Telfers Organization Structure and Success Factors Impacting Its Development - Coursework Example

iNSTITUTION: REPORT ABOUT ORGANISATON AND GLOBALIZATION Telfer Name: Date: Table of Contents Table of Contents 2 Report about Telfer and Globalization 4 Introduction 4 Diversification 4 Strategic decisions 5 Research and development 6 Implement change 6 Telfers’ organization structure and success factors Impacting its Development and Business Planning Implementation 8 Hard elements 9 Strategy 9 Structure 10 Systems 10 Soft elements 10 Shared values 10 Skills 10 Style 11 Staff 11 Telfer External Business Environment 12 Key issues of the Telfer external environment 12 Management and leadership potential 12 Leadership approach 12 Positive aspect 12 Negative aspect 13 New potentials 13 Ability to change and to develop and implement a business strategy 13 Awareness of need for change 13 Desire to participate and support the change 14 Knowledge on how to change 14 Ability to implement required skills and behaviours 15 Reinforcement to sustain the change 15 Telfer’s Corporate Governance and Business Ethics 15 Corporate governance of the Telfer 15 Processes 16 Customers 16 Policies and Laws 16 Ethical management 16 Various stakeholder groups 17 Customers 17 Employees 17 Government 17 Community 18 Competitors 18 Intermediaries 18 Discuss its effectiveness in relation to the stakeholder groups 19 Appendix 19 Environment Audit 19 Internal environment 19 External environment 20 Telfer’s Diversification Strategy 21 References: 22 Report about Telfer and Globalization Introduction Globalization is a fact that is irreversible in life. Globalization accelerates change by outpacing the society’s ability, its political systems and its leadership to adjust to fresh challenges resulting from globalization. The pace of technological change, financial challenges and workplaces dynamics has outshined individual’s ability to manage. Therefore a business needs to adopt various survival strategies to gain competitive advantages in the market otherwise they will die and definitely exit the market. There are several theories associated with globalization, they include: Absolute advantage, Mercantilist theory, Comparative Advantage product life cycle and Factor Proportions theory. Telfer survival techniques For Telfer to survive and to prosper in this dynamic and ever changing business environment, Telfer needs to implement the following techniques: Diversification Telfer needs diversify its business operations in order to survive and prosper in the market. This is done by portfolio extension of Telfer products and services to ensure consistent revenue generation throughout the year. Telfer can also venture its products and services not only into existing market but also into new markets. This extends brand reputation into new markets by supercharging Telfers’ growth prospects. The benefits of Telfer diversifying are that they reduce the risk associated with too much exposure if Telfer deals with one line of products and services. Another benefit associated with diversification is that Telfer will preserve its capital by portfolio extension as they are able to protect the capital they have invested in the various products and services. It also helps Telfer to hedge its portfolio as the organization is able to obtain favorable returns even when some products and services are performing poorly. However the challenges that Telfer is bound to face are; high costs involved such as planning costs, research costs, advertising as well as marketing costs when entering a new market. There could also be the challenge of different cultures and political influences across global boundaries. This diversification technique should only be used when the business has reached stability and higher levels of profitability. Strategic decisions Decisions are key drivers that determine Telfer actions, strategies and procedures to be followed. The decision made has its own implication to the business. Therefore Telfers’ management should analyze Telfer strengths against weaknesses and its opportunities against threats. This will facilitate strategic decision making in the Telfer since business operations will maximize on Telfer strengths and opportunities and manage its weaknesses and threats. Telfer’s strategic decisions are made by the top managers and one major benefit of these decisions s that they affect the long term direction of the organization and are therefore critical to the organization. They are however complex and their outcomes are uncertain since they are made for the future thus making it a challenge to predict of the future. Another challenge is that they demand an integrated approach which requires the managers to agree with other managers who pose the challenge of having different interests as well as priorities. It is in evitable to avoid change and it becomes a challenge for the organization to plan and implement the changes consequently. . Research and development Telfer should also use its instructional research and development department to improve its product innovation during product development process, research on market trends and other prospective environmental changes that can enable the business to adapt to future uncertainties in the market. Research and development is a continuous process that Telfer should invest in, to ensure that its products and services adapt the dynamic social, economical, technological and political environment effectively. Research and development will help Telfer develop unique products thus satisfy the niche’ market by gaining a unique selling point resulting to competitive advantage over other competitors. Another benefit of research and development is that Telfer is able to generate long term income through the development of