Yardstick International College

Master of Business Administration

Organizational Behavior and Development

Personal Assignment 01

By: Tewodros Kassa

Id: MBAO/7434/14B
Course Instructor: Prof. Belete

Submitted Date - 7/11/2022

Addis Ababa, Ethiopia
Table of Contents Page
List of Figures ................................................................................................................................................ 1
1. Introduction .............................................................................................................................................. 2
1.1. Background of the Dire Dawa Food Complex Share Company ..................................................... 2
1.2. Dire Dawa Food Complex as a Project .......................................................................................... 2
1.2.1. Machinery Supply.................................................................................................................. 2
1.2.2. Machinery Erection ............................................................................................................... 2
1.2.3. Expansions............................................................................................................................. 3
1.2.4. Mission .................................................................................................................................. 3
1.2.5. Vision ..................................................................................................................................... 3
1.2.6. Values .................................................................................................................................... 3
1.2.7. Mandate Analysis .................................................................................................................. 4
1.3. General objective of the company................................................................................................ 4
1.3.1. Major Production of the Company ....................................................................................... 4
1.3.2. Distribution ........................................................................................................................... 5
1.4. Resource........................................................................................................................................ 5
1.4.1. Manpower ............................................................................................................................. 5
1.4.2. Land ....................................................................................................................................... 5
1.4.3. Capital ................................................................................................................................... 5
1.4.4. Facilities and others .............................................................................................................. 6
1.5. Market (input and output) ............................................................................................................ 6
1.6. Design and structure ......................................................................................................................... 6
1.7. Leadership style ............................................................................................................................ 7
1.8. Cultures ......................................................................................................................................... 7
1.9. Work environment and job satisfaction ....................................................................................... 8
1.10. Reform and change management ................................................................................................ 9
Conclusions ................................................................................................................................................... 9
Reference ...................................................................................................................................................... 9

List of Figures
Figure 1: Dire Dawa Food Complex Share Company Organization Structure ............................................. 7
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1. Introduction

1.1. Background of the Dire Dawa Food Complex Share Company

Dire Dawa Food Complex Share Company is located in Dire Dawa town in the eastern
part of the country which is around 515km from Addis Ababa. The company started its operation
in 1995Gc. And it’s one of the most modern food processing plants in East Africa. The company
had played a leading role in the food processing industries of Ethiopia with respect to
introducing new system of production and packaging as well as it is the pioneer in the having
international system certificates like HACCP (hazard analysis critical control point) and ISO
9001:2000 (quality management system) and ISO 14001:2004 (Environmental Management
system) certification. Its high quality standard products have got good reputation among our
customers all over the country.

1.2. Dire Dawa Food Complex as a Project

With the main objective of establishing a food complex consisting of a wheat flour
mill with 120 tons/day grinding capacity. Long and short pasta plants lines with the total
production capacity of 44tons/day and biscuits production lines with a capacity of 44
tons/day and biscuits production lines with a capacity of 10 tons/day.

1.2.1. Machinery Supply

All the machinery and supplies of the project reached Assab port from Megabit 1983EC. But due
to lack of transportation Facility and others to move the machinery and supplies to the project
site, only 93% of the supplies (by value) could be transported before Ginbot 1983EC. The rest of
the supplies got lost in the incident replacement of the lost items (except spare parts) were
computed in 1987 EC.

1.2.2. Machinery Erection

In meskerem 1984EC. T.P.L the company in charge of machinery supply and supervision of
machinery erection and commissioning Failed to perform as per the contact calming and
consequently notifying that it has terminated the contact in this critical situation the project
management evaluated all possible ways and decided to tackle the problem step by step i.e. erect
and commission the flour mill machinery by the project staff and study the possibilities for the

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other two lines in the course of time. According to Hamle 1987 and Hidar 1988 successfully
completed the erection and commissioning of the flour mill respectively for lack of adequate
technological information such as erection drawing and details on commissioning procedures, it
was not possible to perform the erection and commissioning of the pasta plant fully by the
projects own force. Accordingly, the erection and commissioning of the pasta plant was
completed by Meskerem 1986 EC. Regarding the biscuit production line, the erection of the
machinery was performed by the project own force in 1987 EC. But the commissioning of the
plant was postponed to the second planted of 1986 EC.

