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CASE STORY: BING LEE – RoyalCustomEssays

CASE STORY: BING LEE

Instructions
May 26, 2020
Macroeconomics
November 1, 2020

CASE STORY: BING LEE 

Bing Lee is an Australian retailing company, a chain of superstores specialising in consumer electronics, computer and telecommunication goods. Bing Lee is the largest privately held electrical retail business in New South Wales with 41 stores (13 franchised) and a turnover of about $490 million. The organisation has future plans to have stores in every Australian state.

The Lee family, from Grandfather Bing through to father Ken and son Lionel, comprises classic outside-the-square thinkers, and that’s one part of the story of how it has created an enduring retail brand.  It all started when Lionel’s grandfather Bing Lee and dad Ken purchased an electrical repair business in Fairfield, in Sydney’s southwest, in 1957.

“Bing and Ken saw a future in the electrical business, particularly with the release of television in 1956,” Lionel Lee says. “That, plus they saw the ambitions of the waves of migrants, and that suggested to them that the demand for electrical appliances would be strong for many years to come.”  The location for the first business showed that the Lee family understood market demand. “Fairfield was right in the middle of the hostels housing many of the migrants when they first arrived in Australia,” Lionel Lee says. “As migrants themselves, both Bing and Ken understood how migrants would want to improve their lifestyles and along the way take advantage of the many benefits of household electrical appliances.” 

The early phase of growth was conservative, with Bing keen to stay close to the migrant community.

As those communities moved beyond Fairfield to places such as Merrylands, Villawood, south to Wollongong and west to Blacktown, Bing Lee moved with them. When Bing died in 1987, Ken Lee became more expansionary.

“We began to open stores in places that were not necessarily migrant strongholds but more mainstream,” Lionel Lee says. “Between 1987 and 2007 we’ve opened more than 20 stores between Canberra in the south and Port Macquarie in the north. With that expansion came a brand development program taking us from our Chinese-Hong Kong roots to a mainstream brand with a distinct Chinese flavour.”

Start-up businesses that quickly achieve an impressive growth story have to have a competitive advantage.  So, what was Bing Lee’s? “Its original competitive advantage was providing credit to migrants who couldn’t get finance through regular sources,” Lionel Lee says. ”

Bing and Ken trusted the migrants. The migrants trusted them and that mutual trust was the core of the business in the early days.” While Bing Lee has reached the heights that a publicly listed vehicle would be proud of, it remains a family business.

This could explain its success. “Essentially, the business has grown of itself over the years,” Lionel Lee says. “It’s still a family business. We treat the business as a family. Our staffs are family. Our customers are family. If you’re not a part of the family, you’re not really Bing Lee.” Lionel’s younger brother Greg Lee runs the Carlingford store and their cousin Gary is the company’s whitegoods buyer. Lionel was destined to be part of a family business from a young age. “I attended my first board meeting with my father when I was 10 years old,” he says. “It was during the school holidays. Mum put me in a suit and tie, and when dad and I arrived, I was put under the board table and told to be quiet, sit still and listen. I finished my HSC in 1983 on a Thursday, started with the business on Friday and I became CEO on the death of my father in December 2007.” Typical of businesses built to last, Bing Lee has had the security of a leadership team of six, who have run the business with Ken Lee for many years. This means the operation sits on solid foundations, despite the death of its inspirational co-founder.

While the retailer has carried the brands that sell themselves, a big part of this success story has been the marketing of Bing Lee with only two advertising consultants in the business’s history. “The first was Wayne Bell, who took us into the ‘Kung Fu man’ territory with ‘the best prices this side of Hong Kong’ punch line,” Lionel Lee says. “In those days it was right for Bing Lee, using our Chinese heritage and focusing almost entirely on price. It positioned us correctly within our then limited geography, mainly migrant suburbs, and stockholding.”

