Introduction | The story | Your task | The process | Web resources | Conclusion
Management trends and issues Web Quest
This is a web quest that looks at trends and issues that matter to any manager today. A WebQuest is a research activity in which you get the information you need to complete the task from the Internet. The story is fictional but the issues are real and we hope that some of the treasures we found on the Web will inspire you to dig deeper.
Enjoy!
Introduction
The Oracle Furniture Company is a successful New Zealand owned company at risk as the top global player in furniture retail, IKEA, prepares to enter the market. Suddenly ‘globalisation’ is the talk of the day with heated debates between people who see this as a threat and others who consider it as an opportunity.
The Board of Oracle Furniture Company has hired your team of consultants to find out how the company may be affected by globalisation and how this impacts on other trends and issues at the management level in the company. In your teams you need to develop a presentation to the Board.
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The story
The Oracle Furniture Company has gone through major changes in the past 6 years since Bill Stevenson, founder of the company, got his son Jordan on board. Jordan modernised the company and broadened its range from office furniture to include a whole range of modern, quality and affordable furniture. With considerable additional capital from family and other sources, the company was able to build a strong brand in a record time.
The Oracle brand stands for modern and affordable furniture, of which 60% is made in New Zealand factories and 40 % is made in lower income and developing countries. These are not the cheapest imports as Oracle’s brand is built on values like environmentally friendly, sustaining forests, no child labour, and ethical trade.
Oracle has 18 large outlets in New Zealand and employs 850 staff, of which half are working in Oracle’s own factory. As 45 % of the production is outsourced, the company maintains close relationships with local factories, which are very loyal. Several of these small furniture producers have been through a drastic modernisation process to be able to fit into Oracles business model of just-in-time deliveries.
Oracle’s growth figures are impressive by any standards and the company is very often cited as an example of success, winning many prizes like an award for best marketing effort to a recent prize for most eco-friendly company. Jordan and his team keep working on finding more cost-effective models. He is aware that by international standards in the furniture retail sector the company could do much better.
For one, their human resources policies could be improved, though. When Paradise Furniture, their main competitor, won an award for ‘best employer’ last month, some of Oracle’s best staff decided to leave the company to work for the competitor. “There is no loyalty anymore”, moaned Bill, but Jordan knows he may have to look after his staff differently as the trends in the labour market have changed. “But what are these trends exactly and how should he and his managers deal with those?”, he wonders.
But the biggest threat comes from IKEA, the largest furniture retailer in the world, planning to enter the New Zealand market within the next 12 months. The cheer size of the company, their great designs, good quality and low prices have pushed many other furniture companies out of their markets in numerous countries. Will Oracle survive?
This is the briefing your team got from Bill and Jordan. They want you to determine what may be the underlying management trends and issues Oracle needs to deal with and what may be possible strategies for the company.
Bill is horrified by the prospect of losing the company because of foreign competition. He has nightmares about all the families that may lose their income if Oracle has to close its doors. The fact that Oracle is New Zealand owned, selling mostly New Zealand produce is close to his hearth. He hopes you come up with a strategy that protects these values.
Jordan is worried but sees globalisation and other trends as a challenge to overcome. He believes there will still be a place for Oracle but they need to make a drastic move into the right direction – what direction will this be? He is convinced that resisting globalisation is useless and hopes that you will help the company defining an innovative strategy for the way ahead.
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Your task
In this WebQuest, you will make recommendations to the Board members who will decide the fate of Oracle Furniture Company. There are a lot of things to be considered along the way and the Web resources will help you approach the challenge from different perspectives.
The Board of Oracle Furniture Company has hired your team of consultants to present them with the issues and possible strategic options for management to take as they prepare for IKEA’s entry in the market.
The Board of Oracle Furniture Company has given your team a number of guiding questions, which they would like to address in your presentation:
- What exactly is globalisation? What does it mean for Oracle Furniture Company? Will they stay or will they go?
- What are possible strategic options for Oracle Furniture Company as they face the competition of a successful global player like IKEA?
- What is going on in the labour market? What is it that makes a good employer today? Will it make any difference for Oracle Furniture Company in a context of globalization?
- What other management trends and issues (e.g. technology, environment, etc.) are important for Oracle Furniture Company? How will they be affected?
The output of your task is a 15-slide PowerPoint (or similar software) presentation that addresses management trends and issues from the perspective of Oracle Furniture Company.
