Category: Organizational Structure

Dunkin Donuts Organizational Structure

To create an effective organizational structure and behavior for Dunkin’ Brands, the company’s structure has to reflect the brand recognition and value locally and internationally. The structure and behavior of an organization can change and evolve, as functions and roles change and evolve (Sandhu & Kulik, 2019). Dunkin’ Brands has to analyze its current organizational structure, its current organizational controls, and its current organizational behavior and human resources and create an implementation plan if operations are to be optimized.

Current Organizational Structure

An organization’s structure is composed of the qualities that the organization has in how it structures its relationships and the division of control, decision making, and responsibilities (Marasi, Bennett, & Budden, 2018). Two main elements in the organizational structure are centralization, which is how much input employees have when decisions are being made, and the level of formalization which is how rules and communication within the company are carried out (Marasi et al., 2018). Dunkin’ Brands organizational structure should reflect its strategy which will let managers know what needs to be done to have the freedom to make the decisions and create the necessary relationships needed (Marasi et al., 2018). As an organization with franchisees, the goals of Dunkin’ Brands and the goals of the franchise owners should align (Berkowitz & Wren, 2013). International management consultants can meet with franchise owners to provide guidance and information so that the owners can agree and commit to corporate strategies (Berkowitz & Wren, 2013).

Dunkin’ Brands is led by a Chairman and CEO, who has executive officers and senior management teams responsible for operations in different national and international regions reporting to him (Dunkin’ Brands, 2019). This type of organizational structure that Dunkin’ Brands has is divisional. The divisional structure of Dunkin’ Brands allows each unit to function independently within the guidelines of the company’s strategic and financial goals (Li, Holsapple, & Goldsby, 2019). Having a divisional organizational structure allows Dunkin’ Brands to have flexibility within supply chains which creates a greater competitive and financial advantage (Li et al., 2019).

Current Organizational Controls

Organizations have to control, restrict, and direct the behaviors and actions within the organizational structure to achieve its strategic goal (Janićijević, 2017). Organizations have five methods of control that they can use. These are work process standardization, knowledge and skills standardization, managerial supervision, direct interpersonal communication, and output standardization (Janićijević, 2017). These mechanisms of organization control can differ in restrictions, personalization, autonomy, and formality (Janićijević, 2017). Dunkin’ Brands has a divisional organization structure in which the most effective method of control is work process standardization, where the chairman specifies the level of performance for each division, leaving it up to the divisions to use their methods to achieve it (Janićijević, 2017).

Management consultants work closely with each Dunkin’ Brands franchisees ensuring that the brand name is protected and that the performance objectives are lined up to the specifications of the chairman (Karmeni, de la Villarmois, & Beldi, 2018). To have a successful relationship between a management consultant and a franchise owner, there should be a balance between autonomy, control, and innovation, which Dunkin’ Brands provide (Karmeni et al., 2018). Dunkin’ Brands franchisees are independently owned and operated, and the owners are responsible for the business decisions and supply chains related to their franchisees (Dunkin’ Brands, 2016). Dunkin’ Brands do not control the labor and employment issues of franchise employees, the recycling and waste management contracts even though franchisees are advised to obey local regulations, and the amount of energy or water each franchise uses even though franchisees are given equipment specifications (Dunkin’ Brands, 2016).

Current Organizational Behavior and Human Resource Practices

The organizational behavior, human resources, and culture of an organization is a mixture of assumptions, values, norms, and attitudes that have helped in creating the success of the organization (Janićijević, 2017). Human resource practices are primarily motivated to create competitive advantages for organizations (Jehn & Bezrukova, 2004). Some of these practices are training, promoting diversity, having a broader vision, welcoming new ideas, and encouraging employee involvement and commitment (Jehn & Bezrukova, 2004). Dunkin’ Brands developed new and more relevant training and communications with the franchisees (Dunkin’ Brands, 2018). Through Facebook Workplace Dunkin’ Brands and its employees can have increased communication and engagement (Dunkin’ Brands, 2018).

Dunkin’ Brands promote having a diverse workforce, franchisee, and supplier base (Dunkin’ Brands, 2018). Dunkin’ Brands encourages open discourse for employees of all levels that generates and promotes learning, new ideas, innovation, and healthy relationships (Christensen, 2019). Dunkin’ Brands consists of employees of different ages, genders, cultures, races, and religions, and franchisees in different countries with different cultures, and focuses on an inclusive workplace, using inclusion to diversify the workforce, and having culturally relevant marketing programs that will strengthen Dunkin’ Brands position in the market (Dunkin’ Brands, 2016).

Analysis of Significant Behavior Issues

In a changing global economy, a challenge that organizations face is creating and maintaining successful collaborations (Odrakiewicz & Zator-Peljan, 2012). Dunkin’ Brands and its franchisees may face several financial issues, such as the availability of financing, competition for franchise sites, negotiating lease and financial terms, and the cost and availability of labor (Dunkin’ Brands, 2019). There may be conflicts with countries and franchisees may find problems securing the necessary permits that the domestic or foreign governments require, customers in foreign countries may not like the taste of the products or may not be accepting of the company (Dunkin’ Brands, 2019). Other issues may occur if a proper location for a franchise cannot be found, there is a small pool from which to choose and train qualified employees, and the weather conditions or other natural disasters (Dunkin’ Brands, 2019). Dunkin’ Brands needs to understand all aspects of the issues the organization and franchisees may face and gain the necessary knowledge needed to be successful when facing challenges in different countries and cultures (Odrakiewicz & Zator-Peljan, 2012).

Development of a Proposed Implementation Plan

To support operational optimization Dunkin’ Brands has to have its current organizational structure reflect its strategic plan. The objectives of the management consultant are to make sure that the goals of franchise owners align with that of the organization, that the brand value and name are protected. There has to be a balance between the rules of Dunkin’ Brands and the actions of the franchise owners, open discourse, and a diverse workforce for the organization. When there are financial issues or conflicts due to international or cultural differences, the organization should take steps so these issues are addressed as soon as possible.

Dunkin’ Brands can take preventative measures by having human resource plans that adhere to the ethical and business standards of the countries and cultures that business is done in (Jang, Kim & Yoo, 2017). Dunkin’ Brands should have strategies and action plans in place that supports and sustains strategic behaviors and decisions, starting from the recruiting decisions, to training and development classes, and having proper policies in place, so employees know where to go if any situation arises. There should be training provided for franchisees and employees as having sustainable human resources achieves a competitive advantage against the competition (Jang et al., 2017). The organization needs to include diversity management as part of maintaining a positive work environment, where everyone and every contribution is valued (Shaban, 2016).

Dunkin’ Brands is a global organization that is affected by changes in the financial, economic, and technological environment (Janićijević, 2017). To achieve its goals, Dunkin’ Brands must adapt its structure and function to the environment from which it operates (Janićijević, 2017). If Dunkin’ Brands achieves a balance between external factors and internal factors, its performance will increase and its goals will be met (Janićijević, 2017).

