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BUSINESS STRUCTURE and BUSINESS ORGANISATION

COMMERCIAL GLASS SERVICES

TABLE OF CONTENTS

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1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. INTRODUCTION COMPANY PROFILE

Topics
Company Strategy
Current status of company SWOT ANALYSIS Strengths of Commercial Glass Services Weaknesses of Commercial Glass Services Opportunities of Commercial Glass Services Threats of Commercial Glass Services Conclusion of SWOT Importance of Organizational Structure PROPOSED ORGANIZATIONAL STRUCTURE RECOMMENDATIONS Strategy and Implementation Management Organizational Structure Financial Plan WAYS TO COMMUNICATE CHANGES TO STAFF MEMBERS USE OF INTERNET-BASED TECHNOLOGIES REFERENCES

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3 TABLE OF CONTENTS (Tables and Chart) S. # 1. 2. 3. Topics Table 1: Company Profile Table 2: Products and Revenue % Chart 1: Proposed Organizational Structure Page # 4 5 11 .

. 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 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.4 COMMERCIAL GLASS SERVICES INTRODUCTION When we talk about business. These plans and strategies play a vital role in organization’s process. this structure is not present physically but it has its existent virtually. how to control all the departments. this structure depends on the nature of organization. stake holders are internal and external. business on large scale it is always a question that how we manage the business. This paper will first introduce the Commercial Glass Services with its initial strategies. it is to keep a check on the company and its workers. When running a business you secondly need to make business strategies and business plans. we have to develop a new business structure. it virtual existent is the most important part of any business or organization. It will also include an audit of the businesses current position. After audit and monitoring all the progress of company the financial position of the company is set. Every organization has some stake holders. both have different interests and their domain of perfection is totally different. When starting anew business. The global changing era has affected all the aspects of life therefore today’s business has also experienced a great deal of changes. then it will give details about its products and its revenue. What is the way of managing accounts and marketing products? To make all this easier and more interesting we build a business structure.

COMPANY PROFILE This Commercial Glass Services has been established over 30 years at three manufacturing sites over a 40 mile radius. This paper will also assess the company’s 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. The Head Office in Site A. Table: 1 represents the staff numbers and sites specific manufacturing products: .5 its Business planning and current strategy used in the organization with specific reference to Performance analysis and utilization of resources for competitive advantage.

This strategy involves different variants like availability of operating capital. 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. .6 Table 1: Company Profile Site Staff numbers s A B C Production Staff 100 55 45 Office Staff Frosted glass and picture glass 40 Mirror glass. good process engineering skills. greenhouse glass and other products 20 Toughened/laminated glass and sealed unit double glazing glass 10 Manufacturing Products The company has a specialty to manufacture and provide variety of commercial glass products in the market. to compete with the competitor. simultaneously. 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 Strategy The commercial glass services established with a purpose to provide different glass products at its lower cost by adopting cost leadership strategy. close management of labor.

The management The management of Commercial Glass Services is managing the company for more than thirty years. Therefore. PERFORMANCE ANALYSIS SWOT ANALYSIS Among other analysis Strengths. Weaknesses. Therefore there is a need to have a critical analysis before suggesting or implementing any of the change factors to improve its functioning. 2005).7 Current Status of Company Currently the company is in decline in terms of its sale and profitability. 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. management is responsible for policy and strategies formulation and corporate direction. explore its major opportunities and the threats. SWOT analysis has been adapted for the analysis of this organization. . The management is courageous enough to be on their decision of keeping all their established sites despite of external pressure to sell. 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. Opportunities and Threats (SWOT ) Analysis is the one that is used for identifying organizational strong and weak areas. Strengths of Commercial Glass Services Aim of the Company First and foremost.

