MFRP kjlkjAssignment

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TABLE OF CONTENTS

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BUSINESS STRUCTUREand

BUSINESS ORGANISATION

COMMERCIAL GLASS SERVICES


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S.# Topics Page #1. INTRODUCTION 42. COMPANY PROFILE 43. Company Strategy 54. Current status of company 55. SWOT ANALYSIS 56. Strengths of Commercial Glass Services 67. Weaknesses of Commercial Glass Services 78. Opportunities of Commercial Glass Services 89. Threats of Commercial Glass Services 8

10. Conclusion of SWOT 911. Importance of Organizational Structure 1012. PROPOSED ORGANIZATIONAL STRUCTURE 1013. RECOMMENDATIONS 1214. Strategy and Implementation 1215. Management Organizational Structure 1416. Financial Plan 1517. WAYS TO COMMUNICATE CHANGES TO STAFF MEMBERS 1518. USE OF INTERNET-BASED TECHNOLOGIES 1619. REFERENCES 17

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TABLE OF CONTENTS(Tables and Chart)

S. # Topics Page #1. Table 1: Company Profile 42. Table 2: Products and Revenue % 53. Chart 1: Proposed Organizational Structure 11

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COMMERCIAL GLASS SERVICES

INTRODUCTION

When we talk about business, business on large scale it is always a question that how we manage

the business, how to control all the departments. What is the way of managing accounts and

marketing products? To make all this easier and more interesting we build a business structure,

this structure is not present physically but it has its existent virtually, it virtual existent is the

most important part of any business or organization.

When starting anew business; we have to develop a new business structure; this structure

depends on the nature of organization. Every organization has some stake holders, stake holders

are internal and external; both have different interests and their domain of perfection is totally

different; important task to do is to manage all the stake holders according to their likes and

dislikes.

Routine audit should be carried out in the company; it is to keep a check on the company and itsworkers. When running a business you secondly need to make business strategies and business

plans. These plans and strategies play a vital role in organizations process. After audit and

monitoring all the progress of company the financial position of the company is set.

The global changing era has affected all the aspects of life therefore todays business has also

experienced a great deal of changes. This paper will first introduce the Commercial Glass

Services with its initial strategies; then it will give details about its products and its revenue. It

will also discuss the various stakeholders and their Interests on the company and

a brief explanation of how they can be managed effectively in the

organization. It will also include an audit of the businesses current position,

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its Business planning and current strategy used in the organization with

specific reference to Performance analysis and utilization of resources for

competitive advantage. This paper will also assess the companys financial

position using a series of management accounting techniques. This paper will

conclude through brief explanation and application of the investment

appraisal technique could be used to conduct an investment appraisal for the

specific scenario.

COMPANY PROFILE

This Commercial Glass Services has been established over 30 years at three manufacturing sites

over a 40 mile radius. The Head Office in Site A. Table: 1 represents the staff numbers and sites

specific manufacturing products:

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Table 1: Company ProfileSite

s

Staff numbers Manufacturing Products

Production Staff Office Staff A 100 40 Frosted glass and picture glassB 55 20 Mirror glass, greenhouse glass and other productsC 45 10 Toughened/laminated glass and sealed unit double glazing glass

The company has a specialty to manufacture and provide variety of commercial glass products in

the market. These products with its revenue are represented in Table: 2:

Table 2: Products and Revenue %Products Revenue %

Frosted glass 32%Mirror glass 23%Picture glass 16%Greenhouse glass 10%Toughened/laminated glass 8%Sealed unit double glazing glass 7%Other products 4%

Company StrategyThe commercial glass services established with a purpose to provide different glass products at

its lower cost by adopting cost leadership strategy. This strategy involves different variants like

availability of operating capital, good process engineering skills, close management of labor,

products designed for ease of manufacturing and low cost distribution to provide products not

only to increase the number of customers but also to attract and give advantages to them,

simultaneously, to compete with the competitor.

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Current Status of CompanyCurrently the company is in decline in terms of its sale and profitability. Therefore there is a need

to have a critical analysis before suggesting or implementing any of the change factors to

improve its functioning.