innovative products. When Telfer adopts research and development as a continuous process, this leads to encountering new opportunities as discoveries open up. This has an effect of making Telfer enhance its reputation thus customers are likely to trust the company’s products and this grows Telfer’s customer base. Major set backs with research and development are the costs involved, uncertain outcomes as well as difficulties in anticipating if customer needs are going to change after the organization invests its time to generate a new product and roll it out in the market. Implement change Change implementation is an essential element of constant quality improvement. Every improvement technique involves change introduction and its impact measurement. Successful change implementation is important in provision of reliable, quality products and services in Telfer. For Telfer to survive it’s significant to consider effects of changing process on individuals. Change needs individuals to do things that they have never done before. Therefore they are the main critical resources, promoters, risks and barriers of change management. Change uncertainties can arouse strong emotions, making several individuals experience a lot of loss and grief as they forego the old moving to the new. Reaction range awareness by Telfer leadership to respond accordingly to any expressed concerns is of essence. Understanding occurrence of these emotions helps the management to initiate change in a way that acknowledges, anticipates and act in response to these concerns. Since quality improvement relies on individual’s actions, management should therefore start change implementations by winning the minds and hearts of its staff members. Telfer should not only direct their staff to change or supervise them to change but should implement valuable communication strategies. Stakeholders should be given an opportunity to share their attitudes and views in their planning process. Several quality improvements for market survival is about changing mindsets, by having the tools, methods and confidence of making individual staff members to try something different. Change implementation therefore is the process of understanding the probabilities of thinking differently in targeting to make quality improvements that are practical to staff members in order to produce quality goods and services. Successful change management will result to Telfer responding faster to customer demands as well as increased employee performance as the staff feel supported and informed to understand the process. It also helps in increased revenues as the costs associated with change will be reduced as it also gives a way to lower change related risks. Change implementation will fail if there is no proper planning and this may result to change being resisted especially if change will distort employees’ familiarity in their work place. The major challenge is to bring every one on board and reach at a consensus for effective transition. Telfers’ organization structure and success factors Impacting its Development and Business Planning Implementation Telfer’s success in the global market is dependent on how it shall obtain competitive advantage abroad. There are four models of organization structures that Telfer can choose to adapt while globalizing, namely: Functional Model. Geographic, Product division and the Matrix Models The choice of the model to adapt is dependent on Telfer’s size, marketing techniques and one which will aid in effective communication. Each model has its pros and cons and it is therefore the responsibility of Telfer’s management to choose a model which best suits them. In the functional model, clear roles assigned to individuals thus holding the individuals accountable for their actions resulting to specialization in the areas that staff can perform best for improved results. Consequently this crates a gap between the top and bottom levels in the organization making it hard for effective communication leading to resistant to change. In the adaptation of Product division model, Telfer would seek to meet customer needs more satisfactorily as they will be able to focus in their market segment and it eases on controlling the each product divisions as they operate as separate profit centres.Telfer should however expect to face the challenge of functions duplications and lack of central control over divisions. Geographic model has the benefit of serving each area better as it makes competition to be unique in every region. As people vary in every region, so does their needs. A major challenge with this model is duplication of resources as well as conflicts arising between the local and the central management. A matrix model combines at least two structures and it is more effective where a new brand is being introduced in the market. It can therefore be adopted in the short run and dissolved after the product is selling in the market. The model has an advantage of deploying employees where they are needed the most but has a major set back of dual reporting as the employees find themselves in situations where they are answerable to more than one manager. For Telfer to succeed in developing and implementing a model in its business operations, Telfer has to incorporate both hard and soft elements in their organization structure as explained below. Hard elements The hard components of Telfer plans implementations involves: Strategy, Telfer structure and systems within the Telfer. Strategy This refers to Telfer’s plan for the future and how they intend to achieve their objectives so as to maintain competitive advantage in the market. Telfer has to have priorities for strategizing so as to deal with competitive pressure for improved customer service to deliver greater value to customers. Structure