1.2.3. Expansions
After the above mentioned main machinery erecting time one additional Galleta (high energy
biscuit) line with capacity of 100k/day. Is erected in to operation. The investment cost of this line
was birr 1.6 million and in December 1997 EC. Flour 1200 kuntal to 200o k/day and finalized
with 9.2 million birr. The pasta and macaroni production lines expansion erection are finalized in
March 1998 EC. With about 55 million. Birr cost and their production capacity are about 290
kuntal and 380 kuntal/day respectively. The bread production line is also installed with about birr
4.9 million and start operation in October 1999 EC. It has production capacity 80 kuntals/day.

1.2.4. Mission
Our company mission is to produce quality flour and flour based products to the best satisfaction
of the customers, totally complying with international requirements for Food Safety and
Environmental Management Standards.

1.2.5. Vision
The vision of the company is to produce quality flour and flour based products to the best
satisfaction of the customer based on the food safety principles (HSCCP, ISO 9001:2000(quality
system) and ISO 14001: 2000 (Environmental management system requirement).

1.2.6. Values
The major values of the company are the dedication and the commitment of the workers for their
company and produce quality product to satisfy customer requirement, the good reputation of the
company product obtained through time.

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 1.2.7. Mandate Analysis
 Based on the given government proclamation and regulation, execute the day to day
activities of the company.
 To operate according to the system and strategic plan to achieve the set goal.
 To obtain approvals for decisions which are beyond the scope of the company.
 To manage and mobilize efficiently the human and the financial resource based on
the performance of the company.
 To give prompt decisions based on the market condition in order to increase market
share and stay strong competitor.

1.3. General objective of the company

 The objective of the company is to produce flour and sell flour and flour products
profitably.
 The company has been already playing the role of substituting the important and this
will be kept in the planning year.
 The company strives to produce quality products and keep its reputation by
maintaining the implemented management systems.
 The company tried to stabilize the food price escalation by distributing products to
the government institutes, market corporatize and to public at charge with reasonable
price.

1.3.1. Major Production of the Company

Wheat Flour Vera pasta

Vera Spaghetti High energy zebibi biscuit

Vera Teglettelli Fruit biscuit

Vera Bucatini Bread

Vera Macaroni Animal Feed

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 1.3.2. Distribution
Major distribution of its products will be effected through whole sales and agents will be effected
through whole sales and agents in the region. To encourage this channel, clients will usually be
offered a bulk purchase discount. Retailers are as well as welcomed. Their distribution centers
are ex-factory store, door to door sales and liaison office in Addis Ababa. The company is also
trying to enter to foreign market completion by exporting pasta and macaroni to neighboring
countries. Generally it is believed that all implemented systems can lead to enhance customer
satisfaction and improve organization effectiveness.

1.4. Resource
1.4.1. Manpower
The resource as compared to the total requirements of the company is insufficient but the
company is in a relatively better position as compared to the major compared to the major
competitors especially for technical staff. The quality and dedication of the manpower is one of
the strong features of the company. Even though the salary scale is relatively competitive and
detractive, the high cost of living the distance location of Dire Dawa from the capital and the
weather condition dose not motivate skilled manpower to serve so long. Currently there are 225
permanent,73 contract and 162 piece rate employees of whom 323 are males and 137 are
females and there are about 107 daily laborers of loading and unloading workers.

1.4.2. Land
The company has been planted on 28,484 square meters land area and also at 8km distance from
the factory site on 10,800 square meter land area the company built four 141 material store.
1.4.3. Capital
The net working capital has increased and the financial position of the company s strong due to
the previous year performance. During establishment period the declared initial capacity was
17,173,000birr as a company revalued the subscribed (number of share) is 79.571 with per value
of each share 1000 and the total paid up capital of the company was 78,571,000 but the
performance evaluation of the annual report of 2000 budget year should the current capital of the
company reach about 101 million birr.

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 1.4.4. Facilities and others
The company has the following facilities for its working actives.
 About 3 (three) trucks for raw material and packing materials transportation.
 Stand by generator.
 Automobiles and service buses for facilitating the day to day working activities.
 Five metal silos and large ware houses for staring raw materials.
 Relatively well- quality control laboratory.
 Laundry service & cafeteria for workers.