Conclusion

Currently, Dunkin’ Brands has an organizational structure and behavior that works. To achieve a structure that not just works, but is effective, Dunkin’ Brands has to understand and accept that change and evolution inside and outside the company are inevitable (Sandhu & Kulik, 2019). Analyzing its current organizational structure, controls, behavior and human resources, and creating an implementation plan for an optimal solution is a step in the right direction to create a leadership operational plan.

References

1. Berkowitz, D., & Wren, B. M. (2013). Creating strategic commitment in franchise systems: establishing the link between leadership, organizational structure, and performance. Journal of Small Business & Entrepreneurship, 26(5), 481–492. https://doi.org/10.1080/08276331.2013.876763
2. Christensen, K. (2019). Q&A: The former CEO of Dunkin’ Brands explains the importance of creating a “challenge culture” in every organization. Rotman Management, 88–91. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&AuthType=shib&db=bth&AN=135905688&site=eds-live&scope=site
3. Dunkin’ Brands. (2016). 2015-2016 Corporate social responsibility report. Retrieved from https://www.dunkinbrands.com/internal_redirect/cms.ipressroom.com.s3.amazonaws.com/226/files/20177/2016%20CSR%20Report.pdf
4. Dunkin’ Brands. (2018). 2017-2018 Sustainability Report. Retrieved from https://www.dunkinbrands.com/internal_redirect/cms.ipressroom.com.s3.amazonaws.com/226/files/20196/2018%20Sustainability%20Report_Final.pdf
5. Dunkin’ Brands. (2019). 2018 Annual report. Retrieved from http://investor.dunkinbrands.com/static-files/7a1e2ad8-3f4e-49d1-9126-1e2b7c43b012
6. Jang, M., Kim, J., & Yoo, B. (2017). The impact of e-training on HR retention in midsized firm. Academy of Entrepreneurship Journal, 23(2), 11-12. Retrieved from https://search-proquest-com.contentproxy.phoenix.edu/docview/1987378843?accountid=134061
7. Janićijević, N. (2017). Organizational models as configurations of structure, culture, leadership, control, and change strategy. Ekonomski Anali/Economic Annals, 62(213), 67–91. https://doi.org/10.2298/EKA1713067J
8. Jehn, K. A., & Bezrukova, K. (2004). A field study of group diversity, workgroup context, and performance. Journal of Organizational Behavior, 25(6), 703. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&AuthType=shib&db=edsjsr&AN=edsjsr.4093763&site=eds-live&scope=site
9. Karmeni, K., de la Villarmois, O., & Beldi, A. (2018). Impact of control on innovation: the case of franchising. Management Decision, 56(7), 1485–1505. https://doi.org/10.1108/MD-09-2015-0428
10. Li, X., Holsapple, C., & Goldsby, T. (2019). The structural impact of supply chain management teams: Supply chain agility development in multidivisional firms. Management Research Review, 42(2), 290–310. https://doi.org/10.1108/MRR-04-2018-0163
11. Marasi, S., Bennett, R. J., & Budden, H. (2018). The structure of an organization: Does it influence workplace deviance and its’ dimensions? And to what extent? Journal of Managerial Issues, 30(1), 8–27. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&AuthType=shib&db=ent&AN=128481751&site=eds-live&scope=site
12. Odrakiewicz, P., & Zator-Peljan, J. (2012). Innovative methods of cultural, intercultural and managerial competences acquisition for the constantly changing global economy in a new paradigm shift. Global Management Journal, 4(1/2), 127–137. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&AuthType=shib&db=bth&AN=84678015&site=eds-live&scope=site
13. Sandhu, S., & Kulik, C. T. (2019). Shaping and being shaped: How organizational structure and managerial discretion co-evolve in new managerial roles. Administrative Science Quarterly, 64(3), 619–658. https://doi.org/10.1177/0001839218778018
14. Shaban, A. (2016). Managing and leading a diverse workforce: One of the main challenges in management. Procedia – Social and Behavioral Sciences, 230, 76–84. https://doi.org/10.1016/j.sbspro.2016.09.010

The Relationship Between Organizational Structure And Job Performance

Much research has been performed to determine whether organizational structure influences job performance and what relationship the two have. Many of these studies have determined that there is, in fact, a relationship between structure and performance, but to better understand the link between organizational structure and job performance, it is necessary to recognize the definitions and elements of each. Ahmady, Mehrpour and Nikooraveh (2016) define organizational structure as “the framework of the relations on jobs, systems, operating process, people and groups making efforts to achieve the goals.” Three main components of organizational structure are specialization, departmentalization and effective communication, and a decision-making hierarchy. Job performance is defined as “the set of behaviors that are relevant to the goals of the organization or the organizational unit in which a person works” (Murphy, 1988). In his report, “Dimensions of Job Performance,” Kevin R. Murphy determined dimensions of job performance to include effectiveness in a position, task performance, down-time behaviors, social relationships, job proficiency, and job-related skills or knowledge. Each component of organizational structure relates to one or more dimensions of job performance.

Components of Structure Related to Performance Dimensions

One of the main components of organizational structure is specialization. Specialization is essentially how a company breaks down and assigns specific tasks and responsibilities to each employee. This relates to three dimensions of job performance: task performance, job proficiency, and down-time tasks. According to Murphy (1988), task performance includes “the tasks one can perform, the tasks one will perform, and the total set of task and non-task behaviors that determine evaluations of effectiveness.” Job proficiency is similar to task performance but focuses on an employee’s ability to perform when he or she is not in normal work conditions, meaning his or her ability to perform their job well when some tasks or job duties change. These both relate to the specialization component of structure because for an organization to develop this component, members must be motivated and understand each of their responsibilities and contributions to the organization’s goals. Murphy (1988) refers to down-time tasks as the behaviors that limit job performance and lead to periods of time in which the worker is not capable of performing at his or her normal level. These behaviors could potentially be a result of specialization. According to “Effect of Organizational Structure on Organizational Effectiveness through Face-to-Face Communication” by Santra and Giri (2015), “people like variety, and if their jobs become the same process over and over again, they become tedious, empty and unsatisfying.” Although specialization is advantageous in many ways, if a worker is only specialized in one job, he or she could potentially become bored with his or her role and be less productive during down-time. Cross-training is a method that could potentially resolve this problem. A worker that is cross-trained can use down-time to assist with tasks that other workers may not be able to complete in that day. An example of a structure that promotes cross training is at Business Impact Group, a mid-size company located in Minnesota. The structure at this company gives each employee clear, specialized jobs, but also trains each new employee on tasks that can be shared by any employee in the department. This is to allow one employee that completed all his or her tasks to assist with any general projects that others may not have the time to complete. This improves both organization performance and job performance as each employee is completing more work and learning new tasks that may prevent them from feeling tediousness in their position.