PERFORMANCE ANALYSIS

SWOT ANALYSIS

Among other analysis Strengths, Weaknesses, Opportunities and Threats (SWOT ) Analysis is

the one that is used for identifying organizational strong and weak areas; explore its major

opportunities and the threats. It also assists in identifying strategic position of a business and its

environment and also suggests ways to raise profit by utilizing its strengths and opportunities and

ways to guard against weakness and threats (Adam, 2005). Therefore, SWOT analysis has been

adapted for the analysis of this organization.

Strengths of Commercial Glass ServicesAim of the Company

First and foremost, the Commercial Glass Services was established with an aim to manufacture

and provide products in low cost to the consumers by employing cost leadership strategy.

The management

The management of Commercial Glass Services is managing the company for more than thirty

years; management is responsible for policy and strategies formulation and corporate direction.

The management is courageous enough to be on their decision of keeping all their established

sites despite of external pressure to sell.

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Staff

With regards to staff, the company possesses a high quality 270 staff members in all its sites,

distributed according to manufacturing load of the site. This allows the company to run its

manufacturing smoothly.

Products

The company manufactures variety of glass products including, Frosted glass, picture glass,

Mirror glass, greenhouse glass and even toughened/laminated glass and double glazing products

which have many competitors in the market.

Business at one placeAll the sites of this company are located close to each other, within 40 miles of radius thus

providing fair chance to the management to monitor the working.

Weakness of Commercial Glass Services

Diversion from Aim

As the company workers are not trained timely, therefore there is resistance in adopting new working

practices that has resulted in high product costs leading to increase the product distribution cost thus

diverting the company from its initial aim of low cost products distribution.

Decrease Sales of competitive products

Earlier due to the low cost of markets famous glass products like toughened/laminated glass and

double glazing products, this company was earning more but as the company raises its cost other

competitors took advantage and this resulted in decrease companys sale and its market share.

Limited Marketing Strategy

In this fast growing world the company is still employing face to face approach through salespeople

to reach its customers; this strategy has limited the scope of reaching a large population. Therefore,

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limiting its customer service offers due to geographical limitations or other legal restrictions for the

sales people.

Poor working environment

Due to the unsolved disputes among workers and other poor working conditions resulted in lowering

the morale of the production workers thus effecting the working arrangements and over time

working. This leads to develop frustrations among workers towards adopting new working strategies.

Old manufacturing sites

The three sites of the company were very old and require renovation which leads to the investment to

make them safe and secure for the workers to work there in accordance with health and safety laws.

Absence of organizational structure

There is no identified and specified organizational structure, this leads to improper decision

making and lack of communication among staff members.

Opportunities of Commercial Glass ServicesSkill utilization

All the sites are located close to each other, therefore if there is a demand of one kind of specific

skilled worker in one of the sites, internally other site workers could be shifted to the demanded

site and in this way due to less distance there could be maximum skill utilization.

Potential to become Sunrise industry

In the recent time mostly all the houses centre tables and dinning tables and the buildings of

multi-national companies and banks are using glass, therefore there is a need and demand for

glass. Culminated with the fact, that having many competitors of especially Toughened/laminated

glass and sealed unit double glazing glass , has given The Commercial Glass Services a huge

potential market to thrive in.

Willingness for modernization

Considering the customers demand, market competitors and companys own establishment

purpose, the management will willing to adopt m odern techniques to raise the productivity, sales

and level of customer offered services

Technology Awareness

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Although, companys present marketing approach is face to face through sales person, which is

limiting the number of customers; but management is aware of the internet-based technology

strength to widen the possibility of reaching customers in far flung areas around the globe. This

implies that as management is aware about the technology benefits to increase the number of

customers thus having opportunity to explore the possibility of utilizing technology to enhance

their operations.

Threats of Commercial Glass Services

Consumer

The high price of the consumer products may limit access to the mass market. For example, the

demand for Toughened/laminated glass and sealed unit double glazing glass is increasing in the

market, simultaneously competitors too, therefore if the Commercial Glass Services wants to tap

into this key lucrative market then it should keep its own aim for providing low cost productsdistribution.

Instability of two sights

Sites B and C are located on the edge of residential areas and investigations have shown that it

would be relatively straightforward to obtain planning permission to build residential houses on

either of these sites. Commercial Glass Services has already been approached by three property

developers with a view to selling either or both sites, but to date they have turned these

approaches down.

Developing low moral

The working environment had become poor which was resulting in the low moral of the

production workers. As some of the new strategies were introduced without developing

awareness among staff therefore developed disputes over new working arrangements and loss of

overtime working.

