Marketing, the Third Party; Ship Management
Dear sir/ madam
RE: APPEAL TO CONTRACT OUR COMPANY FOR MANAGEMENT
My name is Excellent Writer, the head manager of Superior Managers, a successful ship management company that provides management solutions to shipping companies and ship owners. Our clients outsource our management services in areas where they feel they need help, especially due to the current maritime changes that are making the business harder. We take over the responsibilities and roles of the manager, submitting reports to the owner for approval. Contracting our company, therefore, does not keep you from having full control of your business; it only keeps you from doing the heavy lifting. Today, the shipping industry is marred with challenges, which threaten the survival of shipping companies. Our company has many professionally trained business managers that will help your business survive these storms. We have a large pool of intellectuals, which gives us the economy of scale so that the management process becomes easier. They also offer a wide range of ideas which means that we will work together to come up with a custom solution for your business needs. With the current problems in the maritime industry, allow me to explain to you why we would be the best choice for your management solution.
One of the biggest challenges for the maritime business is the development of local capability, which includes expertise and works force (National Research Council (U.S.) 2006). The maritime industry is quickly expanding, and more manpower is needed such as engineers, seamen, managers, shop floor workers, and researchers. There are not many of the professionally trained persons locally available. Shipping companies often have to struggle to get labor and end up training them themselves which eats into the investors’ time and money. In addition, the number of students taking up maritime studies has significantly reduced which means that the number of maritime professionals is reducing significantly (Bertelli & Lynn 2000).
Globalization affecting all sectors of the world has also infiltrated the maritime industry (Vogel, Papathanassis & Wolber 2012). There is more competition among shipping businesses. Owners are competing to provide better services, at the lowest prices to attract more customers. Globalization has also opened up the industry to bigger global players. These larger companies are well known, and people prefer services from them to services from individual owners. The global players offer quality services due to their economies of scale and the long-term experience they have gained in the business (Post & Preston 2012). Their heavy advertising is also choking the smaller players. It is hard for small companies to remain afloat, which is now the daunting task of the management. It is better to outsource a shipping management company dealing with many clients because its market presence is on the same level field as that of the large global players of the business (Mocciaro Li Destri 2013).
With inflation affecting most countries’ economies, the cost of finished products and their raw materials is steadily rising. Notably, the cost of fuel has gone up around the globe, which increases the cost of maintaining a ship. Since petroleum products are used in the production of other everyday supplies, when its price goes up it translated into an increased cost of other products (Hosmer 2013). Second, crude oil is a major contributor to the economies of countries. Being a nonrenewable, its increasing shortage over the years has caused inflation, prices of commodities tripling, and so has the employees’ salaries (Aggarwal & Samwick 2009). The rise in wages eats into the company’s profit margin, which is making many managers struggle in their roles and duties.
The inadequacy of technology is also an issue in this industry (National Research Council 2007). Globalization and scientific inventions are causing a stir, demanding new changes very often. It is the duty of the manager to ensure that his employees have access to the right technology and resources to work effectively. These changes are expensive to keep up with and maintain for an individual entrepreneur. In addition, the available technology has not been enough to cover all the problems in the industry. The companies are forced to do things manually, which requires a high number of employees. A large workforce translates into higher wages that the business has to pay (Pfiffner 2009). Having a manager with access to new technology will prevent the owners the trouble of high wages to pay and the cost of replacing technology every time.
Many times, business owners have the right ideas to develop their businesses but lack the resources and the knowledge for implementation (Hosmer & Barry 2013). This often leads to poor performance, which is especially notable in the face of globalization. Customers will quickly note a company that is struggling when it compares the services and performance with other large players in the business. Getting help with this will save the entrepreneur the hustle of idea implementation.
In light of these problems, choosing our company to take up a managerial position in your business will be of great benefit. First, we will assume the role of ensuring that your business has the right and required number of staff (Gwilliam 2003). As other companies experience the shortage, we ensure that yours doesn’t. This is because we have liaised with Maritime universities and colleges to make sure that we get qualified personnel before they reach the market. Our selection process is very thorough. The candidates go through a series of further training and tests to ensure that they are fit for their jobs. During these tests, we set high standards and only those that meet them qualify for the jobs. In hiring our company, you are assured that your business will always be staffed and with the most skilled employees.
Globalization brings competition from huge companies and the smaller ones lose customers and become irrelevant (Notteboom 2011). To counter this, a business requires strategic planning, which is done by the manager. Allowing our company to manage your business will ensure that we take it up to be among the many other similar businesses we handle. If we form a conglomerate, we are bound to make a name for ourselves, presenting a united front against the big players. We also advertise heavily, which allows us to remain relevant to our customers, therefore, securing business. Our company uses strategic planning to avoid the effects of inflation (Waddock, Bodwell & Leigh, 2007). We outsource economists who give us predictions of our country’s economy and that of the world. They also offer advice on the steps to take to avoid inflation effects. We have saved companies a lot of money in this way. It would be a pleasure to offer our assistance to your company as well.
We also take up the role of performance management, ensuring that the employees deliver high-quality services (Song & Panayides 2012). Through rigorous testing and training, we make sure that our employees meet the standards required. After a predetermined amount of time, we evaluate their performance to ensure they are still suitable for their roles. Under our watch, a company must remain profitable. We do this through performance checks so that nothing hinders the progress of the business.
When evaluating performance, we also determine the effectiveness of the existing technology and make changes where necessary (Gomez & Crowther 2011). Our company is large which means that for us to implement new technology, it is much easier than for a sole business owner due to economies of scale. Buying in bulk also enables us to get huge discounts. Implementing new technology becomes simpler and cheaper.
Since you retain the control of your company even after we take over management, we mainly consider your opinions and input in the implementation of changes. We only help build them up and use our resources to help you implement (Mowen, Hansen & Heitger 2009). We have access to financial and intellectual resources that facilitate the quick implementation of changes. Due to quickly changing customer needs, a business needs the right resources and knowhow to accommodate them. In this way, it retains relevance to the consumers.
Although our goal is to take off worry from our clients, it is unfortunate that we do not take away the risks involved in the maritime business (Gottschalk 2006). It is expected that the entrepreneur will handle all expenses of his business and in the case of losses, the company is not liable (Smith 2002). There has been a rise in maritime terrorism, which in most cases ends up in big losses for the ship owners when terrorists capture or destroy property. Our company will always do our best to ensure your ship is well maintained and that we keep off enemy tracks but in the case of terrorism or other losses, the owner is liable.
Hiring our company- although it has many benefits, it increases the wage bill and may potentially lead to loss of jobs for some of your employees. Besides paying for business expenses, you pay for our services which increase the general cost of labor (Gluck 2010). Also, since we carry out routine performance checks on all the employees, some of your current employees may lose their jobs if they do not meet certain criteria (Cornelius 2001). Sometimes, entrepreneurs have problems letting some employees go, which would be inevitable if the employees are not good performers.
The troubles and problems experienced in the management of a shipping business leave the entrepreneur fatigued and drained. Increasing competition and changing customers needs increase pressure on the business to keep making drastic but expensive changes. Globalization is causing the smaller businesses to chock under the weight of the big global players. It is only right if an entrepreneur would join up with other ship owners so that we can be a formidable force against these challenges. It would be an honor and pleasure to work with you.
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