Another component of organizational structure is departmentalization and effective communication. These concepts both relate to job performance dimensions of social relationships, and job-related skills and knowledge. While specialization focuses on each employee’s specific duties, departmentalization groups jobs together in a logical arrangement that aligns with the organization’s goals (Adeyoyin, Agbeze-Unazi and Oyewunmi, 2015). Santra and Giri (2015) refer to communication as “a mechanism by which organizations come into being,” and that “the structure and processes of organizations determine the kind of communication to their members.” Communication complements departmentalization by being an essential part of the process by which jobs are grouped together. Social relationships, or relationships with coworkers, are formed through communication. Communication also provides a gateway for workers to share any skills or knowledge they possess that relate to their position. When testing aspects of job performance for workers that did not participate in open communication activities and those that did participate, Roberts and O’Reilly (1977) found that participants of open communication activities tended to have better job performance and job stability.

An organizational structure also includes a decision-making hierarchy. The decision-making hierarchy is the system that determines which employees have the authority to make decisions. Erol and Ordu (2018) define this as “the degree of employees’ taking initiatives on their jobs, ie. individual decisions related to their jobs.” This hierarchy relates to the remaining dimension of job performance, effectiveness in a position. According to Murphy (1977), effectiveness is affected by other dimensions of job performance: task performance, down-time tasks and social relations. An effective worker excels at his or her position by completing all necessary tasks, is productive during down-time, and has positive social relationships. Employee empowerment is a strategy that many leaders use to develop more effective employees, who in turn, contribute to the organization’s goals more effectively. Page and Wong (2002) define empowering others as a leader giving more trust and responsibility to employees in addition to their current responsibilities, encouraging employees to take initiative, and appreciating and acknowledging the work they do. According to “Relationship between Employee Empowerment and Employee Effectiveness” by Mehrabani and Shajari (2013), empowering employees leads to high employee effectiveness. Empowerment, effectiveness and the decision-making hierarchy all tie together because an empowered employee that is encouraged to take on more decision-making responsibilities will develop their position into a role that has a specific place on the hierarchy.

Conclusion

There have been many studies to determine what type of relationship exists between organizational structure and job performance. Many of these studies have determined that organizational structure does, in fact, have an effect on job performance. Ajagbe, Cho, Udo, and Peter (2016) determined that “when a clear structure exists, people perform better, tasks are divided and productivity is increased.” To further examine this relationship, one can look at the three components of organizational structure and how they each relate to the dimensions of job performance that have been defined by Murphy (1977). Specialization relates to the dimensions of task performance, down-time behaviors, and job proficiency, while the component of departmentalization and effective communication are linked to relationships with coworkers and job-related skills and knowledge. Lastly, the decision-making hierarchy is affected by employee effectiveness and vice-versa.

References

1. Adeyoyin, S. O., Agbeze-Unazi, F., Oyewunmi, O. O., Adegun, A. I., & Ayodele, R. O. (2015). Effects of Job Specialization and Departmentalization on Job Satisfaction among the Staff of a Nigerian University Library. Library Philosophy & Practice, 54–73.
2. Ahmady, G. A., Mehrpour, M., Nikooravesh, A. (2016, September 12). Organizational structure. Procedia- Social and Behavioral Sciences, 230, 455-462.
3. Erol, E., & Ordu, A. (2018). Organizational Structure Scale–University Version. European Journal of Educational Research, 7(4), 775–803.
4. Mehrabani, S. E., & Shajari, M. (2013). Relationship Between Employee Empowerment and Employee Effectiveness. Service Science and Management Research, 2(4), 60-68.
5. Murphy, K. R. (1989). Dimensions of Job Performance. In R. F. Dillon & J. W. Pellegrino (Eds.), Testing: Theoretical and applied perspectives (p. 218–247). Praeger Publishers.
6. Musibau Akintunde Ajagbe, Cho, N. M., Ekanem Edem Udo Udo, & Ojochide Fred Peter. (2016). How Organizational Structure Aids Business Performance. CLEAR International Journal of Research in Commerce & Management, 7(8), 64–68.
7. Page, D., & Wong, T. P. (2000). A Conceptual Framework for Measuring Servant Leadership. The Human Factor in Shaping the Course of History and Development, 69-110.
8. Roberts K H and O’Reilly C A (1977), “Communication and Performance in Organizations”, Paper Presented at the Academy of Management Annual Meeting, Orlando, Florida.
9. Santra, T., & Giri, V. N. (2008). Effect of Organizational Structure on Organizational Effectiveness through Face-to-Face Communication. ICFAI Journal of Organizational Behavior, 7(2), 28–38.

Organizational Structure And Effectiveness Of Commonwealth Bank In Australia

Exclusive Summary

This paper shows the organizational structure , strategies of the Commonwealth bank in Australia. And its briefly discuss about the Impact of the company’s structure on management innovation and Impact of the company’s structure on overall business performance. Vision of bank is to be Australia’s finest financial services organisation through excelling in customer service and strategy. As mention is their vision of Bank, this bank is very serious about the customer service. CBA is such a one good example of technology adopted bank which is giving excellent service for their customer by utilizing the up-to-date technology

Introduction

The Commonwealth bank that is referred in this study is the largest in the industry that caters to an array of financial products and services and it is the most recognized bank in the Australian financial services industry. It was founded in 22nd December 1911 as a government bank and under the Commonwealth Bank Act in 1911 and commenced operations in 1912. The bank listed as a public bank in1991.The first branch opened in Melbourne 15th July 1912.It has the largest branch and ATM network. more than 11000 branches and 4300+ ATMs.

According to the 2016 findings the bank stands at a total assets of USD 740 billion with a total income of USD 19.52 billion for the period. It has employees around 51,800 members as staff and more than 800,000 shareholders. And bank serves more than 15.9 million customers. Commonwealth bank operates across New Zealand, Fiji, Asia, USA and the UK with more than 11,000 branches under its purview.

The Businesses are Insurance, Funds management, Business and private banking, Institutional banking and marketing, Retail banking services, wealth management and international financial services and other services.

Section 1

Structure of the Commonwealth bank

The structure of an organizations can be defines many different ways. A structure is developed to establish how the organization operates to execute its goal. And its helps determine the success of the organization. It depends how activities such as professionalism, supervision, centralization, coordination, formalization, task allocation are directed towards the company goals.

When we talk about the structure of the common wealth bank it has four main aspects.

1. Retail Banking service. Under retail banking service bank consider about the financial services to customers and small business customers.
2. Premium business serving. In 2009 this service was split in to two main parts. One is institutional banking & markets And Business & private banking. Institutional banking & markets provide services to institutional clients and global markets. And from Business & private banking concern about business customers and private banking.
3. Wealth management. Under this category it brings together the group funds management platform, master funds, superannuation, insurance and financial advice business support.
4. Executive leadership. The below individuals have been appointed as chief executive officers of the common wealth bank Australia.

