Property Management And Investment

Published Date: 02 Nov 2017

Better Way Group UK is a group of companies having areas of operations in wholesale, cement manufacturing, banking, property development, management and investment. It was founded in the year 1976 by Mr. Anwar Pervez who is a Pakistani National where he initially started a wholesale warehouse in Acton, West London and attained excellent results within one and a half year of its operations. Better Way Group UK is a private entity registered under the Companies Act, 2006 in the United Kingdom. Its Head Office is situated in the Bestway Head Office, Abbey Road, Park Royal, London. The Group has 4,500 employees at present.

Business Segments

Whole Sale Cash & Carry

Bestway was primarily cash and carry business, the second largest in the United Kingdom having wholesale distribution of food, alcohol and tobacco. It also had a pet business. It traded from 62 sites (including two sites selling only pet products). Its grocery wholesale business traded under two names Bestway and Battleys. This past year sales were in excess of £2.3 billion in the UK, including pet food.

Cement Manufacturing

Better Way Group UK is the owner of a cement manufacturing listed company situated in the capital of Pakistan known as Bestway Cement Limited (BCL). It was incorporated in the year 1994 having its two plants at Hattar and Chakwal with a total annual production capacity of 5.4 million tons per annum. BCL enjoys a 15% share of the local market and its major regions of export are India, Afghanistan, Middle East and Mozambique. BCL had 5,000 direct and indirect employee work forces.

Global Banking

Better Way Group UK has acquired United Bank Limited (UBL) in October 2002 for US $ 210 million which is deemed as Pakistan’s Second Largest Bank having 1,100 branches across the globe. UBL has 14,500 employees and 5,000 customers. The assets under management amount to US $ 7.6 billion.

Property Management and Investment

The Group operates an impressive property portfolio amounting to £500 million which is valued at cost. It comprises of owner occupied warehouses investment properties and their development.

The Team of Board of Directors

The Board of Directors team has the executive responsibility for the overall major activities and operations relating to the business of the company. The management team takes all the strategic decisions within the jurisdiction of the authority signed and they are ultimately accountable to the Board of Directors. The members of the board team along with their designations are listed as follows

S#

Name

Designation

1

Mr. Anwar Perves

Chairman Bestway Holdings Limited

2

Zameer Choudrey

Group Chief Executive

3

Younus Sheikh

Director Bestway Holdings Limited

4

Adalat Khan Choudhry

Director Bestway Holdings Limited

5

Abdul Khalique Bhatti

Director Bestway Holdings Limited

6

Arshad Chaudhary

Director Bestway Holdings Limited

7

Rizwan Pervez

Group Director Business Development

8

Dawood Perves

Company Secretary

Human Resource Management

Executive Summary and Scope of Work

This assignment has been prepared on the basis of research on the corporate and human resources (HR) strategy of Best way Group UK (hereinafter referred to as the Best Way Group UK) whereby all the policies and procedures pertaining to recruitment and selection , performance management, training and development, appraisal systems and rewards in turn have been intensively evaluated.

Scope of work

For the purpose of evaluation of human resource management, the following procedures have been performed;

Obtained and reviewed the Human Resource Management policies and procedures manual duly approved by appropriate level;

Obtained and understanding of the Best Way Group UK organizational structure of the company;

Reviewed the terms and conditions of permanent and contract employees.

Reviewed employee turnover;

Checked on a sample basis that controls related to the recruitment process are appropriately designed and are operating effectively;

Checked on a sample basis that controls relating to the leave application process are appropriately designed and operating effectively;

Checked on a sample basis that controls related to the performance appraisal process are appropriately designed and operating effectively;

Checked on a sample basis that personnel files are properly maintained in HRM department and are kept at secured area;

Checked on a sample basis that controls related to the training process are appropriately designed and operating effectively;

Checked that duties related to the preparation, review and approval of payroll are appropriately segregated; and

The Objectives of Human Resource Strategy

Before explaining any further let us depict what is a human resource? Human resource is the workforce the Best Way Group UK deploys to attain its destined set of objectives. However, the strategy is the planned course of action for future to attain objectivity.

