KEPAK STRATEGY Literature review Example | Topics and Well Written Essays - 2000 words

KEPAK STRATEGY - Literature review Example                     Ã‚         Introduction Kepak was founded in the mid-1960s by Noel Keating as a retail butcher’s business supplying wholesale beef to the food service sector and into other markets. Kepak had a turnover of Є750 million in 2010 and had 1700 employees. The company processes 300 000 cattle and 1.5 million lambs each year. It operates through nine manufacturing facilities in Ireland and UK. The company’s principal activity is animal slaughter and the sale of meat in cut and processed formats through Kepak Meat Division. The firm has substantial business interests in convenience foods operated through Kepak Convenience Foods and an agricultural commodities trading business, Agra Trading. This paper explores Kepak’s business strategy in response to industry challenges and opportunities (Bell, Mcloughlin and Shelman, 2011, P.3). Examination of Kepak’s business environment The most popular tool in strategic management for analysing the business environment of a company is PESTEL. In the case of Kepak, the economic environment was affecting business negatively as the industry lacked predictability in financial performance. This according to the company CEO from 2010, John Horgan, made it difficult for Irish beef processors to plan for growth. In addition, Kepak was not a listed company thus limiting its access to capital to borrowing or trading profits in a very capital intensive business (Bell, Mcloughlin and Shelman, 2011, P.3). Supply chain consists of producers who sell cattle to processors who market the product internationally. Most of the cattle are grass fed and takes up to 30 months to mature compared to cereal fed beef which can finish in 12-15 months. The presence of agents hampers innovation in the supply chain as their role is historical and; therefore, they added little value (Bell, Mcloughlin and Shelman, 2011, P.3). Political and legislative factors are seen to influence the firms busi ness where the EU-wide introduction of decoupled Single Payment Schemes moved subsidy payments from actual production of commodities to other objectives contributing to a reduction in beef production. These factors negatively affected the firms business as there was an increase in live beef exports after 2008 as it was more profitable to export live-calf than to mature, slaughter and process them in Ireland. Change in the economic environment caused an increase investment by farmers in dairy products leading to a reduction in beef production as well as a concern among processors that this would lower the quality of beef products (Bell, Mcloughlin and Shelman, 2011, P.3). With respect to porter five forces, there were three major players in the beef processing industry and who accounted for 60-65% of the capacity and output. The perception was that these competitors would rather suffer lower margins than take compromises and retailers used this weakness to play processors against eac h other. Therefore, there was a negative effect of competitor rivalry in the beef business and, which affected the firm’s bottom line. According to literature by Porter, rivalry limits profitability in an industry as it transfers profitability directly to customers through price cuts and in this case customers try to achieve the same by playing firms against each other. Britain is Ireland’s major market for beef exports and shares similarities in both markets in beef tastes, systems of

Panera Bread Company Essay Example for Free

Panera Bread Company Essay Panera Bread Company is regarded as one of the largest company in the United States that has specialized in the production of breakfast and lunch food for its consumers. Panera Bread Company which was in the years back been referred to as An Bon Pain is reported to be producing products such as baked foods, sandwiches, soups among other food products and beverages. The company is reported to have been founded in the year 1987 by Ken Rosenthan with its headquarters situated in Richmond Missouri in the USA. The company operates in divisions namely; franchise segments; who are licensed to carry out business transactions in the name of the company and retailing operations; which covers over five hundred bakery cafes that are reported to be company owned and over six hundred cafes which are franchised operated in more than thirty five states. In the year 1999 it was expanded into a national restaurant. Panera Bread Company has struggled to survive the growing competition and to effectively utilize its opportunities by utilizing the concept of company analysis which is very critical in modern business world. The aim of Panera Bread Company has always been to become a market leader in production of foods and beverages globally by diversifying and reaching to many new markets. In the year 2005, the company was ranked top forty by the Business Week in the annual list of hot growth companies. By that year its earnings was projected at $ 38 Million with an increase of over 40% in profit. In the year 2007, Zagat rated the company to top the list of Overall Food Facilities and Popularity rankings. Panera Bread Company is further recognized for its involvement in community events such as silent auctions, runs and walks by making donations. SWOT Analysis Modern businesses are faced with changing business environments and Panera Bread Company is not exceptional from facing such changes within their business context. By carrying out SWOT analysis, environment analysis is very decisive to Panera Bread Company and it is usually analyzed in two extents; the external environment and internal environment examination within the business perspective. Research reveals that the analysis of external environment illustrates opportunities and threats that exist in the market for a firm that may be either present or impending. On the other hand, internal environment examination depicts the strengths and weaknesses that the business may face in the market place (Anthony, 1998). Strengths Strength in this context can be identified as that distinctive ability posed by a firm and if the company utilizes such an opportunity it can succeed and can gain competitive advantage, over its rivals in the industry. The most common strength associated with Panera Bread Company is that of being a market leader in the food industry and particularly marketing of bread. Research indicates that Panera Bread Company is better placed than its main rivals in the market in that it has significantly acquired larger market share which is attributed to its diversification to various countries in the world, for example it has opened many subsidiaries in Toronto, Canada. It is also reported that the company has a strong brand name of its products which have significantly aided the company in terms of achieving a larger market share. The other strength that the company has is that of the best marketing channels that have aided marketing of packaging solutions products to a wider range of customers (Kotler, 1996). Weakness Weakness in this context can be referred to as any dimension of a firm that possibly will deter the accomplishment of set objectives by the firm and usually considered to comprise the company’s resources, capabilities and assets that are not fully utilized. From the company’s profile it can be noted that Panera Bread Company has weak policies, procedures and regulations that may