Conclusion of SWOT

SWOT analysis of the Commercial Glass Services; help us to see that the strength of the

company lies in its aim, management, staff and business at one place. Its weakness lies in

its diversion from aim, decrease sales of competitive products, limited marketing strategy,

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poor working environment, old manufacturing sites and missing organizational structure.

Companys opportunities lay in its skill utilization, potential to become sunrise industry,

willingness for modernization and technology awareness. Its threats lie in consumer,

instability of two sights and developing low moral. Therefore we find that overall this

company is a promising company in a niche industry with plenty of opportunities to

expand. Technology utilization could bring a drastic change in the Commercial Glass

Services to achieve maximum customers and market shares.

After SWOT analysis of an organization it is important that we consider all he points in view and

carry on an external analysis of the company. Stake holders are sometimes a threat to the

company and sometimes they are very beneficial to the organization.

There are some opportunities for the company to progress, along with opportunities there are

some threats also these threats and opportunities are a part of business. Opportunities for a

business to flourish are through marketing and their high sales. If a company owns a strong

business structure and strong organizational structure as well it is more likely to face fewer

threats than opportunities because it is strong in business.

Stake holders need to be placed in the right area of work, which means the area which they like

to work. When they work in their field of preference; their quality of work increases and

the chances of companies progress are increased.

Political factors are also affecting the companys progress; government is investing or not is very

important factor in development of industry.

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Economic factors are economic growth, exchange rates and etc. these are very useful in business,

they have a very major impact on business, it is noted that how business operates and how

some decisions are made.

Social factors basically refer to the relation of one organization with others, if a company has

good and friendly relations with all other companies it is likely to flourish more.

Technological factor is one of the vital factor affecting a companys progress, what medium is

used for marketing, how products are manufactured these are the key points noted in

technology.

Legal factor includes following law, some rules and policies made by the organization and to

follow the governments order to the fullest.

Stakeholders and their Interests on the company

Stakeholders are people or group of people who are affected by companys decisions and by the

actions of company and they also affect the company. Different stakeholders have different

interests, some are interested in projects while others are interested in investment, some prefer

marketing stuff while others dont.

The most important task is to give chance to stakeholders to the task which they like to do, which

means the part of work which they like to do. Internal stakeholders are powerful than the external

stakeholders and internal stakeholders have more power of making decisions.

Companys business structure and organization structure needs to be strong for the management

of stakeholders.

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When a company needs to flourish it should put the stakeholders at their right place, which

means it should allow the stakeholders to work for their preferred area of work.

Stakeholders and their interests on the company are vital for any organizational strategy to be

applicable. It encourages people to act for supporting the strategy and organizational goals. There

are two forms of organizational structure:

1. Mechanical Structure

2. Organic Structure

Mechanical structure has vertical hierarchy having clearly defined responsibilities with rigorous

reporting requirement and vertical control of organization whereas, organic structure has

horizontal hierarchy having broadly defined and flexible tasks, cross functional teams, authorities

based more on expertise then in hierarchy and communication is horizontal among those familiar

with the task.

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The selection of any one form of these structures depends on the contingency factors which are

environment size/age, technology, interdependence and political contingencies of the

organization.

With regard to the strategy and environment and other related factors of The Commercial Glass,

the below given chart is presenting the companys organizational structure:

Chart 1: Organizational Structure

ORGANIZATIONAL STRUCTURE

On the whole there are two types of organizational structures, the first is bureaucratic

organization and the other one is matrix organization. At times bureaucratic organizational

system seems to have a lot of control environment (Senior & Fleming, 2006) but nowadays many

bureaucratic organizations employ a complementary structure having teams or networks and all

the decisions are taken in the consultations with the group of specialists. The matrix

organizational system is employed at the time of crises, where the bureaucratic structure failed

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President or CEO

Admin Manager General Manager

Head of HumanResource

Head of Accounts

3 Sites managers

Head of Marketing

Head of Production

Head of Sales

Head of Communication


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and then the organization employ team work among all the heads of the departments and

decisions are taken in the consultations of all the team members (Senior & Fleming, 2006).

Overall, whether the company employs bureaucratic organizational structure or matrix structure,

it should aim to aim towards solving the problems within the company, to raise moral of the

company workers and to promote the business of the company.