This is the hierarchy of how the coordination of Telfer’s activities is done so as to have employees well aligned and organizes. It involves defining the chain of command as to who the employees are answerable to, defining of job description as well as what levels decision making is made in the Telfer. Systems These are the controls put in place for day to day activities for redundancy reduction as well as streamlining the processes of Telfer. This ensures that customer satisfaction is well monitored and efficiency in running the Telfer aiding in retention of business intelligence. Soft elements Shared values These are the core values that Telfer rides on. They are the fundamental principles as stipulated in the vision and mission statements of Telfer. They are referenced when measuring and rewarding of employees. It is of essence for the employees appreciate the reason as to why the company is in existence. Skills They are various competencies within the Telfer as well as those which the Telfer would need in the near future. It entails identification of any gaps that exist and as the Telfer searches for individuals to fill those positions as they fall vacant, the employees should be improving on their competencies to remain relevant in their places of work and also to be considered for those positions that fall vacant. Style This is the operating and leadership approaches that the management of Telfer adopts. If all the stakeholders were to be engaged to describe Telfer and they all give the same views, then this an indication of good management style but on the contrary if they issue different opinions then this unveils an underlying problem. There should be active participation of the management in the Telfer for effective leadership. This affects the kind of decisions made and the focus of time and attention. Staff This refers to how the recruitment is done in Telfer and the training undertaken to be competitively packaged to serve customers satisfactorily. The Telfer should anticipate the departure of its employees and should therefore strike to train all employees so as to have all-round individuals who could be useful in the event of departure of an employee. Telfer External Business Environment Key issues of the Telfer external environment Management and leadership potential The leadership approach is the style that Telfers use to provide direction, motivate individuals and implement its plans. There are three major leadership styles namely authoritative, democratic and delegative approach. Leadership approach My Telfer uses democratic approach also known as participative style. This approach requires the leader to involve every employee in the Telfer decision making process. Each employee is involved in determination of what the Telfer does and also how it does it. Despite this the leader has the responsibility of making the final decision. There is no weakness in using this leadership style but it’s a sign of Telfer strength and most employees respect is earned by management. Positive aspect This leadership approach is usually used when management has partial information and other part is possessed by employees. It’s believed that the leadership is not necessarily expected to know everything and that the reason as to why Telfer employs skillful and knowledgeable employees. This style results to mutual benefit as it allows employees become part of the team making Telfer decisions. Negative aspect The major weakness about this management approach is that employees at times are know to resist change because of the fear of the unknown or uncertainties that comes in with change. Therefore when involved they can obstruct the smooth adaptation of change by Telfer. New potentials In Telfer there is potentiality of using all leadership styles since varied situations needs different leadership approach. A good leadership needs the ability to be flexible in developing use of any of the styles by recognizing different requirements for different situation. Potential leadership should also adapt the use of styles that optimizes Telfers success. Balances these needs by management in the changing and demanding situations is the key challenges facing modern leadership. Modern leadership call for balance between all leadership styles depending on Telfer situations. Ability to change and to develop and implement a business strategy For Telfer to grow and be competitive in the market it should have the ability to change and develop the implementation of business strategy. To achieve these, the following should be met. It includes: Awareness of need for change To promote need for change awareness amongst Telfer stakeholders, communication should be encouraged. Consultation and early communication, at initial stage of planning change implementation will help to get individuals prepared and interested to take place in change implementation process. This awareness will make them have some ownership in these process and an interest feelings in the process success. Involving stakeholders at various levels of change implementation, makes them consulted, informed making them collaborate with all the other change implementation participants. A lot of information should be provided to all the stakeholders, including change objectives, baseline information involving anticipated problems and solutions determinations. Desire to participate and support the change Desire to support and participate in change is a critical factor to be considered in by Telfer. For more successful change, people should be motivated to fell the desire for commitment in the change especially if they believe things will improve. Explaining to them how they will benefit is the key motivator. The best and encouraging situation is win-win scenario for all stakeholders, a situation where