Professional Documents
Culture Documents
RESEARCH
ORGANIZATIONAL BEHAVIOR, MBA
PROJECT
“MANAGEMENT IN KAZAKHSTAN”
based on a Kazakhstani company Meloman
Checked by:
Dr. Jean-Gabriel Maurice
Prepared by:
Tundikbayeva Bakhytgul 20061883
ALMATY, 2008
PROJECT PLAN:
Resources
I. Introduction.
Successful Management: From a stall to a hypermarket or
the Company that succeeded in the Kazakhstani Market.
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Company Profile:
Company «Meloman» (Music fan) is the most famous in Kazakhstan large wholesale and retail seller of
music and films on carriers of various formats: CD, VHS, DVD, Video CD, MP3, Blue-Ray, and on such
programs as CD-Rom carriers, DVD-ROM and the accompanying goods.1
It was founded in 1993. The first firm retail shop was opened in 1996.
Company Uniqueness:
Company Meloman has managed to outstrip its competitors, having counted on new formats of
work with the consumer and playing by the rules accepted in the developed markets.
Company Aim:
At the moment the company aims to win competitive struggle against video pirates in the
Kazakhstani market.
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Today "Meloman" not only sells but also produces its own DVD-disks, has
managed to conclude distributing agreements with leading American film
manufacturers, including Warner Bros., Sony Pictures Home Entertainment, and
also "Close up" ("Moscow film"), "Union-video" and others2. Meloman is now
well-known and is invited to cooperate in the near abroad countries. Company’s
top management plans to issue the IPO.
Developing Alternatives.
The company is in a constant search of relevant styles in the external and internal
environments to diversify itself. Here we want to show how Meloman diversifies itself in a
Kazakhstani market.
3
Fundamentals of management, Chapter 4 , Мaskon
4
<http://www.expert.ru/meloman/kazakhstan/>
1. After choosing its main niche, Meloman created its own manufacture - fusing disks from
a granule of polycarbonate. And soon this manufacture was put on the world
standards.
2. Two years ago the company bought a factory from Sweden with a line on
release of DVD and CD-disks. Total amount of investments made up about 1,5
million dollars.
The factory capacity is 600 thousand disks a month. Surely, the company will
not have such quantity of orders today, but in two-three years it will be quite
real. So, they are looking right into the future.
3. To invest in building of Meloman factory and shops the company used profits
from its different division. The company has a successful network selling
household electronics, building materials, goods for the household. This shop
network called "Comfort" is in Uskemen.
4. Business diversification proceeds - last year Meloman opened two cinema
halls on 200 places in Astana. By the end of 2008 they are planning to open two
more halls on 320 places as there is a great demand in cinemas nowadays,
especially in a new capital city.
Meloman loves to please people.
5. Meloman has also felt, that there are no normal bookshops – and launched
their own network called Booking in this segment in Almaty. All bookshops in
Almaty are post-Soviet and the literature there is for prepared bibliophiles, not
for the mass buyer. If you wish to buy «Sole less» by Minaev, instead of Andre
Mauro, the buyer is not clear where to find this book. Meloman started to
educate its customers here as well.
Atmosphere in new style Booking is different – it is closer to a club or a library
where people could rummage easily on book shelves, not hurrying up, to think
before choosing. Sit for hours drinking coffee, reading a book. Booking is not
simply a shop where one buys books; this is a rest spot for reading, a library. It
is a format of future.
The market gradually varies. Booking has appeared in Almaty practically
simultaneously with other networks - «Book mania» and «the Book city»,
Bookmart. All of them accustom new standards of work to consumers.
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Robert N.Lussier, Ch.F.Achua Effective Leadership
tried to be engaged in it. But Southern partners had little success and Meloman
turned down that project.
The music and movie goods are very short term of consumer interest. If active
sales go on within first two weeks, other three months the interest decreases
almost to zero. So, it is crucial to realize the product within a short period of
time. It is also necessary to calculate quantity of the product very precisely.
Otherwise investments into creation of modern, big shop will not pay off. And
here no franchiser has sustained this operating mode.
It is the hardest part. Unfortunately, managers never have one single alternative,
which can fully solve the problem. Thus optimal decision is rarely possible. But Meloman
tries to overcome this and put forward the following decisions.
-Meloman is now expanding its market share. They have put new points of sales
in supermarkets, shopping centers. The buyer too should be brought up. And an
impatience limit will be soon reached. It is said that piracy disks are cheaper.
But the customer should come to the point that the stolen will be always
cheaper, a disk, a mobile phone or a radio tape recorder.
- Today the company’s products do not cost much as it was before. DVDs cost
990 tenge, on sales - 500. Some goods which have remained in a considerable
quantity can even cost 300 tenge6. Pirates in many cities sell at the same price.
Consumer cannot at the moment understand that a pirate disk with fifteen
movies on it can be of awful quality. And the buyer still goes to the pirate tray
as it is on a way, it is more convenient. It will not last long.
Meloman is working towards this problem and sees the following
solutions:
- The first considerable step that Meloman did is, it warned the Almaty Akimat,
that if the situation will not change, the company will have to close the shops.
