INTERNATIONAL MANAGEMENT FINAL PROJECT Stanislav Lavinia 1. GENERAL PRESENTATION OF THE COMPANY ​ Rolex SA is the leading [626562]

Radu Alexandra Maria

Sprincenea Andrada Petruta

Stanislav Lavinia

Stoica Ana Madalina

Tronaru Adelina Ionela

INTERNATIONAL MANAGEMENT FINAL PROJECT

Stanislav Lavinia

1.
GENERAL PRESENTATION OF THE COMPANY

​
Rolex
SA
is
the
leading
luxury
watch
manufacturer
in
the
world
producing
over
2,000

watches
per
day
that
generate
sales
of
over
$7
billion
dollars
each
year.
The
Swiss
based

Company
manufactures,
services
and
distributes
wristwatches
under
the
Rolex
and
Tudor
brand

through
authorized
dealers.
It
was
founded
in
1905
by
Hans
Wilsdorf
and
Alfred
Davis
in

London,
England
and
was
recently
ranked
57
on
the
world's
most
powerful
brands.
The
original

name
of
the
company
was
Wilsdorf
and
Davis.
In
1919,
operations
were
relocated
to
Geneva,

Switzerland.
The
brand
today
competes
with
other
leading
luxury
watch
companies
like
Patek

Philippe,
Omega,
and
Panerai
and
sponsors
many
major
sports
events
in
tennis,
golf,
yachting,

and racing.

In
our
case,
the
company
Rolex
SA
is
present
on
its
home
market,
the
European
market

and
it
is
starting
its
strategy
in
order
to
internationalize.
In
this
sense,
the
Rolex
brand
will
be

internationalized on the Asian market, American market and Australian market.

2.
PLANNING

●
Mission
​
: to manufacture, distribute and service high quality wristwatches.

❖
Objectives:
To
educate
younger
market
on
the
value
of
wristwatches,
to
create
a
social

media
strategy
that
will
encourage
users
to
interact
with
the
brand
as
well
as
to
extend
the

message
to
a
larger
audience,
to
promote
the
purchase
of
wristwatches
as
a
reward
for

key
successes
in
a
young
man’s
life.
Provide
the
high
and
luxury
hand
watch
with

innovative
technology
and
design
and
promote
its
brand
to
a
kind
of
collection
item

which symbolize as prestige, luxury and high quality.

❖
Premises:
focus
on
quality
and
the
longevity
of
their
products
and
not
on
making

sacrifices to keep a product’s price down.

❖
Values: trust and reputation.

❖
Lines of action: luxury products available worldwide.

●
Strategic goal
​
(established at the top management level)

Regarding
its
internal
organization,
Rolex
seems
to
be
very
stable,
top
management
product

design
and
communication
strategy
do
not
change
much.
The
backward
vertical
integration

might
enable
them
to
increase
their
margin
and
will
enable
the
company
to
be
fully
independent

in
terms
of
components
supply.
Nevertheless,
Rolex
has
to
increase
efforts
in
order
to
be

recognized by the young generation.

Management
of
the
brand
identity
should
also
be
stricter
and
more
controlled
in
order
to
avoid

extending furthermore the image of “sick-richness”.

Currently, Rolex Company is focused on the production of high-quality watches that can

sustain brand loyalty. The strategic management teams should select the option that has a high

potential to facilitate the achievement of this objective.

ROLEX SA’s STRATEGIC CHOICES

Reputation
of
Rolex
is
built
around
high
quality,
reliable
and
functional
products.
This

ensures
that
customers
are
provided
with
a
wide
range
of
high-quality
products
from
which
to

choose.

The needs of the customers are met in the process. The company has also adopted measures

aimed at safeguarding its reputation as well as its brand in the market. Some of these measures

include restrictive licensing that ensures that only manufacturers with the capacity to maintain

the product quality of Rolex watches are licensed.

A closer evaluation of the strategies implemented by the company reveals that they are

sustainable. They have made it possible for the company to retain its position as a market leader

in wristwatches. It is important to note that the dynamics of the market are changing at an

extremely fast rate. Competitors are adopting new technologies thereby increasing their

competitive capacity. This has made the strategic management at Rolex Company to recognize

the need to integrate information technology at all levels of operation. It is only through

integration of advanced technology that Rolex can achieve the anticipated growth, expansion as

well as penetration into new markets. Some competitors have also been using differentiation and

diversification strategies thereby making it hard for Rolex to achieve the expected market

presence. It is important for Rolex to identify and use different strategies to increase its

competitive advantage over other competitors.

Strategic goals
​
:

–
Producing ONLY high quality watches

It
became
famous
when
in
1926
it
came
up
with
the
first
waterproof
watch.
With
its

innovative
features
and
classic
design,
it
has
been
the
forefront
player
in
the
luxury
watch

market.
Rolex
is
committed
to
using
the
best
technology
and
material
available
in
the

market
to
make
its
time-pieces.
"The
Rolex
Way"
exemplifies
the
type
of
effort
the

company puts in making the watch a "perfect" watch, better than anything out there.

2

–
Focus
on
luxury
market
and
high-social
class
customers.
Grow
the
brand
image
as
high

as possible and therefore the exclusiviste image in the clients` opinion.

Competitive
advantage
in
the
Marketing
strategy
of
Rolex:
Brand
image:
Rolex
since
its

inception
has
created
a
niche
segment
of
customers
who
wear
a
watch
as
a
prestige.
The

luxury
watch
manufacturer
has
been
a
pioneer
in
bringing
new
age
technologically

advanced watches in all these years.

Brand
equity
in
the
Marketing
strategy
of
Rolex:
A
symbol
of
luxury
and
prestige
has

travelled
the
time
with
more
than
100
years
of
experience
in
being
the
timeless

masterpiece.
In
the
list
of
world’s
most
powerful
global
brands,
Rolex
has
been
ranked

64th in the year 2016.

–
Integration of information technology

The
presence
of
counterfeit
​
products
&
changing
buying
patterns
of
customers
in
the

emerging
economies,
the
presence
of
a
large
number
of
me-too
brands
in
the
market
and

imitation
is
affecting
the
industry
as
a
whole.
Without
much
focusing
on
the
competition,

Rolex
is
continuously
driving
the
technological
advancement
and
state
of
art
designing
to

be ahead in the industry.

–
Differentiation strategy for products

Changing
​
lifestyle
​
,
changing
consumption
patterns,
increasing
disposable
income,

developing
nations
&
​
purchasing
power,
changing
aspiration
and
motivation
level
of

people
to
follow
their
dreams,
and
migration
to
urban
areas
are
the
driving
force
for
the

success
of
the
luxury
​
goods
industry.
The
luxury
goods
industry
is
the
fastest
growing

industry
in
the
recent
time,
especially
in
the
developing
nations.
One
of
the
product

differentiation
is
the
status
that
Rolex
can
bring
with
its
name.
No
one
else
has
a
bigger

collection
of
"hits"
in
the
watchmaking
industry
like
Rolex
does.
Not
to
mention
the

excellent
customer
service
provided
by
the
employees.
Rolex
is
synonymous
with

"accomplishment" or "achievement."