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The process
Each team needs to prepare the presentation to the Board of Oracle Furniture Company. By now you will have received a message from your facilitator appointing a presenter for your team and the deadline for the completion of this WebQuest.
The presenter is responsible for developing the presentation on the basis of the work done by the team. The presenter contributes to the team task discussions and they also:
- moderate discussions, if necessary
- organize sharing the work, if needed
- ensure all issues raised are fully addressed
- ensure team members stick to the task
- act as a timekeeper to ensure the task is done by the deadline
- present a draft presentation to the team a few days before the deadline to allow for changes
- attach the final presentation to a message titled ‘final presentation’ in the team’s discussion forum
A team that works collaboratively does not need to ask a lot of their presenter, so please support them to do their jobs well.
Where is this happening?
On the course page, each team has a discussion forum called ‘[your team name]: Solving the WebQuest’. Use this discussion forum to discuss and agree on the issues and how to address them.
The process step-by-step
We suggest you do the following:
- First, you will need to read the story in this WebQuest.
- Now join your team forum and discuss issues at a broader level.
- Agree in your team if and how you would like to divide the research work.
- Go on a ‘quest’ for additional insights in management trends and issues. This research should be guided by the guiding questions in the story and supported by the websites we have listed for you below. You may of course consider additional Web resources, but be aware that this may take more of your time and you will need to provide the additional web links to your team mates.
- You may want to set up some discussion rules, for example having one discussion thread per identified issue.
- Agree which points should go into the presentation
- The presenter posts a draft presentation a few days before the deadline. Other team members comment and provide further input if needed.
- The presenter attaches the final presentation to a posting called ‘final presentation’ by the deadline.
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Web resources
IKEA
Globalisation
Globalisation is a complex concept that is not always understood. It has wide implications on economic, political, cultural and geographical aspects of our lives. By investigating these web links you will develop an understanding of globalisation and why it is important for you and everyone else in New Zealand society.
International resources:
Globalisation shakes the world
http://news.bbc.co.uk
United Nations CyberSchoolBus – Briefing papers for Students (select ‘globalisation’)
http://www0.un.org
International Economics – What is globalisation? (scroll down to read the article on globalisation)
http://intl.econ.cuhk.edu.hk
Local resources:
Australia and New Zealand in a globalising world (a 26 page paper, but worth looking at as it offers additional perspectives from this region)
http://www.nzinstitute.org
Jobs disappear as Shore firms head for Asia
http://www.nzherald.co.nz
Go home, stay home
http://blogs.unlimited.co.nz
Creative collaborations
http://www.nzte.govt.nz
Trends in the workplace
Why be a good employer?
http://www.neon.org.nz/crownentitiesadvice/whybeagoodemployer/
Leaders as drivers of innovation
http://www.nzte.govt.nz
Executive leasing: till retirement Us Do Part… or Not – The rising popularity of contractors
http://www.management.co.nz
Take a hike
http://unlimited.co.nz:81
A boss to die for
http://unlimited.co.nz:81
Incentive programmes: where is my cheese?
http://www.marketingmag.co.nz
Lifting NZ performance – Why the focus falls on management
http://www.management.co.nz
Technology
Online marketing: who’s listening?
http://www.marketingmag.co.nz
Online marketing: are you there?
http://www.archivesearch.co.nz
Environment
Climate business / business climate
http://harvardbusinessonline
Herbst & Spices: The Culture Of Now
http://www.archivesearch.co.nz
These New Zealand stories may inspire you:
Furnware
http://www.furnware.co.nz
Formway
http://www.formway.com
David Trubridge Design
http://www.davidtrubridge.com
And why not look outside the furniture industry for more inspiration:
Icebreaker (with video)
http://tvnz.co.nz
The 2007 New Zealand Export Awards (New Zealand Trade &Enterprise)
http://www.nzte.govt.nz
Fast 50 (short video clips)
http://www.deloitte.com
Going global
http://unlimited.co.nz
Cool companies
http://unlimited.co.nz
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Conclusion
In the fast-changing world of today it is crucial to keep informed when you are a manager. We hope that this WebQuest has given you additional insights in some of the trends and issues that matter. There is obviously much more to consider and we trust you will go on your own web treasure hunts as often as possible.
Reflect on what you learned when doing this WebQuest:
list five trends and/or issues that surprised you and three trends and/or issues that you would want to research further.
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