TIMBUK2 ANALYSIS ON CASE STUDY ASSOCIATED WITH EVOLUTION OF MANAGEMENT “MANAGEMENT YESTERDAY AND TODAY” By GROUP – 2 Md. Emdadul Haque, Muhammad Noman hasan, Nahid Rijwan, Sajal Majumder
ABSTRACT Timb Timbuk2 is a San Francisco-based messenger bags company. It was established in San Francisco in 1989, the messenger bags are constructed from waterproof ballistic nylon or cordura. It is now owned by the Irvine, California private equity firm VMG Equity Partners. Timb Timbuk2 was founded by former bike messenger Rob Honeycutt. The company was originally named Scumbags, but was changed to Timbuk2 Designs in 1990. The name Timbuk2 was inspired in part by the American rock band Timbuk3, though the name resembles more to “ Timb Timbuktu ktu”, a city in central Mali near the Niger river; formerly famous for its gold trade. Timb Timbuk2 still designs all their products in San Francisco and they manufacture custom messengers, backpacks and tote bags in San Francisco's Mission District as well as through contracted manufacturers in Vietnam. It is one of the few manufacturing facilities still operating in San Francisco. This is what the company wants to say “F or 20 ye years, we’ve been buil building ding bags bags and acce access ssori orie es for for urban urban adventures with a simple philosophy – create good-looking, tough-as-Hell bags you can truly make your own”.Timbuk2 is always committed to customers’ satisfaction to provide best possible bags and keeping this in mind, the company provides vast ranges of options to choose from at their web, “Bag Builde Buil derr”. Such as
“We love that you express your indiv individuality thro hrough riffing on Timbuk2 bags. Otherwise they’d just be another bag. This is your show; get after it!” …………………………………………………. It’s just what Ti mbuk2 want to say
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Timb Timbuk2’s vision to this mass customization forced the company to adopt some ideas, such as, the sewing methodology of Toyota; famous car company, optimized inventory and delivery system. The sewing method led to saving of waste motion. This mass customization also enabled the company to reduce wastes. Some other things those make Timb Timbuk2 different from the other companies, one of them is the comparative better wages with minimum wage per hour along with skill improvement incentive. This strategy really paid of for the company. The continuous refinement attitude is another landmark of Timbuk2’s keenness toward innovation. Timbuk2 values the experience and knowledge of the employees and they always refine them with open suggestion and ideas from the workforce. Timbuk2 also proved their adeptness of decision making by taking the challenge imminent e-commerce revolution by launching their own website providing the support for the customers to choose their own customized bags with even more flexibility and ease.
A CKNOWLEDGEMENT The authors would like to express their sincerest gratitude to Dr. Abbas Ali Kahn, Professor, Department of Management Studies, University of Dhaka, for providing his guidance for this work.
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CONTENTS TI T L E
PAGE
Abstract
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Acknowledgement
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2
Contents
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1. Introduction
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5
2. Company Case
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3. Case Division
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3.1 Company Information
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3.2 Product
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3.3 Business Policy
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3.4 Production Method
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3.5 Human Resource Management
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3.6 Resource Allocation
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3.7 E-Marketing & Future Growth Strategy
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3.7.1 Customer Satisfaction
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3.7.2 Employee Satisfaction
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3.7.3 Workforce Diversity
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3.7.4 Represent Ethical Behavior
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3.7.5 Constant Improvement in Effectiveness & Efficiency
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3.7.6 Knowing
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10
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11
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11
Management Managemen t & Process Improvement
3.7.7 Valuing Employee Satisfaction & Learning and New Skill Acquisition 3.7.8 Broadening Business model
Encouraging
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4. Discussion Topics
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16 17 18 20
5. Conclusion
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6. References
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2.1. Topic 1 2.2. Topic 2 2.3. Topic 3 2.4. Topic 4
7. List of tables Table 1
Emphasizes of the Timbuk2 Management and the 16 outcomes
Table 2
Comparative analysis of the feasibility principles of scientific management to applicable to Timbuk2
of 17 be
8. List of figures Figure 1
Timbuk2's “Build Your Own Bag” Web page
9
Figure 2
Bump Back in Production Process at Timbuk2
10
Figure 3
Online product configuration process of Timbuk2
11
Figure 4
Step – 1 of “Choose your Bag”
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Figure 5
Step – 2 of “Choose your Bag”
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Figure 6
Step – 3 of “Choose your Bag”
13
Figure 7
Step – 4 of “Choose your Bag”
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Figure 8
Step – 5 of “Choose your Bag”
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Figure 9
Step – 6 of “Choose your Bag”
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Figure 10
Schematic Diagram of Timbuk2
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Figure 11
Open System Approach
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1. I NTRODUCTION: Timbuk2 is a Special Product-line of bags, produced by Honeycutt. Rob Honeycutt, the Owner, had ventured on this business to custom-make these bags especially for bicycle messengers performing the daunting task of hauling bulky loads swiftly from one location to another. The Company has adopted some business strategies to streamline their business and device proper business, organizational structure and Growth.