deter the attainment of target performance of the company in some target markets. It is also reported that recently, the employees are not motivated to work and there has been complains regarding low pay and poor working conditions among others although such reports have not been proved. The management of the company should therefore look for ways in solving such problems that may affect adversely the performance of the employees and thus the overall performance of the company. Also the culture of Panera Bread Company has been under scrutiny and there has been allegation that the company is producing loaves of bread which are of poor quality, an issue that the management should look at it seriously (Anthony, 1998). Opportunities For companies to achieve the set objectives, they have to identify and devise events or features in the business external environment that will give them an added advantage or chance of performing better than their competitors. Such an event or feature can be referred to as an opportunity because it will create more chances to the company by increasing the current proceeds through acquiring a significant market share. Panera Bread Company has opportunities that if utilized will be of great benefit to the firm because it will lead to exploring and reaching to more new markets. Research indicates that there is greater demand for bread products in Africa and the management of Panera Bread Company should open subsidiaries in some of those countries after carefully analyzing the situational analysis in those potential markets. Since Panera Bread Company is among the market leaders in bakery industry; it is perceived to be having a well developed financial foundation and thus does not face any liquidity or cash flow problems. It is for this reason that the company should explore new markets and can compete across the entire market without fearing that its competitors can outdo them financially. However, before competing Panera Bread Company should carry out cost benefit analysis in order to avoid unnecessary expenditure (Brandenburger and Nalebuff, 1995). Threat In business context, a threat is regarded as an event which if not taken care of it may possibly deter the accomplishment of company’s goals e. g. customers declining income and competition among other events deemed to causing danger to the operations of the business. Panera Bread Company is basically faced with intense rivalry in bread and beverages products since many firms have opted to join the market because it is considered profitable. In fact, in some market segments particularly in Canada there has been a significant drop in terms of the company’s market share because new firms has entered the industry. Globalization concept has brought about new inventions and Panera Bread Company is faced with the task of coping with such innovations, for example the task of training and development programs to educate the employees on new technologies might be costly and difficult to acquire; such as the use of on-line marketing techniques and networking facilities (Anthony, 1998). Competitive Strategy According to research, Panera Bread Company has embarked on identification of markets that bread products and beverages can do best and it is through this that the company has sold a lot in the target areas. This strategy is normally referred to as segmentation; where the company has avoided competing entirely across the entire food industry but instead targeting certain markets i. e. bread and some beverages markets. Market segmentation will be an ideal situation for Panera Bread Company since competing across the entire market is expensive and considered to entail a lot of risks that the firm cannot sustain for example unfair competition by its rivals in the market (Bagley and Savage, 2006). This will involve Panera Bread Company marketing staff subdividing the existing market into different subsets of clientele where each division may be chosen as an intended market to be explored with a different marketing mix strategy. In essence, target marketing strategy will involve market segmentation which Panera Bread Company will have to find it on the acknowledgment that any segment comprises of potential buyers of bread products and beverages with diverse needs and dissimilar buying behavior. After carefully developing and subdividing the entire market to segments or the target markets, Panera Bread Company should then position itself on how to carry out the marketing activities in order to meet the overall objective of the corporation. Under this; positioning will imply to the formation of limits for bread products and beverages in the minds of the intended market in relation to the rivalry faced. Positioning of any firm including Panera Bread Company is very essential since it forms the foundation of all the communication of the company that comprise the following; branding, publicity, advertising and packaging among other strategies. Therefore it will be prudent for Panera Bread Company to create a single unique position which will operate as a guide for marketing communications involved thus will aid in transmission of steady image (Cullen and Parboteeah, 2005). HR and its Importance Since the mission statement of Panera Bread Company is clear, that it aims at being the market leader of producing bread products and some beverages not only locally but globally it should implement its marketing strategies particularly in the identified target markets. Implementation is putting in to action whatever plan or strategy that the management had formulated and therefore human resource is the most crucial asset in this stage. Research indicates that any company must motivate and provide clear direction to its human resource in order to attain its objectives. Therefore, Panera Bread Company should clearly identify the needs of its employees and try to meet them in order to give them an ample opportunity to serve diligently and be dedicated to the company. By offering a competitive package and offering performance contracts to the employees; ensures that they perform to the fullest because they will be highly motivated to work. Good leadership and management skills will be essential to Panera Bread Company’s management staff in order to command respect from the employees (Hilltop and Sparrow, 1994). Recommendations Panera Bread Company should note that nowadays, it is possible to use e-business through the internet for distribution purposes especially when dealing with international businesses. Digital innovations coupled with rapid growth in new technologies are changing the way distribution channels for companies and Panera Bread Company is able to use such hi-tech communication channels to monitor progresses in the market places not only in USA but globally. The company should further utilize modern entry market modes which such as Foreign direct Investments and licensing in order to build long-term markets in its target markets. It will be possible to also adopt joint ventures which will make possible for Panera Bread Company to gather enough market information quickly and familiarize itself with the laws, regulations and needs of the customers in the target market (Grant, 2005). Conclusion Panera Bread Company is among the current market leaders in the food industry and therefore stands a better chance of attaining a significant market share as a result of the brand name of its bread products and beverages that are regarded to be of high quality. Every business including Panera Bread Company is faced with challenges and it has to fully adhere to market regulations in order to avoid unfair competition. The concept of globalization cannot be written off either since many firms including Panera Bread Company has diversified to various markets and there are threats and opportunities associated with such globalization. Therefore the company should formulate strategies that are considered global in nature in order to meet the current expectations of the customers in the target customers. Such strategies like build, harvest or divest should be considered by the Panera Bread Company when assessing the performance of its products in its target markets. Management functions of planning, directing, leading and controlling should be adhered to by the management of Panera Bread Company in order to significantly improve the operations of the company by achieving the required targets (Kotler, 1996)

