Unit 6: Stone Stylist Ltd Report Activity 1
In the exam, you may not have enough time to write such a detailed report.
However, this document will help you gain a better understanding of the concepts
you might encounter. You can apply this report to various questions in the exam, as it
includes all the techniques James could use, management styles, and relevant
graphs for a clearer understanding.
Business Profile:
Stone Stylist Ltd is a company that creates custom stone products for homes and
businesses. They are known for their excellent craftsmanship and attention to detail.
The business employs 50 workers for production and installation, as well as 10 staff
members in the head office who handle administration, marketing, and sales.
Despite their good reputation, the company has been struggling with communication,
operational inefficiencies, and employee satisfaction. They also face challenges with
meeting production timelines, keeping employees, and maintaining high customer
satisfaction levels due to resource problems. These issues are made worse by a lack
of structured monitoring systems and training opportunities for staff.
In 2022, the company’s founder handed over leadership to a new operations
manager, who introduced changes to cut costs and increase profits. While these
changes aimed to improve the business, they have left staff unsatisfied and low
morale.
This report will discuss the company’s goals, the main challenges they face, and
strategies to address these problems.
Business Goals and Recommendations to Achieve Them: To help Stone Stylist
Ltd achieve its goals, the following strategies are suggested:
Goal 1: Increase Net Profit by 12% by 2026
The company may achieve this goal by increasing efficiency, reducing waste, and
improving its supply chain. Applying lean manufacturing processes will assist to
simplify operations, decrease downtime, and make better use of resources. They
might also generate new revenue sources, such as providing maintenance services
for stone projects or expanding into other markets. Digital solutions, like
production-tracking software, may help monitor progress, reduce delays, and identify
areas where resources are being wasted.
Goal 2: Improve Customer Satisfaction by 20% by the End of 2025
To make customers satisfied, the organisation should prioritise improved service
delivery, communication, and product quality. Setting up a mechanism for collecting
client feedback may help businesses identify and solve problems more rapidly.
BTEC BUSINESS UNIT 6 PRINCIPLES OF MANAGEMENT
, Providing realistic project deadlines and keeping clients informed can increase
confidence and transparency. Training employees in customer service and project
management will guarantee that clients have a consistent positive experience.
Goal 3: Reduce Employee Turnover by 15% by 2026
High staff turnover may be decreased by offering effective training and development
programs that assist employees improve in their careers. Regular evaluations of
performance, award programs, and achievement recognition may all contribute to
increased morale and motivation. Creating a supportive environment at work in
which employees are respected and appreciated can increase loyalty while
decreasing dissatisfaction
Issue 1: Unsuitable Management style of James Leadership
The new manager at Stone Stylist Ltd. currently employs a transactional and
autocratic leadership style. This approach emphasizes structure, control, and
achieving short-term goals through rewards and punishments. While this can lead to
efficient task completion and clear direction, it may also foster a lack of employee
engagement and stifle creativity. The autocratic nature of decision-making could be
causing frustration among employees, as they feel excluded from the process,
leading to lower morale and increasing turnover. Furthermore, this top-down
leadership style does not provide much room for open communication, which can
negatively affect the overall work culture and hinder trust-building between
employees and management.
To improve the business and address these challenges, the new manager should
shift towards a transformational and democratic leadership style. This approach
encourages collaboration, employee involvement in decision-making, and the
creation of a shared vision for the future. By actively engaging with employees,
seeking their input, and motivating them with a clear, inspiring direction, the manager
can foster a positive work environment where employees feel valued and
empowered. This shift will likely lead to improved morale, greater employee
retention, and higher productivity, as workers will be more committed to the
company’s goals. However, the challenge lies in managing the transition, as
employees may initially struggle with the change or resist relinquishing the more
structured, authoritative approach. If not carefully managed, this shift could lead to
confusion or a temporary dip in productivity.
Main Issues Facing Stone Stylist Ltd:
Issue 2: Lack of Monitoring and Accountability
Stone Stylist Ltd doesn’t have clear systems in place to monitor performance and
hold staff accountable. This has caused project delays, inefficient use of resources,
and inconsistent service quality. For example, when projects run late due to poor
BTEC BUSINESS UNIT 6 PRINCIPLES OF MANAGEMENT