–
Use of high price to target specific market segment and thus maintaining reputation

Customers
of
Rolex
are
upper-class
income
group
individuals
who
have
an
inclination

towards
the
luxury
goods
and
live
a
lavish
life.
These
are
the
customers
either
are
from

higher
income
strata
of
the
society
(irrespective
of
any
age
group)
or
are
from
the

business family in the age group of 30-60 years.

In
conclusion,
we
chose
to
focus
on
the
strategy
of
high
quality
only
products
as
a

principal one.

3

●
Strategic planning

Miles
and
Snow
suggest
that
business
level
strategies
generally
fall
into
one
of
four
categories:

prospector, defender, analyzer, and reactor.

From the 4 strategy types action we will choose the reactor in order to maintain the high

information technology that will help us develop further the strategy of high quality products.

SWOT
​
Analysis of Rolex:

Strengths

●
Strong brand

●
Global brand awareness

●
Extreme high-quality

●
Luxury (aspiration of

consumer)

Weaknesses

●
High switching costs

●
Not accessible to all

●
Lack of individuality (to

many produced in relation to

its peers)

4

Opportunities

●
Develop effective social

media campaign

●
Educate the younger market

so they will buy upstream

later in life as their salaries

grow

●
Design and produce more

limited-edition versions of

watches in small quantities

Threats

●
Recession

●
Counterfeits

●
High-end competition

●
Cell phones

Strength

Brand awareness involves the ability of consumers to remember to the brand name or

recognition brand. In the purchase decision, it can play a vital role because people usually

like to buy familiar brands. Brand awareness has been calculated by a variety of brands

and
this
result
shows
that
Rolex
has
97%
for
awareness.
The
Rolex
brand
value
is
quite
high
and

the
name
is
known
around
the
world.
This
includes
the
strategy
of
differentiation
of
the
product

and the focus on high-quality and specific market target customers.

Weakness

The strategy has been defined so well but it is hard for the company to change its strategy

even how innovative the strategies are. The weakness is that could remain some segments

that hard to be achieved on the market. For instance, if the fashion goes to GPS watches,

Rolex
is
hard
to
changes
the
strategy
because
even
if
they
try
to
change
their
product
to
GPS

watches,
people
assume
that
Rolex
to
be
classic
watches.
In
this
case,
Rolex
would
be
hard
to
get

a
market
share
of”
GPS
watches”.
The
high-quality
strategy
can
be
weakness
as
well
because
the

watch
is
keeping
the
classical
fashion
line
cannot
produce
cheap
GPS
ones
for
example
because

this will destroy the brand image.

Opportunity

Rolex brand name is very valuable. It seems that I can be diversified in related fields.

Rolex should take the opportunity to open jewelry line over the world. Rolex has the

ability
to
produce
jewelry
with
its
technical.
Focus
on
luxury
products
development
strategy
and

maintain high price to target certain segment of customers.

5

Threats

The threat of Rolex is youth does not recognize the name of Rolex. Normally, the most

mid age people recognize the name of Rolex because most of the segments were set only

for
mid
age
people
or
middle
upper
social
people.
Focus
on
high
quality
and
luxury
strategies

because
this
will
create
brand
image
for
the
youngsters
as
well
when
they
are
able
to
afford
it
in

the future.

In
conclusion,
we
will
use
the
strengths
(strong
brand
and
luxury
product)
in
order
to

overcome
the
threats
of
the
cell
phones
for
example
because
our
watches
are
made
with
the

purpose to be used by the high social class and not for replacement.

Michael Porter’s Five Forces for Rolex

1. The bargaining power of buyers:

When consumers are looking for a Rolex watch, they are confronted to the multitude of

brands competing and the various segments: fashion brands watches, mass-market

watches, etc. As we have seen previously, the number of watchmakers is very important

and therefore, buyers have to make a choice. The different criteria involved in the

decision-making process may be:Price, Quality, Style, Size. Focus on luxury market strategy.

2. The bargaining power of suppliers:

There is an important difference between the mass market brands and premium ones. If

both of them often have the Swiss made inscription, they have two different meanings.

For the first ones, the watch components are usually made in a low labor cost country,

with a low to medium quality, and then are assembled in Switzerland, allowing the watch

to be Swiss made. For the second ones, both manufacturing the components and

assembling them are made in Swiss by the company, which is often synonym of a good

quality. For the first group of manufacturers that includes Swatch, suppliers don’t have

to have a very strong know-how, and can therefore be relatively numerous. This is

diminishing their bargaining power over watch brands. Product differentiation strategy.

3. The threat of new entrants:

Even
though
the
haute-horlogerie
segment
has
very
strong
barriers
to
entry

(manufacturing
costs,
brand
heritage,
distribution
selection),
Swatch
can
be
attacked
by
new

entrants.
Indeed,
its
products
are
simple,
accessible,
playful,
and
colorful
the
exact
opposite
of

haute-horlogerie
watches
and
entering
this
segment
does
not
have
very
specific
requirements
(as

6

brand
heritage
can
be).
It
also
can
be
attractive
as
there
are
not
a
very
strong
competition
on
this

specific segment. Product differentiation strategy will keep the brand image.

4. The threat of substitutes:

The
way
we
use
a
watch
shifted
dramatically
these
years.
As
the
wristwatch
was
a

revolution
(opposed
to
the
pocket
watch),
the
mobile
phones
are
changing
the
rules
of
the

industry.

The
utilitarian
aspect
of
a
watch
a
decreased
a
lot,
the
time
being
now
available
on

mobile phones, computers, and more. People would rather consider a Rolex watch as a style

accessory, an expression of their personality. Therefore, we can see the threat of substitute

as relatively high. Focus on customers segment that is targeting and on the luxury segment.

5. Rivalry:

In the watch making industry, there is a strong competition between firms, which are

mainly portfolios brands. Rolex have many strong competitors like Titan, Tag, RADO,

TISSOT and so on. These firms as The Swatch Group, own different brands, covering

several segments of the market. Each brand tries to develop its image, concept and

storytelling. Also, firms compete through costly marketing campaigns to increase their

influential
power
over
their
customers
and
new
potential
customers.
The
competition
isn`t
using

the
product
differentiation
strategy
with
very
high
quality
and
luxury
products
differentiation

segment.

In
conclusion,
it
is
hard
for
the
new
entrants
to
develop
a
high
quality
product
like
Rolex
because

we
will
use
the
highest
quality
materials
existent
on
the
market
and
we
will
use
our
strengths
in

order to overcome them.