Strategies

Organizational strategies are everything a company plans to achieve its goals. Before the company develops its strategy, it has to compare how it is now and how it wants to be. In particular, where it would like to be at a certain future time. It has to define the differences and then list what needs to be done to get there.

The Commonwealth Bank’s strategy hinges on four key capabilities: people, technology, strength and productivity.

• People – They have a vibrant, customer-focused and highly integrated culture. Your employees are central to our success. They will continue to invest in employee development and talent management and make the group a place dedicated to diversity, security and a place where their employees are proud to work.
• Technology – They use cutting-edge technology to meet the changing needs of your customers. Their strategy remains focused on long-term value creation for their customers, shareholders and employees. Its goal is to achieve significant long-term growth, strong employee engagement, strong customer experience, consistent shareholder return and outperformance for its shareholders. EFFICIENCY Employees Technology Strength Productivity Develop applications that leverage real-time capabilities, consider new ways of interacting with their customers, and continue to leverage technology to increase productivity.
• Strength – Through the financial crisis, they have learned that the strength and stability of the group makes them the organization the Australians trust to protect their money. A strong and flexible balance sheet is important to ensure they can continue to support their clients and seize opportunities.
• Productivity – You are constantly simplifying how you work to deliver better results for your customers and their employees. This is something that good companies do at all times and that is critical to their long-term success.

Section 2

Impact of the company’s structure on management innovation

Organizational decision makers can influence innovation in their organization by directing the structure of an organization directly. The distribution of control and responsibilities within an organization is determined by its organizational structure as well as by the grouping, coordination and division of work between departments and staff of an organization. Innovation can be seen as new structures and management processes, new policies, new plans and programs, new production processes and new products and services produced in one organization.

Management innovations are most often examined in comparison to technical innovations or technological innovations. Technological innovation is explicitly linked to the central role of an organization, and the results obtained are mainly found in the operating systems. whereas innovation in management is inexplicably linked to the core work of the organization and occurs more frequently in the social systems of an organization.

The Commonwealth Bank invests in innovation to keep its name at the top. So they can continue to provide a compelling customer experience and meet the increasing competition and regular requirements. This includes innovation in both customer-focused and back-office applications. We also invest in technology to keep our systems safe, sound and secure, to add real value and to deliver better results for our customers.

We also promote innovation-driven collaboration with our customers through our Innovation Labs. This year, we partnered with the CSIRO Data61 to develop a world-leading smart money making app using block chain technology. The use case was an attempt for the National Disability Insurance Scheme (NDIS). The goal is to provide ‘intelligent money’ to NDIS participants who know what they can spend, who can spend it on, and when it can be spent.

Organizational decision makers have the power to influence innovation within their company through their direct control of the structure of an organization. The dispersion of control and responsibility within an organization are determined by its organizational structure, as are the grouping, coordination, and division of tasks amongst departments and employees in an organizatio

Organizational decision makers have the power to influence innovation within their company through their direct control of the structure of an organization. The dispersion of control and responsibility within an organization are determined by its organizational structure, as are the grouping, coordination, and division of tasks amongst departments and employees in an organizatio Organizational decision makers have the power to influence innovation within their company through their direct control of the structure of an organization. The dispersion of control and responsibility within an organization are determined by its organizational structure, as are the grouping, coordination, and division of tasks amongst departments and employees in an organizatio Organizational decision makers have the power to influence innovation within their company through their direct control of the structure of an organization. The dispersion of control and responsibility within an organization are determined by its organizational structure, as are the grouping, coordination, and division of tasks amongst departments and employees in an organization

Section 3

Impact of the company’s structure on overall business performance.

Modern companies have complex structures. Decisions of top managers and executives affect the overall performance of the business. Strategic performance measurements aim to monitor the effectiveness of an organization’s structures.

Different organizational structures have different effects on the performance of the organization. Organizational structure or organization design is a means to achieve organizational goals through coordination, monitoring and task allocation. Three main elements that take into account the organizational structure are decision-making, membership selection and leadership. Companies have to weigh up different advantages when choosing a specific organizational structure. In addition, the structure is also important to the organization’s performance because it describes daily routine and operational procedures as well as points out who would be involved in the decision-making process.

Organizational structure supports organization: maintaining order, solving problems between departments and within each department, and linking organizational members together. The benefits of a strong organizational structure include a stable hierarchy, a smooth flow of communication, and a well-defined, coherent corporate message. The organizational structure can also cause problems such as internal conflicts, high employee turnover, lower productivity and delayed decisions. It is therefore important to identify and resolve organizational structure issues to ensure effective and efficient organization performance.

Recommendations

The recommendations are the result of a comprehensive and detailed investigation and take steps to implement all measures relevant to their business.

The deputy chief executive officer David Cohens of the Commonwealth bank implemented the “Royal Commission Recommendation” to the organization recently. And it will issue regular updates about the bank progress and it is fully transparent.

Many of the recommendations require direct changes in their business and are already underway. Some of the recommendations require action by the government, regulators and industry before they implement them. they will support this work and are already considering what changes they need to make themselves so that they are ready to act once the legal framework is in place

Conclusion

This report concludes that the Commonwealth Bank is very serious about the efficiency of their services to customer. Report clarified that the up-to-date of Strategies and structure can bring large amount of positive benefit for company like Common wealth bank to provide efficient and smooth service for their customer which will establish the good relationship with customer. The report also clarified that the how organizational structure impact on Business performance and management innovation can help to sustain the achievement of any company. And lastly, this report describes how commonwealth bank has improved their business with the recommendation.

References

1. https://www.commbank.com.au/
2. https://www.commbank.com.au/banking.html
3. Our Company, 2011. Commonwealth Bank. Retrieved on March 27, 2011 from http://www.commbank.com.au/about-us/strategy/default.aspx
4. https://www.commbank.com.au/digital-banking/netbank.html
5. https://corporatefinanceinstitute.com/resources/careers/companies/top-australian-banks/
6. http://www.abs.gov.au/AUSSTATS/abs@.nsf/Lookup/8155.0Main+Features12016-17?OpenDocument
7. https://publications.industry.gov.au/publications/australianindustryreport2016/assets/Australian-Industry-Report-2016.pdf
8. https://www.news.com.au/finance/business/banking/commbank-customers-fury-over-massive-outage/news-story/25f6ff3f8f01d00ecfb25b3c35afe18e
9. https://www.commbank.com.au/digital-banking/mobile-payments-wearables/apple-pay.html?gclid=CjwKCAiAy-_iBRAaEiwAYhSlAyZYp9ijdjInRcMCgrUyPhqClkl-B_GLW5SHkjJ4JatgEHfMNF3TMRoCbe4QAvD_BwE

Organizational Structure: Management, Marketing And Human Resource Management

The idea of this report is to analyze the retailer I have chosen how approaches its: Organizational Structure and Management, Marketing and Human resource management and, to discuss the different impacts the external business environment has and will have on the retailer. That is the reason why I have chosen the retailer Debenhams for this report. It is a dominant international brand with a proud British heritage which trades with over 22 countries. It gives an elite selection of own brands as well as international brands. Debenhams have experienced financial issues. The struggling department store chain has a voluntary company arrangement, a form of insolvency to cut its costs by a procedure that allows a company to arrange debts by paying only a part of the amount that it owes to lenders. Debenhams is a market ruler in beauty and health which does it a suitable option for this assignment because they are working in more than one continent and have experienced difficulties during the current changes in the retail sector.