8 Staff With regards to staff. Frosted glass. Products The company manufactures variety of glass products including. greenhouse glass and even toughened/laminated glass and double glazing products which have many competitors in the market. 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. Weakness of Commercial Glass Services Diversion from Aim As the company workers are not trained timely. the company possesses a high quality 270 staff members in all its sites. Therefore. this company was earning more but as the company raises its cost other competitors took advantage and this resulted in decrease company’s sale and its market share. within 40 miles of radius thus providing fair chance to the management to monitor the working. distributed according to manufacturing load of the site. Business at one place All the sites of this company are located close to each other. Limited Marketing Strategy In this fast growing world the company is still employing face to face approach through salespeople to reach its customers. Decrease Sales of competitive products Earlier due to the low cost of market’s famous glass products like toughened/laminated glass and double glazing products. . this strategy has limited the scope of reaching a large population. This allows the company to run its manufacturing smoothly. picture glass. Mirror glass.

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. This leads to develop frustrations among workers towards adopting new working strategies. 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. Opportunities of Commercial Glass Services Skill utilization All the sites are located close to each other. that having many competitors of especially Toughened/laminated glass and sealed unit double glazing glass. Absence of organizational structure There is no identified and specified organizational structure. Willingness for modernization Considering the customers’ demand. this leads to improper decision making and lack of communication among staff members. 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. 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. has given The Commercial Glass Services a huge potential market to thrive in. sales and level of customer offered services Technology Awareness . therefore if there is a demand of one kind of specific skilled worker in one of the sites. market competitors and company’s own establishment purpose. the management will willing to adopt modern techniques to raise the productivity. therefore there is a need and demand for glass. Culminated with the fact.9 limiting its customer service offers due to geographical limitations or other legal restrictions for the sales people.

Threats of Commercial Glass Services Consumer The high price of the consumer products may limit access to the mass market. 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. the demand for Toughened/laminated glass and sealed unit double glazing glass is increasing in the market.10 Although. simultaneously competitors too. management. decrease sales of competitive products. but management is aware of the internet-based technology strength to widen the possibility of reaching customers in far flung areas around the globe. For example. Conclusion of SWOT SWOT analysis of the Commercial Glass Services. limited marketing strategy. 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 products distribution. 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. staff and business at one place. help us to see that the strength of the company lies in its aim. but to date they have turned these approaches down. 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. company’s present marketing approach is face to face through sales person. Developing low moral The working environment had become poor which was resulting in the low moral of the production workers. Commercial Glass Services has already been approached by three property developers with a view to selling either or both sites. . which is limiting the number of customers. Its weakness lies in its diversion from aim.

Opportunities for a business to flourish are through marketing and their high sales. old manufacturing sites and missing organizational structure. Stake holders need to be placed in the right area of work. When they work in their field of preference. government is investing or not is very important factor in development of industry. willingness for modernization and technology awareness. . which means the area which they like to work. their quality of work increases and the chances of companies’ progress are increased. Stake holders are sometimes a threat to the company and sometimes they are very beneficial to the organization. Therefore we find that overall this company is a promising company in a niche industry with plenty of opportunities to expand.11 poor working environment. 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. Political factors are also affecting the company’s progress. along with opportunities there are some threats also these threats and opportunities are a part of business. instability of two sights and developing low moral. Company’s opportunities lay in its skill utilization. There are some opportunities for the company to progress. 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. potential to become sunrise industry. Technology utilization could bring a drastic change in the Commercial Glass Services to achieve maximum customers and market shares. Its threats lie in consumer.

some prefer marketing stuff while others don’t. Social factors basically refer to the relation of one organization with others. they have a very major impact on business. what medium is used for marketing. Legal factor includes following law. some rules and policies made by the organization and to follow the government’s order to the fullest. if a company has good and friendly relations with all other companies it is likely to flourish more. Stakeholders and their Interests on the company Stakeholders are people or group of people who are affected by company’s decisions and by the actions of company and they also affect the company.12 Economic factors are economic growth. Company’s business structure and organization structure needs to be strong for the management of stakeholders. some are interested in projects while others are interested in investment. . which means the part of work which they like to do. these are very useful in business. Technological factor is one of the vital factor affecting a company’s progress. it is noted that how business operates and how some decisions are made. Internal stakeholders are powerful than the external stakeholders and internal stakeholders have more power of making decisions. Different stakeholders have different interests. exchange rates and etc. The most important task is to give chance to stakeholders to the task which they like to do. how products are manufactured these are the key points noted in technology.