The objective of a human resource strategy in the Best Way Group UK is to ensure that the human resources are available, as required. In some cases, it might be necessary to consider reducing the number of employees whose skills are declining in importance, through programs of redundancy or re-training and relocation

The Importance and Role of Human Resource Management within the Best Way Group UK

Human resources are a key resource. The success of the Best Way Group UK truly depends on the skills and experience of its human resources. A critical success for a business entity is to have sufficient human resources with the necessary skills. Top quality performance comes from recruiting the best people, using them effectively and giving them an interest in their work performance. Operational and strategic success therefore depends on:

Recruiting suitable employees and developing their skills and knowledge persistently.

Managing employees effectively

Motivating employees to perform well, and better.

The main responsibility of the human resource management function is to;

Assess the quantity and quality of human resources currently available, including number and skills.

Estimate the quantity and quality of human resources that will be needed in the future, including numbers and skills.

Consider ways of ‘fill-in the gap’ and ensuring that the Best Way Group UK has the human resources that it needs.

Recruitment and Retention Strategies

At a strategic level, the plan for recruitment and selection requirements is based on the needs of the Best Way Group UK for human resources in order to implement its corporate and business strategies. The Best Way Group UK recognizes the changes in the mix of skills and experience that is to be required for the work force in the future. For this purpose, specifically a demand forecasting analysis is used where the required numbers and skills of human resources are estimated. This analysis is then used to estimate the likely total size and structure of the Best Way Group UK.

Total human resource numbers are consistent with the corporate and divisional strategies.

Development and Training

Training and development are two different things. Training is a process in which individuals are taught something specific. A training program has a particular objective, to teach the individual some theoretical or practical knowledge, or to give the individual a new site into an aspect of their work. In contrast, development is a process of learning through experience and doing work. Individuals learn as they develop by doing different things at work and gaining new experiences.

The training and development program of the Best Way Group UK has been evaluated and it proved to be well designed because it is giving employees the knowledge, ability and insight that they need to do their work better which is also proving to be effective. This is because the Best Way Group UK arranges several workshops, counseling sessions on timely basis subject to the circumstances, for example, a recent implementation of SAP ERP in the Best Way Group UK which do require some training to handle it effectively.

The following methods of development have been included in the development and training program of the Best Way Group UK as follows;

Job rotation where an individual is being moved from one job to another at fairly regular intervals, so that the individual gain familiarity with the work done in each job.

Secondment where an individual might be ‘seconded’ to work somewhere else for a period of time. Secondments are periods of time spent away from the normal working environment, in another department or as part of a project team.

Deputizing where an individual may be given the opportunity to deputize for his or her boss when the boss is absent from work for an extended period of time.

Delegation where a senior manager or a boss wants to develop his/her subordinates by giving them additional responsibilities, and delegate authority to make their own decisions.

Mentoring where an individual might be given a mentor. The mentor provides guidance and assistance to the individual, and may occasionally discuss the individual’s work and problems.

Performance Appraisal Systems

The Best Way Group UK has an annual performance appraisal system whereby the performance of individual employees and work groups are to be reviewed. The appraisal process involves an interview or discussion between the employee and a manager. At first, staff appraisals are between the employee and his or her immediate manager. However, a more senior manager also carries out the interview in which the following matters are discussed:

How are things going?

What has gone well?

What has gone badly?

What have been the problems and difficulties?

What is needed to develop the employee and improve his or her competence?

What can be done to meet these needs?

The performance appraisal systems have three components as follows;

Reward reviews where the employee may have an opportunity to ask for more pay, or express a wish for promotion.

The performance review is an appraisal used to assess the performance of the employee since the previous performance appraisal.