Challenges and opportunities that social media networks offer

Challenges and opportunities that social media networks offer The availability of digital media such as satellite and mobile phones, the digital television and most importantly the internet, as a means for communication makes Internet Marketing (IM) very different from the Conventional Marketing. McDonald and Wilson (1999) elaborately highlighted the key difference between traditional media and new media. With particular emphasises on IM the authors proposed what they call The 6 Is of e-marketing mix. The authors posit that the relevance of the 6 Is are twofold (i) they draw emphasis on the practical aspects of IM such as direct response and personalization and (ii) provide an understanding of strategic issues such as restructuring of the industry and the changes in the integrated channel communications. The 6 Is of e-marketing mix Interactivity In the case of traditional media the marketing message is predominately broadcasted from a company to its target audience, thereby implying the existence of a push factor. This process of communication provides little scope for interaction with the customers. However, on the Internet, contact is initiated by the customer who, in most cases, is seeking information, implying the existence of a pull factor (Deighton, 1996). Figure 1.13 pg28 Intelligence The internet renders itself as a cost effective means of conducting market research. The internet is an especially useful tool in gathering information about customer perceptions about the product/ service. Individualism (Fig 1.14) pg 30 As illustrated in the diagram above, new media forms allow marketing communications to be tailored to the individual that the message is meant for, unlike in the case of traditional media wherein communication is mass media and the same message is disseminated to its audiences. (Lasswell 1984, Katz and Lazarsfeld 1955) Further, the inherent feature of personalisation that new media forms offer to marketers is an important building block in managing relationships with customers. Integration (diagram: A New Marketing Paradigm for Electronic Commerce) The conventional marketing communication model witnesses a fundamental alteration in the presence of a hypermedia Computer-Mediated Environment (CME) like the internet (Hoffman and Novak 1996). The internet enables an increased scope for an integrated marketing communication. The CME communication model provides a platform for consumers to interact with each other, the medium and the company itself. The most drastic departure from the traditional media is the opportunity for the consumers to generate content onto the medium. Hence, in the CME model the primary relationship is with the receiver and the CME, and not between the sender and the receiver, which is the case in traditional media.( Hoffman, 1996) The active role of the consumers makes it imperative for marketers to integrate their communication messages. Industry restructuring. Concepts such as disintermediation and reintermediation (Chaffey et al, 2003) are important considerations for companies that operate in a CME. Disintermediation refers to the process of eliminating conventional intermediaries such as agents and brokers, who previously linked the company to its customers. Reintermediation is the process of creating new age intermediaries between the company and its customer, given the presence of the internet. These new age intermediaries are often referred to as cybermediaries (Shankar et al, 1996) and include virtual communities like forums, fan clubs and user groups, search engines like Google and Bing , virtual resellers like Amazon and eBay. Independence of location The internet provides the possibility of an increased reach of a companys marketing communications to the global audience. This can often translate into reaching international markets and audiences. Social media networks: AN INTRODUCTION Social media networks, though a relatively new terrain for most companies and brand managers had its humble beginnings when Open Diary was founded in 1950s with the intent to create a community of diary writers. A few years later, Tom Truscott and Jim Ellis introduced Usenet, letting its users post articles to its groups. (Kaplan et al, 2010). Dating sites that enabled its users to create profiles and even update pictures and online forums, which were the more user friendly and sophisticated versions of BBSs (Bulletin Board Systems), are all building blocks of the social media networks as we know it today. With the passage of time and the technological developments that . SOCIAL MEDIA NETWORKS: OPPOTUNTIES AND CHALLENGES Social networking sites: Social networking sites like face book, my space, twitter and orkut are platforms for Internet users to create individual profiles with personal information, make new friends and connect with old ones and even for business networking, in some cases. Users can use certain applications which help them connect to each other through instant messaging and sending emails between each other, creating personalised profiles for themselves which can be accessed by colleagues and friends etc. Such applications are known as Social networking sites. Personal profiles are highly specialised as they are suited to the users needs. He/she can upload audio files, videos, blogs as well photos into the profile which can be shared to other friends. Facebook is considered to be the largest social networking site and it is interesting to note that it was originally founded by US based Mark Zuckerberg who wanted to stay in touch with his friends in Harvard Unviersity. Myspace is also another example of a social networking site which has over 250 million users worldwide. SNS are being used for market research with regard to netnography as well as creating brand communities by different companies. SNS have also been used especially well for promoting movies for example when film makers create a fan page of their movie which allows user to access information such as trailers, photos and download games for free. Similarly companies sponsoring football clubs have used SNS such as Myspace to allow fans to feel closer to the teams they support. Apart from marketing their products through SNS other companies go to the extent of using SNS as a distribution channel for their products for example 1-800- flowers a US based florist has allowed facebook users to send virtual flowers to whomsoever they desire or send the real ones by directing users to their company website.

