mfrp kjlkjassignment
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TABLE OF CONTENTS
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BUSINESS STRUCTUREand
BUSINESS ORGANISATION
COMMERCIAL GLASS SERVICES
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S.# Topics Page #1. INTRODUCTION 42. COMPANY PROFILE 43. Company Strategy 54. Current status of company 55. SWOT ANALYSIS 56. Strengths of Commercial Glass Services 67. Weaknesses of Commercial Glass Services 78. Opportunities of Commercial Glass Services 89. Threats of Commercial Glass Services 8
10. Conclusion of SWOT 911. Importance of Organizational Structure 1012. PROPOSED ORGANIZATIONAL STRUCTURE 1013. RECOMMENDATIONS 1214. Strategy and Implementation 1215. Management Organizational Structure 1416. Financial Plan 1517. WAYS TO COMMUNICATE CHANGES TO STAFF MEMBERS 1518. USE OF INTERNET-BASED TECHNOLOGIES 1619. REFERENCES 17
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TABLE OF CONTENTS(Tables and Chart)
S. # Topics Page #1. Table 1: Company Profile 42. Table 2: Products and Revenue % 53. Chart 1: Proposed Organizational Structure 11
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COMMERCIAL GLASS SERVICES
INTRODUCTION
When we talk about business, business on large scale it is always a question that how we manage
the business, how to control all the departments. What is the way of managing accounts and
marketing products? To make all this easier and more interesting we build a business structure,
this structure is not present physically but it has its existent virtually, it virtual existent is the
most important part of any business or organization.
When starting anew business; we have to develop a new business structure; this structure
depends on the nature of organization. Every organization has some stake holders, stake holders
are internal and external; both have different interests and their domain of perfection is totally
different; important task to do is to manage all the stake holders according to their likes and
dislikes.
Routine audit should be carried out in the company; it is to keep a check on the company and itsworkers. When running a business you secondly need to make business strategies and business
plans. These plans and strategies play a vital role in organizations process. After audit and
monitoring all the progress of company the financial position of the company is set.
The global changing era has affected all the aspects of life therefore todays business has also
experienced a great deal of changes. This paper will first introduce the Commercial Glass
Services with its initial strategies; then it will give details about its products and its revenue. It
will also discuss the various stakeholders and their Interests on the company and
a brief explanation of how they can be managed effectively in the
organization. It will also include an audit of the businesses current position,
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its Business planning and current strategy used in the organization with
specific reference to Performance analysis and utilization of resources for
competitive advantage. This paper will also assess the companys financial
position using a series of management accounting techniques. This paper will
conclude through brief explanation and application of the investment
appraisal technique could be used to conduct an investment appraisal for the
specific scenario.
COMPANY PROFILE
This Commercial Glass Services has been established over 30 years at three manufacturing sites
over a 40 mile radius. The Head Office in Site A. Table: 1 represents the staff numbers and sites
specific manufacturing products:
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Table 1: Company ProfileSite
s
Staff numbers Manufacturing Products
Production Staff Office Staff A 100 40 Frosted glass and picture glassB 55 20 Mirror glass, greenhouse glass and other productsC 45 10 Toughened/laminated glass and sealed unit double glazing glass
The company has a specialty to manufacture and provide variety of commercial glass products in
the market. These products with its revenue are represented in Table: 2:
Table 2: Products and Revenue %Products Revenue %
Frosted glass 32%Mirror glass 23%Picture glass 16%Greenhouse glass 10%Toughened/laminated glass 8%Sealed unit double glazing glass 7%Other products 4%
Company StrategyThe commercial glass services established with a purpose to provide different glass products at
its lower cost by adopting cost leadership strategy. This strategy involves different variants like
availability of operating capital, good process engineering skills, close management of labor,
products designed for ease of manufacturing and low cost distribution to provide products not
only to increase the number of customers but also to attract and give advantages to them,
simultaneously, to compete with the competitor.
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Current Status of CompanyCurrently the company is in decline in terms of its sale and profitability. Therefore there is a need
to have a critical analysis before suggesting or implementing any of the change factors to
improve its functioning.