●
Tactical goal
​
(established at the department level)

Departments

●
Production

From
the
mining
processes
to
the
in-house
foundry
and
factories
that
Rolex
has,
we
can

see
just
how
many
materials
go
into
making
a
single
watch.
Although
it
was
difficult
to
find

certain
information
about
where
Rolex
actually
obtains
their
materials,
the
main
raw
primary

materials that they used and where they generally come from.

●
Research and development

Equipped
with
professional
science
labs
at
its
various
facilities,
doesn’t
exist
just
to

research
new
watches
and
things
that
may
go
into
watches,
but
also
to
discover
more
efficient

7

manufacturing
techniques.
Given
that
perspective,
Rolex
is
an
extremely
competent
and
almost

obsessively organised manufacturing company – that happens to make timepieces.

●
Purchasing and Sales

While
the
mass
scale
of
the
manufacturing
and
the
intricate
maze
of
automated
delivery

machines
really
contextualises
just
what
makes
Rolex
unique,
realisation
comes
full
circle
at
the

central
Geneva
location
of
Acacias
–
the
global
headquarters.
Donning
white
coats
and
walking

through
dust-proof
air-locks,
we
shuffle
into
a
one
of
the
Controlled
Environment
Zones,
where

the
air
is
replaced
every
couple
of
hours.
There,
150
uniformly-dressed
watchmakers
carryout

the
‘final
assembly’.
This
is
where
all
the
parts
are
delivered,
(with
the
movements
already

certified
as
chronometers
by
the
independent
Swiss
regulator
COSC)
and
an
army
of

watchmakers
attach
dials
to
movements,
fix
hands
to
the
dials,
place
movements
into
cases,

attach
automatic
rotors,
screw
on
case-backs,
and
register
case
and
calibre
serial
number
before

submitting the watches for testing of water-resistance, power reserve and accuracy.

●
Marketing

The
„Marketing
‟
Concept:
Rolex
purely
follows
the
“product
concept”.
The
product

concept
holds
that
the
key
to
achieving
organizational
goals
consists
of
the
company
being
more

effective
than
competitors
in
creating,
delivering,
and
communicating
superior
customer
value
to

its chosen target markets by well-designed and high quality product.

●
Human Resources

Staff recruitment and training.

The
Company
is
run
by
the
Hans
Wilsdorf
Foundation
trust
and
all
the
profits
are

invested
in
the
company
and
its
​
people
​
.
Neither
results
are
published
and
no
corporate
tax
is
paid

by the company.

PRODUCTION DEPARTMENT
​

​
–
​
STANISLAV LAVI NIA

Tactical planning

Aim: to increase production by 10%

●
actions
to
be
done:
maintaining
the
brand
image
as
luxurious
as
possible
and
focus
on

quality strategy.

Action
1:
Make
a
research
about
the
most
profitable
and
new
technology
made
materials

to manufacture watches

Action 2: Test the materials for water resistance

Action
3:
Make
a
research
for
the
luxurious
market
trends
in
order
to
establish
the
design

of the watches.

8

●
period: 3 years

●
resources:
the
existent
ones:
The
whole
process
is
a
mix
of
high
technology,
micro

mechanical
precision
and
hand-made
craftsmanship.
Ancient
art
meets
the
future
in
a

perfect
and
balanced
mix
of
commitment
to
quality.
No
other
watch
company
uses
this

quality
of
diamonds
with
the
exceptions
of
high-end
jewelers.
Besides
diamonds,
Rolex

has
rubies,
sapphires
and
emeralds.
It
is
very
relevant
that
Rolex
is
part
of
the
Kimberley

process against conflict diamonds. All stones are certified and conflict free.

●
material:
A
Rolex
is
made
with
extremely
high-quality
standards;
so
high
that
they
keep

the
whole
process
a
veiled
secret
in
the
industry.
So
high
that
they
have
developed
and

implemented
technology
usually
fitted
for
aerospace
industries
rather
than

watchmaking.The
metal
that
Rolex
uses
for
its
cases
and
bracelets
is
mostly
done
in

house,
where
“done
in
house”
truly
means
it.
They
have
their
own
metal
foundry
inside

Plan-les-Ouates.
There
are
several
players
in
the
watch
industry
that
work
with

proprietary
alloys
and
experimental
materials,
but
the
general
rule
is
to
work
with

third-party
providers
to
make
them
real.
Rolex
takes
this
whole
relationship
in-house.
In

the
foundry,
Rolex
develops
their
three
18ct
gold
alloys
(yellow
gold,
white
gold
and

Everose
gold)
and
works
the
Oystersteel
that
is
so
unique
of
Rolex,
with
extremely
high

corrosion
resistant
properties.
This
steel
is
used
in
the
aerospace
industry.
Besides
the

foundry,
there ́s
a
whole
metal
forming
process
for
the
gold,
steel
and
platinum
cases
and

bracelets,
with
special
equipment
commissioned
specifically
for
Rolex,
that
assures
the

quality and specifications that Rolex requires.

●
financial
and
human
:
our
experts
in
​
engineering
​
,
marketing,
management
and
with
the

help of our capital and existing profits.

Operational goal; of the Manufacturing office

Rolex
watches
should
always
be
in
top
luxury
brands
and
the
brand
image
should
always

be
the
same
luxurious,
without
compromises.
Increase
this
image
as
high
as
possible.
Focus
on

the main strategy of high quality products only.

Operational planning
​
for the Manufacturing office:

●
period: next 1 year

●
resources:
with
the
help
of
the
technology
process
and
according
to
the
integration
of

information
and
technology
strategy,
Rolex
will
use
the
most
advanced
technological

machines and materials in order to maintain and improve the brand image of luxury.

9

●
material
:
advanced
gold
and
water
resistant
products
but
keeping
the
classic
design
that

had
already
created
the
style
of
the
watches.
A
Rolex
bracelet
needs
at
least
190

components and hundreds of operations.

There ́s
an
automated
33-hour
quality
testing
process
for
each
watch.
The
components

stock is fully automated and every piece is delivered to a station to be tested.

●
financial
and
human:
with
the
recruitment
of
very
skilled
engineers
and
with
the
finances

of
our
capital
and
profits.
Every
single
component
is
uniquely
identified
and
delivered
to

the
precise
area
and
the
right
time
to
ensure
that
the
manufacturing
process
is
constantly

fluent
and
on
time.
With
the
production
volume
that
Rolex
has,
this
system
is
a
true

logistics masterpiece.

●
type: differentiation product strategy for maintaining the strategy of high quality watches.

●
actions
to
be
done:
keep
improving
the
products
by
using
even
more
advanced

technology,
machines,
information,
to
add
to
the
product
a
higher
and
higher
luxury

image
focused
on
the
strategy
of
luxury
product
and
market
target.
To
increase
the
use
of

product
with
50
more
years
(to
use
very
resistant
materials,
increase
the
already
existing

water resistance, dust resistance and pressure).