2. COMPANY
CASE:
The objective of this case study is focusing or analyzing on the Business Dynamics of Honeycutt, product Timbuck2 bags.
3. CASE DIVISION: 3.1 Company Information 3.2 Product 3.3 Business Policy 3.4 Production Method 3.5 Human Resource Management 3.6 Resource Allocation 3.7 E-Marketing & Future Growth Strategy (Globalization)
3.1 C OMPANY I NFORMATION: Rob Honeycutt is an American entrepreneur, bag maker, and former bike messenger. He is the founder of three bag making companies: Timbuk2, Zulu Works, and Rickshaw Bag Works. By the time Rob left Timbuk2 in 2002 the company was doing about $4 million in annual sales. Honeycutt started the company in 1989 and its annual revenues are around $3.5 million. The company has grown in one year from 10 percent and another year it was 70 percent. Such erratic growth has created definite management challenges for Honeycutt. But one thing that hasn't been a challenge is the company's commitment to making the best possible products. Timbuk2 bags were popular among bike messengers messe ngers and they claim clai m bikes are the best and most popular. p opular.
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3.2 PRODUCT: Honeycutt started producing Timbuk2 bags for bicycle messengers. It already has a steady demand for its generic features. Its stand-out product features were flashy outlook, hip young design, options, and other desirable features on the move. Like rice and beans, they keep it simple when it comes to being pro-planet. They make durable bags that are tough as hell and built to last. So while our competition is piling up in landfills, they stay on your back, hugging you for a lifetime. Timbuk2 customers were given an array of choices, a three panel construction design, which allows customers to choose from 13 colors, giving 2,197 possible color combinations, costs same as the mass-produced bags.
3.3 BUSINESS POLICY: At the time when Rob was leaving Timbuk2, the company was doing about $4 million in annual sales. From the starting of the company at 1989, its annual revenues are around $3.5 million. The company has grown in one year from 10 percent and another year it was 70 percent. This kind of sheer growth has created definite management challenges for Honeycutt. Honeycutt shaped Timbuk2 bags with a focus; its basic appeal is to rough, handy, durable and classy style bags. The bags are well organized ready-to- trip bags. It has different segments to accommodate different gears, water bottle, equipment, luggage, and travel utensils. It should be a one-in-all solution for the working traveler, biker, tourist, Adventurer. The bags can be custom-made to serve specific-needs but the bicycle-messenger is utility and good-look. Keeping these needs in mind a unique blend of product-line is made to serve the customer segment that is working traveler, bicycle-messenger. Since quality is maintained and value return from consumption is steady a good growth from the Timbuk2 product is achieved and the CEO, Rob Honeycutt planned a functional business strategy to maintain the product-based business. A keen line of management-strategy works for this purpose.
