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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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4 4 5 5 5 6 7 8 8 9 10 10 12 12 14 15 15 16 17

TABLE OF CONTENTS (Tables and Chart) S. #

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Topics
Table 1: Company Profile Table 2: Products and Revenue % Chart 1: Proposed Organizational Structure

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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 its workers. 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,

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 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:

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, 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. 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. 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.

7 Current Status of Company Currently 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 Services Aim 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.

8 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 place All 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 Services Skill 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 modern techniques to raise the productivity, sales and level of customer offered services Technology Awareness

10 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 products distribution. 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,

11 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.

12 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.

13 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.

14 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

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 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

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, 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 his supervision 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

16 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 when you 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

17 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.

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, 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 products distribution.

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.

20 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, though suggested 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

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., 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 as technology 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.

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

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

23 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