In
conclusion,
the
chosen
operational
plan
is:
in
concordance
with
the
strategy
chosen

of the high product quality.

RESEARCH AND DEVELOPMENT DEPARTMENT- TRONARU

ADELINA

TACTICAL GOAL

The
main
goal
is
to
focus
on
innovating
the
luxury
watches
market
through
implementing

new
efficiently
manufacturing
methods
and
raw
materials.
The
Rolex
company
has
already
been

remarked
with
innovations
such
as
the
first
waterproof
wristwatch,
the
first
wristwatch
with
an

automatically
changing
date
on
the
dial,
the
first
wristwatch
case
waterproof
to
100
m,
the
first

wristwatch
to
show
two
time
zones
at
once,
the
first
wristwatch
with
an
automatically
changing

day and date on the dial, the first watchmaker to earn chronometer certification for a wristwatch.

TACTICAL PLANNING

The
chosen
operational
plan
type
is
program,
a
single-use
plan
for
a
large
set
of
activities.

It consists of identifying procedures for introducing new product line.

10

Ø ACTIONS TO BE DONE

Action
1:
Develop
a
specific
collection
suitable
for
the
extremes
of
deep-sea
diving,

caving,
mountain
climbing,
polar
exploration,
and
aviation
since
the
brand
has
always
been

involved in exclusive sports events.

Action
2:
Produce
watches
that
include
new
materials
such
as
ceramic
inserts
for
the

watch
bezel
because
in
contrast
to
the
aluminum
bezel,
the
ceramic
one
color
does
not
wear
out

from exposure to UV-light and is very scratch resistant.

Action
3:
Start
the
research
for
producing
a
full
electronic
Rolex
watch
that
will
combine

the
classic
luxurious
emblem
of
Rolex
with
the
newest
electronic
technology
in
order
to
target

another
type
of
consumer,
the
one
that
appreciates
high
quality
products
but
is
also
interest
in

technology and the way it can make our life better.

Action 4: Monitor currently ongoing activities for goal achievement.

Ø PERIOD

The
period
is
unlimited
because
the
Research
and
Development
department
should

always
keep
an
eye
on
innovating
the
existing
models
so
that
the
luxury
brand
will
be
on
the

customers
preferences
forever.
If
the
company
will
stop
researching
and
developing
new
watch

models, the customers will not be attracted anymore.

Ø MATERIAL RESOURCES

Extremely
well-equipped
laboratories
with
chemistry
elements
for
developing
and

researching
oils
and
lubricants
used
in
machines
during
the
manufacturing
process,
multiple

electron
microscopes
that
enable
taking
an
extremely
close
look
at
metals
and
other
materials
to

investigate
the
effects
of
machining
and
manufacturing
techniques
and
test
rooms
for
the

products.

Ø FINANCIAL RESOURCES

In
order
to
gain
more
from
the
products
that
Rolex
will
develop,
the
business
must
devote

a
big
amount
of
money
in
this
direction
so
that
their
laboratories
will
have
all
the
necessary

machines and specialists in engineering and design.

Ø HUMAN RESOURCES

All
the
Rolex
laboratories
must
be
run
by
the
highly
trained
scientists
and
engineers.

Additionally,
the
designing
part
of
the
Research
and
Development
department
represents
a
key

component because they will be able to coordinate the design of all product lines.

Ø RESPONSIBLE

Responsible for all the process will be Head of the R&D department.

11

OPERATIONAL GOAL

The
operational
goal
is
set
for
the
Quality
Control
office
from
the
Research
and

Development
department
of
the
company
Rolex.
The
chosen
goal
is
to
ensure
that
the
products

created
by
the
company
maintain
their
quality.
The
office
must
have
knowledge
of
the

requirements
and
specifications
of
particular
projects.
By
attaining
this
goal,
the
office
ensures

that the products meet the established standards, so the company puts out quality products.

OPERATIONAL PLANNING

Ø ACTIONS TO BE DONE

Action 1: Develop a quality assurance plan.

Action
2:
Verify
the
adequacy
of
inputs
from
the
suppliers
if
they
still
meet
the
standards

agreed
upon
the
contract.
The
incoming
inputs
must
be
inspected
and
if
the
input
doesn’t
meet

the
requirements
it
will
be
returned,
so
the
Quality
Control
office
must
prepare
a
list
of
qualified

suppliers.

Action
3:
Verify
the
work,
the
manufacturing
process
if
it
maintains
the
high
quality
of

the
well-known
Rolex
luxury
products
and
the
cost
control.
Verify
if
the
employee’s

responsibilities are met.

Action 4: Specify relevant resources and time issues.

Action 5: Understand the strategic plans and the tactical goals to be achieved.

Action 6: Implement corrective actions if needed.

Ø PERIOD

The
period
is
unlimited
because
the
development
process
of
the
products
is
continuous

since
the
company
wants
to
attract
even
more
customers
with
its
high-quality
products
that
must

be checked periodically for quality.

Ø MATERIAL RESOURCES

The
needed
material
resources
are
databases
regarding
the
activity,
the
inputs,
the

suppliers.

Ø FINANCIAL RESOURCES

The
Rolex
company
should
invest
a
big
amount
of
money
in
the
actions
that
need
to
be

done in order to achieve the mentioned goals.

Ø HUMAN RESOURCES

The human resources involved will be composed of highly trained inspectors.

Ø RESPONSIBLE

The Head of the Quality Control office is the responsible.

12

HUMAN RESOURCES DEPARTMENT
​
–
​
STOICA ANA

Tactical planning

Actions to be done:

-Further
developing
and
maintaining
competent
workforce
in
order
to
achieve
the
established

goals in an effective and efficient manner.

-Hiring new skilled engineers and opening a new training centre.

-Maintain
the
high
quality
of
the
watches
by
offering
a
suitable
workplace
that
is
orderly
and

attractive.

-Evaluation and professional development.

-Employee benefits programs and understand numerous regulations and laws.

Period
​
:
​
3 years

Material resources:

-Several
tools
are
useful
in
helping
staff
members
and
supervisors
identify
and
select
appropriate

learning
solutions
according
to
one's
individual
developmental
needs
by
assessing
one's
strengths

and
areas
for
improvement
in
context
of
one's
department’s
objectives,
specific
job
requirements

and management capability, and professional/career aspirations.

Financial resources:

-Investing
in
training
programs
in
order
to
achieve
professional
development,
as
well
as
offering

attractive benefits in order to hire more skilled workforce.

Human resources:

-Rolex
has
a
massive
gemological
department,
which
buys,
tests,
arranges,
and
sets
diamonds

and
other
precious
stones
in
a
range
of
Rolex
models.
One
of
the
things
they
do
is
check

incoming
stones
to
ensure
that
they
are
real;
for
example
the
use
x-rays
to
test
diamonds
and

ensure they aren't fake.