3.4 PRODUCTION M ETHOD: Making Timbuk2 bags is not a mundane process. The secret-recipe came after years of planning, strategy-development errors and experience. At first, Honeycutt just adopted the general methods of production but after a while, he understood that for different product and customer-base like Timbuk2 a versatile style of production needs to be followed. Unique work-force that powers the manufacturing Timbuk2 bags cracked the system. Rob Honeycutt had tried some basic plans adopting the Toyota production line in thinking it would translate likewise for Timbuk2 bags but things didn’t go well at the earlier trials. However, at an exhibition, they come to know about task-specific line of sewing machines. This involves the work such that each operator instead of performing a single task and passing parts to the next sewing
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operator they move down a row of task specifying sewing. This Idea led to a great restructuring as far as manufacturing process was concerned reduced cost and time.
Honeycutt adopted the management process of systems & quantitative management to optimize their production method. First the company is likened to an entire system later, which zooms into the different parts of production process. The open systems core is the employees and sewing machines they bind their creative skill with the machine regulating raw material cloth-material, color, sewing, and design prototyping. Then the process is organized such that requirement-design-makerequirement-design -makefeatures-costing are equated to correct proportions. These although look very regular mechanical system actually in-real-time requires delicate balance, timing, order, direction and overall quality focus in the making. Inputs are raw-materials, labor, equipment costs, output is finished product. Another important aspect to the production process is the Quantitative Management Approach. To keep costing at the lower ends, Timbuk2 keeps its inventory costs low by buying only weeks worth of materials and ships out completed bags daily. The numbers matter, Honeycutt closely tunes the cost factor, their cost on production, unit costs, packaging , distribution and marketing , based on real-time stats, value-return and future benefits. They use production stats to measure and range product development and sales costs.
3.5 H UMAN R ESOURCE M ANAGEMENT. Since Timbuk2 is a special product, it has some unique characteristics, one of the major factors are the people involved with the sewing and design. It requires a special-cut and make, so workers involved need that special skill-set. A dozen Chinese women work on the design and sewing. The work is organized and distributed based on the production-goal and dead-line. It involves division-of labor and they go for task-specific sewing to ensure division of labor production method. Moreover the Company pays its employees more than other apparel manufacturers, proper working conditions and medical and health benefits. According to the fundamental theories of Management Scalar Chain, Order and Team Spirit (Espirit de Corps) are key factors in development organizational work culture. Every organization needs to function according to organizational goal and teams, departments and resources. Capital need to be equated to establish a steady functioning work thus synchronizing with business policies and production methods. Here in this light the production method of Timbuck2 bags Human resources plays a key role. The workers here have basic generic skill-set those are invaluable recourses in the production of Timbuk2 bags. Their work environment, their skill-set, work-hours, effectiveness, efficiency and team-coordination, cooperation is very important. Thus management has to plan, organize these employees work-culture accordingly. Human resources play a key role. The workers here have basic generic skill-set that are invaluable recourses in the production of Timbuk2 bags. Work-force consists of Page 7 of 21
people from different backgrounds, with standardized working hours (8-hrs approx). Most of the employees are Chinese immigrants, weekly producing 400 bags. Their average pay is more than other apparel makers, offers full-time medical benefits. Besides that Honeycutt has investment from Silicon Valley Community Ventures (SVCV). One of the major conditions of this investment and venture of Silicon Valley Community Ventures (SVCV) was the minimum wage rate of $11/hr for all workers. And there would be additional Incentive program to reward employees adapting new useful skills
3.6 R ESOURCES A LLOCATION: The main resource is the employee skill-set, machines, production systems, raw materials, apparel, color dyes, designs. These need to allocate properly. For this the General Administrative Management Approach is used very well method, the Owner, Honeycutt, uses rules of. • • • •
Unity of Direction Order Centralization Initiative
To align production towards one goal the company follows a product-line order. All decisions, labor-force and production activity centralizes, work-flow, information in one focal direction.
3.7 E -MARK ETI NG & F UTURE GROWTH S TRAT TR ATEGY EGY The E-Marketing strategy is an effective decision to face the future growth of the organization where challenge like globalization is imminent. The purposes or objectives those are to be fulfilled by these future growth strategies to be become a successful.
