 How does history of management chapter relate to this case study?

First, it is obvious that there are several forces that control and impact Benson
shoes management, especially economic and social forces. Now, starting by the Classical
perspective, we can say that this case study has some aspects related to it and more
precisely to the Bureaucratic Organizations as well as Administrative Principles. To explain
more, the Bureaucratic Organizations is a theory by Max Weber, a German theorist who
introduced the following concepts: division of labor, hierarchical coordination and control, strict
chain of command, etc. So, the fact that Benson shoes is a family business we can see some the
latter concepts in their way of managing. For example, Abdelaziz Benamour being the manager
who controls mostly everything, then came his son Mohamed to take over the business and be
the one in charge and we have the workers and other administrators. We can see also that the
management in the company is based on a rational basis. As for the Administrative Principles, it
is a theory that focused on the organization as a whole rather than productivity. Henri Fayol, who
was a major contributor, came up with fourteen principles, of which the most important
are: Unity of command, Division of work, Unity of direction, and Scalar chain. In the Benson
shoes case, it is noticeable that they implemented some of those principles like the unity of
command since Abdelaziz and mainly Mohamed were the ones to give
commands. In addition, they were in every step of the process from making the shoes, to
marketing and advertising, etc. They also have a scalar chain, even though it was not mentioned
directly, we can see that there is a chain of authority that goes from top to the bottom. One more
thing that caught my attention in this case study is why Mohamed had to go himself to the
exhibitions or “Salons” and did not designate an expert or a representative to go instead of
him? Now regarding the Humanistic perspective, we can relate this case study to the Human
Relations Movement even if it is not really shown since they focused more on the father and
son. Last but not least, there is the Contingency View trend where the manager has to learn by
experiencing difficult problems and situations and it was the case of Mohamed when he did not
have many who were interested in his product in the international exhibitions, also the problem
of the Chinese competition after the GATT laws. Finally, there bad market segmentation when it
comes to the new generation and being innovative. So, it was till they fall in the problem then
they learn what to do and what not to.

 What is the GATT agreement and what changes did it bring to the Moroccan
Economy?

The Gatt or the general agreement on Tariffs and Trade was a legal agreement before
the WTO(World Trade Organization) with a main objective: eliminating and minimizing
tariffs/customs duty. According to WTO site, Morocco became a member in the GATT
agreement in 1987 and he participated in the negotiations of Marrakech Accords in
April 1994. One of the important changes that happend in the Moroccan Economy is the
trade liberalisation. So, he GATT was established to set regulations to eliminate or limit the most
costly and inefficient characteristics of the prewar protectionist period, notably quantitative trade
barriers like trade restrictions and quotas. The pact also established a mechanism for resolving
international commercial disputes, as well as a framework for multilateral tariff reduction
discussions. In the postwar years, the GATT was seen as a great success.

The development of world trade, which is largely due to faresighted politicians who founded
the GATT, has been a major contributor to the world economy's success during the last half-
century and therefore to the Moroccan economy. They put in place a series of processes that
provide stability to the trade-policy environment, allowing for fast global trade development.
With the long term in mind, the founding GATT conferees contributed to the stabilization of the
global economy, improving the lives of hundreds of millions of people throughout the world. In
the context of this case study, Benson shoes suffered because due to this GATT agreement and
the decrease of customs duty to 20% they faced the Chinese competition that controlled all the
process: making leather, tanning, producing shoe soles, etc. Therefore, they could not sell their
shoes and their sales revenue was declining drastically.

 Suggest two different development strategies that Benson shoes can adopt for the
future :

Benson Shoes have decided to transform their business from a wholesale business to a retail
business with keeping the same production and five shops.
Trying new ideas, figuring out what works, and doing more of it has always been a part of the
retail game. However, as the business evolves, rigorous mid- and long-term strategy planning
and execution are becoming highly important for long-term success.
I had been hired in my business consultant role by Benson’s Shoes, and after assessing their case,
I would suggest two different development strategies that Benson shoes can adopt for the future:

Train their employees and motivate them with better wages and compensation packages:

Employees are brand ambassadors for any company. Hence, good employee training may
make a big difference between you and your competitors. If you fail to teach your personnel,
you will fall behind in your industry. A retail firm that ignores staff training will eventually
struggle to stay afloat. Training staff as soon as they're employed and conducting ongoing
training annually or every six months to reorient them based on new consumer trends is a solid
strategy that will ensure you have fantastic employees with good customer relationship
management, retail selling, and upselling abilities.

Moreover, you must reward them in order to get the greatest outcomes. When you
appropriately give your personnel incentives, you can leave a good impression on your clients
and provide them with unique experiences. You're more likely to boost customer retention rate,
minimize staff turnover, and maximize profits if you can acquire and retain customer-oriented,
long-term, and dedicated personnel. Furthermore, if you encourage your sales staff with
compensation packages, they will work harder and make their best to boost sales. You may also
share new marketing and customer service activations with your staff because they may have a
better contextual knowledge of your consumers and potential customers due to their one-on-one
interactions with them.

Get social with social media

Social networking began as a fun way to reconnect with old friends, but in recent years, it has
evolved into a powerful marketing and sales tool for businesses looking to engage in direct
retail sales. When it comes to getting a retail business, most people look to their personal
networks, such as friends and family. Starting a firm with this method is not bad, but it won’t
work on the long-term. You can, however, reach a larger audience by creating company pages
on social media, uploading high-quality images and updates, collecting consumer feedback, and,
most importantly, cultivating your community. Community aids in the development of trust and
authority. Consumer engagement is an indication of a respectable business operation; thus your
objective is to have customers engage with your organization. It works because people are more
likely to trust companies that have a good relationship with their consumers.

Furthermore, social media allows companies to remain in touch with employees of their sales
staff. You may utilize social media as a direct selling firm to send a fast reminder to your staff
about an impending product promotion, which can help you improve sales.
 Even better, social media may be used to directly interact with customers about new deals. As
we all know, the key to growing sales is to provide excellent customer service. To better
understand your customer's requirements and desires, pay attention to them. After that, teach
them about the merchandise. Provide high-value services and goods. Keep in mind that the buyer
is searching for an experience rather than a product.

When it comes to which network you’re going to use, it’s critical to select the correct and
appropriate platform. Pinterest, for example, is an excellent venue for a product-based firm to
present its products in an aesthetic way. While with one billion monthly active users, Instagram
is another important channel for showcasing your items and connecting with customers. Finally,
Facebook can help you develop a core community.
Reference :
Organisation Mondiale du Commerce. OMC | EXAMENS DES
POLITIQUES COMMERCIALES: MAROC 1996 - RAPPORTS DU SECRETARIAT ET
DU GOUVERNEMENT. (n.d.). Retrieved December 17, 2021, from
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The General Agreelent on Tariffs and Trade | (GATT 1947)

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International Trade Law Research Guide | From the GATT to the

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General Agreement on Tariffs and Trade | international relations

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