Potential reviews are used to discuss the employee’s potential for career development and promotion

Human Resource Development Techniques to Ensure Employee Engagement

The Best Way Group UK has a performance management system to ensure employee engagement and commitment. Performance management is the process of creating a work environment in which people are enabled to perform to the best of their abilities. A performance management system includes the following;

Clear job descriptions, related to the objectives of the Best Way Group UK

Appropriate selection

Establishing and agreeing performance standards and measures

Providing the necessary training

Providing regular feedback on performance and coaching

Rewarding people for doing well

Providing a career structure

The Effectiveness of Human Resource Strategies in Supporting Best Way Group UK’s Strategy

Human resource strategy has significant contribution towards the achievement of Best Way Group UK’s overall strategies because it’s the workforce whose efforts and continuous struggle adds value to the Best Way Group UK. The effectiveness, efficiency and economy of smooth flow of operations are totally dependent on the robust human resource management systems because every single task in a Best Way Group UK requires some specialization of skills and expertise for which there should be a competent workforce. For this purpose, adequate attention is devoted to the process of recruitment to employ the best personnel who have the necessary qualifications and skills required to get the job done. Once recruited an employee has also concerns about the Best Way Group UK which includes the working conditions, level of supervision, regular feedback on performance, continuous professional development, annual performance appraisals, quantity and quality of work he is contributing and most importantly the rewards in turn he is receiving from the Best Way Group UK. The employee motivation will be higher when the rewards are adequate however the motivation will be impaired when the rewards are inadequate. Of course, the employee will leave the Best Way Group UK where his output exceeds the benefits. Therefore, when there is an effective HR strategy in place the Best Way Group UK can optimize all its human resources such that it cannot afford to lose even a single valuable employee since such type of employees are also deemed as an asset to the Best Way Group UK.

Task 2

Management of Physical Resources

For the purpose of identifying the physical resources of Best way Group UK (hereinafter referred to as ‘ the Best Way Group UK’), the discussions have been done with the key management personnel who are responsible for their management described as follows;

Discussions with key management personnel and staff

The key management personnel and staff include

Chief Operating Officer (COO)

Chief Financial Officer ( CFO

Chief Security Officer (CSO)

Manager Supply Chain (MSC)

Manager Warehouse (MW)

Manager IT and (MIT)

Manager Finance & Accounts (MFA)

Following discussions have been taking place with the above personnel, which mainly include;

For the purpose of understanding, all the relevant information pertaining to Best Way Group UK’s physical resources was obtained such as a list of all types of physical resources that are being deployed, safeguarding of such resources, insurance mechanism, operating manuals, work plans, authority matrix, planning documents including the need for preparation of budgets and budgetary controls, the process of monitoring and reporting.

Inquiry of COO, MSC and MPA for the acquisition and allocation of resources based on identifying priorities, urgency, suitability, type of physical resources, accessibility, deployment time, hazards and risk analysis.

Discussions with the COO about the Best Way Group UK policies and procedures regarding legislation relevant to the management of physical resources, corporate and strategic plans, performance and quality standards, personnel practices and guidelines.

Discussions with CFO and MFA regarding any preparation of budgets both financial and non-financial. Financial budgets include the tentative plans and forecasting for future cash inflows and outflows. However, the non-financial budgets include daily, weekly, monthly and yearly production plans, plant and machinery productive hours, an estimation of idle time due to plant & machinery maintenance and major overhauling, daily, weekly and monthly production reports, predicted movement in inventory.

Discussions CSO, MPA and MW about the warehouse security measures and safety controls which include dress code for factory workers, fire drilling practices, prohibition of smoking and other safety controls including fire alarms and fire fighting equipments.

Discussions with COO, MPA and MW about monitoring of such resources through site visits, inspections, partial and full audits of physical resources.

Discussions with CFO and MFA about how these resources are utilized in terms of cost cutting measures and how financial budgets are planned, prepared and monitored. Lastly, the reporting requirements of recording and disclosing in the financial statements of the Best Way Group UK.