ORGANIZATIONAL STRUCTURE AND MANAGEMENT

The business was established in 1778 by William Clark, who began trading in London as a drapers’ store. The owner was selling precious bonnets, fabrics and gloves for 25 years. In 1813, William Debenham invested money in the firm. However, in 1905, Debenhams Ltd. was born. Moreover, after further improvement, the business unites with Marshall & Snellgrove. These days it is held by Celine UK NewCo 1. (based on Statista Research Department, last edited Dec 7, 2015)

This statistic describes the number of Debenhams shops by region at the end of the 2014-2015 financial year. Debenhams had a total of 165 stores positioned in the U.K., and an additional 87 stores and franchisees expanded worldwide. (Statista Research Department, last edited Dec 7, 2015)

Debenhams has several business strategies. One of them is to deliver a fascinating client proposition by offering the best of the high street. They propose an exclusive combination of luxury brands and international brands across various product sections. The second one is the growing opportunity and option by multi-channel. The retailer continues to invest in top quality service so their clients can use the best of online shopping. They have arranged the administration of stores and also online so that they can give the buyers seamless shopping experience as they frequently shop using more than one channel. ‘15% of Group gross transaction value (GTV) is generated online, and a third of online orders are collected from their stores’ (Debenhams). However, this shows that people shopping online are increasing. Debenhams takes this as an opportunity and wants to make their customers come for more. Debenhams has a line and staff organizational structure. This kind of organizations has staff and line departments. Experts are part of the staff department, and they are assisting and advising the line managers while they are making the arrangements, which are a commission. Debenhams is using these techniques to keep its employees motivated and successful in decision making. I believe that the retailer is correct, trying to improve its online platform because more and more customers use online shopping.

MARKETING

Marketing, according to Kotler’s (2017) Principles of Marketing states, is:’ Engaging customers and managing profitable customer relationships. The two-fold purpose of marketing is to attract new clients by assuring superior value, maintaining and advancing current customers by delivering value and satisfaction.’ Regarding this, Debenhams has the purpose of pleasing the clients of their shops for years. ‘The chain has 166 stores, which at first will all continue to trade. However, it also has £621m of debt. Their current approach is to renegotiate the rents on some of its stores, while around 50 of them have already been set apart for closure, next year.’ (BBC News 2019). High Street retailers have been under increasing pressure because more people like to shop online and visit shops less. For some people, it is easier to buy online. For example, if they do not have time during the day to visit the shops, they can order online when they have free time. ‘Debenhams reported a record pre-tax loss of £491.5m last year and said that sales had fallen sharply over Christmas (BBC News 2019)’. ‘Debenhams had announced their Christmas trading figures, and it is not pleasant. For once, Debenhams exceeded expectations, reporting a fall of 3.4% and a huge 5.7% for the 18 weeks’ (Forbes January 2019). Debenhams have had difficulties for some time. Stick in increasing costs, locked into long lessor leases, facing rising competition from online and without a compelling in-store experience. It seems that the doubt that Brexit is making across the U.K. economy was the last step to failure. Many people prefer online shopping, especially on holidays because the shops are chaotic at the time, but not everyone would prefer to order through the internet. However, a person never knows what he will get without seeing it. So, people who value the gifts they buy still use the stores because they cannot risk not to get what they expected. Market Position, Store Network, and Multi-Channel Business are the strength of Debenhams (Debenhams plc SWOT Analysis). ‘Their products are available online across 60 countries’. (Debenhams) (based on Statista Research Department, by Tugba Sabanoglu, last edited Mar 12, 2019)

This statistic shows that the majority of sales at Debenhams are made in stores, around 77% percentage of sales in 2016.

On the other hand, online sales have grown by roughly 10% from 2013 to 2016. Defining Social Shopping for Debenhams is seeing the way their clients are shopping for style and beauty and connect via their mobile phones. There is a chance for Debenhams to be the leader in what they define as the new ‘Social Shopping’. Shopping is a pleasant leisure activity which you can enjoy with your friend and family.

As they are planning to do, for Debenhams, it is better to invest in the online platform and try to provide the best services they could because online shopping is part of our daily life.

HUMAN RESOURCE MANAGEMENT

According to Michael (Armstrong 2006): ‘Human resource management is defined as a strategic and coherent approach to the management of an organization’s most treasured assets – the people working there who individually and collectively contribute to the achievement of its objectives.’ The term Human Resource Management is a process that covers the procedures, tasks, activities, and policies in an organization which supports their business gain a competitive advantage. It is intended to maximize employee performance. In the cultural aspect, Debenhams are friendly and warm. They are starting on a comprehensive review of their Colleague Proposition and working to build a new Proposition. Their intention is to make shopping confidence-boosting, sociable and fun. Debenhams aim for equal opportunities for their colleagues. The company seeks wherever possible to make reasonable changes so their Colleague who becomes incapacitated during their employment can continue working productively. They achieve this by providing equipment, altering working or providing additional training. Also, Debenhams has a different kind of approach. They use a logical framework to develop upcoming leaders within their stores and support center. I think this company has made the right decision and continues to improve the working conditions for its workers. For example, Google (in America) has the best working environment, and in this way, people do not feel sad, depressed or obliged, they are much more productive and happier with their jobs, I think every company should aim for the best of their workers because, in this way, the company will be profitable. Also, a company cannot be successful without good employees.

CONCLUSION

On this basis, we conclude that the search made in this report proves that, Debenhams current access to its organizational structure and Management, marketing and human resource management, and shows that they are viable and socially responsible. Debenhams has been offering quality and luxury goods since its beginning. They have gone through many stages but still, keep the same quality. They have created a convenient online platform for their customers to have fun while shopping and be able to do it wherever and with whom they want. Debenhams is continuously improving its platform to fulfil their clients’ wishes. They also want their employers to be equal. To improve the working environment, the company organizes an event where workers speak their minds and changes are made if necessary, after discussing them. I think Debenhams is a successful company that has accomplished a lot and continues to and also is one of the well-to-do retailers on the high street.