3.7.1 CUSTOM CUSTOMER ER SATI SATI SFACTI FACT I ON: ON: Timbuk2 offers mass customization of their product to customers. Three panel construction design that allows customers to choose from 13 colors giving them 2197 possible shades. Bags could be made in multiple sizes, fabrics, and colors, and Timbuk2 was also capable of adding other options to individual bags such as center dividers, reflector tabs and tails, grab straps (handles), and even a variety of logo colors and those bags cost no more than mass produced one.
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F igure – 1: Timbuk2's “Build Your Own Bag” Web page In 2000, Timbuk2 launched its “Build Your Own Bag” page on its Web site. Customers could see the bag they were configuring on the computer screen and experiment with different colors and options. The customer was offered different colors for the three panels at no extra cost.
3.7.2 EMPLOYEE SATISFACTION: The company pays its employees more than other apparel makers and offers full medical benefit.
3.7.3 WORK WORK FORCE F ORCE DI VERSI VERSI TY : Smart managers recognize diversity as an asset as it brings a broad range of viewpoints and problem solving skills to the company. Additionally it helps organizations better understand the diverse customer base. Many big companies like – Levi Strauss, McDonalds, Xerox have strong diversity management. In our area of concentration that is in Timbuk2 it has also a diverse workforce. It gave opportunity to the Chinese immigrants to work at Timbuk2. A dozen of Chinese women sew colorful strips of canvas and add snaps and shoulder straps.
3.7.4 REPRESENT REPRESENT ETHICAL ETHI CAL BEHAVI OR: Timbuk2 definitely represents ethical behavior. The appointed Chinese immigrant women for work at Timbuk2 and they are paid a living wage of at least $11 per hour and support full medical benefit.
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3.7.5 CONS CONSTANT I MPROVEMENT MPROVEM ENT IN EFFECTI VENESS VENESS & EFFI CIENCY: CI ENCY: In 1993 it took 144 minutes to make one bag in Timbuk2. It continues to refine its system, relying heavily on employee’s suggestions and ideas. After much analysis and experimentation, the team purchased many additional sewing machines, greatly reduced setups at nearly every step of the manufacturing process. Today it has reduced the time to 12 minutes to complete a single bag.
3.7.6 K NOWLE NOWLED DGE M ANAGEME ANAGEMEN NT & PROCESS PROCESS I MPROVEMENT: MPROVEM ENT: Today’s managers confront an environment in which changes takes place at an unprecedented rate. As a result, many past management approaches and principles – that were created for more stable and predictable world, no longer apply. Organizations of twenty first century must be able to learn and respond quickly. The managers should manage the organizations knowledge base, and make needed changes. In Timbuk2, Honeycutt tried what Toyota Motor Corporation did with cars. But things didn’t quite work out at the beginning. To vent out of the hard times Timbuk2 were facing, Honeycutt was trying to do something. Meanwhile, Honeycutt had an opportunity to see a demonstration of Toyota sewing system and being encouraged to implement that idea he urged his workers to experiment with that. Timbuk2 found that it was most effective to have work cells of five employees manufacture bags from start to finish as they filled individual customer orders. As each cell operated, there would be five bags in process, one for each worker. Each employee was trained to perform all of the tasks to produce a bag, and a “bump-back” process was used to balance the workload. A worker, assigned to the last position after finishing a bag (sending it off to the shipping area), she would “bump back” to the next-to-last position and take over production of that bag, wherever it was in the process. The person in that position would then bump back to the previous person, and so on, until the person at the beginning of the process would go to the order backlog and begin producing pr oducing the bag associated asso ciated with the next order o rder in the queue.
B A T C H
Shipping Area
S T A R T
F igure – 2: Bump Back in Production Process at Timbuk2
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This approach reduced labor cost, due to no floor assistant required to carry partially completed jobs from one machine to the next. As Timbuk2 provides mass customized product to customers, they need to maintain a large inventory to meet the customers demand. But they are able to keep the inventory cost low, as they buy only a week’s worth of material at a time and ships out completed bags daily.