Processes of Asset Management and Planning contributing to the achievement of the Best Way Group UK objectives

The Best Way Group UK has a mobilized assets management and planning process designed to achieve effectiveness, efficiency and economy of operations such that the Best Way Group UK achieve its objective. Following is the grid showing the physical resources along with the officers’ designation responsible for managing them;

S.No

Category of Physical Resources

Personnel designation responsible for management

1

Property including land, building and premises

Chairman, Chief Operating Officer, Chief Security Officer, Chief Financial Officer

2

Plant and machinery

Chief Operating Officer, Manager Warehouse

3

Furniture & Fixtures

Chief Operating Officer, Chief Security Officer, Manager Supply Chain,

4

Vehicles

Chief Operating Officer, Manager Supply Chain

5

Fire fighting equipments,

Chief Security Officer and Security Guards

6

Computers, laptops & accessories

Manager IT

7

Stocks of raw materials and finished goods including stores, spares and loose tools

Manager Warehouse, Manager Supply Chain and Warehouse in charge

8

Cash at Bank

Chairman, Chief financial Officer, Manager Finance & AccountsThe Best Way Group UK’s resource planning process has been summarized as follows;

There are major five departments that are responsible for asset management as follows;

Production Department

Supply Chain Department

Security Department

Information Technology (IT) Department

Finance & Accounts Department

The Chief Operating Officer is the supreme authority and all departments report directly to him including the Chief Financial Officer and Chief Security Officer.

The Production department is responsible for the preparation of daily, weekly, monthly and annual production plan which include how long the plant and machinery will work, what will be the productive hours and idle time for plant and machinery’s maintenance and pre-scheduled major overhauling. The core objective of this department is that the production has been carried out according to a pre-defined set pattern such that there would be no excess stocks and inventory turnover remains at optimum level. For this purpose, the production department generates a daily production report (DPR) which is being prepared by an automated system generated software that shows the quantity of raw material consumed, the normal and abnormal losses before and after the production process, the time in hours for which the plant and machinery has actually worked to be compared with the budgeted hours, the units of electricity consumed. The purpose of this report is for analyzing consistency between the quantities of raw materials, working hours, the units of electricity consumed against the actual quantity of finished goods that have been produced to find out any major loopholes in the production process. Furthermore, in order to avoid any major breakdown and making the production process more efficient, timely maintenance has been carried out during the year, since any sort of disruption can cause a major slump towards the Best Way Group UK’s major objective. Hence, the production department has a major contribution in mobilizing the major physical resource on which the Best Way Group UK is totally dependent as a whole.

The Supply Chain Department is responsible for forecasting of product ordering such that the economic order quantity is attained and to avoid stock outs. For this purpose, an efficient inventory management system is in place which ensures that how much buffer stock is there to meet the Best Way Group UK’s future production needs. The Department has been operating under a standard operating procedure manual which duly describes its effective management. This in turn also prescribes that the production plan executed by the production department must be in line with the procurement plan. The procurement plan specifically prescribes the evaluation criteria for suppliers, a need for documentation for qualified suppliers and their necessary details including business title and place, national tax number and communication address for all types of correspondences. Moreover, it also prescribes, the method of procurement including how quotations are called, how comparative statements are being prepared so that the comparable information can be analyzed in terms of cost, quality of supplies, time of delivery and discount terms. In addition, it is responsible for warehouse management; logistics and customer order processing and issue management by contributing a value to the Best Way Group UK efficient resource mobilization strategy.

The Security department has custody of all of the assets of the Best Way Group UK and is responsible to safeguard all of its assets by implementation of specifically prescribed safety work plans and controls. Above all, security is the first and foremost requirement for all sorts of physical resources. Therefore, for this purpose, CCTV cameras have been affixed at numerous places and security personnel monitor them throughout the year and twenty- four-hours a day. Moreover, metal detector doors are placed at each side of the entrance of the factory premises and general office as well. Visitors are provided with a card and are not allowed to move freely since they have restricted access to their destination and security personnel escort them for this purpose.