change management provides positive outcome for all stakeholders. Motivating discussions and debates presented through data on need for change creates a sense of exigency. Individual will tend to move from problems to improved situation. Telfer management can therefore influence change implementation process by creating a positive for environment planning and motivating staff members to participate in innovation and creativity to change. Knowledge on how to change Knowledge on how to change is a strategic resource in every Telfer that leads to competitive advantage in the market by Telfers. Initiations of knowledge management practices need the change of day to day behaviours, routines, Telfer structures and processes. There ensuring prior knowledge amongst employees is the key activity that Telfer leadership should involve itself. Ability to implement required skills and behaviours Change involves adaptation of new skills and new behaviours in Telfer. For successful implementation of change Telfer skills regarding change should be put in place. This can be done through piloting project which acts as an experimental project towards achievement of the overall change in the Telfer. Telfer leadership should then therefore empower its employees with the ability to implement the needed skills and behaviors in its operations. Reinforcement to sustain the change Telfer leadership is using continuous training to reinforce and sustain the Telfer change process. Training of employees on regular basis helps them to easily adapt to the new business environment. Telfer’s Corporate Governance and Business Ethics Corporate governance of the Telfer Governance is a group of practices and responsibilities used by executive management and board of directors to provide strategic direction, to ascertain the appropriate management of risk ensures achievement of objective and ensure verification of responsible use of Telfer resources. Processes Telfer operations and governance processes should be put in place to ensure smooth management of every Telfer. Corporate governance procedures should be enacted to govern Telfer management and ensure procedural implementation of activities. Customers Customer focused products and services should be encouraged by the Telfers to facilitate maintainace of satisfied customers. Satisfied customers are cheaper to maintain than the cost incurred in sourcing for new customers. Brand loyal customers give the Telfer a competitive advantage in the market. Policies and Laws Governing policies and laws should be enacted by the Telfer to ensure proper management of Telfer. Company laws should be adapted to ensure that the business operations are legal as required by the countries government. Ethical management Ethics are acceptable social qualities that differentiate one Telfer from the other. Every Telfer should there fore carry out its business according to the accepted ethical standards. Ethical management helps determines the required code of ethics within the Telfer. Various stakeholder groups Stakeholder is any group, person or entity that is interested in Telfer resources, attention and output. Customers Customers are either final consumers of the Telfer goods and services or decision makers on the purchase process of Telfer products; they are the actual buyers of the Telfer products. Customers are therefore the key stakeholders in every Telfer. They determine the Telfer profitability and whether it will survive, prosper or die. The Voice of Customer strategy achieved through customer feedback Telfer is able to improve their goods and services to meet customer expectations. Employees The kind of Employees that the Telfers have for its operations determines to the larger extent its success in the market. Knowledgeable and competent skilled employees give Telfer competitive advantage. Employees are therefore the key stakeholders in every Telfer. They need motivation and involvement in any business operation to ensure successful implementation of Telfer strategies at all level and to avoid any unnecessary resistance to potential change. Government Government is the major business regulator in every country. Government develops policies that require business to comply. Most governments expect tax compliance by all the business and have capabilities of coming up with policies that can either promote the business or obstruct its success. Therefore every business operating in every nation should always adapt to any changes made by the local government to facilitate its success. Government can influence businesses using tariffs, quotas or embargoes or any other mechanism such price control mechanism making it a key stakeholder in any business. Community Every Telfer operates in a specific community. Telfers are therefore expected to take their role in corporate social responsibility to ensure mutual benefit between itself and theta of the environment in which it operates. Competitors Competition is unavoidable situation to many Telfers except where the government as created monopoly for a particular business enterprise. Competitors’ actions determine the survival of business Telfers in the market. They are also major stakeholders to be considered by every Telfer. Intermediaries The supply of Telfer products to the final consumer many at times goes through several logistics stages having various intermediaries. Intermediaries include whole sellers, retailers and agencies or dealers. Intermediaries can inflate Telfer product prices therefore their operations should be managed indirectly to facilitate provision of fair final price to the consumer. Discuss its effectiveness in relation to the stakeholder groups Corporate governance is and effective tool as it determine the role, rights and benefits of every stakeholder in every Telfer. It