As the brain of the firm, managers are those people who administrate and coordinate resources effectively and efficiently in an effort to achieve the goals of the organization. Other factors that contribute on how manager serves as the brain of the firm are managerial functions and their different roles. Manager’s first function is to become a planner as the setter of goal the way on how to achieve that goal. Second, manager being an organizer that involves on what, who will do and how the task will be done. The third is to become a leader, on referring to the leadership handout a manager is a leader but a leader is not manager. It is primarily because being a leader you only utilizes one resources the manpower having leadership over you’re employees unlike a manager that utilizes all resources. The fourth is being a controller. As a controller you take actions in accordance to your goal like measuring and identifying deviations between planned and actual result.

 

On what IBM’s history happened we can see that a manager serves as the brain of the firm. The IBM once a popular and known company was almost gone they have been hit from above and below when their product was less innovated than the product of the Amdhal and Hitachi company but in the dark times of the IBM their manager have made a move and the turnaround begins. IBM first step was how they segmented the target users. Technological innovation required that IBM first become innovative in how it established its market strategy, the grouping of customers, customer research, and the prioritization of user needs. They developed rich layers of detail within each vertical market pertaining to how different users in different industries could apply new server technology to solve business problems.

 

Managers uses different strategies for the firm or business to be different or to out-stand to the other firm that is called three generic strategies. The  first generic strategy is the cost leadership, its purpose is to lessened the price to become the cheapest of its own kind of the product and other company even killing their profit for a period of time just for the business to stay alive. The second generic strategy is differentiation, its purpose is to make their product unique that no other firm produces the same product. The third generic strategy is focus, it is the generic strategy that the managers of the IBM used. The generic strategy focus pertains to the market where they will sell the product that is proportionate or appropriate to the people who will buy and product.

 

Brain is the organ that controls every movement that our body do, there are four functions of the firm that every department has a manager and comparing it as a brain it controls the movement of the firm. In marketing department where contribute direct effect on profitability and sales. Sales forecast that is made in the marketing department is important part of the budgets produced by the finance department, as well as the deployment of labor for the human resource department. The Finance department’s purpose is to create wealth for the business, generate cash and provide an adequate return on investment bearing in mind the risks that the business is taking and the resources invested. The production and operation department focuses on the transformation of production and operational inputs into outputs that, when distributed, meet the needs of the customers. The human resource department purpose to link human resource strategies to the business goals and objectives, to find ways for human resource to add value to the firm. All of this functions of firm are the movements inside the firm and all those department has manager each that controls  every deparment.

 

I conclude that a manager is the brain of the firm initially because of its functions and roles. Their functions largely contribute on how the business will operate. The roles of managers also contribute a lot on how the business will operate and succeed using the interpersonal and the intrapersonal roles. As we can see on what happened on the IBM they are almost done until the managers of said firm starts a move that leads to a turn around of their business life. The IBM uses the third generic strategy that is the reason for the said turnaround of the IBM. The three generic strategies are the strategies that the manager uses for them to outstand other firm in terms of the cost of the product, the uniqueness of their product or the use of their product and market or people on where they will focus their product

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