-Rolex
employs
traditional
jewelers
to
create
custom
settings
for
stones
in
their
most
exclusive

watches, done using the same processes employed in creating the world's finest jewelry.

– They are considered artists, who blend science and design to create art masterpieces.

Responsible:

-The Head of the HR department is responsible.

13

Operational goal

The
main
goal
is
to
maintain
a
high
degree
of
skills,
experience
and
education
by
training
and

hiring highly skilled workforce, to further develop and promote the high quality of the watches.

Operational planning

Actions to be done:

Action
1.
Interviewing
applicants
and
analyze
recommendations
for
hiring
managers.
Recruiters

and
employment
specialists
prepare
job
offers
along
with
the
benefits
programs,
conduct

background checks, schedule pre-employment, process new employees' paperwork.

Action
2.
Focusing
on
the
current
work
force
skill
levels
that
require
further
training
and

upgrading
the
current
engineers
skills
by
opening
more
training
programs,
in
order
to
support
the

company's high standards and future progress.

Action
3.
Coordinating
open
enrollment
activities,
counseling
employees
on
selecting
benefits

best
suited
for
their
health
needs,
as
well
as
calculating
salary
increases
based
on
performance

appraisals and offering well suited vacation policies.

Action
4.
Understand
and
eventually
add
further
corrections
to
the
presented
tactical
goals
that

need to be achieved.

Period:
​
up to 1 year

Material
Resources
​
:
The
company
has
several
​
development
support
tools
such
as
Managing

Effective
Interactions,
which
mainly
focus
on
training
out
managers,
Coaching
Others
Toward

Improvement,
Enhancing
Feedback
and
Listening
Skills
to
improve
communication
between

departments.
Also,
Managing
Performance
Problems
program
will
further
help
to
the

development
of
the
company
as
well
as
working
more
effectively
as
a
team.
For
our
managers

we
also
have
several
programs
such
as
Making
Meetings
Work,
Managing
Performance

Problems, Management Style Effectiveness and Performance Management.

Financial
Resources:
By
using
our
capital
and
profits,
and
investing
in
our
workforce
so
that

each
of
our
model
has
its
own
characteristics
and
evokes
a
unique
feeling
of
adventure,
power,

and success.

Human
Resources:
The
workforce
culture
is
based
on
employee
pride
in
contributing
to
the
end

product,
and
the
work
cells
must
be
very
organized.
Managers
and
workers
work
in
a
library
like

atmosphere
(clean
and
quite)
to
enable
focus
and
have
the
necessary
comfort.
Rolex
produces

almost
a
million
watches
a
year,
with
no
shortcuts
that
are
taken
in
the
manufacturing
process.

14

The
company
is
however
interested
in
quality
and
efficiency.
Our
company
is
focused
on

producing the best watches, and continually seeing how can we make them better.

Responsible:

The Head of the HR department is responsible.

MARKETING DEPARTMENT – SPRINCENEA ANDRADA

Tactical
planning
:
To
continue
the
long
tradition
of
excellence
that
the
Rolex
name
represents.

Clean
promoting
and
accurate
advertising
of
this
product
can
reach
the
wealthiest
customers.
On

their
turn,
they
can
brag
with
the
brand
and
contribute
to
the
name
through
some
advertising
on

social media or in meetings with acquaintances.

●
Actions
to
be
done:
engage
with
the
customers
at
higher
level
through
product

endorsement
and
high
quality
promotion
campaign
wrapping
up
the
4
P’s
(product,
price,

promotion, place).

●
Period:
​
3 years.

●
Resources:

Material
–
The
Rolex
product
will
stay
very
recognizable
and
relatively
unchanged.
So

with
the
help
of
promotional
material
need
to
be
made,
we
take
into
consideration
the

diversity
of
the
product
and
it’s
consumer
range,
male
and
female.
With
the
help
of

simple
printers,
3D
printers,
computer
softwares,
photo
and
video
equipment,
consumers

will receive the whole experience of high quality Rolex products.

Financial
–
Establish
a
budget
from
where
advertising
and
promotion
campaigns
can

spread
in
both
environments,
online
and
outdoors.
Also
a
budget
for
employees
implied

with
the
tasks
in
command
and
technological
resources
is
needed
to
make
the
best

customer engagement.

Human
–
Technical
team
behind
the
Rolex
brand
should
interact
with
customers,
using

online
space
and
social
media
(through
high
quality
photos,
video
presentations
and

reviews,
listening
the
voice
of
social
media
and
establish
what
are
the
new
likes
and

trends among customers and what they would prefer new on the market).

Special
promotion
stands
in
stores
represented
by
the
best
sale
mens
and
sale
womens
of

Rolex
agency
(keep
in
touch
the
client
with
the
actual
product,
discounts,
free
samples

15

and
opportunities
to
wear
for
once
the
most
luxurious
watches
and
engage
with
the

experience).

Also
a
team
of
graphic
designers
should
be
beyond
the
best
attractive
commercials
made

and
together
with
people
engaged
in
tv
advertising,
this
should
present
a
new
face
of

luxury brand Rolex and customer engagement.

●
Responsible:
​
The head of Marketing department is responsible.

Operational
goal:
​
is
set
for
the
​
PR
&
Content
Marketing
office
from
the
Marketing
department

of
the
company
Rolex.
The
chosen
goal
is
to
ensure
that
the
advertisement
and
commercials

created
for
the
company
will
keep
the
customers
close
to
the
Rolex
brand.
By
attaining
this
goal,

the
office
ensures
the
technology
and
equipment
owned
it’s
enough
developed
and
helpful
to

create
the
best
publicity
for
company,
in
an
unique,
insightful
and
creative
way;
blending
the

usefulness (of the watch) with the technology.

Operational planning:

●
Actions to be done:

Act.1: Develop a market research plan, analyse it and establish where, how and when the

future advertisements should be placed to attract customers.

Act.2: Verify if equipment and technology owned are adequate; if they’re able to create

the advertising materials in need, both online and offline (externally).

Act.3: Check upon every finished task or project that has as a result, the publicity of

Rolex products, so in this way the brand Rolex it’s alway in its spotlight of luxury.

Act.4: Receive constructive feedback when necessary as soon as the first promotional

materials are inserted on the market, online and offline. Keeping in touch with client’s

view and preferences it’s always a good strategy to contribute at the brad itself, both

customers and PR & Content Marketing office.

Act.5: Understand how necessarily is to make and keep a good image of the brand. If

tasks are not being taken seriously or the image of the Rolex is threatened, corrective

measures must be applied.

●
Period:
​
up to 1 year

16

●
Resources:

Material

The
use
of
high
quality
instruments
and
technologies
like
3D
printers,
computer

softwares,
photo
and
video
equipments.
Each
technology
can
bring
various
and
useful

outcomes:

–
3D
Printers:
with
the
ease
of
3D
Printers,
Rolex
products
can
be
brought
to
life
to
a

minimalistic
scale
with
the
best
and
realistic
details
that
the
product
in
charge
can
have.