After Bing’s death, as Ken Lee began to expand the business rapidly, the marketing as well as advertising changed to reflect this. “First, we began to stock a lot more brand-leading products; and, second, we started working with big-brand suppliers to enhance our mutual interests,” Lionel Lee says. “Third, we had to move away from straight price advertising and competition because price alone could send you broke. And, fourth, we had to become more mainstream so that we can appeal to all Australians.” To do this they engaged Barry Anderson, head of Grey Advertising. “He’s taken us down the “best advice, best price’ and ‘everything’s negotiable’ routes,” Lionel Lee says.”He’s also instilled family into the advertising, first with Ken and now with Yenda in Sydney and me rurally. “We use the electronic medium to position and get us on shopping lists.”Press and catalogues are about selling.”

Bing Lee started advertising on radio but really didn’t take long to dive into television commercials, with its first ads broadcast in the late 1970s. Both media have been and still are important to the brand’s development. And while the retailer has all the apparent professionalism of the big retail  names, the management team has always preferred a family approach, even when it comes to its externally sourced marketing.  

It is worthwhile to mention that this has been created inside a hotly competitive market with big names such as Harvey Norman, JB HiFi, the Good Guys and Clive Peeters, to name but a few. However, in business, as in sport, you don’t become a champion playing in B-grade. 

Around the turn of the century, the franchisee concept was introduced to the business especially in Australia. Today 16 of the 40 Bing Lee retail outlets are run by franchisees. Bing Lee also has the management rights to the “Sony Centre” concept in NSW and the ACT and currently has stores located in Chatswood, Drummoyne and World Square in Sydney’s’ CBD.

To know more about the organisation, please visit their website at https://www.binglee.com.au/

Bing Lee also has a dedicated YouTube channel at https://www.youtube.com/user/BingLeeElectrics

Sponsorships

Bing Lee sponsored the Bulldogs Rugby League Football Club until allegations that players were allegedly involved in a gang rape in Coffs Harbour.  Bing Lee signed a 2-year sponsorship deal with A-League club Sydney FC in February 2007. On Sydney’s Home strip the front is taken up with Bing

Lee, and on the away jersey it is on the front and back of the right leg of the shorts.  In July 2009 Bing Lee re-signed for another year along with Japanese electrical company Sony as Sydney FC’s major sponsors. The firm is also one of the major sponsors of the Sydney Swans AFL team and sponsored channel 7’s The Amazing Race Australia. 

Currently Bing Lee is proud to be partnering with New South Wales Netball and their two teams the New South Wales Swifts and Giants Netball in the 2017 Suncorp Super Netball competition.

Products and Services

Bing Lee Electrics divides its products into the following categories:

*
  • Computer includes ipads, tablets, laptops and desktops
*
  • TV/ Video includes home theatre systems, apple TV and home media players
*
  1. Audio includes speakers, headphones and audio cables
*
  • Cameras includes drones and digital cameras
*
  • Phones includes smarts watches and smart phones
*
  • Home Appliances includes dryers, washing machines and freezers
*
  • Small Appliances includes blenders, juicers, ironing and cooking appliances
*
  • Floorcare includes vacuum cleaners and vacuum accessories
*
  • Heating & Cooling includes heaters, electric blankets and fans
*
  • Fitness & Health includes scales, fitness equipment and wearable technology
*
  • Smart Home & Lighting includes lighting, security and wireless networking

Organisational Vision

Bing Lee’s vision statement focuses towards a different customer service goal that everyone in the firm share, where everyone is treated as a family. The company’s vision for the future is to be the “top electronics retailer in Australia that not only provides bricks and mortar stores but also specialised in online shopping”.

Organisational Values

  • To treat customers and employees as family members
  • To work as one team that provides services in a traditional Chinese concept
  • To provide the best possible before and after sales service to the customers
  • To grow as a family but also to be a mainstream organisation in Australia

Bing Lee’s values reflect who they are as individuals and as an organisation. They serve as a compass for the actions and are the guiding principles with which all the staff members carry out their duties and responsibilities. 

SCENARIO AND CONTEXT

You were appointed last year as the sales team manager for the division that includes TV and whitegoods in one of their stores. You have a team of 4 full-time and 4 casual sales people in your division. Your full-time team members are John Citizen, Jerry Citizen, James Citizen, Jane Citizen.

