Ngai Tahu Holdings Company Limited Analysis - Case Study Example

Essay (business) (Course Instructor) (University Affiliation) (Student’s Name) Date Table of Contents Table of Contents 2 Introduction 3 Part 1 - Company Analysis 4 Strengths - in relation to company structure and strategy 4 Weaknesses - in relation to structure, strategy, environment, HR, size and life cycle 6 Part 2 – Recommendations 7 a)The environment 7 b)Strategy 7 c)Size and Life cycle 8 d)The structure 9 e)Human resources 10 Conclusion 11 Reference 13 Introduction Ngai Tahu Holdings Company limited is a New Zealand company that was incorporated in December 10th 1992. The corporation engages in the investment, development and the management of real estate property and other investment ventures. Ngai Tahu Holdings Company limited also deals with tourism ventures as well as the agricultural sector. The company is an investment company of Ngai Tahu Trust with Te Runanga Tahu as the sole trustee. The corporation additionally adheres to a hugely developed investment plan that acts as a framework for the delivery of a long term and sustainable investment returns to the holdings (“Ngāi Tahu holdings corporation Ltd,” n.d.). The roadmap provides for a strong methodology meant to make it possible to determine a sustainable distribution. The policy framework developed by the company guides the investment policy of the company by setting the minimum returns on investment that is required in order to maintain the value of investment base and to pay back the appropriate distribution of returns to Te Runanga (Limited, 2014). The policy of the company also sets the rules on the optimal allocation of the strategic assets, distribution and a benchmarking to give a consistent distribution framework for a long time to come. Ngai Tahu Holdings Corporation’s mission is to become an outstanding investment corporation creating wealth for its capital contributors. The company has investment interests in five subsidiaries spanning across different sectors (“Ngāi Tahu holdings - Te Rūnanga o Ngāi Tahu,” 1996). The company has an immense opportunity to expand its investment portfolios due to their strength which is the capital base. Most companies fail to diversify neither do they expand due to their inability to have a capital structure that is affordable and can be obtained in a short period of time. for a company with an ownership structure like that of Ngai Tahu holdings corporation should seize the opportunity to invest more and guarantee Te Runanga better returns for their investments (Wanhalla, 2007). Based on its weaknesses especially on its failure to actively participate in the corporate social responsibility in the society, the company will need to have in place a plan to give back to the society for giving it an ample environment to do business. This is in recognition of the fact that corporate social responsibility boosts an organization’s image. A good image boosts the organizations goodwill amongst the members of the public and as a marketing strategy will boost sales and the revenues (Wanhalla, 2007)). This paper seeks to identify five strategies that can be used by the company in order to improve its organizational performance. The paper will justify the recommendation by comparing them to the knowledge of theories and models that support the recommendations. The paper will later give a conclusion based on the paper. Part 1 - Company Analysis Strengths - in relation to company structure and strategy Ngai Tahu current Capital investments include direct investments ventures along with fixed interest and stock portfolios spanning across a number of industries. The corporation’s direct investments include Ryman Healthcare, 43 percent stake in Whale Watch Kaikōura, a 33% shareholding in Waikato Milking Systems including venture capital. In 2014 the company acquired Go Bus in partnership with Tainui Holdings and currently owns 66 percent and Tainui 33 percent. The above portfolios show that the company has a pretty advanced and strong investment plans that has enabled it to make huge profits over time. The corporation’s stakes in a number of investment ventures show that the company has not invested all its money in a single venture such that in case of a misfortune, the company was going to undergo huge financial losses (Wanhalla, 2007). The second strength of the company lays in its leadership and ownership. Unlike the private companies or government institution, Ngai Tahu Holdings Company is a tribal venture whose trustee on behalf of the community is Te Ranunga. the company’s structure integrates the government, private as well as community sector activities in a very unique way. The company aims to improve the life of the community in terms of their financial well being, education and their cultural strength. It also aims to empower the economy both at the tribal as well as the regional level (Wanhalla, 2007). It also has a vision of growing the asset base in order create a revenue base that will ensure that the future generations have cultural values to base their development frameworks. The company also draws its strength from an investment plan that acts as a roadmap for the delivery of a long term and sustainable investment returns to the corporation. The framework provides for a means to determine a sustainable distribution to the community. The policy developed by the corporation gives an elaborate guideline by setting the minimum returns on investment that is required in order to maintain the value of investment base and to pay back the appropriate distribution of returns. The framework also sets the rules on the optimal allocation of the strategic assets, distribution and a benchmarking to give a consistent distribution framework for a long time to come. Weaknesses - in relation to structure, strategy, environment, HR, size and life cycle Ngai Tanu Company has a number of weaknesses in relation to the structure, strategy, environment, human resource, size and the life cycle. One of the weaknesses of the company in relation to the structure has to do with its structure, the company has a very complex structure owing to the ownership structure of the organization so that the decision making mechanism is so sophisticated that crucial decisions are delayed compared to the government institutions and private institutions. Concerning the strategies employed by the government, observers have indicated that the company does not take enough risks to expand their investment portfolios. This is informed by the policy that requires that only those ventures that guarantee returns will be invested in. the company has also suffered losses as a result of investing in areas prone to earthquakes without taking enough precautions (“Ngāi Tahu holdings corporation Ltd,” n.d.). In relation to the environment, the company has attracted a number of law suits that are as a result of their investment in environment related ventures especially the irrigation schemes. On the human resource aspect, the company has often been criticized for not integrating the needs of their employees. The size too poses a challenge because of the huge size of the company and the number of the supposed shareholders. The company has been passed from one generation to another and is meant to operate in that manner. This means that the management styles are likely to change as generations change (“Ngāi Tahu holdings corporation Ltd,” n.d.). Part 2 – Recommendations a) The environment Ngai Tahu like any other business operates in an environment that needs to be compensated and by extension appreciated since it is this environment, whether internal or external that gives the corporation an ample environment to do business. A business environment is made up of the internal