PERFORMANCE ANALYSIS
SWOT ANALYSIS
Among other analysis Strengths, Weaknesses, Opportunities and Threats (SWOT ) Analysis is
the one that is used for identifying organizational strong and weak areas; explore its major
opportunities and the threats. It also assists in identifying strategic position of a business and its
environment and also suggests ways to raise profit by utilizing its strengths and opportunities and
ways to guard against weakness and threats (Adam, 2005). Therefore, SWOT analysis has been
adapted for the analysis of this organization.
Strengths of Commercial Glass ServicesAim of the Company
First and foremost, the Commercial Glass Services was established with an aim to manufacture
and provide products in low cost to the consumers by employing cost leadership strategy.
The management
The management of Commercial Glass Services is managing the company for more than thirty
years; management is responsible for policy and strategies formulation and corporate direction.
The management is courageous enough to be on their decision of keeping all their established
sites despite of external pressure to sell.
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Staff
With regards to staff, the company possesses a high quality 270 staff members in all its sites,
distributed according to manufacturing load of the site. This allows the company to run its
manufacturing smoothly.
Products
The company manufactures variety of glass products including, Frosted glass, picture glass,
Mirror glass, greenhouse glass and even toughened/laminated glass and double glazing products
which have many competitors in the market.
Business at one placeAll the sites of this company are located close to each other, within 40 miles of radius thus
providing fair chance to the management to monitor the working.
Weakness of Commercial Glass Services
Diversion from Aim
As the company workers are not trained timely, therefore there is resistance in adopting new working
practices that has resulted in high product costs leading to increase the product distribution cost thus
diverting the company from its initial aim of low cost products distribution.
Decrease Sales of competitive products
Earlier due to the low cost of markets famous glass products like toughened/laminated glass and
double glazing products, this company was earning more but as the company raises its cost other
competitors took advantage and this resulted in decrease companys sale and its market share.
Limited Marketing Strategy
In this fast growing world the company is still employing face to face approach through salespeople
to reach its customers; this strategy has limited the scope of reaching a large population. Therefore,
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limiting its customer service offers due to geographical limitations or other legal restrictions for the
sales people.
Poor working environment
Due to the unsolved disputes among workers and other poor working conditions resulted in lowering
the morale of the production workers thus effecting the working arrangements and over time
working. This leads to develop frustrations among workers towards adopting new working strategies.
Old manufacturing sites
The three sites of the company were very old and require renovation which leads to the investment to
make them safe and secure for the workers to work there in accordance with health and safety laws.
Absence of organizational structure
There is no identified and specified organizational structure, this leads to improper decision
making and lack of communication among staff members.
Opportunities of Commercial Glass ServicesSkill utilization
All the sites are located close to each other, therefore if there is a demand of one kind of specific
skilled worker in one of the sites, internally other site workers could be shifted to the demanded
site and in this way due to less distance there could be maximum skill utilization.
Potential to become Sunrise industry
In the recent time mostly all the houses centre tables and dinning tables and the buildings of
multi-national companies and banks are using glass, therefore there is a need and demand for
glass. Culminated with the fact, that having many competitors of especially Toughened/laminated
glass and sealed unit double glazing glass , has given The Commercial Glass Services a huge
potential market to thrive in.
Willingness for modernization
Considering the customers demand, market competitors and companys own establishment
purpose, the management will willing to adopt m odern techniques to raise the productivity, sales
and level of customer offered services
Technology Awareness
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Although, companys present marketing approach is face to face through sales person, which is
limiting the number of customers; but management is aware of the internet-based technology
strength to widen the possibility of reaching customers in far flung areas around the globe. This
implies that as management is aware about the technology benefits to increase the number of
customers thus having opportunity to explore the possibility of utilizing technology to enhance
their operations.
Threats of Commercial Glass Services
Consumer
The high price of the consumer products may limit access to the mass market. For example, the
demand for Toughened/laminated glass and sealed unit double glazing glass is increasing in the
market, simultaneously competitors too, therefore if the Commercial Glass Services wants to tap
into this key lucrative market then it should keep its own aim for providing low cost productsdistribution.
Instability of two sights
Sites B and C are located on the edge of residential areas and investigations have shown that it
would be relatively straightforward to obtain planning permission to build residential houses on
either of these sites. Commercial Glass Services has already been approached by three property
developers with a view to selling either or both sites, but to date they have turned these
approaches down.
Developing low moral
The working environment had become poor which was resulting in the low moral of the
production workers. As some of the new strategies were introduced without developing
awareness among staff therefore developed disputes over new working arrangements and loss of
overtime working.