Your casual team members are Mary Citizen, Ali Citizen, Susan Citizen, and Singh Citizen. 

Your store opening hours are:

    Mon – Fri: 9 am to 9 pm

    Sat:  9 am to 7 pm

    Sun: 9 am to 7pm

The wage rate of your organisation is as follows:

  • Permanent full-time staff – $20/hour and penalty rates of $25/hour on Saturdays and $35/hour on Sundays.
  • Casual staff – $25/hour and penalty rates of $30/hour on Saturdays and $40/hour on Sundays.
  • The organisation also gives commissions of 1% of sales to any staff after they have reached their personal and team targets.

TV and Whitegoods Sales Division KPI/Target: $50,000 sales per week.   

TASK INSTRUCTIONS AND REQUIREMENTS 

  • TASK 1. Team Performance Plan. This includes TASK 1A. Roster for the TV sales division; TASK 1B. Develop Key Performance Indicators (KPIs) for team members; TASK 1C. Prepare a performance agreement letter; and TASK 1D. Prepare a planning meeting agenda.
  • TASK 2: Develop and facilitate team cohesion. The second section includes TASK 2A. Develop a policy statement for performance management and a policy statement for team responsibility; TASK 2B. Develop a procedure for team performance management; and TASK 2C. Prepare feedback letters to team members 
  • TASK 3: Facilitate teamwork using role-play sessions. This section includes TASK 3A. First role-play session; TASK 3B. Second role-play session; and TASK 3C. Fill out the performance recordkeeping form.
  • TASK 4: Liaising with various stakeholders of the organisation. The last section includes TASK 4A. Prepare a formal communication and liaison with organisational stakeholders such as top management. Gather feedback from management; TASK 4B. Communicate information from management to the team AND communicate unresolved issues raised by team to follow-up with management; and TASK 4C. Evaluate and take necessary corrective action using an Action Plan template regarding unresolved issues and problems raised by the top manager.

ASSESSING AND MARKING TABLE FOR ALL TASKS (for trainer use only)

The assessor needs to use judgment in providing marks for the tasks based on learner performance. 

TASK NO. MARK ALLOCATED MARK RECEIVED
TASK 1A. Roster for the TV sales division 5  
TASK 1B. Develop Key Performance Indicators (KPIs) for team members 5  
TASK 1C. Prepare a performance agreement letter 5  
TASK 1D. Prepare a planning meeting agenda 5  
TASK 2A. Develop a policy statement for performance management and a policy statement for team responsibility 10  
TASK 2B. Develop a procedure for team performance management 10  
TASK 2C. Prepare feedback letters to team members 10  
TASK 3A. First role-play session 15  
TASK 3B. Second role-play session 15  
TASK 3C. Fill out the performance recordkeeping form 10  
TASK 4A. Prepare a formal communication and liaison with stakeholders  3  
TASK 4B. Communicate information from management to the team AND communicate unresolved issues raised by team to follow-up with management. 4  
TASK 4C. Evaluate and take corrective action on unresolved issues and problems using an action plan 3  
TOTAL   100  

The assessment tasks follow this page.

TASK 1: Based on the organisational scenario and the context, your TASK 1 is to prepare a team performance plan for your team of 8 sales staff. Your plan should include:

[1]A. Prepare a roster for your team based on the opening hours, staff numbers, peak times and offpeak times.  

1B. Allocate individual KPIs for each team member based on sales division KPI and work roster. 

1C. Prepare a “Performance Agreement Letter” for your sales team that you will communicate with via meeting and also in email. 

1D. Prepare a planning meeting agenda for your team where you will get input from your team in regards to the operations, sales targets and customer service.