Types Of Organizational Structure: Advantages And Disadvantages

Executive Summary:

In this project we are going to talk about the definition of Organizational Structures, its Importance, we will go deeper to present each type, state why, how and when they are used, their advantages and disadvantages, Features, Purpose, Factors for Designing them, the added value for using the organizational structures and at the end we will state our conclusion and recommendations.

Definition of Organizational Structures:

Definitive structure chooses how the occupations, drive and obligations are consigned, controlled, and encouraged, and how information streams between the different degrees of the board. A structure depends upon the association’s objectives and strategy. In an joined structure, the best layer of the board has the more noteworthy portion of the energetic drive and has tight control over workplaces and divisions. In a decentralized structure, the energetic drive is appropriated and the workplaces and divisions may have different degrees of independence. An organization, for case, Delegate and Bet that offers different things may organize their structure with the objective that social occasions are isolated by each thing and depending upon arrive region as well.

Importance of Organizational Structure:

The following are the importance of organizational structure:

1. Away from of control, obligation relationship workplaces way better comprehension of the targets and the procedures of the undertaking.
2. Various leveled structure sets down the two channels and the cases of correspondence. It empowers suitable organization.
3. It helps with arranging works out of the portion parts so as to empower the affirmation of the goals of the affiliation.
4. It makes a difference in advancement and broadening of the works out of an affiliation.
5. Laborers back in affiliation increase their support and move forward their will to work. It enlivens graduation and inventive thinking.
6. Utilization of approaches and the achievement of the targets gotten to be less complex. 7. It thwarts duplication of capacities and makes it conceivable to achieve most extraordinary creation with the slightest endeavors. In this way to achieve these preferences, an definitive structure need to be arranged well with care.

Types of Organizational Structures:

According to a study done by (n, 2018) there are 4 types:

• Functional Structure
• Divisional Structure
• Matrix Structure
• Flatarchy Structure

Functional Structure:

It is based on dividing the company into smaller groups with niche tasks or role, it’s similar to bureaucratic. In this type, each department has a boss or supervisor, with top down management hierarchy who supervise lower levels. A perfect example of this strategy is the military organization.

Advantages:

• Employees who work in such a structure are well organized and grouped according to tasks and functions
• Employees focus on specific work or mission

Disadvantages:

• This structure lacks teamwork, communication and discussion
• This structure also lacks creativity and it limits the employees’ ability to develop and improve

Divisional Structure:

This structure is used in large companies that work across several horizontal objectives. It’s applied in GE (General Electric Company) that contains aviation, transportation, currents digital and renewable energy departments. It can also be created geographically if the company has different geographic locations

Advantages:

• It allows employees autonomy
• Each department operates as an independent company that work on its own aspects & divisions and specify budgets to control its own resources
• It offers flexibility by allowing each employee to operate as if its own company, reporting to CEO, one or two upper supervisors

Disadvantages:

• Employees working in different departments, but the same function are unable to communicate well
• Divisional structure may have tax implications by raising issues with accounting practices

Matrix Structure:

It’s a hybrid organizational, a blending of the functions and projects. In this structure employees are supervised by two or more managers who they report to depending on the situation or project. For instance, a financing employee may report to financial manager, but at the same time a project may arise studying a budget, then this employee should report to the project manager as well. Such structure is challenging, where it involves the knowledge of roles, responsibilities, work priorities and reporting to multiple bosses.

Advantages:

• Sharing knowledge between the employees across different functional divisions
• Attaining strong communicational skills & understanding roles
• Broadening employees’ skills & knowledge, thus increasing professional company growth

Disadvantages:

• Creating confusion and conflict between supervisors and bosses about the issue to be reported
• Creating confusion regarding employees’ job roles if not clearly defined

Flatarchy Structure:

This structure is a hybrid type used in startups and small companies. Flatarchy structure is a result of mixing functional and flat structures. It requires decision making through the levels of organization and flattens out the vertical appearance of a hierarchy. Flatarchy structure is best used when the company has an innovative program or internal incubator, where it’s able to operate in an existing structure, however through this structure and at any of its levels, employees are preached to suggest ideas and run with them potentially to invent a new flat form. A good example of this strategy is Google and LinkedIn, who already have an internal incubator, thus their employees are peached to be creative and innovative to promote the growth of the company.

Advantages:

• It allows innovative company-wide
• It eliminate red tape that might stall innovation in functional structure

Disadvantages:

• This structure could be confusing and inconvenient if all employees involved don’t agree on the way of organizing the structure
• Makes it more difficult to coordinate the activities and functions of a larger number of subordinates
• This structure have been criticized on the ground that they put a lot of pressure on subordinates by imposing on them too much of responsibility

The work culture gives an identity to the organization. In other words, an organization is known by its culture. The organization culture brings all the employees on a common platform. … It is essential for the employees to adjust well in the organization culture for them to deliver their level best

Features of Organizational Structure:

• Determines the administrator and degree to which jobs, force and duties are designated.
• Depends on destinations and methodologies
• Acts as a point of view through which individual can see their association and it’s condition.

Purpose of Organizational Structure:

• Divides work to be done in explicit occupations and dept.
• Assigns undertakings and obligations related with singular employments.
• Coordinates assorted authoritative assignments.
• Establishes relationship people, gatherings and divisions.
• Established formal lines of power.
• Allocates hierarchical assets.
• Clusters occupations into units

Factors for Designing Organizational Structure:

In such manner the accompanying elements to be considered in planning a viable authoritative structure:

• Environment
• Technology
• Size of the association
• Strategy

Condition: It is a significant factor influencing the hierarchical structure. It would think about the effect of clients, providers, contenders, lawful and political changes and social and monetary conditions

Innovation: Technology is a mix of apparatuses, procedures and know – how and impacts hierarchical structure.

Agreeing Joan Woodward contemplated inferred that innovation is a significant effect on hierarchical structure.

Size of the association: The size of the association additionally influences the authoritative structure. A major size of association may build the number of utilitarian divisions, number of administrative levels, and number of representatives with broadened duties.

Procedure: There are basically two methodologies.

1. Stability procedure: technique includes an anticipated domain and somewhat chance in outer changes.
2. Growth methodology: includes development in this way presenting the component of multifaceted nature and vulnerability.