Therefore, diverse luxury watches can interact with potential customers

–
Computer
softwares
in
charge
to
design
logos,
websites,
and
most
importantly
new

figures and faces of future Rolex products.

–
Photo
and
video
equipments
are
needed
to
sustain
the
beautiful,
clean
and
luxurious

image
of
the
brand.
Certainly
high
quality
presentation
photos
and
videos
can
convince

the customers that Rolex never fails through the beauty of the products

Financial

–
Allocating
money
for
magazine
advertisements,
billboards,
ads
at
sporting
events,

sponsorship in music, sports, movies, fashion.

–
For
online
environment,
most
of
the
money
should
assure
a
well
developed
website
and

some
commercials
spread
on
the
the
social
media
platforms:
YouTube,
Facebook,

Twitter, Instagram.

–
Technology
needed
to
create
the
promotional
materials
(printers,
3D
printers,
computer

softwares, photo and video equipments).

–
Remuneration for Rolex representatives that engage with customers.

Rolex
success
relies
on
the
continuation
of
promotions
through
magazines,
newspapers,

selective television programs, prestigious events and through the online space.

Human

Hire
well
qualified
teams
that
will
represent
the
face
of
Rolex
through
all
channels
of

promotion needed to interact with customers.

–
Technical team using online space and social media .

–
Best sale mens and sale womens in charge with promotion stands in stores.

–
Graphic designers that develop the luxurious image of the brand.

–
People engaged in tv advertising leading to good product endorsement.

●
Responsible:
​
The head of Marketing department is responsible.

17

PURCHASING AND SALES DEPARTMENT
​
–
​
RADU ALEXANDRA

a)

Tactical planning

Aim: identify our potential clients in order to increase our sales

●
Actions to be done

Action 1: map out our current prosses

Action
2:
centralize
all
our
clients
and
contract
information
to
see
clearly
who
are
the

persons that are most likely to buy our products immediately

Action
3:
we
define
our
competitive
advantage,
the
reason
for
buying
our
products
or

services,
in
terms
of
the
benefits,
results
or
outcomes
that
our
customer
will
enjoy
from

purchasing
our
product
or
service
that
they
would
not
fully
enjoy
from
purchasing
the

product or service of our competitor.

●
Period: 1-2 years

●
Resources: financial resources, new employees

●
Material: the existent once

b)

Operational
goal
of
the
sales
management
office:
try
to
come
up
with
strategical

ideas
in
order
to
increase
sales
profit
percentage
to
more
than
the
percentage
of

population growth per year.

c)

Operational planning of the sales management office

●
Actions to be done

Action
1:
Developing
a
top-notch
plan
requires
evaluating
our
current
sales
team
and

identifying skill gaps

Action
2:
Because
we
are
adding
new
hires,
we
need
to
develop
an
on-boarding
program

that
allows
sales
people
to
ramp
up
as
quickly
as
possible.
Great
on-boarding
plans

typically
include
product
training,
industry
overview
and
competitive
landscape,

consultative selling skills training and CRM training.

Action
3:
we
need
to
manage
performance,
identify
areas
for
improvement,
and
provide

sales coaching to help our sales people achieve their full potential

●
period: 1 year

●
resources: new equipment and more employees working on the sales management office

●
material: the existent once

18

3.
​

​
ORGANIZING
​
– Tronaru Adelina

The organizational structure of the business before internationalization.

In
our
case,
we
have
imagined
that
the
company
Rolex
is
present
only
on
the
European
market

and
after
that
it
will
be
internationalized
on
the
American
market,
Asian
market
and
Australian

market.

The organizational structure after internationalizing

19

The identification of the type of organizational structure

An
organizational
structure
defines
how
activities
such
as
task
allocation,
coordination

and
supervision
are
directed
toward
the
achievement
of
organizational
aims.
Organizations
need

to
be
efficient,
flexible,
innovative
and
caring
in
order
to
achieve
a
sustainable
competitive

advantage.
Organizational
structure
can
also
be
considered
as
the
viewing
glass
or
perspective

through which individuals see their organization and its environment.

An
organization
can
be
structured
in
many
ways,
depending
on
its
objectives.
The

structure
of
an
organization
will
determine
the
modes
in
which
it
operates
and
performs.

Organizational
structure
allows
the
expressed
allocation
of
responsibilities
for
different
functions

and processes to different entities such as the branch, department, workgroup, and individual.

Organizational structure affects organizational action in two ways:

●
it provides the foundation on which standard operating procedures and routines rest.

●
it
determines
which
individuals
get
to
participate
in
which
decision-making
processes,

and thus to what extent their views shape the organization’s actions.

The best organizational structure for Rolex is the International Division Structure.

Being
a
private
family
trust
currently
owned
by
Hans
Wilsdorf
Foundation,
Rolex
is
most

suitable
for
using
the
International
Division
Structure
because
for
this
company
the
most

important
fact
is
to
concentrate
the
international
management
expertise
at
headquarters,
in

Geneva,
Switzerland.
Moreover,
taking
into
consideration
the
fact
that
in
our
proposed
situation

Rolex
is
just
starting
to
internationalize
in
other
markets,
this
organizational
structure
is
the
best

one.

The justification for choosing the respective organizational structure

The
advantage
of
divisional
structure
is
that
it
uses
delegated
authority,
so
the

performance
can
be
directly
measured
with
each
group.
This
results
in
managers
performing

better
and
high
employee
morale.
Another
advantage
of
using
divisional
structure
is
that
it
is

more
efficient
in
coordinating
work
between
different
divisions,
and
there
is
more
flexibility
to

respond
when
there
is
a
change
in
the
market.
Also,
a
company
will
have
a
simpler
process
if

they
need
to
change
the
size
of
the
business
by
either
adding
or
removing
divisions.
When

divisional
structure
is
utilized
more
specialization
can
occur
within
the
groups.
It
allows
business

decisions and activities coordinated locally.

In
an
international
division
structure,
the
management
of
foreign
operations
is

coordinated
by
a
department
usually
located
at
the
headquarters,
so
this
will
represent
a
key

advantage
for
Rolex
since
it
is
a
private
family
trust.
In
this
case,
each
manager
of
the
divisions

will report directly to the head of the international division.

20

Taking
into
consideration
that
in
our
situation
the
firm
Rolex
is
just
starting
to

internationalize
on
other
foreign
markets,
the
choice
of
implementing
the
international
divisional

structure
is
a
very
good
one
since
it
can
use
efficiently
its
expertise
on
both
domestic
and
foreign

markets at the beginning.

Divisions
work
well
because
they
allow
a
team
to
focus
upon
a
single
product
or
service,

with a leadership structure that supports its major strategic objectives.