Conclusion of SWOT
SWOT analysis of the Commercial Glass Services; help us to see that the strength of the
company lies in its aim, management, staff and business at one place. Its weakness lies in
its diversion from aim, decrease sales of competitive products, limited marketing strategy,
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poor working environment, old manufacturing sites and missing organizational structure.
Companys opportunities lay in its skill utilization, potential to become sunrise industry,
willingness for modernization and technology awareness. Its threats lie in consumer,
instability of two sights and developing low moral. Therefore we find that overall this
company is a promising company in a niche industry with plenty of opportunities to
expand. Technology utilization could bring a drastic change in the Commercial Glass
Services to achieve maximum customers and market shares.
After SWOT analysis of an organization it is important that we consider all he points in view and
carry on an external analysis of the company. Stake holders are sometimes a threat to the
company and sometimes they are very beneficial to the organization.
There are some opportunities for the company to progress, along with opportunities there are
some threats also these threats and opportunities are a part of business. Opportunities for a
business to flourish are through marketing and their high sales. If a company owns a strong
business structure and strong organizational structure as well it is more likely to face fewer
threats than opportunities because it is strong in business.
Stake holders need to be placed in the right area of work, which means the area which they like
to work. When they work in their field of preference; their quality of work increases and
the chances of companies progress are increased.
Political factors are also affecting the companys progress; government is investing or not is very
important factor in development of industry.
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Economic factors are economic growth, exchange rates and etc. these are very useful in business,
they have a very major impact on business, it is noted that how business operates and how
some decisions are made.
Social factors basically refer to the relation of one organization with others, if a company has
good and friendly relations with all other companies it is likely to flourish more.
Technological factor is one of the vital factor affecting a companys progress, what medium is
used for marketing, how products are manufactured these are the key points noted in
technology.
Legal factor includes following law, some rules and policies made by the organization and to
follow the governments order to the fullest.
Stakeholders and their Interests on the company
Stakeholders are people or group of people who are affected by companys decisions and by the
actions of company and they also affect the company. Different stakeholders have different
interests, some are interested in projects while others are interested in investment, some prefer
marketing stuff while others dont.
The most important task is to give chance to stakeholders to the task which they like to do, which
means the part of work which they like to do. Internal stakeholders are powerful than the external
stakeholders and internal stakeholders have more power of making decisions.
Companys business structure and organization structure needs to be strong for the management
of stakeholders.
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When a company needs to flourish it should put the stakeholders at their right place, which
means it should allow the stakeholders to work for their preferred area of work.
Stakeholders and their interests on the company are vital for any organizational strategy to be
applicable. It encourages people to act for supporting the strategy and organizational goals. There
are two forms of organizational structure:
1. Mechanical Structure
2. Organic Structure
Mechanical structure has vertical hierarchy having clearly defined responsibilities with rigorous
reporting requirement and vertical control of organization whereas, organic structure has
horizontal hierarchy having broadly defined and flexible tasks, cross functional teams, authorities
based more on expertise then in hierarchy and communication is horizontal among those familiar
with the task.
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The selection of any one form of these structures depends on the contingency factors which are
environment size/age, technology, interdependence and political contingencies of the
organization.
With regard to the strategy and environment and other related factors of The Commercial Glass,
the below given chart is presenting the companys organizational structure:
Chart 1: Organizational Structure
ORGANIZATIONAL STRUCTURE
On the whole there are two types of organizational structures, the first is bureaucratic
organization and the other one is matrix organization. At times bureaucratic organizational
system seems to have a lot of control environment (Senior & Fleming, 2006) but nowadays many
bureaucratic organizations employ a complementary structure having teams or networks and all
the decisions are taken in the consultations with the group of specialists. The matrix
organizational system is employed at the time of crises, where the bureaucratic structure failed
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President or CEO
Admin Manager General Manager
Head of HumanResource
Head of Accounts
3 Sites managers
Head of Marketing
Head of Production
Head of Sales
Head of Communication
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and then the organization employ team work among all the heads of the departments and
decisions are taken in the consultations of all the team members (Senior & Fleming, 2006).
Overall, whether the company employs bureaucratic organizational structure or matrix structure,
it should aim to aim towards solving the problems within the company, to raise moral of the
company workers and to promote the business of the company.