The organizational structure here is in the combination of bureaucratic in the sense that overall,

the president or CEO is controlling and matrix in a way that all the major company decisions are

taken in consultations of all the department heads and then communicated to the workers. The

whole commercial glass company is lead by President or Chief Executive Officer, under hissupervision Administration manager and General Manager, work. All the major decisions are

taken by President with the consultancy of the managing committee including all the heads of

departments, general manager and Administrative manager. The reason for involving all the

department heads along with general manager and administrative manager is to develop

ownership of the decision and to promote team work. Under the supervision of each and every

department head are workers and its the responsibility of the head of communication to inform

about every major decision to each and every worker of the company so as to avoid conflicts and

unawareness. The Human Resource (HR) department is responsible for the recruitment of new

staff and training of the new and existing staff members. The Finance department is needed to

settle down all the financial liabilities of the company. The reporting relationship of HR head and

Finance head is with the Administrative manager who directly reports to the president or CEO.

Each and every site has their own site manager who is responsible for the proper maintenance

and availability of the raw materials in their site. Head of marketing is responsible for attracting

customers towards the products. Head of production is responsible for manufacturing and

production control, head of sales is responsible to manage the sales of the products. Head of

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technology involves the technology awareness and training of the workers and utilizing

technology to increase production, sales, marketing and reputation of the company.

Strategy and Implementation

Business strategy

When starting a business or carrying out a business it is very important for a company to make

some strategies regarding all fields and departments of the work which would be carried out in

the organization, because carrying out work without any strategy or planning is not useful whenyou are making business on international level, there are many other companies who are working

in this domain before you, they must have better and effective strategies and they achieve their

targets more easily.

An organization should know about its resources and should make strategies keeping in mind its

resources and how to make the most of these resources. For this purpose we need professional

business strategy developers.

Company usually has marketing department in it, strategies should be made about how to market

the product at its best that it attracts the people and sale increases. Some basic strategies are made

on how to capture the market and compete with the present organizations of your domain.

Developing these business strategies are important for progress of company.

Philosophy

The Commercial Glass Services has the philosophy to provide low cost products to the

customers. It is companys mission to provide customers with fast turnaround, exceptional

quality, unparalleled customer service and competitive pricing. With the introduction of modern

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techniques and technology, this company will become an innovative company and a future

industry leader.

To achieve this position, the company has employed most comprehensive design software and

set the highest standards of operational systems and quality control.

Use of Internet

To make the Commercial Glass Services as a technology-driven innovative company in the

market. The company has put forth a great amount of time and resources into developing a

premiere Web site and also designing its virtual site.On these sites, numerous features of success stories and images of glass products have also been

uploaded, in addition with the description of manufacturing processes and design capabilities. To

make the companys website an integral part of marketing, sales and daily operations,

opportunity has be provided to the customers to write their comments and suggestions for the

improvement of companys manufacturing products and to raise the moral of companys

workers.

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Strategy of Global Marketing

As the Commercial Glass Services recognizes the critical importance of marketing and also

aware of the benefits of internet-based marketing, therefore marketing head has employed a

future minded technology marketing person. The marketing plan has initiated publicity and an

advertisement campaign through internet to introduce the glass company and to inform about the

low cost product distribution aim of the company to a wide range of customers around the globe.

To cater the local customers marketing plan has included the component of participation in the

trade shows and sponsor different charity shows. Companys marketing department has also

developed contacts with the high profile constructors and suppliers to promote their productsdistribution.

Strategy for Sales

A sales department has been established which plan for developing short and long term sales

strategies. This department has two components, one responsible for inside sales staff and the

other one handle the outside sale like organizing trade fair shows or building contracts for the

improvement of sale.

Strategies for Company Operations

All the three sites of the company have been provided with the skilled workers in proportion with

the manufacturing products. There have been in house training facilities for the workers

including awareness sessions for new working strategies before its execution. All the sites have

specific technicians. By employing latest software and advanced machinery the rate of

manufacturing products have been increased.

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Management Organizational Structure

Organizational Structure

The above given proposed organizational structure has assisted in developing a talented and

enthusiastic managing team for the promotion of business. Moreover, with the effective

management the decision making has been feasible and in favour of the company.

Leadership

The management is lead by talented and experienced President or Chief Executive officer,Administrative officer and General Manager have been working under the CEOs supervision.

As the leadership is strong and capable therefore the company operations have been smooth.