3.7.7 VAL UING EMPL OYEE CONTRI CONTRI BUTI BUTI ON & ENCOURAG ENCOURAGII NG L EARNING AND NEW SK I L L ACQUI ACQUI SI TI ON: ON: In modern organizations a manager should inspire developing a learning culture where organizational members could gather knowledge, share information with others so as to achieve better performance and generate innovative ideas. In Timbuk2, when they needed financing in their business, it turned to Silicon Valley Community Ventures (SVCV). It is a funding source with unique twist. SVCV invested money in Timbuk2 with an understanding that, it would pay a living wage of at least $11 an hour and develop a pay incentive program that rewarded employees for learning new skill. And this investment in employees at Timbuk2 was paid off.
3.7.8 BROADENI BROADENI NG BUSI BUSI NESS NESS MODEL : Timbuk2 has enriched its business with e-business. E-business is a comprehensive term describing the way an organization does its work by using electronic linkages (Internet based) with its key constituents – employees, managers, customers, clients, suppliers and partners. In twenty-first century e-business is essential in order to effectively and efficiently achieve its goals. There are three categories of e-business involvements, and by category Timbuk2 is an e-business enhanced organization. That is Timbuk2 is a traditional organization that sets up e-business capabilities, usually e-commerce, while maintaining its traditional structure.
F igure – 3: Online product configuration process of Timbuk2
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In early 2000, Honeycutt decided to create an online buying process. Timbuk2 hired 15 people to create a website and to add to production. The website turned out to be a good decision, especially as the economy took a downturn. It started generating sales in October 2000 and today it brings in almost half of the Timbuk2’s revenue.
Choos hoose your your Bag Cus ustom tomiize On-L ine In the company’s website, there is a full fledged online custom shop available for the customers to customize their own bag. The online customization has been pictorially shown below
Figure – 4: Step – 1 of “Choose your Bag”
Figure – 5: Step – 2 of “Choose your Bag”
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Figure – 6: Step – 3 of “Choose your Bag”
Figure – 7: Step – 4 of “Choose your Bag”
Figure – 8: Step – 5 of “Choose your Bag”
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Figure – 9: Step – 6 of “Choose your Bag”
After following all these user friendly steps, finally the visualization of the bag appears along with its price. So you can see the bag and the corresponding customization price before you order. And then the only thing left is to press the “order” button to send the information to the company to start to make the bag of your choice.
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4. DISCUSS DISCUSSI ON TOPI T OPI CS: The following discussion topics, regarding the case study, are going to be discussed in the following discussion section.
4.1 Would principle of scientific management be useful to Timbuk2? Explain how.
4.2 How might knowledge of organizational behavior help Rob in managing his workforce of manual laborers and knowledge workers?
4.3 According to the typical open system concept describe Timbuck2 as a system.
4.4 What characteristics and management practice does this company exhibit that might be important for successful organizations in the twenty-first century?