The organizational structure here is in the combination of bureaucratic in the sense that overall,
the president or CEO is controlling and matrix in a way that all the major company decisions are
taken in consultations of all the department heads and then communicated to the workers. The
whole commercial glass company is lead by President or Chief Executive Officer, under hissupervision Administration manager and General Manager, work. All the major decisions are
taken by President with the consultancy of the managing committee including all the heads of
departments, general manager and Administrative manager. The reason for involving all the
department heads along with general manager and administrative manager is to develop
ownership of the decision and to promote team work. Under the supervision of each and every
department head are workers and its the responsibility of the head of communication to inform
about every major decision to each and every worker of the company so as to avoid conflicts and
unawareness. The Human Resource (HR) department is responsible for the recruitment of new
staff and training of the new and existing staff members. The Finance department is needed to
settle down all the financial liabilities of the company. The reporting relationship of HR head and
Finance head is with the Administrative manager who directly reports to the president or CEO.
Each and every site has their own site manager who is responsible for the proper maintenance
and availability of the raw materials in their site. Head of marketing is responsible for attracting
customers towards the products. Head of production is responsible for manufacturing and
production control, head of sales is responsible to manage the sales of the products. Head of
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technology involves the technology awareness and training of the workers and utilizing
technology to increase production, sales, marketing and reputation of the company.
Strategy and Implementation
Business strategy
When starting a business or carrying out a business it is very important for a company to make
some strategies regarding all fields and departments of the work which would be carried out in
the organization, because carrying out work without any strategy or planning is not useful whenyou are making business on international level, there are many other companies who are working
in this domain before you, they must have better and effective strategies and they achieve their
targets more easily.
An organization should know about its resources and should make strategies keeping in mind its
resources and how to make the most of these resources. For this purpose we need professional
business strategy developers.
Company usually has marketing department in it, strategies should be made about how to market
the product at its best that it attracts the people and sale increases. Some basic strategies are made
on how to capture the market and compete with the present organizations of your domain.
Developing these business strategies are important for progress of company.
Philosophy
The Commercial Glass Services has the philosophy to provide low cost products to the
customers. It is companys mission to provide customers with fast turnaround, exceptional
quality, unparalleled customer service and competitive pricing. With the introduction of modern
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techniques and technology, this company will become an innovative company and a future
industry leader.
To achieve this position, the company has employed most comprehensive design software and
set the highest standards of operational systems and quality control.
Use of Internet
To make the Commercial Glass Services as a technology-driven innovative company in the
market. The company has put forth a great amount of time and resources into developing a
premiere Web site and also designing its virtual site.On these sites, numerous features of success stories and images of glass products have also been
uploaded, in addition with the description of manufacturing processes and design capabilities. To
make the companys website an integral part of marketing, sales and daily operations,
opportunity has be provided to the customers to write their comments and suggestions for the
improvement of companys manufacturing products and to raise the moral of companys
workers.
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Strategy of Global Marketing
As the Commercial Glass Services recognizes the critical importance of marketing and also
aware of the benefits of internet-based marketing, therefore marketing head has employed a
future minded technology marketing person. The marketing plan has initiated publicity and an
advertisement campaign through internet to introduce the glass company and to inform about the
low cost product distribution aim of the company to a wide range of customers around the globe.
To cater the local customers marketing plan has included the component of participation in the
trade shows and sponsor different charity shows. Companys marketing department has also
developed contacts with the high profile constructors and suppliers to promote their productsdistribution.
Strategy for Sales
A sales department has been established which plan for developing short and long term sales
strategies. This department has two components, one responsible for inside sales staff and the
other one handle the outside sale like organizing trade fair shows or building contracts for the
improvement of sale.
Strategies for Company Operations
All the three sites of the company have been provided with the skilled workers in proportion with
the manufacturing products. There have been in house training facilities for the workers
including awareness sessions for new working strategies before its execution. All the sites have
specific technicians. By employing latest software and advanced machinery the rate of
manufacturing products have been increased.
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Management Organizational Structure
Organizational Structure
The above given proposed organizational structure has assisted in developing a talented and
enthusiastic managing team for the promotion of business. Moreover, with the effective
management the decision making has been feasible and in favour of the company.
Leadership
The management is lead by talented and experienced President or Chief Executive officer,Administrative officer and General Manager have been working under the CEOs supervision.
As the leadership is strong and capable therefore the company operations have been smooth.