To
be
successful,
divisions
must
be
well
managed.
Executive
leadership
is
the
single

most
important
determinant
of
success
for
a
company
using
a
divisional
structure.
The
top

leaders
need
to
understand
what
each
division
is
doing
and
provide
leadership
to
the
division

chiefs
on
how
to
accommodate
new
strategic
directions
or
more
effectively
partner
across

divisions.

The
international
divisional
structure
also
offers
the
advantage
of
keeping
all
the
attention

from
the
top
management
of
the
company
on
the
foreign
business.
Rolex
is
concentrating
most

of its sales on foreign markets also since it is a brand that offers luxury products.

In
addition,
by
implementing
the
international
divisional
structure,
the
newly

internationalized
business
will
be
able
to
achieve
a
greater
degree
of
flexibility.
Also,
the
fact

that
the
failure
of
one
division
does
not
influence
directly
other
divisions
is
a
very
important

aspect to be taken into consideration when implementing the chosen organizational structure.

4.
​
COORDINATING
(human
resources
policy)
–
​
Stoica
Ana
and
Sprincenea

Andrada

The general manager:

The
foundation
for
the
general
manager
job
description
is
poured
with
management,
leadership

and the role of rendering decisions.

With
an
already
extensive
experience,
it
differentiates
from
a
head
of
Marketing
department
by

the
fact
that
he
manages
all
of
the
departments,
requiring
to
work
with
different
team
groups,

budgets
and
also
resources.
Other
general
tasks
include
quality
assurance
and
preventing

unnecessary delays in the performance of employees or equipment.

●
Methods
of
Recruiting:
​
A
general
manager
can
be
recruited
through
job
posting,
online

recruiting,
where
job
seekers
can
post
their
CVs,
and
most
important
by
employee

referrals
which
are
the
most
effective
ones,
as
referred
new
hires
being
usually
more

engaged, more productive and less likely to leave.

21

●
Selecting:
​
In
order
to
be
qualified
for
the
general
manager
post,
you
will
need
to
be
a
self

motivated
leader
with
more
than
20
years
of
active
experience
and
excellent
language

aptitudes.
Furthermore
you
need
to
be
able
to
adapt
easily
to
the
new
family,
cultural

empathy
and
great
diplomatic
skills
because
you
will
be
required
to
manage
different

departments,
therefore
different
groups
of
people,
and
to
aspire
for
self
development.
It
is

required
to
present
great
managerial
skills
as
well
as
adaptivity
and
flexibility,
in
order
to

try new things and improve efficiency.

●
Training:
​
As
a
general
manager,
the
experience
is
already
a
plus,
being
able
to
get
a
hold

of
how
things
are
working
much
easier.
An
important
training
program
would
be
the

Stress
Reduction
Training
to
be
able
to
cope
with
the
pressure,
as
well
as
a
Culture

Assimilation
Training
which
results
in
an
ability
to
understand,
communicate
with,
and

effectively
interact
with
people
across
cultures
leading
to
a
decrease
in

miscommunication.

●
Motivation:
​
Regarding
the
motivational
level
for
a
general
manager
would
be
the

opportunity
to
socialize
and
interact
with
others
,
as
well
as
the
social
status
which
comes

with
the
position,
offering
a
sense
of
satisfaction
and
fulfillment,
therefore
improving

every aspect of their life.

The head of one department:

ex:
​
head of Marketing department

Having already an experience, the only thing that differentiates it from an operational worker is

the different number of departments that he had before, and therefore different skills, methods

and abilities had in past but in need for new ones in present regarding the new occupied office.

●
methods of recruiting: The potential one can be recruited through job posting, online

recruiting and employee referrals. Being past employed with experience, can find out job

opportunities for himself.

●
selecting: Taking into consideration the fact that that one has already some skills and

abilities, the only ones that we should add up to make he/she suitable for the job are:

adaptability of family if in need to change the family environment, cultural empathy

because marketers have to deal with cultural differences everytime, mostly in social

media and online space and personal motives to develop personally into this field.

●
training: Training already adds up with experience and it can only lead to a quicker

assimilation of the remaining training program implemented for his job as a head of

marketing department. The only thing that should be mentioned here is that, the training

is different depending on department and it should point out the main approaches of the

department in cause.

22

●
motivating: At this stage, upgrading the position, the only motivation of the head of

Marketing department would be the opportunity to interact with those that are on the

same level and need for a higher social status and most importantly, to bring

improvement in the marketing quality of Rolex brand.

For an operational worker:

ex:
​
a Janitor

●
methods of recruiting: For a simple operational worker, methods of recruiting vast and

numerous: through job posting and advertising, the opportunity is big for worker to reach

the job in need by it’s will. Also through online recruiting and recruiting agencies, the

possible future worker benefits of an ample presentation of job description with other

details. Recruit from home country because option imply that, after selecting and

training, the Janitor is familiarized and able to defend threats of any subsidiary that he

would be employed to.

●
selecting: Age, gender and experience would be the most important criteria of selection

because it is at the base of every recruitment method. Then adaptability and flexibility

represents the second layer of utility of this worker when shift switch could appear in

program. He should be suitable, capable, effective in different environments that he or

she will encounter. Emotional maturity and stability are also important, and when your

worker is a Janitor, the most unpredictable stuff can happen and encounter different

changes in work environment, meet new colleagues or how he or she resonates with new

situations. Language aptitudes are also necessary and it’s recommended to be developed

in a professional manner. In such a company as Rolex, even a job as Janitor should be

taken seriously and with attitude.

●
training : When it comes to training we should follow the whole schedule of training and

length of period needed to integrate the future worker. Starting from a low level of rigor

in the very few days, he or she will approach the information needed in future

development ( “survival-level” language training, films/books, area/cultural briefings) –

presentation of the surroundings and basic tasks. Medium level of rigurosity was reached

when in an amount of 4 weeks he/she became familiar with affective approach. (moderate

language training, stress reduction training, cases, critical incidents, role-playing) .

The highest level of rigurosity has been accomplished when more than 1 or 2 months

have been spent in the company and the worker became familiar with immersion

approach(extensive language training, simulations, assessment center). Now he is ready

to occupy his spot.

●
motivating: Motivating key factors for an operational worker would be first of all, the

necessity, born out from the need of money or need for the actual job; growing up at the

23

opportunity that this job offers to socialize and the feels of doing honorable work for such

company.

5.
​

​
CONTROLLING
​
–
​
Radu Alexandra

The control processes

Control,
or
controlling,
is
one
of
the
managerial
functions
like
planning,
organizing,
staffing
and

directing.
It
is
an
important
function
because
it
helps
to
check
the
errors
and
to
take
the

corrective
action
so
that
deviation
from
standards
are
minimized
and
stated
goals
of
the

organization are achieved in a desired manner.