Added value of Organizational Structure:

Organizational structure characterizes a framework that speaks to certain activities including different assignments allocation, role definition, duties allocation, coordination and supervision coordinated towards the accomplishment of the common objective, mission and vision of the organization. There are a number of variables that separate small-business operations from large-business operations, one of which is the usage of a formal organizational structure. Organizational structure is critical for any developing company to supply direction and clarity on particular human resource issues, such as managerial authority. Small-business proprietors ought to start considering a formal structure early within the development stage of their business. Organizational structure gives direction to all workers by laying out the official reporting relationships that administer the workflow of the company. (Ingram, 2019) A formal layout of a company’s structure makes it simpler to add new positions within the company, as well, giving an adaptable and ready means for development. Businesses require structure to develop and be productive, otherwise you’d have individuals pulling in all sorts of different directions. Arranging the structure guarantees there are sufficient human resources with the proper aptitudes to achieve the company’s objectives, and ensures that duties are clearly characterized. Each individual has a job description that outlines obligations, and each job occupies its own position on the company organization chart. An Organization structure helps in:

• Structures that allow for better communication.
• Clear reporting relationships.
• Growth and expansion.
• Efficient task completion.
• Fits company’s needs.

Ineffectively structured organizations discover that critical deadlines are not met since there were not adequate human resources in each department to achieve all parts of a given assignment, or because it was not clear whose obligation the project was. If people are not sure whom they report to, they may discover they are given conflicting assignments by two or more supervisors above them. (Hill, 2019)

Conclusion & Recommendations:

In this study we aimed to show that the number of organizational structures may vary from one perspective to another, the definition as well, but the mission and the function of these structures are the same. Moreover, our purpose here is to highlight the mission of the organizational structure, show its importance, diversification and when each type can be used. Thus assuring that it’s important to have a clear vision while deciding which structure to adopt taking into consideration the number of employee, type of work…, because choosing the wrong one will result in un-recommended output in the whole organization and sometimes it may lead to the liquidation of the organization if not chosen well.

When progressing an organization’s structure, you must continuously keep in mind that it may be an opportune handle that does not happen overnight, or maybe the alter of little things lead to a greater, more unified change. (Root, 2017)An organization ought to continuously take a great structure since a well-structured organization is able to create way better choices and adjust way better to changes within the commerce world, whereas an ill-structured, or a basically confounded organization leads to bottlenecks within the decision-making handle and can have an greatly awful impact on generation and income. When making beyond any doubt your organization is well organized, a couple of steps must be taken after:

Clearifying:

When it comes to advancing the structure of a company it is basic to communicate the proper stream of information to everyone inside the organization. Create and disperse departmental progression stream charts to everyone so that the bosses and their commitments are clearly caught on by everyone. When the company creates a choice making handle make sure it is caught on by the entire organization, and hold preparing classes on workflow in case required. Communication is one of the preeminent compelling gadgets an organization must work with, and communication with respect to the flow of information and the structure of the company can offer assistance to decrease confuse and streamline the method. In a couple of cases, it may be necessary to make a extraordinary assignment gather to require care of a particular issue. In that case, the same auxiliary information that’s circulated with respect to other divisions have to be circulated with respect to the assignment gather. Offer assistance on an issue can come from anyplace inside the company. So as long as people know how to communicate their thoughts, they will more likely offer help.

You will got to consider contributing in a workflow program for superior record taking care of. Workflow program will offer help to set up the correct way a archive must take after in arrange for that archive to be utilized viably, and a workflow computer program can report any break downs inside the workflow.

Support System While Using Management :

Choice making for an organization is as a rule spared for the administrators of the organization. Center administration need to take on more of a support role to the choices made by the organization, rather than endeavoring to manage anything to workers. When directors are given a assignment, they ought to pool the resources essential to assist their specialists to urge the work done. A effective supervisor ought to be the go-between for specialists and officials, and a facilitator that’s doled out an errand to total.

Put Checks in Place:

It is one thing to make a compelling stream of data, and it is another thing to ensure that the data is being fittingly gotten and informational are being carried out. When executing a workflow arrange it is principal to join a criticism allocate and a check on advance. Avoid making frameworks that point blame at one gather or one person, but or maybe see to move forward the structure that broke down and made the issue within the starting. A consistent framework of checks and input can offer help in ensuring that the corporate structure is working authentically which all data is being gotten.

Bibliography

1. Hill, B. (2019, March 7). The Importance of a Good Organizational Structure. Retrieved from Chron: https://smallbusiness.chron.com/importance-good-organizational-structure-3792.html
2. Ingram, D. (2019, March 12). Why Is Organizational Structure Important? Retrieved from Chron: https://smallbusiness.chron.com/organizational-structure-important-3793.html
3. Juneja, P. (2015). Importance of Organization Culture. Retrieved from Management Study Guide: https://www.managementstudyguide.com/importance-of-organization-culture.htm
4. LinkedIn. (2013, October 4). Organizational Structure. Retrieved from Slide Share: https://www.slideshare.net/xenna_85/organizational-structure-26872255
5. MSG. (n.d.). Retrieved from MSG.
6. n, n. (2018, February 15). doi:https://online.pointpark.edu/business/types-of-organizational-structures/
7. Organizational Structure. (n.d.). Retrieved from Business Dictionary: http://www.businessdictionary.com/definition/organizational-structure.html
8. Root, G. (2017, September 26). Recommendations for Improving an Organization’s Structure. Retrieved from bizfluent: https://bizfluent.com/way-5207414-recommendations-improving-organization-s-structure.html
9. https://books.google.com.lb/books?id=CkqeSb7JH0IC&pg=PA129&dq=Flat+Structure+disadvantages&hl=en&sa=X&ved=0ahUKEwimxfOh5K7pAhVqUhUIHfveAbAQ6AEIJjAA#v=onepage&q=Flat%20Structure%20disadvantages&f=false

Essay about Organizational Strategies

Abstract

In this paper, I have chosen the product “Farm to Finger”. I will discuss the different kinds of strategies used to operate this business effectively and efficiently to sustain it in the organization. At first, I will provide the background of the product then I will explain the various strategies used in the product market. Secondly, I will elaborate on the financial strategies used by the company. Then, I will mention the market potential investor used by this company to operate the financial activities smoothly. Moreover, I will explain the different organizational strategies that we have used to achieve the target goal. At last, I will discuss some of the risk associated with this business and some of the measures to overcome those risk.

Keywords: product market, organizational, financial, investors, risk, strategies

Determining the organizational strategy of Farm to Finger

Farm to finger is the agricultural product marketer that directly connects to the farmers and assemble the local products from them and deliver to the customers. It was established to maintain a gap between the farmers and customers. It provides great quality fresh and organic products at a reasonable price. Now, this company is in survival stage where we have anticipated the requisite for cash to keep the company constant and cost-effective. In this stage, we have already made the financial projection of our business and also we have evaluated the income statement, sales revenue, balance sheet, and cash flow to make the proper financial activities. We have also recognized the associated risk and used some methods to mitigate those risk.