1A. Roster for the TV sales division

Monday Tuesday Wednesday Thursday Friday Saturday Sunday
             
             
             
             
             
             
             
             
Member Name KPI
     
     
     
     
     
     
     
     

1C. Using the KPIs developed earlier; prepare a performance agreement letter for your sales team. In your performance agreement letter you need to mention them on how to: 

  1. increase sales
  2. retain existing clients
  3. improve customer service behaviour 
  4. time-management
  5. discipline and punctuality

<Organisation name>

<Date>

Private and confidential

Subject: Team Performance Agreement Letter

Dear Team Members,

<Insert your name>

<Insert your position>

1D: Using the template below, prepare a planning meeting agenda & minutes for your team where you will get input from your team in regards to the operations, sales targets and customer service. 

Instructions: For this task you will need to get input from team members (your class mates can play the role of team members in providing inputs).

PLANNING MEETING AGENDA & MINUTES Location:              Date:                   Time:                   Agenda Description:     [Agenda detail 1] [Agenda detail 2] [Agenda detail 3]       Minutes Inputs by:  Name Team member Input                   Decision Made:      Staff members present:    

TASK 2: Your next TASK is to develop and facilitate team cohesion. This must include  

2A. Develop a policy statement for performance management and a policy statement for team responsibility.

2B. Develop a 12 step procedure for your team performance management.

2C. In following-up performance, prepare TWO feedback letters to your team members. You may wish to use the names of two staff members mentioned in scenario.  

2A. Develop Policy Statements.

Instructions: Research “Performance Management Policy” in www.google.com.au and find at least one policy of an organisation similar to Bing Lee. Based on the ideas and information from your researched policy, develop two Policy Statements for your sales team at Bing Lee.

Brief Policy Statement for Performance Management (within 150 words)                        
Brief Policy Statement for Team Responsibility (within 150 words)                        

2B. Prepare a 12 step Procedure for Team Performance Management.

Instructions: Research “Performance Management Procedures” in www.google.com.au and find at least one procedure of an organisation similar to Bing Lee. Based on the ideas and information from your researched procedure, develop a performance procedure for your sales team at Bing Lee.

 
 
 
 
 
 
 
 
 
 
 
 

2C. Based on the policies and procedures that you have written and using the TWO templates provided below, prepare “TWO Feedback Letters” to follow-up on performance and to encourage & reward for contributions. You should have consistency in both letters when putting the dates and the performance issue.

Instructions for letter 1:  Write a formal letter to your team because they did not reach the last quarter sales targets. You may provide suggestions, advise, and gently remind them of consequences for not meeting targets. (maximum 200 words)

<Organisation name and logo>

<Date>

Private and confidential

Subject: Sales Target Letter

Dear Team Members, 

        <Insert name> <Insert position>  
Instructions for letter 2:  Write a letter appreciation and encouragement to your same sales team because they have reached the sales targets this quarter of the year. You may provide motivation and may reward them for reaching the sales targets. (maximum 200 words)   <Organisation name and logo> <Date> Private and confidential   Subject: Appreciation Letter    Dear Team Members,                 Yours sincerely,   <Insert name> <Designation>

TASK 3: Your TASK 3 as a manager is to facilitate teamwork within your departmental sales team. To complete this task, you are required to perform TWO role-play sessions.

3A. The first role-play session is based on maintain an open communication process with your team and to clarify the organisational policies and objectives.

3B. The second role-play session is based on supporting the team, identifying performance problems, resolving problems and advising them on better work methods that you personally use. 

3C. Fill out the recordkeeping form

ROLE-PLAY INSTRUCTIONS:

Pairs are required in this assessment. One learner will play the role of the team with performance issues and you will play the role of the manager. To participate in the role-play, you will have to prepare scripts for both roles. You will work on the role-script in electronic document and submit the assessment in a hard copy. Your role-play partner will not be assessed for this task.