The Information Technology department ensures all physical access controls are effective, that is all the computer systems must be secure and safe. These are general controls that relate to the environment within which the computer-based systems are operating and contributing to Best Way Group UK’s overall objectives. For this purpose, there are operational controls that are physical security against natural disasters or thefts, backup procedures, controls over access to the system and hardware and measures to prevent unauthorized access for example, by a hacker. However, the environmental controls include personnel recruitment policies, segregation of duties have been clearly defined along with their training requirements. Furthermore, the development controls which include authorization procedures for development projects, proper system justification in cost and operational terms, the use of a systems development methodology and controls to ensure that all systems are tested before implementation. Lastly the maintenance controls ensure regular reviews of systems performances and authorization procedures for program amendments and testing and the use of encryption and anti-virus programs helped to protect data and files.

Lastly, the finance and accounts department which is linked with all the departments since they are responsible for the management of the Best Way Group UK’s financial resources that mainly include funds held at bank and short term highly liquid investments. For efficient funds flow mechanism the department prepares budgets and forecasts, cash flow analysis so that the funds are efficiently utilized. The budgets are being prepared on the basis of past and current financial indicators so that variances in actual and budget are duly pointed out that require an explanation of the cause.

Relationship between Resource Planning and Resource Management

The resource management and the resource planning are two different things but interrelated. Planning takes precedence over management and its significant part of the Best Way Group UK’s strategy. Since if you failed to plan, you are planning to fail, therefore, planning is crucial stage. Planning however includes setting up standards however management is the ability to run on the business effectively, economically and efficiently by mobilizing all physical and financial resources at optimum level yielding maximum output so that the Best Way Group UK keeps on going and progressing by leaps and bounds

Task 3

Marketing

Introduction

The best way Group UK was founded in the year 1976 and is now UK’s second largest cash and carry wholesale quality food products and fast moving consumer goods (FMCG) with 62 branches across England, Scotland and Wales. The Best Way Group UK serves customers from around the globe who buy from a range of over 35,000 products.  The product range includes core groceries, soft drinks, confectionery, snacks, toiletries, household products, pet food and catering packs.

Discussions with key staff

For the purpose of evaluating the Best Way Group UK’s marketing activities and its major role towards the Best Way Group UK’s overall set of objectives, following discussions with the marketing staff were taken as follows;

Obtained the Best Way Group UK’s detailed marketing plan and discussions with the Marketing Manager regarding how marketing strategy and action plans are in compliance with the overall corporate objectives.

Discussions with the Marketing Manager regarding marketing activities as follows;

Researching markets and customers

Contributions to overall corporate strategy

Demand generation mechanism

Marketing communications, promotions and brand building

Product design and planning

A pricing mechanism

Distribution places and ways to reach to the customer

People attitudes, habits, tastes and fashions

Processes and operations

Client relationship management

Selling mechanism

Discussions with the Marketing Manager about the PESTEL factors influencing the Best Way Group UK’s markets and customers

Discussions with the public relations department about the advertising methods including, sales promotion materials, branding, media relations and sponsorship.

Discussion with the marketing personnel on specific marketing strategies including market penetration, market development, product development and diversification in existing and new customers.

Marketing activities in relation to corporate objectives

Marketing has played a significant role in the Best Way Group UK particularly in the attainment of its strategies and overall objectives. It is mainly due to marketing, the Best Way Group UK has been able to develop its diversified client portfolio.

The role of marketing in the Best Way Group UK including how it has developed its market in recent years is as follows;

Marketing Activities

Researching markets and customers

Research new and existing markets and competitors

Identify market segments: groups of customers with similar needs

Investigate the behavior of individual and Best Way Group UK’s buyers

Contributions to overall corporate strategy

Marketing personnel offer key insights to the strategy making process. These include political, economic, social/cultural, technological, ecological and legal factors (PESTEL).

Generating demand

Marketing personnel aim to generate demand for the Best Way Group UK’s products by ensuring it is presented, priced and distributed appropriately

Marketing communications, promotions and brand building

The activities include advertising, public relations, building an image of the Best Way Group UK to customers, corporate identity and so on.

A brand offers a unique way of identifying a product or group of products. How the brand is designed, and how it is ‘positioned’ in the market place can really help.