The strategy used for product-market

A product marketing strategy goes hand to hand with the product strategy. It is the plan that recognizes and characterizes what we need to achieve. A proper strategy focuses on everybody from the CEO to sales to consumer support in a similar direction. It aids in keeping us concentrated on our customers and the target market (Hellmann & Puri, 2000). The agricultural product marketer is to protect the services engaged with moving an agricultural product from the farmers to the buyers. Likewise, we focus on marketing the products by adding value to those products with different methods by arranging, sorting out, coordinating, handling, repackaging, rebranding, and marketing agricultural products so as to satisfy both the farmers and the buyers. Hence, the basic features of this business are gathering, transporting, evaluating, preparing, and utilizing the selected agricultural products.

As we know, nowadays people are being health conscious. So, the product was started with the aim to connect more and more rural farmers to the urban consumers and create a healthy and easy lifestyle by providing highest quality products with natural, fresh and agricultural products. Our target customers are mainly office workers, business person and health freak. Additionally, there are some competitors that exists in the same market but the best part is that we are able to compete with them by mainly using two methods of Porters competitive strategy that are cost leadership and differentiation (Dess & Davis, 1984). Cost leadership because we provide our products with high volume low cost and differentiation as we have maintained uniqueness in our products by not just connecting farmers and consumers but, providing chemical-free products with eco-household products and also listing full information about the products like when, how and where it was produced to make our consumer aware of those products.

Financial Strategy

A financing strategy is crucial for any association’s strategic plan. It sets out how the association intends to invest its overall tasks to meet its goals now and in the coming future. A financing strategy has precise targets, and the actions to be made over a three to five-year time span to accomplish the goals (Anthony, 2019). To run the business effectively we have projected different financial strategies such as income statement, balance sheet and cash flow statement to know how the organization will utilize and deal with its financial assets to seek after its goals. Fundamentally, it outlines the steps to develop the business and achieve our financial objectives.

Strategy for the potential investor market

To make the product or service successful in the market, it should have a recognizable need in the market. Most of the companies get solutions for failed organizations in search of issues. Accomplishment comes through the sale so, for individuals to pay for what you give, they should feel that they need it (Lazi, 2017). Investors will perceive how our products tend to discourse particular issues that the potential customers have. Whatever may be the size of the potential market, we need to first discover our way in. A few organizations begin with a high-end procedure and after that go to the majority whereas, others search for a lower-income market to help build up a mass intrigue. With a particular purpose of entry, we would be able to depict to investors a reasonable strategy to utilize the investment that investors give to create and develop the business. There are different types of investors such as friends & family, venture capital, banks, angels, supplier, government, customers, and corporate investors. Likewise, there are two sources of funds that are debt and equity financing (Hovakimian, Opler, & Titman, 2001). The major investment of this business is through equity financing from venture capital and family. Hence, we must ascertain the good investor who can financially support our venture to magnificently sustain in the market for the long run.

Organizational strategy

Organizational strategies give an outline of the actions that we expect to make so as to accomplish our long haul business objectives. Prior to developing its strategy, the organization must contrast how it is in the beginning and how it needs to turn into. Particularly, where it needs to be at a given future time period (Miles, Snow, Meyer, & Coleman Jr, 1978). It must characterize the distinctions and afterward list what it needs to do to achieve. In business, we need a well-characterized plan so as to succeed. Without a proper organizational structure, it’s difficult to set up achievements and realize when we are accomplishing the goals.

The organization strategy is depended on the vision and mission of the business. The company started with a vision to provide our customers with the fresh Nepalese produced agricultural products. To provide information to the consumers by offering products with a complete product line of when, where, and how the products were produced to create value for the products. Also, to support organic farms that keep our earth and water pure. Moreover, the mission of this business is to provide the highest quality of fresh and agricultural products with chemical and pesticides free products. We are excited to connect additional number of rural farmers to the urban consumers and create a healthy and easy lifestyle. Further, to maintain friendly working environment where we are eager to serve and ready to educate.

The associated risk to the organization

Risk infers future vulnerability to deviation from anticipated earnings or anticipated results (Maverick, 2019). It estimates the uncertainty that a financial specialist is happy to take to understand profit from an investment. It is inalienable in any business venture, and great risk management is a basic part of maintaining an effective business. An organization’s management has to change degrees of control in regards to risk. A few risks can be legitimately overseen whereas, other risks are generally beyond the ability to control of organization management.

There is some financial risk associated with the business such as liquidity risk, market risk, operation risk, and credit risk that affects the internal and external factors of an organization. Additionally, when a similar business exists in the market then there might be the risk of loss as the consumer may be attracted to another company. Sometimes, the company can invest all the cash in assets due to which it becomes difficult to fund in the next milestone leading to a decrease in sales revenue. Further, there are some measures of risk to prevent the business from the risk are beta, standard deviation, the conditional value of risk, coefficient, and value at risk.

Conclusion

To conclude, in this paper I have displayed my product ‘Farm to Finger’. This is an agricultural product marketer that connects with the customers and farmers. In this business, we collect the local product from farmers and deliver to consumers. This product was started with the aim to connect a huge number of farmers to urban consumers and create a healthy and easy lifestyle by providing the highest quality products with natural, fresh, and agricultural products. We are able to compete with them by mainly using two methods of Porter’s competitive strategy which are cost leadership by providing a low-cost product with high-quality products and differentiation as it provides full information about the product like when, how, and where to the customers when delivering that product. Similarly, we have projected balance sheet, cash flow and income statement for the smooth operation of financial activities to earn sales revenue. Moreover, the major investment of this business is through equity financing from venture capital and also family. We have identified organizational strategies by determining the vision and mission of company to maintain accurate and successful business activities. Further, liquidity risk, market risk, operation risk, and credit risk are risks that are faced by an organization. To overcome those risks I will be evaluating the coefficient, value at risk, beta, and standard deviation.

References

1. Anthony, L. (2019, January 25). Financial Strategies in a Business Plan. Retrieved from https://smallbusiness.chron.com/financial-strategies-business-plan-5107.html
2. Dess, G. G., & Davis, P. S. (1984). Porter’s (1980) generic strategies as determinants of strategic group membership and organizational performance. Academy of Management Journal, 27(3), 467-488.
3. Hellmann, T., & Puri, M. (2000). The interaction between product market and financing strategy: The role of venture capital. The review of financial studies, 13(4), 959-984.
4. Hovakimian, A., Opler, T., & Titman, S. (2001). The debt-equity choice. Journal of Financial and Quantitative analysis, 36(1), 1-24.
5. Lazi, Y. (2017, October 16). Developing Marketing Strategy for Potential Investors. Retrieved from https://www.lexology.com/library/detail.aspx?g=97e22a8a-8d06-4a4e-8833-0513316ef8e0
6. Maverick, J. B. (2019, July 17). Financial Risk: The Major Kinds That Companies Face. Retrieved from https://www.investopedia.com/ask/answers/062415/what-are-major-categories-financial-risk-company.asp
7. Miles, R. E., Snow, C. C., Meyer, A. D., & Coleman Jr, H. J. (1978). Organizational strategy, structure, and process. Academy of management review, 3(3), 546-562.