Diagnostic Report For Marketing Management Mode Of Lamsoon Company

With companies becoming increasingly larger and stronger, the change of marketing management mode, including organization restructuring, process reforming, and integration of resources, to achieve transformation of enterprises, many enterprises strive to seize market-share in China.Lam Soon Hong Kong Limited (also known as Lam Soon Hong Kong Group, referred LS), a veteran company which had been listed in the early1970’s, was established in1961.By the end of2008, LS set a5year plan of business development, to make large progress in China, and establish new marketing management mode, which includes re-designing of the organizational structure of marketing, such as merging sales team from3different divisions, establishing responsibility centers individually&adding unique functions for each of these responsibility centers. This also includes the formulation of a set of authorization system, and working procedures.After two years of practice, however, the performance of LS was trending in the opposite direction to the original intention. Not only was there a decline in the growth rate, but the share price was also experiencing sharp down-town. Along with such disappointing performance, there were also some stubborn unresolved problems in day-to-day operations, such as inefficiency, bureaucracy, brain draining, institutional expansion, etc. In this circumstance, to solve the problem of bad performance, we need to diagnose it from its characterization.This article will investigate in-depth from the characterization and discover the incentives of this issue, in the form of statistics, interviews, and observations. Statistics of approval process and contents of application of different type in the online approval system, and the conclusion and analysis of the cause of overextended approval process. Interviews with leaving staff and the HR manager to learn the true thoughts of those leaving. Observing and investigating the daily contacts, various management staff’s performance in key management meetings, especially the sales members, to ascertain their familiarity and concerns in relating to their area of business.Although the symptoms in LS may vary, the cause, however, could be found from the angle of organization. Besides finding incentives of the problems, this article will continue to explore deeper on two aspects:At first, Further analysis on the impacts of efficiency. Using two division system theories on organizational design, and discovers the impacts on the organizational structure, business processes, efficiency of decision-making and operation, and the overall performance, by the designing of horizontal and vertical division of labor in LS. And then, Investigate from the angle of industrial characteristic differences, that whether LS is qualified to integrate its diverse business, and whether these qualifications will transform to the leverage abilities for the enterprises to leap-forward development. Meanwhile, possession of these qualifications and abilities also provide another angle of determination, that whether the current marketing management mode have sufficient organizational capacity to complete such an ambitious strategic goal.Based on in-depth analysis of the angles mentioned above, this article confirms the existing problem in the mode of marketing management in relation to LS, and provides a series of targeted solutions.1) To face the situation under different industries, the resources and abilities of these3divisions are not universal. To split the whole sales team into3professional ones by industry, and supervised directly by original division. Which also improve competencies of staff by professionalization.2) Need to change the over-centralization concept into distributing more authority in final decision making to divisions in routine business, will eventually improve the efficiency of decision making.3) To improve operating methods, enhance Inter-group coordination, reduce bureaucratic procedures, and raise operational efficiency.I believe that with the appropriate solutions mentioned above, we will be able to increase the performance of enterprises greatly.