Need Importance Of Organization Commerce Essay

Need Importance Of Organization Commerce Essay Organization is the foundation upon which the whole structure of management is erected.Organization is associated with developing an outline where the overall work is divided into manageable components in order to facilitate the achievement of objectives or goals. Thus, organization is the structure or mechanism that enables living things to work together. In a static sense, an organization is a structure or machinery manned by group of individuals who are working together towards a common goal. Examples of organization: Corporations, governments, non-government organizations, armed forces, non-profit organizations etc. The term organization has been used in four different senses; Organization as Framework of Relationships:Organization refers to the structure and interactions among various job positions which are created to realize certain objectives. Organization as a process: Organization is viewed as a dynamic process and a managerial activity which is vital for planning the utilization of companys resources. Organization as a System:Organization is also viewed as a system. System concepts recognize that organizations are made up of components, each of which has exclusive properties, abilities and reciprocated associations. The constituent elements of a system are linked together in such complex ways that actions taken by one individual have far reaching effects on others. Organization as a Group of Persons:Organization is very often viewed as a group of persons contributing their efforts towards certain goals. Definitions: Organizations may be defined as a group of individuals large or small thatare cooperating under the direction of executive leadership in accomplishment of certain common object. -Keith Davis Organization is a system of cooperative activities of two or more persons. -Chester Barnard Organization is the form of every human association for the attainment of a common purpose. -Mooney and Reily Organization is a harmonious adjustment of specialized parts for the accomplishment of some common purpose or purposes. Haney In its broadest sense, organization refers to the relationship between the various factors present in the given endeavor. Factory organization concerns itself primarily with the internal relationships within the factory such as responsibilities of personnel arrangement and grouping of machines and material control. From the standpoint of enterprise as a whole, organization is the structural relationship between various factors in an enterprise.- Spriegel 1.1 Need / Importance of Organization A renowned industrialist of U.S.A Andrew Carnegie when sold his company United States Steel Corporation , showed his confidence in organization by saying Take away our factories, take away our plants, our avenues of transportation, our money, leave nothing but our organization and we shall establish better factories.Since ages and all walks of life, organization has been playing a significant role. The importance of organization is as stated below. A tool for achieving objectives:Organization is an important tool in the hands of management for accomplishing the objectives of an enterprise. It facilitates administration and management: A sound organization increases efficiency, avoids duplication of work, avoids delay in work, improves managerial skills and motivates employees to perform their duties. It ensures optimum use of human resource: Good organization establishes individuals with interests, knowledge, skills, abilities and viewpoints. It enhances creativity: A well-conceived and comprehensive organization is the source of creative thinking and initiation of new ideas. Prevents Corruption: Enterprises which lack sound organization most of the times have problem of corruption. Sound organization helps to prevent corruption by raising morale of the employees. As a result of which employees are encouraged to work with higher efficiency, commitment and honesty. Fosters growth of enterprise: Good organization plays a key role not only in growth but also in the expansion and diversification of an enterprise. Eliminates overlapping and duplication of efforts: In a situation, where the distribution of work is not clearly identified and the work is performed in a haphazard manner there will be duplication and overlapping of efforts. As a good organization requires that the work be clearly assigned amongst employees, such overlapping and duplication is to be eliminated. Coordination: Various jobs and positions are linked together by structural relationship of the organization. The organizational process exercises its due and balanced emphasis on the coordination of different activities. 1.2 Principles of Organizing For timely and systematic completion of work it is must for every organization to adopt some techniques or principles. Thus these principles would be the deciding factor for the success or failure of an organization. Principle of Objective:All the enterprises whether large or small, set certain central objectives. Every element of the organization and organization as whole should be geared to the central objectives identified by the enterprise. Principle of Specialization: Precise division of work facilitates specialization. According to this principle, division of work among the employees should be based on their knowledge, skills, abilities, capabilities and interests. This would lead to specialization which would in turn lead to efficiency, quality and elimination of wastage of resources. The Scalar Principle: This principle is sometimes referred to as the chain command. There must be clear lines of authority running from the top to bottom of the organization and linking all the individuals in the organization. The Principle of Authority: Authority is an important ingredient of the organization structure. It is the tool by which the manager can create an environment where an individual can perform with greater efficiency. The Principle of Span of Control: This principle states that there is a limit to the number of subordinates that report to one superior. Supervision of too many people can lead to trouble and confusion. Also the superior will not be able to spare time to supervise each of his subordinate. It will also lead to increased complexity of the organization structure. The span of control depends upon a number of considerations. It is easy to supervise a large number of subordinates involved in routine jobs and working in the same room, whereas it is difficult to supervise highly diverse and specialized personnel scattered widely. The ability of the employee, their willingness to assume responsibility and the attitude of management towards delegating and decentralization should also be analyzed in detail while making a decision on span of control. The Principle of Unity of Command: This principle is basically about avoiding dual reporting. It states that every individual employee working in the organization should be kept in the supervision of one boss only. This principle eliminates the possibility of conflicts in instructions and fosters a feeling of personal responsibility for work. The Principle of Definition: Each individual in the organization should be made aware about his / her responsibilities, duties, authorities and relations with the other job positions in the organization structure. Principle of Unity of Direction: The basic motive for the existence of organization is the attainment of certain objectives. Major objectives should be split into functional activities and there should be one objective and one plan for each group of people. The Principle of parity of Authority and Responsibility: The responsibility for execution of work must be accompanied by the authority to control and direct the means of doing the work. The Principle of Supremacy of Organizational Objectives: The organizational goals and objectives should be given wide publicity within the organization. The people contributing to it should be made to understand that enterprise objectives are more valuable and significant and one should give higher priority to organizations objectives in comparison to personal motives. 