Management theories
Employee empowerment has been used in Nucor Corp. to solve company troubles. This steelmaking mini-mill recycles steel from old vehicles and other items but it had lost its power to the Arkansas plant. This made the management to foresee a full week of poor operation. However, some employees in the electrical department performed a large task of work in the plant till it started running again in an efficient manner within duration of only three days. The workers had risen to the company’s challenge without the supervision of any manager. In Nucor Corp, power had not been pushed to the front line and therefore there was a need to empower the employees in order to enhance better performance. This made the Company’s president explain that employees will rise far for the company if they were given real authority and treated with respect. In this connection, they resulted to the application of employee empowerment theory of management in order to enhance good performance.
The theory of penetration pricing was adopted in Tonrac Communications company in order to enable the company enter into the new market. This company could not enter the new market because there were other established similar businesses. As a result, the company adopted penetration pricing which involved setting low prices for its products in order to rapidly acquire a good market share. This management theory was also applied in the company in order to help it attract sales for other products in order to compete with other companies that sell similar products. Tonrac Communications Company thus made sure that it sold its products at a lower price than other companies in order for it to gain a sufficient market share.
How the situation could have been addressed differently
Companies can solve their management problems in various ways. This can be achieved by applying different management theories in order to enhance good company performance (Mary, 2011). The situation at Nucor Corp can be addressed by sharing power with the employees. Power sharing theory is important in management because it will make the employees feel that they are part of the company. Moreover, power sharing will help the company’s management to include the employees in decision making in order to ensure that there is better performance in the company. The other importance of power sharing in the company is that it will enhance employee responsibility and this will make them to be responsible in performing their duties (Mary, 2011). The situation in Tonrac Communications Company can also be solved via other means instead of using penetration pricing as the strategy to get a good market share (Carnot, 2010).. This is because, penetration pricing may have disadvantages such as lack of increased sales volume within the projected time. In this connection it is essential for companies to look for alternative solutions to address such problems. Price skimming is a good alternative to penetration pricing to help in access the market (Carnot, 2010).. This will attempt to create an awareness of exclusivity and worth of the company’s products by charging highly expensive prices that the market can accept. This strategy will help Tonrac Communications to deal with the high competition from the already existing companies. In this connection, the companies can use various strategies to solve existing management problems.
References:
Carnot S. (2010). Penetration Pricing Strategy in Foreign markets. Web. Retrieved on 3rd March
2012, http://tonraccommunications.blogspot.com/2010/10/penetration-pricing-strategy-in-foreign.html
Mary C. (2011). Achieving Adaptability Through Employee Empowerment. Web. Retrieved on
3rd March 2012, http://www.winningworkplaces.org/library/features/achieving_adaptability_th.ph p