1.5. Market (input and output)

Raw materials for production activates would be availed by purchasing are bulk by bid direct
order by other continent means such as direct purchasing from sale suppliers. The major
purchased and used material is the wheat grain that is more than about 85% of the total value.
Our input materials sources are local and foreign markets. For pasta and macaroni production the
wheat is imported from aboard. Partially the flour produced is destined for own consumption as a
raw material for pasta and biscuit production especially ingredients of biscuit are not available
local market. The major distribution channels of the finished product are affected through whole
sale. So the center part of the country is our potential market area for pasta and macaroni
products and wheat flour and biscuit product customers mainly located in Eastern part including
defiance force.
1.6. Design and structure

The firm has a board of directors and a general manager. In addition, there is an audit department
reporting to an audit committee. The factory is managed by a general manager, who is
accountable to a board of Board of directors. Both the general manager and the Board of
directors have previous experience in the food manufacturing sector.

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Figure 1: Dire Dawa Food Complex Share Company Organization Structure

1.7. Leadership style

The leadership style that was present for a very long time was (1) authority-compliance style. In
the recent history of Dire Dawa Food Complex Share Company, the company has transitioned in
leadership, however, is still deviating between (2) coercive power tactics and (3) pace-setting
leadership style .

1.8. Cultures
Dire Dawa Food Complex Share Company organizational culture emphasizes human resource
development and efficiency. It supports business growth and success in the international Food
Complex market. The main characteristics are:
1. Fun: Dire Dawa Food Complex Share Company tries to attract and keep qualified
workers and in order to do so Dire Dawa Food Complex Share Company puts certain
emphasis on making the work fun and enjoyable.

2. People-Centricity. Dire Dawa Food Complex Share Company organizational culture

prioritizes employees’ needs and development. The company’s Core Values and

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 Standards of Business Conduct emphasize the importance of supporting people. This is
understandable, considering that McDonald’s is a service business. To ensure support for
people, the company’s organizational culture encourages employees to engage
management to help improve processes and procedures.

3. Individual Learning. Dire Dawa Food Complex Share Company organizational culture
highlights the importance of lifelong learning. The belief is that individual learning
promotes productivity, quality, and business effectiveness. To facilitate individual
learning, the company offers training and development opportunities through Hamburger
University, internships, global mobility, and leadership development programs. These
efforts ensure that Dire Dawa Food Complex Share Company maintains an
organizational culture that motivates employees to keep learning.

4. Organizational Learning. Dire Dawa Food Complex Share Company organizational

culture also supports organizational learning. The firm aims to use individual learning to
develop organizational knowledge to push the business forward to new heights of
performance. Dire Dawa Food Complex Share Company applies this feature of its
organizational culture through policies, programs and meetings that encourage employee
feedback and knowledge sharing.

5. Accountable: employees are held accountable for their action and performance.

1.9. Work environment and job satisfaction

 There no risk to the wellbeing of employees in their physical layout, including
cleanliness and organization, convenience, appeal, and stimulation (noise, air, danger,
etc.).
 There is no harsh and dreadful working conditions, bad compensation, lengthy-time spent
at work, and lack of involvement in the decision-making of organizations, notably in the
field of the labor force.
 Employees' abilities are not eroded, and their task is not reduced to a machine’s
accessory.
 Medium pay and good working conditions.
 employees are eligible for paid sick day

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  In addition, workers must not execute a typical task without any prior experience
or instruction in a single day.
 Relatively a Low Turnover Rate.
 Some of the employers are relatively satisfied on their job. There is no delayed service
and feel better about their professions and have higher job satisfaction as a result of their
enhanced discretion and freedom.

1.10. Reform and change management

 The Ethiopian PPESA has floated a tender to fully privatize the firm.
 The firm plans to expand into bread manufacturing, and a study is underway.

Conclusions
The company’s aim is to satisfy the needs of the society by making its products available
for market, using different kinds of methods, making the business web based (E-
commerce system -online selling and buying system ) is one way of accomplishing the
company’s aim.
The company should focus more on working hours, monotonous work, career
advancement, and other factors that lead to job unhappiness. The hospitality industry
has found certain strategies to boost employee motivation in terms of career growth,
which helps employees stay on the job.
For pasta and macaroni production the wheat is imported from aboard. Partially the flour
produced is destined for own consumption as a raw material for pasta and biscuit
production especially ingredients of biscuit are not available local market the company
should try to produce the wheat in our country in order to minimize the overall cost of
production.

Reference
1. http://www.verapastaethiopia.com/about_us.php
2. Ato Sisay Debebe, GM at Dire Dawa Food Complex Share Company
3. Abdusmed Mohammed Ibrahim CEO @ Dire Dawa Food Complex s.c. Former MP at
FDRE Parliament