Financial Plan
Requirements
To fulfill the financial requirement of the company the management should look into different
options like supplier financing, partnerships, vending and client advance payments.
Use of Funds
The collected funds are being invested with proper planning to cover operating costs including
payroll, taxes, and utilities. Funds have also been used to purchase raw materials, software and
machinery, which have developed and accelerated future benefits for the company.
Approximately forty percent have been spent on assets; while the other sixty percent have been
spent on operations profitability have been utilized.
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WAYS TO COMMUNICATE WITH THE STAFF MEMBERS
With regard to the increasing speed of todays industry, handling the communication within
companies has become more important than ever. Likewise in the todays tough world of
economy where communication and change have became compulsory in order to survive and
cope up with the growing trend of competition. For having effective communication and
sustainable change, companys leadership play very effective role Kotter (1996), moreover, for a
big organizational change all the stake holders should participate in the decision making for
change and in the change process (Aronsson et al. (1995), Sashkin (1987) in Nons (2005). As
the change is taken over finally with the help of workers and other staff member, thoughsuggested and initiated by the leaders. Then the leaders employ these communication strategies
like: the management speaks honestly and sincerely about the significant changes personally. The
change processes have been communicated earlier before employing these in the company to the
workers, while communicating changes also communicate about the outcomes in the simple
language which workers understand. The foremost strategy is to be visible during the change
process.
USE OF INTERNET-BASED TECHNOLOGIES
With regard to the most important change in the company, technology has been employed in its
manufacturing and marketing process. But Organizational change involving information
technology is a complex process of mutual influence between an existing organization and a
technology being implemented (Lee, 1999; Markus, 1983; Orlikowski & Robey, 1991). As the
Commercial Glass Services is aware of the technology potential therefore it is feasible to employ
this innovation so as to bring a constructive change in the company. Another reason to employ
technological change is that it includes critical success factors (Keil, 1994). For the technological
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change to be successful it is important that stakeholders should be properly involved and
technology should be aligned with the purposes of the company (Venkatesh et al., 2003).
Although, Internet-based technology assist in the both manufacturing and marketing processes
but it is vital to understand that as the communication is important for other changes to be
brought likewise it is important to develop awareness and training before employing in the
company. With regard to the marketing the major component is that the best marketing
communication involves Push, Pull and Profile strategies. In this regard technology have also
been employed to serve all the purposes for example if company technological department design
only one software it could promote information about the project to the distributors, then astechnology is used globally so it could convey the message related to the products to the global
potential customers. Furthermore, the stakeholders also require information therefore, technology
also serve as the profile communication strategy for the company.
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REFERENCES
Adams, J. (2005). Analyze Your Company Using SWOTs , Supply House Times, Vol. 48 Issue 7,
pp. 26-28
Aronsson, G., L. Svensson, K. Leksell & A. Sjgren (2005). Frndringskompetens:
Projektledares erfarenheter frn 300 Arbetslivsfondsprojekt, Arbetslivsinstitutet, Solna
China Manufacturers of glass. Retrieved June 22, 2012 from http://www.made-in-
china.com/products-search/hot-china-products/Glass.html
Iittala Glass Center. Retrieved June 22, 2012 from http://www.finnishdesign.com/museums-and-
factories/iittala-glass-museum
Kotter, J. P. (1996). Leading change . Boston: Harvard Business School Press.
Ngwenya Glass. Retrieved June 22, 2012 from http://www.ngwenyaglass.co.sz/
Nons, K. (2005). Vision versus reality in organizational change, Arbete och hlsa, Avhandling,
Gteborg Universitet
Venkatesh, V., Morris, M. G., Davis, G. B. and Davis, F. D. (2003). User acceptance of
information technology: Toward a unified view. MIS Quarterly 27 (3), 425-478.
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http://www.made-in-china.com/products-search/hot-china-products/Glass.htmlhttp://www.made-in-china.com/products-search/hot-china-products/Glass.htmlhttp://www.made-in-china.com/products-search/hot-china-products/Glass.htmlhttp://www.made-in-china.com/products-search/hot-china-products/Glass.html -
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Polish Art Glass, Hand Blown and Machine Formed Glass From Poland. Retrieved June 22, 2012
from http://www.chamberofcommerce.pl/glass/
Senior, B. & J. Fleming (2006) Organizational change , Pearson Education Limited , Essex
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