Financial Plan

Requirements

To fulfill the financial requirement of the company the management should look into different

options like supplier financing, partnerships, vending and client advance payments.

Use of Funds

The collected funds are being invested with proper planning to cover operating costs including

payroll, taxes, and utilities. Funds have also been used to purchase raw materials, software and

machinery, which have developed and accelerated future benefits for the company.

Approximately forty percent have been spent on assets; while the other sixty percent have been

spent on operations profitability have been utilized.

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WAYS TO COMMUNICATE WITH THE STAFF MEMBERS

With regard to the increasing speed of todays industry, handling the communication within

companies has become more important than ever. Likewise in the todays tough world of

economy where communication and change have became compulsory in order to survive and

cope up with the growing trend of competition. For having effective communication and

sustainable change, companys leadership play very effective role Kotter (1996), moreover, for a

big organizational change all the stake holders should participate in the decision making for

change and in the change process (Aronsson et al. (1995), Sashkin (1987) in Nons (2005). As

the change is taken over finally with the help of workers and other staff member, thoughsuggested and initiated by the leaders. Then the leaders employ these communication strategies

like: the management speaks honestly and sincerely about the significant changes personally. The

change processes have been communicated earlier before employing these in the company to the

workers, while communicating changes also communicate about the outcomes in the simple

language which workers understand. The foremost strategy is to be visible during the change

process.

USE OF INTERNET-BASED TECHNOLOGIES

With regard to the most important change in the company, technology has been employed in its

manufacturing and marketing process. But Organizational change involving information

technology is a complex process of mutual influence between an existing organization and a

technology being implemented (Lee, 1999; Markus, 1983; Orlikowski & Robey, 1991). As the

Commercial Glass Services is aware of the technology potential therefore it is feasible to employ

this innovation so as to bring a constructive change in the company. Another reason to employ

technological change is that it includes critical success factors (Keil, 1994). For the technological

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change to be successful it is important that stakeholders should be properly involved and

technology should be aligned with the purposes of the company (Venkatesh et al., 2003).

Although, Internet-based technology assist in the both manufacturing and marketing processes

but it is vital to understand that as the communication is important for other changes to be

brought likewise it is important to develop awareness and training before employing in the

company. With regard to the marketing the major component is that the best marketing

communication involves Push, Pull and Profile strategies. In this regard technology have also

been employed to serve all the purposes for example if company technological department design

only one software it could promote information about the project to the distributors, then astechnology is used globally so it could convey the message related to the products to the global

potential customers. Furthermore, the stakeholders also require information therefore, technology

also serve as the profile communication strategy for the company.

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REFERENCES

Adams, J. (2005). Analyze Your Company Using SWOTs , Supply House Times, Vol. 48 Issue 7,

pp. 26-28

Aronsson, G., L. Svensson, K. Leksell & A. Sjgren (2005). Frndringskompetens:

Projektledares erfarenheter frn 300 Arbetslivsfondsprojekt, Arbetslivsinstitutet, Solna

China Manufacturers of glass. Retrieved June 22, 2012 from http://www.made-in-

china.com/products-search/hot-china-products/Glass.html

Iittala Glass Center. Retrieved June 22, 2012 from http://www.finnishdesign.com/museums-and-

factories/iittala-glass-museum

Kotter, J. P. (1996). Leading change . Boston: Harvard Business School Press.

Ngwenya Glass. Retrieved June 22, 2012 from http://www.ngwenyaglass.co.sz/

Nons, K. (2005). Vision versus reality in organizational change, Arbete och hlsa, Avhandling,

Gteborg Universitet

Venkatesh, V., Morris, M. G., Davis, G. B. and Davis, F. D. (2003). User acceptance of

information technology: Toward a unified view. MIS Quarterly 27 (3), 425-478.

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http://www.made-in-china.com/products-search/hot-china-products/Glass.htmlhttp://www.made-in-china.com/products-search/hot-china-products/Glass.htmlhttp://www.made-in-china.com/products-search/hot-china-products/Glass.htmlhttp://www.made-in-china.com/products-search/hot-china-products/Glass.html


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Polish Art Glass, Hand Blown and Machine Formed Glass From Poland. Retrieved June 22, 2012

from http://www.chamberofcommerce.pl/glass/

Senior, B. & J. Fleming (2006) Organizational change , Pearson Education Limited , Essex

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MFRP kjlkjAssignment