removes management confusion in business operation as every procedure is specified as to when it should be executed and by whom. Appendix Environment Audit Emerging market environment consideration in global marketing planning is a critical factor that determines probability of Telfer survival. The major consideration issues are new challenges, changes and implications for internal operating Telfer. Environment audit reviews company’s operations against environmental regulation compliance. For Telfer to remain relevant in the market, it is therefore important for it to analyze its external and internal environments affecting its operations. Internal environment Internal Telfer environment is the environment within Telfer. This involves factors that Telfer can handle thus Telfer has full control over the internal environment. Telfer should therefore determine and understand its internal environment. This includes such issues like customer satisfaction, consumer behaviour understanding, and Telfer culture and believes management styles among others. Telfer should also consider value chain analysis and the portfolio analysis as analysis tools for Telfer’s internal environment. Value chain involves looking at Telfer’s operations as a chain of related activities which transforms inputs into outputs. Therefore, Telfer should evaluate on how its inputs adds value to the finished product s well as looking into customer values and how final products should be customized to customer needs to gain advantage over other competitors. The portfolio analysis involves the BCG /GE matrix which is a quantitative measure of market growth as well as the market share. External environment External environment involves external environmental factors that Telfer has got no control over them leaving the Telfer management with the only option of adopting it. External environment includes: PESTEL frame work (political, economical, social, cultural, technological, environment and legal framework), 5 forces analysis as well as industrial statistics. Political factors such as a stable government, tax policies, and trade regulations are some of the factors that Telfer management should consider. Economic factors are characterized by: levels of inflation, interest rates, disposable income and also the levels of unemployment in the region Telfer would be interested in investing in. Levels of education, lifestyle changes, social mobility as well as population distribution are some of the social cultural factors to consider. New innovations through technological developments and the rate of obsolescence would be factors for Telfer to consider so as remaining relevant in the dynamic environment of technological changes. Ways of waste disposal guided by the environmental laws should be taken into consideration to avoid polluting the environment. Telfer should also analyze the law interprets healthy competition, the factors to note under the employment law as well as product safety. Telfer should also conduct an industrial analysis which includes: threat of new entrants and the challenges that Telfer is likely to face is high capital requirements, switching costs as well as the government policy with regard to new entrant. Another industrial factor is intensive rivalry among existing companies characterized by fixed costs, number of competitors in the market as well as the rate of industrial growth. The threat of substitute is another factor Telfer should consider as these products satisfy the same needs thus leaving Telfer at a disadvantage since the switching costs of these substitute products are low. Lastly, the bargaining power of the buyers and those of the sellers are also critical in industrial analysis and Telfer should consider them too. For successful implementation of its strategies Telfer’s leadership should understand its external environment and produces goods and services that adapt this environment. Telfer’s Diversification Strategy Telfer appreciates that to remain in business it has to align itself with the developments in the market its operating in Telfer should therefore explore strategies such as; exports, strategic alliances, joint ventures as well as foreign direct investment. In the event of strategic alliance Telfer will benefit from economies of scale from the firm they would choose to partner with, they would also share the risks involved, technology as well as decreased costs. The partnering firm also expects to benefit from Telfer’s strengths thus each participant gaining competitive advantage. Telfer may also consider objectively producing more products for exports. Exportation requires lower levels of investment as the organization would be utilizing its own assets and the organization shall use its value chain to venture into the foreign market. Even though foreign direct investment involves physical investments in buildings, machinery and equipment requires heavy capital, Telfer could also explore this option for new market for its products, less costly facilities of production and access to new information technology systems and exchange expertise and skills as well as improved production levels. Due to the rapid change in technology, Telfer may consider other forms of diversifying such as technological transfers and licensing, distribution agreements, joint ventures and portfolio investment. References: Bridges, W., 1998, “Managing transitions – making the most of change,” New York, NY, Da Capo Press, Cameron, E., 2009, “Making Sense of Change Management: A Complete Guide to the Models, Tools and Techniques of Telfer Change,” Paperback Kotter, J., 2010, “Leadership Insights Collection” New York, NY. (4th Edition). Harvard Business Review Press. Kotter. P., 1996, “Leading Change,” New York, NY, Harvard Business Review Press. Read More