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4.1 Would pri pr inciple ncipl e of sci scientifi ntific c mana manag gement be us use eful to Ti Timbuk2? Explai E xplain n how. Answer: The usefulness of principle of scientific management to Timbuk2, to find it out, it would be better to have a glimpse on the Timbuk2 and its management emphasizes which is shown below ME
M E =M anage anagement Em Emphasi phasize Inventory
Dump
ME
ME
Waste
Raw Material
People
Tool
Method
Customization
Product
ME Delivery Customer
Company Given Options
ME Figure – 10: Schematic Diagram of Timbuk2 The illustration above shows the management emphasizes described in the case study. If to categorize the emphasizes now, it will be like
Management Emphasizes
Inventor& Delivery
i. Weekly in ii. Daily out
Method
Rearranging the division of work
Customer
People
i. Waste motion saving ii. Production time saving iii. Cost saving
Broad range of customization i. Comparative better wages (with minimum wage per hour) ii. Skill Development (encouraged by incentive) iii. Other benefits (Full medical support) iv. Participation with ideas and suggestions(to refine the management process)
Table Table – 1: Emphasizes of the Timbuk2 Management and the outcomes
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Now if we just compare the result with the principle of scientific management, we can then draw a conclusion to the concern. ►
Choosing the best way of sewing
►
Waste motion saving Production time saving Incentive for learning new skills Minimum wage per hour
► ► ►
Inventory management
►
Emphasize on customer Employee participation in management
►
Complies with the principles of Scientific Management do do do do Does not comply with the principles of Scientific Management do do
Table Table – 2: Comparative analysis of the feasibility of principles of scientific management to be applicable to Timbuk2 The above analysis shows that Timbuk2 has already used principles of scientific management to effect a positive change in the efficiency and effectiveness of their production line. In particular, Frank Fran k and Lillian Lil lian Gilbreth’s motion study really paid of from point of view of production by eliminating the middle-man, and the wasted hand and body motions of handing off products to a carrier who brings the products to the next area of the assembly line. Having each worker move down the sewing line seems like it would also help keep workers alert by having them move around instead of sitting or standing at one station all day. The Toyota Sewing System definitely helps Timbuk2 move towards the "'one best way' for a job to be done" (Robbins & Coulter, 28) and the idea of the Toyota Sewing System is the tool that helps the workers progress to that "one best way". But from the above comparison, it is clear that among all the management emphasizes, some of them can be achieved by the principle of management but for being very narrow in application, as the scientific management approach is only concerned with first lint manager / management, the other achievements are never possible with scientific scienti fic management approach. approac h. Now, the discussion forced us to conclude that the usefulness of scientific management system at Timbuk2 varies with the scope of management emphasize of Timbuk2. If the focus is limited only to the production then the scientific management approach is the key that enabled to carry on the mission Timbuk2 sailed for. But while focusing on the total management emphasized described in the case, it is obvious that scientific management approach is really inadequate for Timbuk2.
4.2 How might knowledge of organizational behavior help Rob in managing his wor wor kfor kf orce ce of manual manual labor aborers and and know knowlledge dge wor wor kers? Organizational behavior, one way, helped Rob is to make sure all the sewing line workers are in-sync with each other. It seems the sewing line is set up so there's a worker at each station and as they finish at that station they move to the next one. If the workers are not motivated and observant of each other, bottlenecks would develop
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at certain stations or with certain individuals thus throwing off the production for the whole group. Timbuk2 also pays its' employees well and encourages them to learn new skills. Good pay and ability to keeps all the workers happy and the well-being of workers is a crucial aspect of organizational behavior as Mayo notes "behavior and attitudes are closely related". Behavior here being their production work and attitudes encompass the happiness and personal and organizational outlook of the employees. Another crucial aspect of organizational behavior evident at Timbuk2 is a willingness to listen to employee suggestions and ideas. As Timbuk2 encourages employees to grow, it would be rather silly for them to not listen to employee's ideas. Listening to employee ideas shows that Timbuk2 considers all of their employees as part of the Timbuk2 team and considers them to be equals. This portion of Timbuk2's strategy also contributes to employees' satisfaction with their job which encourages them to stay with Timbuk2 and increases their output. It also encourages innovation throughout the company which is a goal of entrepreneurship and knowledge management.
4.3 A ccordi ccording ng to the typical typi cal open syste system m concept concept descr descriibe T imbuck2 as a syste system. m. The figure below shows the typical structure of open system approach. According to this approach, the whole organization is viewed as a system. And this system has been sub divided into three elements or subdivisions. 1. Inputs 2. Transformation Process 3. Outputs
Environment
.