Stakeholders and their interests on the company are vital for any organizational strategy to be applicable. Organic Structure Mechanical structure has vertical hierarchy having clearly defined responsibilities with rigorous reporting requirement and vertical control of organization whereas. It encourages people to act for supporting the strategy and organizational goals. organic structure has horizontal hierarchy having broadly defined and flexible tasks. which means it should allow the stakeholders to work for their preferred area of work. Mechanical Structure 2. There are two forms of organizational structure: 1. cross functional teams. authorities based more on expertise then in hierarchy and communication is horizontal among those familiar with the task. .13 When a company needs to flourish it should put the stakeholders at their right place.

where the bureaucratic structure failed . technology.14 The selection of any one form of these structures depends on the contingency factors which are environment size/age. interdependence and political contingencies of the organization. the below given chart is presenting the company’s organizational structure: Chart 1: Organizational Structure President or CEO Admin Manager Head of Human Resource General Manager 3 Sites managers Head of Marketing Head of Accounts Head of Production Head of Sales Head of Communication ORGANIZATIONAL STRUCTURE On the whole there are two types of organizational structures. The matrix organizational system is employed at the time of crises. 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. At times bureaucratic organizational system seems to have a lot of control environment (Senior & Fleming. With regard to the strategy and environment and other related factors of The Commercial Glass. the first is bureaucratic organization and the other one is matrix organization.

it should aim to aim towards solving the problems within the company. under his supervision Administration manager and General Manager. 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. general manager and Administrative manager. Head of marketing is responsible for attracting customers towards the products. to raise moral of the company workers and to promote the business of the company. 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. Head of . head of sales is responsible to manage the sales of the products. The organizational structure here is in the combination of bureaucratic in the sense that overall.15 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. Under the supervision of each and every department head are workers and it’s 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 reporting relationship of HR head and Finance head is with the Administrative manager who directly reports to the president or CEO. The Finance department is needed to settle down all the financial liabilities of the company. The Human Resource (HR) department is responsible for the recruitment of new staff and training of the new and existing staff members. 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. whether the company employs bureaucratic organizational structure or matrix structure. The whole commercial glass company is lead by President or Chief Executive Officer. work. Head of production is responsible for manufacturing and production control. Overall. 2006). All the major decisions are taken by President with the consultancy of the managing committee including all the heads of departments.

unparalleled customer service and competitive pricing. 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. It is company’s mission to provide customers with fast turnaround.16 technology involves the technology awareness and training of the workers and utilizing technology to increase production. marketing and reputation of the company. because carrying out work without any strategy or planning is not useful when you are making business on international level. Philosophy The Commercial Glass Services has the philosophy to provide low cost products to the customers. Developing these business strategies are important for progress of company. Some basic strategies are made on how to capture the market and compete with the present organizations of your domain. For this purpose we need professional business strategy developers. With the introduction of modern . Company usually has marketing department in it. sales. there are many other companies who are working in this domain before you. strategies should be made about how to market the product at its best that it attracts the people and sale increases. 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. exceptional quality. they must have better and effective strategies and they achieve their targets more easily.

To make the company’s website an integral part of marketing. To achieve this position. this company will become an innovative company and a future industry leader. sales and daily operations. On these sites. in addition with the description of manufacturing processes and design capabilities. numerous features of success stories and images of glass products have also been uploaded. Use of Internet To make the Commercial Glass Services as a technology-driven innovative company in the market. opportunity has be provided to the customers to write their comments and suggestions for the improvement of company’s manufacturing products and to raise the moral of company’s workers. the company has employed most comprehensive design software and set the highest standards of operational systems and quality control. The company has put forth a great amount of time and resources into developing a premiere Web site and also designing its virtual site.17 techniques and technology. .