environment and the external environment (Schermerhorn et al., 2000) . The internal environment consists of the management, employees and the shareholders. The external environment on the other hand includes the suppliers, the society and the government institutions. Ngai Tahu Holdings Company limited therefore needs to adhere to the principles of corporate social responsibility in order to have a good working relationship with its surroundings (Winkler, 2009). This recommendation draws its concept from the systems theory. In the systems approach, an organization is considered as a total system that is made up of smaller systems all of which work together in a complex internal and external environment. The success and the survival of any organization depend on an effective adaptation of the environment under which it operate by identifying a good strategy for marketing and interacting with the outside environment (Winkler, 2009). b) Strategy Strategies have been characterized as that which one needs to do with deciding the essential goals of a company and dispensing assets to their achievement. A strategy decides the direction in which a company needs to move to satisfy its main goal. A strategy goes about as a guide for doing the system and accomplishing long haul results. Every so often a substantial crevice exists between the vital arrangement and genuine results (Garud & Gehman, 2014). To support authoritative execution, individuals must be a key part of the system. A more grounded, more able and effective company can emerge by characterizing how its individuals can bolster the general system. Strategic plan is not quite the same as long haul plan. Long-extend arranging expands on current objectives and hones and proposes changes for what's to come. Strategic planning, be that as it may, considers changes or expected changes in the environment that propose more radical moves far from current practices. While doing vital arranging, the company ought to stress group arranging. By including those influenced by the arrangement, the trough fabricates a companywide understanding and responsibility to the vital arrangement (Garud & Gehman, 2014). Ngai Tahu needs to take advantage of its ability to come up with organizational strategies, by drawing on the bureaucratic theory of management to strategize on how decision making a]can be made in an efficient way without compromising nor slowing down the rate of growth in the organization. c) Size and Life cycle One of the major characteristic of any company is that of perpetual succession. Organizational go through a number of life cycles in the same way that people do. For instance people go through infancy, childhood and teenage stage that are characterized by fats growth. At these stage people do a lot of things in order to survive for instance eating, sleeping and so on (Mele et al, 2010). Organizations also go through similar stages. The founders will need to equip all the members with the skills to do whatever is required to make the business successful form one generation to another. At this stage the leaders do not have the time to slow down the pace in order to plan. Studies have shown that there is a very close relationship between the lifecycle and the nature of the leadership. Ngai Tahu therefore needs to take into consideration the significance that the organizational lifecycle stage has on its performance (Mele et al, 2010). This way, it is easier for the organization to select a management team that suits the lifecycle stage, who will be able to make the right decisions for the good of organizational performance. d) The structure The structure of an organization determines the decision making mechanisms of an organization. as stated earlier , Ngai Tahu company has a very complex structure owing to the ownership structure of the organization so that the decision making mechanism is so sophisticated that crucial decisions are delayed compared to the government institutions and private institutions. Drawing from the bureaucratic theory of management by Marx Weber, decision making mechanisms in Ngai Tahu follows a chain of commands therefore delaying decisions (Schermerhorn et al., 2000). The bureaucratic theory of management is a school of thought where organizations have a clearly established organizational hierarchy where there are guidelines on a chain of command. The theory has often been criticized because it makes people work like machines by only taking instructions and not being able to take personal initiative for the good of the organization (Winkler, 2009). Ngai Tahu needs to flatten their organizational structure so that the decision making structures of the organization is made easier. the other advantage of the flattening of the structure is that it goes a long way in reducing the organization’s cost of operations in as far as the payment of wages and salaries are concerned. This majorly affects the top level management. Faster decision making means that the organization can easily take advantage of any opportunities that the company needs to seize in the shortest time possible in order to enhance performance and profitability. e) Human resources This recommendation draws from Theory x and Theory y by Macgregor. The theory states that there exist two sets of staff that operates within any organization. There is the theory x where employees like work and do not have to be coerced into carrying out their activities (Winkler, 2009). This kind of staff need only to be told what to do and they will themselves figure out how to accomplish the desired goals. Theory Y on the other hand belong to a set of workers who dislike work and will always need to be monitored closely for them to carry out their duties. Such workers lack the spirit of initiative and will need to be pushed around by being shown what to do and how to do it. The application of this theory is very important to Ngai Tahu. This is because for any organization to achieve organizational performance, it will need an efficient and motivated workforce. It will assist the leadership of the organization in identifying those workers who fall under theory x and theory y and develop an appropriate mechanism to deal with them for mutual benefits. One doesn’t have to be sacked but can be deployed in departments that they will be comfortable in and at the same time deploying the more efficient workers in areas that need their enthusiasm. Conclusion An Ngai Tahu holding is a company incorporated in New Zealand in 1992. The company is owned by a tribal company as its investment wing. The company has been identified to have a number of strengths that they can always build on to take on opportunities as well as a number of weaknesses that the company can always develop in order to enhance their corporate performance. The analysis of the company has established that the company’s strengths and weaknesses are anchored on the organizational structure, strategy, human resource, environment, size and the lifecycle of the company. The report concludes that the company needs a number of changes based on the recommendations given that have been made in relation to a number of theories. The application of these recommendations is important to the organization since it will be able to come up with an efficient organizational structure, more informed strategic plans, and efficient workforce as well as effective leadership. If this was to be achieved, an Ngai Tahu holding has a very high chance of achieving organizational performance. Reference Aviation, tourism, writer, energy, & Herald (2014). Ngai Tahu holdings set to grow - business - NZ herald news. . Retrieved from http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11339416 David, F. 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