Transformation
Inputs Raw Materials Human Resource Capital Technology Information
Employees’ Work Activities Management Activities Technology & Operational Method
Outputs Product & Service Financial Results Information Human Result
F eedback
Environment
Figure – 11: Open System Approach
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Other than these three elements or subdivisions, another element is also there which is knows as “Environment”. This element actually is the key factor to determine whether a system approach is open or closed. In the open system approach, the organizations dynamically interact with its environment If, according to this approach, Timbuk2 needs to be viewed or observed or explained ten the subdivisions of the Timbuk2 Systems would be,
I NPUTS •
•
•
Customers provide Timbuk2 with the specifications for each bag produced. This improves both efficiency and effectiveness as it eliminates the need for Timbuk2 to design the bags and it helps customers get exactly the bag they want. Purchasing materials on a weekly basis allows Timbuk2 to keep its inventory and waste costs down by ensuring only what is needed is bought and used. Employee ideas and suggestions are additional inputs that contribute to streamlining the production process.
Orders come into Timbuk2 from a variety of sources, including Internet orders, which improve efficiency by allowing customer orders to be quickly turned into design specifications for the sewing line and thus improves turn-around time.
T RANSFORMATION PROCESS •
•
Sewing line workers receive the materials and design specifications and use both to, step by step, create a fully customized bag for each customer. At the end of the day each bag produced is shipped out, reducing storage costs and improving customer satisfaction by keeping wait times to a minimum. Workers on the sewing line act as quality controller and use their first-hand experience to improve the processing of orders into final products. In this way the people on the sewing line can be considered managers (managing the quality of the bags and improving production).
OUTPUTS •
•
At the final station on the sewing line the customer's order is finalized into his/her bag and is likely handed off to a shipping department, which gathers the finished bags and ships them out to the customers. Due to the improvements in efficiency, effectiveness, and timeliness caused by the creation of a web-site Timbuk2's sales have increased, even during economic downturns.
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4.4 What characte characterr istics stics and and manage management pr practice actice does does this this com company exhi exhibi bitt that might be important for successful organizations in the twenty-first century? many of the characteristics of Timbuk2 have been touched upon those are becoming increasingly important for the twenty-first century business organizations for being successful, such as focus on 1. 2. 3. 4. 5. 6. 7.
Customer Satisfaction Employee Satisfaction Workforce Diversity Represent Ethical Behavior Constant Improvement in Effectiveness & Efficiency Knowing Management & Process Improvement Valuing Employee Satisfaction & Encouraging Learning and New Skill Acquisition 8. Broadening Business model Customers and employee satisfaction, knowledge and quality management, and constant improvements in efficiency and effectiveness are and will continue to be aspects of successful organizations. In addition, Timbuk2 exhibits work-force diversity, which is an increasing part of all organizations, they use technology to improve all portions of their company, and Timbuk2 definitely represents ethical behavior by paying immigrants a high salary with full medical benefits. All these issues have been discussed in the “E-Marketing & Future Growth Strategy” section. So, the detailed description of those issues is not going to be repeated here again. A quick note on Timbuk2's strategy; Timbuk2 believes that they are successful because they emulate e mulate a lot of the characteristics cha racteristics of their customers. It seems that tha t bike messengers would be environmentally and socially conscious (caused by peddling through vehicle exhaust all day), sociable and unique (caused by meeting a widerange of people on a consistent daily basis) and appreciative of companies who compensate workers equitably (being a bike messenger is a tough job and Honeycutt knows they're not paid very highly). So paying immigrants a high rate, treating all of their employees equitably, and listening to their customers seems to be a direct effect of the target audience of Timbuk2.
5. CONCL USI USI ON: Timbuk2 is incandescent symbol of modern day management; from the case study it can obviously be said. They faced the challenges of modern day management problems in their own way. They adopted, they innovated, they failed but they did keep going to challenge the challenges of management, if failed they went for error correction and then again the continued the trial and error method just to reach their goal. Not only that even coming to a point when they are able to balance the customer demand and the business hindrances, they are still going through continuous refinement process. This is the symbol of their commitment to the business and the customer and that is the most important thing for business organizations to be successful in modern days.
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6. REFE RE FERE RENCES: NCES: 1. 2. 3. 4. 5.
Management (8th Edition) by Stephen P. Coulter and Mary Coulter www.en.wikipedia.org/wiki/Timbuk2 www.timbuk2.com http://www.slideshare.net http://mass-customization.blogs.com
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