You are required to:

  1. Develop the role-play scripts for two sessions with questions and possible answers as structured. 
  2. Attach both the role – play scripts (in APPENDIX 2) 
  3. Conduct the performance review meetings (Participate in role-play sessions)
  4. Completed performance review recordkeeping form 

ROLE PLAY SESSIONS – 20 MINUTES

3A. First role-play session. Assess Performance (10 minutes)

The first section of the role play is to train the team members on the performance management system, organisational policy and time lines. This must include: 

*
  1. Introduction & greetings
*
  • Highlight the organisational policy and team targets for performance management
*
  • Highlight the key performance indicators (KPIs)
*
  • Explain how group dynamics can support or hinder team performance
*
  • Outline strategies that can support team cohesion, participation and performance
*
  • Train the team on how the team performance will be assessed
*
  • Explain the timeline of performance evaluation

3B. Second role-play session. Performance Feedback (10 minutes)

Instructions: Additional information on providing feedback and coaching is available at University of

Leicester website http://www2.le.ac.uk/offices/academicpractice/researchdevelopment/mentoring/feedback and also at Small Biz Connect website http://toolkit.smallbiz.nsw.gov.au/part/8/40/195

Provide formal and informal feedback on team performance. Your feedback must include (but not limited to):

*
  1. Introduction and Ice breakers (Greetings)
*
  1. Informal suggestions and praise on team strengths
*
  1. Identifying and notifying work performance problems (identify at least 2 areas)
*
  • State your actions to address poor performance identified (at least 2 action plans). In here, state your strategies for reaching the agreement/consensus with the team on performance improvement. 
*
  • Based on performance issues identified, support and advice the team on areas to improve and also mention your issue resolution strategies. 
*
  • Explain your work methods and your contributions to the team as a leader to influence them to work efficiently.

3C. Fill out the performance recordkeeping form

Team Performance Review & Recordkeeping Form
  Team: Review date: Next review date: Supervisor/Reviewer Name:    
  Key Performance Indicators Performance Standards Actual Staff Performance Actions   
<List the duties and responsibilities that are used as performance indicators relevant to the position> <Describe what doing the job well looks like> <Comments on performance as at review dates> <List the actions to be taken to address poor performance>
                         
                           
             
                     
  Areas of concern (identify at least 2 work performance problems):         Suggestions on improvement (coaching, training):             Your Signature:     Team Member(s) signature:      

TASK 4: Your final TASK in this simulated context is to liaise and follow-up with line management and various stakeholders of the organisation. To do this you will need to: 

4A. Prepare a formal communication and liaison with organisational stakeholders such as top management. Gather feedback from management.

4B. Communicate information from management to the team AND communicate unresolved issues raised by team to follow-up with management.

4C. Evaluate and take necessary corrective action using an Action Plan template regarding unresolved issues and problems raised by the top manager.

4A. Using the email template below, communicate with the top management by writing a formal letter to the area manager of the store. Explain him/her about the individual and team performance plans and also the performance results as mentioned in your-role play script. Also mention how you are meeting the organisational goals. (Maximum 200 words)

Date:   Subject:    Dear Sir/John/Jane,                                   Regards,   Your Name:  Sign: Position: Sales Team Manager
Feedback From Management and Stakeholders:              

4B. Based on the feedback from the stakeholders in your previous communication, conduct a meeting with your team and communicate information to the team. Use the meeting minutes’ template to record this communication.

 
    Meeting Minutes – Feedback from Management on Team Performance
Date: Attending team members, team leader and manager [Name 1] [Name 2] [Name 3]   Decision on the feedback from management  [Communicate the feedback raised by management. For example, how would you address the issues and concerns raised by management?] [List the information] •    [List the information] [List the information]   Feedback, Issues, Problems raised by the team  [List the problems, issues and comments raised by team members to address the unresolved issues.] [List the information] •    [List the information] [List the information]   Action plans [Address the unresolved issue and summarize the decision making. Summarize the discussion for each issue, state the outcome, and assign any action it. You ] [List the information] •    [List the information] [List the information]  

Once you have conducted the meeting and recorded the minutes, you will now follow-up with your manager or the management on the issues raised by the team in regards to those unresolved issues of team performance. Use the email template below, to follow up with the top management. (Maximum 200 words)

Date:

Subject: 

Dear Sir/Madam,

Regards,

Your Name: 

Sign:

Position: Sales Team Manager

4C. Once completed with the communications, meetings and follow-up, you will now evaluate and take necessary corrective action using the Action Plan template below regarding unresolved issues and problems raised by the top manager. Previously your manager/ the management have raised the following issues and problems to you.

