Kiwi Ultra Fruit Juice Strategy Analysis
(a): Strategic planning:Â It deals with the big image of the organisation. It is considered as an organisational activity which is used to set predominance along with focus on energy and resources and strengthening operations. It also ensures that whether the employees and stakeholders are working together for a common goal with the establishment of agreements which intend to show outcomes/results. The most important thing for this plan is it is not a monument, but at end it is way for a firm to achieve its purpose. The main purpose of this plan is setting overall or long term goals for business and achieves those goals.Â Such a long term plan looks into four or five years in to the future. It also involves stepping back from every day operations and review where business is headed and what its next priorities should.Â It includes business, its vision, firm’s identity and the direction in which firm is heading.
(b): Operational planning:Â the operational planning refers to the steps which are to be considered and followed to carry out the organisations goals. Moreover, it is the planning in which strategic goals are broken into small activities and aims which are planned to reach out to vision and goals. This plan is to represents high detail information to direct people in performing everyday tasks. This plan provides who, when, what and how much is required to complete the task. That mean, the strategies which are to be considered with the persons who will be responsible for specific tasks and timelines when the tasks are to be completed with the financial resources available for those strategies. The main purpose of this plan is to provide firm with a clear image of their tasks and responsibilities with referring to common goals and objectives contained in strategic plan.
(a): considering myself as the CEO of kiwi ultra fruit juice I would make a complete strategic plan by setting goals & visions.
Three strategic goals in my strategic plan will be:
- Making a vision to expand the business into other areas of NZ so that company can earn more in slow economy as well.
- Another mission will be to favourably price the products by reviewing with that of other competitors.
- The last goal of the company will be to move the brand into some other foreign lands with a complete strategic plan.
(b):Â In order to expand the business the company need to take actions such as the very first action will be to clearly define the market. This seems to be a very simple step. Kiwi ultra juice need to consider the demographics and locations and interest or needs of customers of that specific location. In this way the company can bring out products which are more preferred by specific located people. Moreover, company can perform market analysis. It will involve more market research targeting customers.
Secondly, in order to develop the business internationally, the company should increase their sales in the existing markets as well as they should develop more products than only orange juice. This will bring their company to next level. They should launch products which completely differentiate them from their competitors and develop a new image.
(A): control process: It is a continuous process. The four steps involved in control process are:Â 1. Setting up of control standards:Â every company plan their activities in advance. On the basis of these plans, goals and objectives are fixed for every department and branch.
2.Â Measurement of performance (Actual): this is the second step in controlling process. Its actual performance is measured against the standard sets. This step will let the management know whether they are working according to the plans or not.
3. Compare measured performance against established standards: this step in the control process is for making comparisons of actual performance with the standards sets. The main purpose of this step is to (a) find out the deviations if in case (b) and know the reasons for such deviations.
4. Take corrective actions: last and most important step in this process is taking corrective actions. Efforts are needed to be made if performance is out or less than the standards
(B) Types of control:
- Feed Forward:Â in this type of control, deviations are predicted and measured and actions are taken before the occurrence of such errors. If such errors are not measured then the systems will not get output as the firm has desired.
- Concurrent: this type of control takes place whilst activity is in progress. This process involves regulation of activities which are being carried out ensuring that they conform to the standards of the organisation. It is designed to make sure that employee working activities are bringing the correct outputs and results.
- Feedback control: this types of control focuses mainly on the output of the organisation after the completion of whole transformation. It is also called as output control or post action. It is also important to note that this step is mostly preferred when other two seems to be more costly or not feasible.
(c) Two examples of feed forward control that kiwi ultra juice might use to ensure that its products are of highest quality:
1.Â In case of kiwi ultra juice organisation should have checked the prices before charging premium charges and also produce more varieties of juice in the market.
2. The company should also have checked the image of its competitors and then they have taken such actions through which they can present their company and products in a better way ensuring the quality of the brand.
(d) Using concurrent control to achieve its objective: concurrent control is an ongoing process step in which measures can be taken when the process is working. In case of kiwi ultra juice, company should have changed its premium prices when they realise the charges are high as comparative to other brands. And this will help them to increase their sale and achieve companies’ objectives.
While, in case of feedback control, the company can use the advices of marketing experts researchers and can plan to expand the brand in other foreign lands and can earn good revenue. But in this case company need to make good plans and launch product in a more productive way.
