improvement;
incremental change (in
discrete small or
large steps)
for system-wide
management, and
drum-buffer-rope
production
scheduling method
for managing
production line
- Mostly internally
managed process
with
support/facilitation
by outside experts
Continuous operational
improvement;
incremental change
Full
Full
Full
Partial
Moderate
Full
Little
Moderate
Full
Little
Partial
Full
Full
partial
partial
little
Full
Full
Full
moderate
Full
Full
partial
moderate
Full
partial
moderate
Full
Page 27 of 36
Candidate Number :
Board :
70889221
June 2014

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.
Deming
Factor
Question
1
5
Bad
Excellent
Creating Constancy of Purpose

1
Top management makes Marketing long-term plans
Top management provides for research and development to meet customer needs
Top management Promotes employee trainings/ education
4
5
Adopting the new philosophy

Top management is committed to MQMS process Quality improvement as a way to increase
profit
top management is committed to setting objectives for quality improvement
Top management is committed to continuous quality enhancement as a primary goal

Ceasing reliance on mass inspection
Suppliers use statistical quality control techniques
8
9
Quantitative and qualitative market data analysis is constantly and systematically gathered.
top management support the belief that quality must be "built into" the product not "inspected
into" it
Ending the practice of awarding business based on price tag alone
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
14
Customers requirements are analyzed in the process of developing a product/service
15
Customers feedback is used to continually improve the product/service
16
Top management manager MkIS to improve the product/service

Instituting training
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
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
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

Page 28 of 36
Candidate Number :
Board :
70889221
June 2014

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
31
10
32
33
11
Top management provides its workers with the methods/procedures to meet goals
Top management, not the hourly workers, is responsible for removing obstacles that cause
defects/errors
Top management does not use vague slogans (for example, Do It Right The First Time) in
communicating with its employees
Eliminating numerical quotas
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 employees
38
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
46
Top management takes action toward executing its quality improvement policies
Top management makes its quality improvement policies visible to all employees
Top management relies on internal or external consultants to implement its quality
48
improvement policies
Adopted from (Tamimi,N et al, 1995)
14
47
Page 29 of 36
Candidate Number :
Board :
70889221
June 2014

Appendix V: the integrated team Development Framework
Figure 3.1: the integrated team Development Framework
Page 30 of 36
Candidate Number :
Board :
70889221
June 2014

Appendix VI: MQMS benefits Net present value calculations

-
Saving due to ERP report saving time:
Sales Support
Salesmen
Sales Managers
Marketing
Manager
No. of
employees
7
33
7
Average Hour rate

SAR
128.57
204.55
271.43
425.00
4
4
4
Annually
Saving
43,200.00
324,000.00
91,200.00
20,400.00
Hours saved monthly
Total (SAR)
o
Year
Present Value of Benefits (year)

Present Value of Benefits
2015
2016
2017
2018
2019
419,907.60
1,643,241.60
368,197.20
323,190.00
283,449.60
248,497.20
Gain due to productivity increased 3%
Sales Support
Salesmen
Sales Managers
Marketing Manager
No. of
employees
7
33
7
1
Average Hour rate

SAR
128.57
204.55
271.43
425.00
Hours Gain due to 3%

productivity increase
5.8
5.8
5.8
5.8
Annually saving
62,208.00
466,560.00
131,328.00
29,376.00
689,472.00
Net present value for 5 years:
Year
478,800.00
Net present value for 5 years
2015
2016
2017
2018
2019
604,666.94
2,366,267.90
530,203.97
465,393.60
408,167.42
357,835.97
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.
Sales Support
Salesmen
Sales Managers
Marketing Manager
No. of
employees
7
33
7
1
Our lost every two years

155,520.00
1,166,400.00
328,320.00
73,440.00
1,723,680.00
Year
Average Hour rate

SAR
128.57
204.55
271.43
425.00
2015
1,511,667.36
3,569,741.28
2016
0.00
2017
1,163,484.00
2018
0.00
2019
894,589.92
Gain due to higher market share, amended product mix and better
costing.
Percentage gain as gross profit due to higher

market share (2%) and higher wiring
accessories product mix
Percentage gain from new purchasing power
2015
1.00%
2016
1.39%
2017
1.77%
2018
2.15%
2019
2.52%
3%
397,000,000
3%
436,700,000
3%
480,370,000
3%
528,407,000
3%
581,247,700
Page 31 of 36
Candidate Number :
Board :
70889221
June 2014

15,880,000
19,175,100
22,931,712
27,205,921
32,060,138
Year
2015
13,926,760.00
76,896,435.56
2016
14,745,651.90
2017
15,478,905.94
2018
16,105,905.64
2019
16,639,212.08
Page 32 of 36
Candidate Number :
Board :
70889221
June 2014

Appendix VII: Forecasted organizational revenues

Revenues (Forecasted) without process improvement
SAR
2015
2016
2017
2018
2019
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
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
3,970,000.00
4,327,300.00
4,716,757.00
5,141,265.13
5,603,978.99
41,685,000.00
45,436,650.00
49,525,948.50
53,983,283.87
58,841,779.41
10.50%
10.50%
10.50%
10.50%
10.50%
Revenues (Forecasted) without amendment
Wires share of revenues %
Wiring accessories share of GP (AVG PRFT ~20%)

Total GP
Gross Profit/Year %
Revenues (Forecasted) with process improvement

SAR
2015
2016
2017
2018
2019
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
Revenues (Forecasted) without amendment
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