Choice of media for example, advertising and Internet

Product design and planning

Marketing personnel try to specify the customer benefits that are built into the product, and can help in product design and so on. Marketers liaise with product designers to identify launch dates, key features and so on

A pricing mechanism

Pricing is one of the tougher decisions, given its impact on profit and relation to costs. In competitive markets, marketers try to reduce the impact of price on buying decisions. However, marketers try to balance what the market will want with what the Best Way Group UK can afford. Furthermore, discount policy is also determined on the basis of cost benefit analysis.

Distribution (place)

This involves how to reach the customer and common distribution channels including the Best Way Group UK as a;

Producer to consumer

Producer to retailer to consumer

Producer to wholesaler to retailer to consumer

Producer to agent to wholesaler to retailer to consumer

People

As far as people are concerned, it is very important how marketing personnel behave with customers. This involves imparting a courteous attitude by maintaining the customer’s goodwill since the Best Way Group UK cannot afford to lose even a single customer. Further, the complaints are handled very tactfully and in case of both agreements and disagreements, a persuasive and positive tone is being adopted to keep the customer happy and satisfied.

Processes and operations

Marketing people convey to process designers what are the key expectations since products are generated by processes, all of which can impact on the customer

Client relationship management

Marketing people manage the day-to-day relationship with the client and keep the client informed about products and services, endeavoring to build a relationship

Selling

Marketers sometimes sell directly to the customer

Selling Existing Products to New Customers

This is one of the significant growth strategies which involve expanding into new markets with existing products. These may be new markets geographically, new market segments or new uses for products. This is also known as ‘Market development’.

Since the Best Way Group UK is a large group of wholesale of food items and groceries, it acquired Batley’s PLC in the year 2005 and succeeded in establishing its market in Birmingham, Bradford, Bristol, Cardiff, Cleveland, Coventry, Doncaster, Edinburgh, Exeter, Gillingham, Glasgow, Huddersfield, Leeds, Liverpool, Luton, Manchester, Newcastle, Nottingham, Preston, Sheffield, Southampton and Swindon.

This was mainly due to the fact that the Best Way Group UK has already developed its market in 22 different regions where it has already had excellent repute and goodwill because of its quality products. Subsequently, the marketers have formulated a highly beneficial strategy to expand its outreach in other cities as well which was on the basis of market survey indicating the following factors;

Consumers purchasing power

Demand elements by analyzing people behavior and attitudes towards quality food items

Special discount offers for a specified short term to attract customers through advertising media

By tact and persuasive ability of marketers in selling the product chain.

Selling New Products to Existing Customers

This approach requires the Best Way Group UK to develop modified versions of its existing products which can appeal to existing markets. By tailoring the products more specifically to the needs of some existing consumers and some new consumers, the Best Way Group UK can strengthen its competitive position. This strategy is also known as ‘Product Development’.

As per latest financial results of the Best Way Group UK, the turnover in the wholesale business has been increased to 2.3£ from 2.2£ in the corresponding preceding financial year. This is because the Best Way Group UK has launched 34 key items at incredibly low prices that also deliver great margins of 30% profit on return (POR) to its customers. The strategy of giving margin of 30% has really helped the Best Way Group UK to keep its existing customer base by giving them such a privilege. In addition, there has been a past customer relationship which is associated with the quality and reasonable price charging.

Selling New Products to New Customers

This is a more risky strategy because the Best Way Group UK is moving into areas in which it has little or no experience. This is also known as ‘Diversification’. Usually instances of pure diversification are rare and usually occur only when there are no other possible routes for growth available. However, in the case of the Best Way Group UK it has already had a huge customer portfolio and is growing rapidly with increased reported earnings from time to time. During the current year, the Best Way Group UK had opened depots in Brighton and Team Valley which continue to trade in line with expectations. The marketers are confident enough to take the risk because of their past experience of their operations in the UK region and believe that launching new products to new customers will increase its number of clients and increased revenues.

Following a strategy has been devised;

Advertising through media and internet.

Benefits accrued to the consumer through tact and persuasive ability.

Optimizing sale strategy through lower market price to attract customers.

Identification of a market segment that prove to be best through a detailed market survey