According
to
modern
concepts,
control
is
a
foreseeing
action
whereas
earlier
concept
of
control

was
used
only
when
errors
were
detected.
Control
in
management
means
setting
standards,

measuring actual performance and taking corrective action.

Some of the characteristics of controlling are:

– Is a continuous process

– Is a management process

– Is forward looking

– Saves time

– Minimizes cost

The
proper
performance
of
the
management
control
function
is
critical
to
the
success
of
an

organization.
After
plans
are
set
in
place,
management
must
execute
a
series
of
steps
to
ensure

that
the
plans
are
carried
out.
The
steps
in
the
basic
control
process
can
be
followed
for
almost

any
application,
such
as
improving
product
quality,
reducing
waste,
and
increasing
sales.
The

basic control process includes the following steps:

1.

Set Control Standards for Performance

The
first
step
in
establishing
an
international
control
system
is
to
define
relevant
control

standards.
A
control
standard
in
this
context
is
a
target,
a
desired
level
of
performance

component
the
firm
is
attempting
control.
Control
standards
need
to
be
objective
and
consistent

with
the
firm’s
goals.
For
example,
Rolex
wants
to
take
his
business
also
in
Thailand,
for
that
it

might set the following three control standards for their products:

–
Productivity
and
quality
new
place
will
exceed
the
levels
in
the
firm’s
origin

country

24

–
After
an
initial
break-in
period,
90%
of
all
key
management
positions
in
the
new

business location will be filled by local managers

– The company will obtain at least 89% of its resources from local suppliers

2.

Measure Actual Performance

The
second
step
in
creating
an
international
control
system
is
to
develop
a
valid
measure
of
the

performance
component
being
controlled.
For
the
firm
introducing
a
new
product
in
a
foreign

market,
performance
is
based
on
the
actual
number
of
units
sold.
For
the
new
plant
in
Thailand

used
as
an
example
earlier,
performance
would
be
assessed
in
terms
of
productivity,
quality,
and

hiring and purchasing practices.

3.

Compare Performance Against Standards

The
next
step
in
establishing
an
international
control
system
is
to
compare
measured

performance
against
the
original
control
standards.
Again,
when
control
standards
are

straightforward,
and
objective
and
performance
is
relatively
easy
to
asses,
this
comparison
is

easy.
But
when
control
standards
and
performance
measures
are
less
concrete,
comparing
one

against the other is considerably more complicated.

4.

Responding to Deviations

The
final
step
in
establishing
an
international
control
system
is
responding
to
deviations

observed
in
step
3.
Three
different
outcomes
can
result
when
comparing
a
control
standard
and

actual performance:

– The control standard has been met.

– It has not been met.

– It has been exceeded.

Depending
on
the
circumstances,
managers
have
many
alternative
responses
to
these
outcomes.

If
a
standard
has
not
been
met
and
the
manager
believes
it
is
because
of
performance
deficiencies

on
the
part
of
employees
accountable
for
the
performance,
the
manger
may
mandate
higher

performance,
increase
incentives
to
perform
at
a
higher
level,
or
discipline
or
even
terminate

those employees.

25

There are three objectives of control

1.

Financial performances

Financial
Performance
refers
to
the
ways
that
a
company
manages
and
monitors
financial
results

across
an
organization.
​
The
primary
purpose
is
to
compare
actual
results
to
budgets
and
forecasts

and adjust accordingly so that companies will be better equipped to meet their financial goals.

Financial performance allows organization to experience several benefits:

–
​
More
agility
when
faced
with
unexpected
business
events
through
scenario

modelling, rolling forecasts and what-if scenarios

–
​
Less
focused
on
the
operational
intricacies
and
more
focused
on
becoming
a

strategic function for executives to use when acting

–
​
Identify underlying trends
​
and interpret large amounts of data quickly

–
​
Join
departments
to
a
central
vision
so
that
decisions
can
be
made
with
the
core

goals and financial truth top of mind, with finance at the heart of every decision

For
example,
we
should
take
into
consideration
fluctuations
of
exchange
rates
when

internationalizing
the
firm.
Also,
we
must
consider
the
competitions,
for
example:
Patek
Philippe

(its
main
business
operations
include
producing
timepieces
and
movements
which
also
include

some
complicated
mechanical
watches)
or
Vacheron
Constantin
(produces
prestigious
watches

and is a brand of the Richemont group).

2.

Quality performance

Quality is a vital importance for several reasons:

– Many firms today compete based on quality.

– Quality is important because it is directly linked with productivity.

– Higher quality helps firms to develop and maintain customer loyalty.

Quality consist of eight dimensions:

–
​
Performance
​
:
comprises
the
product’s
primary
operating
characteristics,
for
example,

Rolex’s new calibre 3255 boasts a 72-hour power reserve, +2/-2 accuracy reliability

–
​
Features
​
: include supplementary characteristics

–
​
Reliability
​
:
refers
to
the
dependability
of
a
product:
Rolex
has
extremely
reliable

products in high volume

–
​
Conformance
​
: is how well the product meets normal standards.

–
​
Durability
​
: refers to the product’s expected lifespan.

–
​
Serviceability
​
: refers to how fast and easily the product can be repaired.

–
​
Aesthetics
​
: refers to how the product looks.

–
​
Perceived quality
​
: is the level of quality as seen by the customer.

When
it
comes
to
quality,
Rolex
wants
to
give
their
customers
the
best.
Their
products
are

versatile, are build around a lifestyle.

26

3.

Human resources performance

Human
Resource
performance
comprises
the
planning,
evaluation
and
management
of
both
the

efficiency
of
the
employees
and
the
personnel
work
itself.
It
is
important
that,
on
the
one
hand,

the
internal
structure
of
the
company
is
examined,
but
also
the
market
conditions.
As
usual
in

controlling,
a
distinction
is
made
between
planning,
measurement
and
finally
the
development
of

measures.
Employees
can
be
defined
as
a
cost
factor,
value
creation
potential
and
stakeholder

group.
HR
controlling
ensures
that
competitive
advantages
can
be
developed
and
risks
for
the

company can be detected early on and avoided.

The tasks are:

– Ensure reporting / reporting

– Production of transparency

– Increased efficiency

– Determination of the value contribution of all HR measures

Organization of HR controlling

There
are
two
different
approaches
to
the
responsibility
of
HR
controlling.
Either
one
classifies

the
tasks
as
a
staff
function
without
authority,
or
the
tasks
are
carried
out
by
the
controlling
or

the
HR.
I
think
the
best
solution,
in
the
sense
of
a
holistic
approach
to
controlling,
is
an

affiliation
to
controlling.
This
makes
it
possible
to
ensure
that
the
reports
come
along
in
the

corporate
habitual
design.
In
addition,
the
controllers
are
the
savviest
when
it
comes
to
points

such
as
obtaining
the
numbers
from
the
systems.
It
is
indisputable,
however,
that
the
key
figures

are regularly analysed together with HR.

27