Wires share Contribution margin % (AVG
PRFT ~ 10%)
Wiring accessories Contribution margin
%(AVG PRFT ~20%)
59,550,000.00
86,546,000.00
117,918,925.00
154,237,953.90
196,139,264.71
33,745,000.00
34,618,400.00
35,375,677.50
35,988,855.91
36,425,863.45
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
11.50%
11.89%
12.27%
12.65%
13.02%
1.00%
1.39%
1.77%
2.15%
2.52%
Gross Profit/Year %
Delta GP due to amendments
Page 33 of 36
Candidate Number :
Board :
70889221
June 2014

Appendix VIII: MQMS costs Net present value calculations
MQMS costs
Training Cost
ISO training
Soft skills Training
ERP updates
Bonus
ISO Certificate
registration
Total Costs year SAR
Present Value of Costs
(year)
Present Value of Costs
2015
40,000.00
64,000.00
5,000,000.00
3,374,500.00
150,000.00
2016
2017
2018
2019
90,000.00
100,000.00
90,000.00
90,000.00
3,461,840.00
3,537,567.75
3,598,885.59
150,000.00
3,642,586.34
8,628,500.00
3,461,840.00
3,627,567.75
3,938,885.59
3,732,586.34
7,567,194.50
16,946,990.27
2,662,154.96
2,448,608.23
2,331,820.27
1,937,212.31
Page 34 of 36
Candidate Number :
Board :
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June 2014

Task 5: 320 words
Page 35 of 36
Candidate Number :
Board :
70889221
June 2014

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; as MQMS 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 current FMM 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 for FMM and FMT with nonexaggerating style, also illustrated that the basic essence of MQMS is the acknowledgement,
encouragement and collaboration of individuals' point of views to detail the MQMS 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 it

was 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.
Page 36 of 36
Candidate Number: 12998007

Board : June 2014

Board : June 2014

Board : June 2014
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 havent yet gotten the
utmost of these standards in the marketing Quality system management MQMS, but
the question is what is the benefits of investing in MQMS?

Board : June 2014
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

Board : June 2014
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

Board : June 2014
A bad system will defeat a good person every time. Deming, that is why we will
illustrate Demings system key aspects to improve the MQMS. And we should stick to its
description and evaluate Alfozans processes according to its guidelines and questionaire
results, this is an overview for each Demings aspect, for further illustration you can go
in the report for table 1.2:
1 - Al-Fozan MQMS process should have structured MP implemented for the

purpose to achieve the following values:
Shareholder's value and Customer's value, Moreover these values should be
constantly communicated to the team.
2- Al-Fozan should Motivate to produce more with fewer inputs, whether these
inputs is time, material or effort.
3- All MP should be carefully designed, where the effort should be in detailing
each aspect rather than inspection, which will enhance Al-Fozan's value
proposition.
4 - Al-Fozan has a good evaluation Supplier price/quality criteria has been
conducted. Hence no action required.
5 - Using Plan-Do-Check-Act Deming cycle as Illustrated in table 1.2, Al-Fozan
needs to apply it on all MP
6 - Due to current calibers limitation in Al-Fozan, a development plan should be in
place.
7- Al-Fozan's managerial responsibility must be to MP quality, also Managers
should act as a team couches with Participative and transformational leadership.

Board : June 2014
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.

Board : June 2014
'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

Board : June 2014
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:

Board : June 2014
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:
10

Board : June 2014
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.
11

Board : June 2014
'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.
12

Board : June 2014
'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:
13

Board : June 2014
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.
14

Board : June 2014
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
15

Board : June 2014
16

Board : June 2014
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:
17

Board : June 2014
The cost incurred for 5 years investment is as follows
18

Board : June 2014
19

Board : June 2014
20

Board : June 2014
21

Board : June 2014
I can have your questions now
22

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Diploma in Marketing (Level 6)

Oxford College of Marketing

Candidate Declaration: I confirm that in forwarding this assignment/project for

I hereby give consent for my assignment/project, if accepted, to be available for

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CIM Professional Diploma in Marketing

Option 1- Implementing Quality systems in

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

CIM Professional Diploma in Marketing

CIM Professional Diploma in Marketing

CIM Professional Diploma in Marketing

TASK 1: 1550 words

CIM Professional Diploma in Marketing

1.0MQMS and Performance improvement

1.2 Standards Brief and Outline

Mutually supportive and

Set of ordered practices,

- Reduction in flow time

- Minimal worker input

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

1.3 Information to improve marketing processes

Could be applied but

Could be applied with

Its concept is to achieve

- Identify the waste in

CIM Professional Diploma in Marketing

- Define the process,

CIM Professional Diploma in Marketing

Create a constant purpose

New Quality philosophy

Cease inspection and Focus

Don't award business on

Drive out Fear

CIM Professional Diploma in Marketing

Task 2:1137 words

CIM Professional Diploma in Marketing

2.0MQMS and Management

Traits & Skills for

It is a leadership more than managerial trait to

Plan, Set and brief

FMM should take more managerial approach

FMM assures the information is disseminated

FMM should know his strengths, weakness

According to Whetten &

According to Hackman (1990)

CIM Professional Diploma in Marketing

and how he think and take actions.

Technical skills for

FMM should have electrical engineering

FMM constantly develops, coaches and

Cameron (2011), FMM is in top

2.2 The Recommended style of leadership and management

- FMM unable to reveal all

- Employees' awareness for

- One-way communication may

CIM Professional Diploma in Marketing

2.3 FMM skills gap assessment and development