1.3 The Process of Organizing 6 7 5 4 3 2 1 Fig. 4.1 Steps in Organizing From the Fig. 1.1 it is clear that organizing is a process involving multiple activities. The details of all these activities are as follows: Fixing the objectives of the organization: The top level management holds the responsibility of fixing the overall objectives of the organization whereas the middle level management fixes the departmental objectives and lower level management fixes the day-to-day objectives. The objectives decided by each of the level of management should be both specific as well as realistic. Finding activities must for achieving objectives: Once the objectives are fixed, the strategic level of management determines different activities that are required to be performed in order to accomplish the set objectives. This is a crucial stage as it helps to eliminate duplication, overlapping and wastage of efforts. Grouping the similar activities: All the activities which are similar in nature are grouped together to form departments. This is also termed as departmentalization. This leads to specialization. Ex: All the activities that are directly or indirectly related to management or development of the human resource like training, performance appraisal, recruitment are grouped together to form the Human Resource Department. Defining responsibilities of each employee: At this step the responsibilities of all the individuals working in the organization are clearly defined. This would ultimately lead to selection of right candidate for the right job. This brings about efficiency since each individual is aware about what he/ she has to do. Delegating authority to employees: In a situation where two or more individuals are working together for a common purpose it becomes necessary to clearly define the authority relationship among them. Each subordinate should know whom he has to report. Also each superior should be aware of the authority he has over his subordinates. Providing employees with required resources: After defining authority relationships, the employees must be provided with all the resources that are required for achieving the objectives of the organization. Coordinating efforts of all to achieve goals: This is the last and most important step in the process of organizing. Here the efforts of all individual employees, groups and departments are fetched together and coordinated towards the mutual objective of the organization. Ex: Let us consider a simple example where a company has decided to have one day picnic for its employees. Here it is clear that the objective is arranging picnic. The HR department would then list all the activities to be carried out for the successful execution of picnic. These activities would then be grouped based on the similarity, for instance arranging for breakfast, lunch and dinner on the day of picnic. Each of the members of this committee would in turn be assigned a particular responsibility like selecting the menu and so on. Each of the members will also be given authority with the assigned responsibility for efficient execution. Each of the committee formed, like the refreshment committee will then be allocated a budget to enable them to carry out the assigned duties. And most importantly efforts of all the committees or individuals must be coordinated to meet the central objective that is successful arrangement of picnic. 1.4 Organization Structure An organization structure specifies the various job positions and depicts how the same are formally divided, grouped and coordinated. It provides an appropriate framework for authority relationships. It is a means to help the management to achieve the organizational objectives. It can also be considered as the viewing glass or perspective through which individuals see their organization and its environment. An organization can be structured in many different ways, depending on their objectives. The structure of an organization will define the ways in which it functions and executes. Organization structure allows the expressed allocation of duties for different functions and processes to different entities such as branch, department, workgroup and individual. Organization structure affects organizational action in two major ways. Firstly, it provides a basis on which the standard operating procedures and routines rest. Secondly, it determines which individuals get to participate in which decision making process and thus to what degree their views shape the organizations actions. There are several reasons why designing an organizational structure is such an important aspect. Organization structure has a crucial impact on the organizations ability to Deal with contingencies Achieve a competitive advantage Effectively manage diversity Increase its efficiency and ability to innovate new goods and services 1.4.1 FormalOrganization The formal organization refers to the structure that is designed and prescribed by the management of the enterprise. It is defined as a hierarchical concept of subordination of entities that collaborate and contribute to serve a common goal.A formal organization has its own set of rules and regulations that are to be followed by each individual in the organization. It depicts clear lines of authority and the superior-subordinate relationship also each of the individual is assigned specific duties and responsibilities. In a formal structure there are predefined objectives and the individual efforts are diverted towards achieving these objectives. According to Barnard, Any organization shall be considered formal at the stage when the activities of two or more persons are coordinated consciously to achieve the definite objective. Ex: College, Hospital, Company etc. Features of Formal Organization Authorities and responsibilities are clearly defined. It does not consider the emotional aspect. It is predetermined and purposefully created. Based on delegation of Authority. It provides for division of labor. Organizational charts are followed. Advantages It promotes discipline in the organization. It provides a basic structure of division of work and responsibility. Without such a structure it becomes very difficult for employees to agree between themselves on the duties and responsibilities of every individual. It gives a clear cut idea about the authority and responsibility of the individuals. Thus formal structure reduces confusions and brings clarity in working. The dependency is not on a single person. Decreases the possibilities and occasions of conflict. The formal organization helps to keep the firm operating despite of the changes in the work force. Eliminates duplication of work which in turn leads to effective utilization of resources. Disadvantages: At times the formal organization causes reduction in initiatives of the person working in the