  • Sales targets not being met by some team members
  • It will effect budget and operational costs for the store
  • Performance bonuses will also be affected
  • To meet the whole team targets for the next quarter 
QUARTERLY TEAM ACTION PLAN    
Month Tasks, goals and objectives for the month Deadline Responsible Person
September xxx yyy    
October –  –     
November –  –     
December –  –     
Additional comments:      

ROLE-PLAY 1 ASSESSING RUBRIC (for trainer use only)

The Trainer is to assess the learner’s performance in TASK 3A using the role-play Checklist provided below. 

DID THE CANDIDATE DEMONSTRATE THE FOLLOWING C NYC
Introduction & greetings
Highlight the organisational policy and team targets for performance management
Highlight the key performance indicators (KPIs)
Train the team on how the team performance will be assessed
Explain the timeline of performance evaluation

ROLE-PLAY 2 ASSESSING RUBRIC (for trainer use only)

The Trainer is to assess the learner’s performance in TASK 3B using the role-play Checklist provided below. 

DID THE CANDIDATE DEMONSTRATE THE FOLLOWING C NYC
Introduction and Ice breakers (Greetings)
Informal suggestions and praise on team strengths
Identifying and notifying work performance problems (identify at least 2 areas)
State your actions to address poor performance identified (at least 2 action plans)
Based on performance issues identified, support and advise the team on areas to improve. 
Explain your work methods and your contributions to the team as a leader to influence them to work efficiently.

APPENDIX 1 

Links to further resources, theory, guides and templates 

  1. FAIRWORK Ombudsman (Consultation and cooperation in the workplace, Best Practice Guide) – https://www.fairwork.gov.au/howwewillhelp/templatesandguides/bestpracticeguides/consultationandcooperationintheworkplace
  2. Develop a good presentation – https://business.tutsplus.com/tutorials/creativepresentationideascms27281
  3. Pith and Presentation templates – https://slidebean.com/presentationtemplates/
  4. Institute of Business Ethics (Resources on Business Ethics) – http://www.ibe.org.uk/resourcesandcodesofethics/52/52
  5. Further links to business ethics – http://www.ethicssage.com/ethicsresources.html
  6. How To Delegate The Right Tasks To The Right People – https://www.briantracy.com/blog/leadershipsuccess/howtodelegatetherighttaskstotherightpeopleeffectivemanagementskillsforleadershipsuccess/
  7. How to delegate (with pictures) – http://www.wikihow.com/Delegate
  8. Forbes (How to Delegate More Effectively in Your Business) – https://www.forbes.com/sites/martinzwilling/2013/10/02/howtodelegatemoreeffectivelyinyourbusiness/#7870fcd469bc
  9. Training Needs Analysis (TNA) Guide – http://www.skillnets.ie/sites/skillnets.ie/files/imce/u7/tna_guide_2013.pdf
  10. Risk Matrix – http://www.jakeman.com.au/media/whatsrightwithriskmatrices
  11. How to conduct risk analysis and use the Risk Assessment Matrix – http://www.brighthubpm.com/riskmanagement/88566toolforassessingprojectrisk/
  12. Australian Leadership Foundation (LEADERSHIP TOOLS) – http://leadership.org.au/resources/leadershipmodelstools/
  13. Leadership styles: Understanding and using the right one – https://www.informa.com.au/insight/leadershipstylesunderstandingandusingtherightoneforyoursituation/
  14. 5 Ways top project managers allocate their resources – hhttps://blog.resourceguruapp.com/5waystopprojectmanagersallocatetheirresources/

[1] B. Develop and allocate individual Key Performance Indicators (KPIs) for each team member Instructions: You may search the internet for a generic understanding on KPIs and performance standards. You can also visit the webpage link by the Victorian Government for additional guidance on KPIs and standards. https://www.vwa.vic.gov.au/__data/assets/pdf_file/0019/12394/Performance_standards_and_indicator s_FINAL.pdf

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