Ques4:Â Â Â Â SIMPLE ORGANIZATIONAL CHART FOR TUCKER’S COMPANY:-
Mr. Harnett, president of Tucker Company explained board of directors regarding his reorganisation of company. The company is divided into three divisions as: commercial, military jet engines & utility turbines (lab operating) with a VP for every division and individual manager. Each division has their own departments.
Ques 5:Â Mr. Hodge, Head of the laboratory operation and Mr. Franklin, departmental manager of Engineering department, Utility Turbine division had conflicts over the work of tests that were to be carried out for engineering dept. of utility divisions. The main issue was the involvement of Mr. Hodge in the experiments and its design and selection of materials and evaluation process of the experiments. He felt that laboratory should be involved in all department experiments and divisions as well. On the other side, Mr. Franklin did not liked the idea of Mr. Hodge and did not want laboratory to get involved in all such cases. Hence there is a clear conflict between both department managers and over their roles. Moreover, there is also interpersonal kind of conflict.
Some of the conflict between both the managers is also due to the organisational structure in past and also due to the personalities of both the heads of the department. Looking on to the organisation, the reason for the rising of the conflicts is extension of facilities of departments to all other departments and divisions. Illustrating this, the laboratory was under Military jet engine division and they have to provide facilities to all departments. The laboratory has more work towards military so it should not inclined more towards other experiments and tests from other divisions. Hence, the work load gets high and then conflicts start between interdepartmental and interdivisions. Because lab manager has to report to military jet engines vice president, it was not separate on its own.
Ques6 :Â Â Â Â Â Â Â New organisational structure for TUCKER’S COMPANY:
Such a design ensures that department which provides help to other departments of all divisions would not only limit to single division. So, the common department will be able to provide and extend their services to all other divisions and departments. The laboratory will be directly under the control of president and can be named as shared services division department. This can be termed as matrix structure of organisation.
The advantage of such a chart would be that this new shared department would be accessible to all departments for all their tasks and can be performed without any bias.
The disadvantage of such a division will be that new division formed will be autonomous and even if it had manager like Mr. Hodge who always think of its own rather than company will act in irresponsible manner.
Ques7: Centralization versus Decentralization:Â
- Centralisation refers to the process in which activities of an organisation are mostly controlled by the top managers. Here, top managers make key decisions with little or no input. They make planning on the basis of decision making and becoming more concentrated within a specific group or location. The environment is more stable as well decisions are significant.
Whereas, Decentralisation refers to the process where decisions are mostly made by or delegated to the lower levels of the firm. Managers are mostly close to the action so more of the responsibility is sent towards to them. Companies mostly decentralise for managers to get more of the work done. It helps to motivate them more as well as helps to develop lower level personnel.
- Mechanistic vs. Organic :
Mechanistic refers to clear chain of control an is more formal.Â This structure runs like a machine and individuals and functions behave more in a predictable way. This structure mostly works well when the environment is certain and even there is little change. People are more willing to obey and corporate and the work is repeating. Production is more.
On the other hand Organic structure refers to flat structure. In this the firm uses cross-hierarchical and cross-functional teams. The company has low formalisation and has a comprehensive information network. The company works like a creature. Communication is more horizontal.
Ans: The tuckers company should be more centralised and mechanistic. The authority of decision making should be handed to the president of the company because most of the managers working in the firm are inclined towards their personal status rather than the company’s status. In such a way organisation top level make the decisions and work is carried by lower employees in a more orderly manner.
Another reason for the company to be more centralised is the environment is more certain and stable. Mangers like Mr. Hodge and Mr. Franklin had created more conflicts because the decision was in their hands. Such an environment affected the output of the laboratory results. In a centralised and mechanistic structure, organisation runs like a machine. Decisions are more significant. All managers have their clear tasks and roles and divisions which will not make confusion or raise a conflict.
Ans:Â The type of span that would be suitable for the tucker company is wide span of control. The reason behind the wide span of control is there will be fewer managers in the organisation. More the managers, more is the conflict as it can be clearly seen in the tuckers company.
Another reason for this is with one or two managers, the employees will be on same level and they can work with each other. All the employees will be delegated clear duties and tasks .
Such kind of supervision and control can create more positive friendly environment among all members. So in such a case conflicts would be less among managers and output will be more.
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