organization. It does not consider the emotions aspect. It may cause delay in work. 1.4.2 Informal Structures This is a shadow organization made up of the informal, but often critical, relationships between members of the organization. The informal structure has its presence in all the formal structures. Informal structure depicts the way in which individuals communicate and relate themselves with others beyond the formal structure. The informal structure develops through various frequent instances like having regular interaction, lunch, coffee with colleagues. According to J.L Massie, Informal organization is any human group interactions that occur spontaneously and naturally over long period of time. Features of Informal Organization The informal organizations are not depicted in the organizational chart. The informal organizations do not have any particular structure. It denotes human relationships beyond the formal organizational structure. Informal organizations are outcome of voluntary associations. The informal organizations develop out of personal preferences, beliefs, habits and understanding. Advantages: It is effective channel of communication in certain cases. It develops a sense of belongingness among the individuals. The gaps and deficiencies that exist in the formal organizations can be filled up by the informal organization. The members of informal organizations help each other in case of unforeseen events or emergencies. Informal group forces the manager to plan and act more carefully than he would otherwise. Informal organization is a check and balance on unlimited use of authority by a manager. Disadvantages: It operates based on the group psychology. The interests of the formal and informal groups may clash, leading to conflict making the job of managers difficult. The informal organizations may fall prey to rumors. It may cause problems by resisting changing at certain occasions. Fig. 4.2 Formal and Informal Organization Difference between formal and Informal Organization: Sr. No. Basis Formal Organization Informal Organization 1 Structure Predefined Undefined 2 Relations Formal Relations Personal Relations 3 Purpose To achieve organizational objective For social satisfaction 4 Dynamism Rigid Flexible 5 Leader Manager Voluntarily chosen 6 Communication Slow Fast 7 Nature Official Sentimental 8 Example Departments in the organization Group of trekkers 1.5 Types of Organization Structures Functional Structure The concept of functional organization was proposed by F.W. Taylor. In functional structures, individuals having identical skills and performing similar tasks are grouped together into formal work units, generally called departments. Members of functional departments share technical know-how, interests and responsibilities. Employees within the functional division of an organization tend to perform in areas of their expertise. The functional structure may differ according to the major functions of a business. Fig. 4.3.1 Functional Structure for Business Entity Fig. 4.3.2 Functional Structure for a Hotel Fig. 4.3.3 Functional Structure for a College Advantages: Specialization: The organizational efficiency increases as each of the employee performs the task as per his specialization. Reduced Workload: As each of the functional head is responsible for only one function work load is reduced. Flexibility: It is easier to accommodate a change with little or no difficulty. Improved Control: As each employee is in charge of one function only, it is easier to spare time to supervise all his / her subordinates. Mass Production: Due to specialization and standardization it becomes feasible to go for large scale production. Disadvantages Complex Relationships: An individual has several superiors due to which accountability for results cannot be easily fixed. Also cross functional relationships create confusion. Inefficient Administration: As same groups are controlled by various specialists, there is inefficient administration. Expensive: As large number of specialist need to be hired it adds to increase in cost. Ineffective Coordination: Each of the functional managers is bound to think only from the perspective of his / her department rather than the whole organization. Delay in decision making: Several functional specialists are involved in the process of decision making as a result of which decisions may be delayed. Divisional Structure In the divisional structure the organization is organized into various divisions based on four criteria product, market, process and location. Thus divisional structure is most suited for the organizations having a wide range of products, area of operation, work processes or customers. Each of the division has its own set of functional units like marketing, manufacturing, finance, HR etc. and is self-contained. Type Emphasis Example Product Goods Provided / Services Catered Market Target Customers / Clients Location Location at which activities are carried out Process Activities of same process Fig. 4.4 Divisional Structure based on product, market, location and process Advantages: Highly Flexible: Divisional structure can respond more quickly to the changing environment. Specific: Expertise focused on specific product, market, process or location. Coordination: The divisional structure leads to better coordination across functional departments. Clear Accountability: Divisional structuring provides clear correlation between the expense and profit of the individual divisions. The business objectives of the divisions can be formulated more objectively and the expectations can be better agreed. Ease of operation: Greater ease to modify the size by adding or deleting divisions. Disadvantages: Reduced economies of scale: Duplication of efforts across divisions leads to increase in the operating and administrative cost. Rivalry: Divisional structures may also result into rivalry as the divisions compete for resources. Divisional Affiliations: The employees feel more affiliated towards their own divisions and would still lack affiliation to the organization as whole. Supremacy of divisional goals: The divisional goals may have priority over the organizational goals. Matrix Structure: The matrix structure comes into existence when one organization structure is superimposed by the other. In this structure an employee is answerable to two immediate supervisors: a functional supervisor and a divisional supervisor. The functional supervisor is charged with overseeing employees in a functional area such as marketing or engineering. Divisional supervisors manage specific projects. They absorb employees from various functional areas to complete their project teams. The diagram below depicts the absorption of employees from Operations, Finance, and Marketing for project A and B. These employees report to both Managers at that point of time. President Manager -Finance Manager Marketing Manager Operations Manager Projects Project A Project B Fig. 4.5 Matrix Organization Structure Advantages: Flexibility: Increased flexibility in adding, removing or changing the activities to meet the changing needs. Motivation: If it is identified that a particular project is lacking proper motivation then it is provided to the concerned department. Development of skills: Since cross functional teams are formed, it leads to development of skills of the employees. Better Service: There is always a product or project manager answerable to the queries. Improved Strategic Management: Top level managers are freed from routine tasks to focus on strategic issues. Disadvantages: Power Struggle: Conflicts occur as there is overlapping of responsibility and authority. Slow decisions: The speed of decision making retards as there is shared decision making in the matrix structure. Increased Confusion: As there is dual reporting in matrix structure, it causes confusion. Increased Administrative and Managerial Overhead: Due to the duplication of routine activities the administrative cost increases and as specialized managers are hired for each of the projects and functions the managerial cost also increases. Professional Developed sidelined: Professional development is not given a priority due to time constraints of the project, so team members forgo opportunities to develop and improve. Network Structure: A network structure is a cluster of various organizations that coordinates its actions through agreements and contracts instead of hierarchy of authority. Rather than hiring individuals to perform all of its business activities, a company using the network structure depends on outside companies. The organizations using a network structure own only the core or essential components of the business and outsource the rest. It may, for instance, hire an outside advertiser to advertise its products. The network structure reduces costs and brings in flexibility because it utilizes external help as and when required. Creating a network-based company, however, means losing control over whatever processes the company has outsourced. Manufacturing Financial Consultancy Information Technology Core Group Advertising Agency Training Consultancy Fig. 1.6 Network Organizational Structure Advantages: Flexible: The most important advantage of network structure is that, it can quickly respond to the changing environment. As the business grows, organizations can enter into new partnerships and vice-a-versa. Cost Effective: As only the essential part of business is owned by the company and the other operations are outsourced, less number of individuals need to be hired leading to reduction in overheads. Efficiency: The overall efficiency of the organization increases as the tasks are outsourced to expert organization. Disadvantages: Coordination Problems: As the business functions are outsourced to different companies sometimes it would become difficult to coordinate all of these activities. Loss of control: There is always a fear of losing control over the core activities which would lead to uncertainties in the relationship. Political Pressure: The change in political scenario affects the organizations bearing network structure to a large extent. Increased Pressure: If there are problems of unemployment in the parent company due to outsourcing there are likely to be pressures on government to effect policy changes in this respect. Line and Staff Organization: The oldest and simplest form of organization is line organization. Line functions are those which have direct responsibility of achieving the objective of the venture. In this form of organization, a supervisor exercises direct control over a subordinate, authority flows from top to bottom of the organization. Here the chief executive heads the organization. This type of organization is also called as scalar organization. The concept of staff organization was developed by F.W Taylor. The objective of functional organization is to offer specialist services in the organization. Under this plan, specific functions common to all the departments are placed in the hands of an expert of that function. The line-and-staff organization combines the line organization with staff departments that support and direct line departments. Most medium and large-sized firms exhibit line-and-staff organizational structures. The distinguishing characteristic between simple line organizations and line-and-staff organizations is the multiple layers of management within line-and-staff organizations.   Company Secretary CEO Manager Marketing Manager -Finance Manager Operations Line Authority Staff Authority Fig. 1.7 Line and Staff Organization Advantages: Top managers relieved from routine work: In this organization line authorities focus on execution of work and are relieved from thinking function. Expert Advice: Line authorities are not autocrats as they are to take the advice from the experts or staff position. Efficiency: This results greater efficiency as the line managers spend much of their time on line functions. The line managers function more efficiently as they get support from staff positions. Easy Coordination: Thisorganization ensures co-ordination automatically as the line managers work along with staff officers. Disadvantages: Confusion: Line and staff organization are ambiguous in terms of organizational relationships, responsibility and authority. Conflict: Conflicts are common in line and staff organizations owing to unclear definition of authority the structure entails. Ineffective and erroneous Decision Making: It is not uncommon for line managers to feel threatened by the advice of staff members. In this case, line managers are liable to make decisions without staff member consultation. Such decisions are not always successful. Slower decision making: Decision making is slower in a line and staff organization due to its complexity and layers.   Costly: Most of the line and staff executives are experts in their fields and their appointment leads to heavy expenditure. Virtual Organizations The virtual organization is a network of independent enterprises, suppliers, customers linked by Information Technology. The virtual organization networks are usually temporary in nature. The significant attributes of virtual organizations are as mentioned below: Technology: The geographically dispersed partners connect to each other via electronic networks. Flexibility: It offers flexibility as the partners can link up as and when required. The structure evaporates as soon as the requirement is over. Efficiency: As each partner brings in his core proficiency the overall efficiency of the organization is bound to increase. Borderless: The boundaries that traditionally separate a firm from its customers, competitors and suppliers are eliminated. Advantages Boundary less: They are appropriate for affinity groups that are geographically dispersed. Suitable for short term initiatives: They are suitable and tailored for short-term initiatives with clearly defined objectives. Flexible: Virtual organizations are highly responsive to changing environment. Cost effective: As there is no physical existence there is little or no organizational overhead. Disadvantages Dependency on Technology: As the virtual organizations depend on Information Technology for coordination and interaction their efficiency may be affected by the limitations and problems inherent to these technologies. Difficult to manage: Since there is no physical existence, i

Making a new deal Essay -- essays papers

Making a new deal The politics of laborers have made them a vital and vibrant part of American history. One has only to study the underlying political causes of the first labor movements to understand why. Few will doubt that one of the most important parts of labor history occurred with the working-class experience in Chicago from the 1920s to the late 30s. During this era, many workers petitioned the government and employers for changes. Some groups of those workers were successful and others were not. Lizabeth Cohen, in Making a New Deal, takes a different approach from traditional labor historians. She examines the effects that ethnic workers had on the successes and failures of the earliest labor movements. Though striking workers were not endemic to Chicago, labor historians who begin their research in that city will be getting one national story (Cohen, 7). There are several reasons why Chicago is a logical beginning. In many ways, the nascent laborers of Chicago set the groundwork for the numerous benefits contemporary workers have. Earlier labor movements, like so much other history, were centered in Chicago (Cohen, 7). It just so happens that extraordinary political changes in labor took place during the interwar period, and Chicago was the largest industrial city in America then (Cohen, 7). Because Chicago was replete with ethnicity, it is also possible to conduct comparative labor studies. Finally, other than New York, no city had as many strikes as Chicago (Cohen, 12). By 1919, America had its first major strike in which four million people—or one in every five—Americans participated (Cohen, 12). These workers sought to protect their jobs and to solidify their wartime wages. One tool for doing so, of course, was the strike. Another was organizing a political party. Although local, futile, and ephemeral, a new political party was formed with the sole purpose of incorporating change into the common laborer’s working environment. Its candidates had no success in local elections; the party foundered. In fact, the 1919 strike was deemed a failure on the whole (Cohen, 13). Reasons for the failure abound, such as the â€Å"Red Scare tactics of government, employer combativeness, and the AFL’s ambivalence about organizing non-craft workers into unions† (Cohen, 13). In Chicago, there was one other significant reason why the labor movements th... ...ion leadership knew how to and did thwart the divide-and-conquer tactics of businesses. Legislation was more pro-worker, and striking became easier. Workers, no longer getting major benefits from their community, made greater demands from their employers in order to complement those benefits provided by the government. They were getting much of what they sought with relative ease after 1942. A legal pattern for addressing grievances had been set for the workers of today. Cohen adequately shows why ethnic workers should not be avoided in the study of labor history. She assiduously takes the workers of the 1920s and 30s out of their working environment and also examines them in a social setting. Using that method, Cohen proves that the ethnicity of certain workers is just as important as other traditional factors in studying labor history. Her work, consequently, will also be of significant use to political and social historians. While not an intention of Cohen, she shows that democracy was alive and well in a polyglot city. Lizabeth Cohen demonstrates in Making a New Deal that magnificant feats can be accomplished when ethnic prejudices are set aside and Americans come together.

Being a Radio Disk Jockey Essay -- essays research papers

Being a Radio Disk Jockey missing sources cited Imagine a career that music fanatics everywhere would love to have. Imagine sitting in a sound room all day, talking calls from listeners and playing the music of one’s choice. Imagine interviewing your favorite musicians, and afterwards attending their concerts, including a tour backstage. The job being described is the one of a radio disc jockey. As a disc jockey, one communicates through music to an audience from around the surrounding areas, therefore must know what they are doing, and what the people want to hear. In this paper, one will see what it takes to become a disc jockey, and how to keep that career going for a long time.   Ã‚  Ã‚  Ã‚  Ã‚  Today in the music industry, many jobs are being formed daily. Especially in the broadcasting industry, as stated by Dick Robinson. â€Å"The broadcasting industry is exploding, new stations are being formed, and more jobs are always being created†(Robinson). Having a job as a radio DJ offers a wide variety of benefits and pluses. Some of those special benefits include interviewing famous bands, going backstage, plus receiving free tickets and promotional items for almost every band of your choice (Carter). Even when a disc jockey is new to the station and just starting out, many opportunities are available, which include those listed above, plus many more.   Ã‚  Ã‚  Ã‚  Ã‚  The best way to start out in this field is to work at a college or local radio station, either being a disc jockey or just an intern...

Evaluating Business Communication

When communicating with different levels of a company it is important to chose the most effective and appropriate source of communication. In addition, ethics should be considered in how and what information is being presented. This report will review two documents from members of an accounting team advising the sales manager and marketing manager from Riordan Company about the results of the review of JJJ’s financials. By reviewing these two documents, the effectiveness of the sources and attention to ethics can be examined. Appropriateness and Effectiveness of the Documents Document 1 is a Memorandum to Dana, the Marketing Manager. This source is formal enough to present Dana with the review of JJJ Company’s financials. Although Document 1 is an appropriate source, the document is not effective in presenting Dana with all the information that matters to her. JJJ Company’s financial status is clear but the effect this has on marketing channels is not fully detailed. Instead, the paper focuses solely on profits; this focus is more appropriate for the Marketing Manager. Document 2 is an e-mail to Mark, the Sales Manager. E-mails can provide about the same level of formality as a memorandum so this source is also an appropriate choice to a Marketing Manager. An IM would have been too informal to provide this information to a manager and a report would have provided more information than needed by a marketing manager but appropriate for an ad hoc committee or CEO. Like Document 1, the financial status of JJJ Company is clearly defined but unlike Document 1, ethical boundaries are surpassed. Attention to Ethics Document 1 stays within the boundaries of not revealing too much information reserved to higher ups such as he CEO. It clearly states the financial instability of JJJ Company but it does not confirm that the acquisition is not going through. The writer understands that the confirmation should come from the CEO. Document 2 provides more information that should have been provided. The first paragraph in Document 2 states, â€Å"William CEO would like to get this acquisition, only if it means a profit to the company. William would like to see bigger dividends for the shareholders†¦Ã¢â‚¬  The writer should have omitted mentioning opinions that came from the CEO, if the CEO found this information to be important for the Marketing Manager to know he would need to be the person presenting this information. Conclusion It is significant to choose an appropriate source of communicating with different people of different levels within a company. Choosing the correct source will allow the presenter to communicate necessary information in an efficient manner. Regardless, of what sources is used, ethics need to be considered in how and what information is being presented. Deciding the level of formality and the extent of the depth and detail of the information are key factors in presenting an ethical bound business communication.