. 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. To cater the local customers marketing plan has included the component of participation in the trade shows and sponsor different charity shows. Company’s marketing department has also developed contacts with the high profile constructors and suppliers to promote their products distribution. Strategies for Company Operations All the three sites of the company have been provided with the skilled workers in proportion with the manufacturing products. By employing latest software and advanced machinery the rate of manufacturing products have been increased. This department has two components.18 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. Strategy for Sales A sales department has been established which plan for developing short and long term sales strategies. 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. There have been in house training facilities for the workers including awareness sessions for new working strategies before its execution. therefore marketing head has employed a future minded technology marketing person. All the sites have specific technicians.

software and machinery. partnerships. Leadership The management is lead by talented and experienced President or Chief Executive officer. Approximately forty percent have been spent on assets. Use of Funds The collected funds are being invested with proper planning to cover operating costs including payroll. taxes. Administrative officer and General Manager have been working under the CEO’s supervision. with the effective management the decision making has been feasible and in favour of the company. . As the leadership is strong and capable therefore the company operations have been smooth. Moreover. Financial Plan Requirements To fulfill the financial requirement of the company the management should look into different options like supplier financing. vending and client advance payments. and utilities.19 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. Funds have also been used to purchase raw materials. which have developed and accelerated future benefits for the company. while the other sixty percent have been spent on operations profitability have been utilized.

Likewise in the today’s tough world of economy where communication and change have became compulsory in order to survive and cope up with the growing trend of competition. 1983. though suggested and initiated by the leaders. technology has been employed in its manufacturing and marketing process.20 WAYS TO COMMUNICATE WITH THE STAFF MEMBERS With regard to the increasing speed of today’s industry. For having effective communication and sustainable change. 1994). Orlikowski & Robey. Another reason to employ technological change is that it includes critical success factors (Keil. Then the leaders employ these communication strategies like: the management speaks honestly and sincerely about the significant changes personally. But Organizational change involving information technology is a complex process of mutual influence between an existing organization and a technology being implemented (Lee. 1999. while communicating changes also communicate about the outcomes in the simple language which workers understand. (1995). As the change is taken over finally with the help of workers and other staff member. 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. For the technological . 1991). 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. moreover. handling the communication within companies has become more important than ever. company’s leadership play very effective role Kotter (1996). Sashkin (1987) in Nonås (2005). USE OF INTERNET-BASED TECHNOLOGIES With regard to the most important change in the company. The foremost strategy is to be visible during the change process. The change processes have been communicated earlier before employing these in the company to the workers. Markus.

Pull and Profile strategies. Furthermore..21 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. . With regard to the marketing the major component is that the best marketing communication involves Push. 2003). 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. the stakeholders also require information therefore. technology also serve as the profile communication strategy for the company. Although. then as technology is used globally so it could convey the message related to the products to the global potential customers. 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.

. Arbetslivsinstitutet.finnishdesign. (2005). and Davis. V. 2012 from http://www. Retrieved June 22. Davis.. B.ngwenyaglass. . Retrieved June 22. J. D. Ngwenya Glass. Morris.22 REFERENCES Adams. Analyze Your Company Using SWOTs. G. (2003). 26-28 Aronsson. Vision versus reality in organizational change. Avhandling. Svensson.made-inchina. Sjögren (2005). User acceptance of information technology: Toward a unified view. (2005). pp. Göteborg Universitet Venkatesh.com/museums-andfactories/iittala-glass-museum Kotter. K. Leading change. Vol.sz/ Nonås. Arbete och hälsa. Retrieved June 22. Förändringskompetens: Projektledares erfarenheter från 300 Arbetslivsfondsprojekt. (1996). P. 425-478. M. L. Boston: Harvard Business School Press. K. 2012 from http://www.co. G. MIS Quarterly 27 (3).. J. F. 48 Issue 7. Supply House Times.com/products-search/hot-china-products/Glass. Solna China Manufacturers of glass.html Iittala Glass Center. G. Leksell & A. 2012 from http://www.

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