The State simply should start protecting intellectual property. Akim-Mayor
promised to help. The first antipiracy staff has recently been created who
regularly gathers and analyzes a situation on the market. Today it is very
important to destroy the corruption schemes connected with this shadow
business. We know that many local inspectors collect money from tray or stall
holder in order they could continue selling pirate production. The staff is looking
into this.
- And here the problem is not only in a competition of legal and illegal
businesses. It is necessary to pull out our youth from this environment. Today
youngsters and children get used to criminal schemes since the childhood. They
work as sellers in those trays without documents. Brought from villages, they
work literally for nothing. If the state wants, it will quickly deal with this problem
caused by pirates. This all is real.
- In order it is possible to raise competitiveness of legal business, the company
introduced new discounts, especially for the youth. After all it is not the most
active category of buyers. People segment aged from 16 till 25 years prefer to
copy films and music from each other. Therefore Meloman together with VIP-
club organized the action, which allows giving to its members the discount in 25
%. The company can lose on sales, but will definitely receive additional visitors.
And where there is a visitor - there is a buyer. And where there is a buyer -
there is a steady customer.
- Meloman now is actively reducing costs, is engaged in optimization of
business processes, has introduced ERP-system. Actually it is the first ERP,
developed by Microsoft, introduced in Kazakhstan. This is a very important work
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www.meloman.kz
direction of Meloman. Many Kazakhstani firms suffer from the fact that they buy
a similar expensive product and simply give it to its experts on IT. The IT
department does not have enough power for this purpose. Therefore Meloman
decided that this field will be supervised by one of owners of the IT Company.
And this has given positive results. Meloman is never afraid to change. The
same was, when 1C was introduced. And today it gives the company the
possibility to look at the sales in any of Meloman shops in any city at any
moment. It is very convenient.
HR Management in Meloman
Human resources policies and practices – such as employee selection, training and
performance management – influence an organization’s effectiveness. Selection of the
right personnel, training and development programs, and performance evaluation
organized by human resources department of the organization plays crucial role in strategy
creation.7
Considerable changes in organizational structure of the company followed with
improvements in human resources strategy of the company.
The basic idea of HR policy in Meloman is to maintain optimal number and high quality
level of personnel in the company provide professional and social development, and retain
qualified personnel and recruit “the best” in order to provide solutions for strategic and
tactical issues of the company.
Today there are 1500 employees in the company.
And Human resources policy of Meloman directed to:
1) Bring to correspondence with market demand. Human resources - intellectual
capital of the company.
2) Guarantee the best human resources strategy to fix leading position of the
company in local and foreign markets.
3) Raise the level of positive image and trust of partners and customers to the
company.
Human resources and development depend on administration (on orders, decrees,
responsibilities, job regulations, sanctions), economic (incentives, insurance, trainings,
bonuses), sociological (work conditions, social norms, non-monetary motivations, corporate
culture) methods, and balance of these methods to create healthy corporate atmosphere in
organization.
The main aim of human resources is to organize highly qualified team that meets the
challenges of the company having increased the productivity and efficiency of employees.
It compiles:
Identify explicit and tacit potential of the employee (part of team)
Utilize his/her intellectual and creative ability for company’s development
Recognize the motivate employees contribution and build long term
mutual relationship with each employee.
Following issues are discussed to reach above aims:
Create healthy corporate atmosphere, provide high level of customer
service as well as mutually beneficial supplier relationship.
Sustain qualified personnel, and recruit “the best” available employees in
the market, and provide carrier growth for each employee.
Provide favorable working conditions for newly recruited employees in
order to ease adaptation process.
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Robbins. S and Judge. T Organizational Behavior Prentice Hall 12th edition 2007
Having discussed human resources strategy of Meloman partially we want to introduce the
training center created to train Meloman employees to follow up changing technical skills.
All Meloman employees work to:
Support business in order to reach the mission of the company
Provide employees with full set of trainings according to company’s
strategy
The training center tries to balance relationship between trainings and business processes,
and motivate employees to contribute more to excellence of the organization in the
industry. It provides:
Training of company employees in communication area
Prepare technical specialists for use and maintenance of equipment
Training to market services of the company
Development of management and personal skills
Meloman develops different training sessions for all employees in all levels.
According to Robbins and Judge ‘competent employees don’t remain competent forever’ 8.
Nowadays changing world demands qualified personnel who can follow up the tendency
and way to success lies via trainings and introduction of all necessary skills and techniques
to employees within training sessions and in long term company contributes to human
resources that become an intellectual capital of the company.
III. Conclusion.
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Robbins. S and Judge. T Organizational Behavior
Company Meloman has managed to outstrip its competitors, having counted
on new formats of work with the consumer and playing by the rules accepted in
the developed markets. And this is the brightest example of successful
management which has chosen the highest standards, has founded new
management styles and serves the people who deserves the high quality
service and serves the Country which step by step is exploring new developed
markets and is entering the international organizations thus making itself
revealed to the entire world.
Only such devoted to high standards company can show the development of the society
and the country as a whole!
References: