Planning will help Alicia and Paula’s company to keep their company on track, so as to obtain their desired goals and objectives. Planning will also help them to predict any possible roadblock that they are likely to come across along the as they will be running their business. Planning will also allow Alicia and Paula to have a more control of the future of their company. Planning will also help them to understand the business environment and their competitors. They will be able to understand the different suppliers and services that is available and any business barrier in beer industry.
Having this information will help Alicia and Paula to ensure that they have a wide range of option when they need to be supplied with raw materials. (Deceenzo eta, l 2005) Planning will also help them to achieve their goal of making profit. Strategic planning will be the best one for the company. This is because the business was initially their but it failed despite being started again it is already facing a lot of problems. Strategic planning is a concept that many people who are facing business problems are using and it has worked out for them.
Strategic planning involves putting in place a strategy that their business is going to follow in certain duration of time. Their strategy will be for some the whole company. Each area of the business from sales and marketing department all the way to human resource department will come up with their strategic plan that must be in line with the company’s strategy. (Richard 1995 page 44) Strategic planning will also give the company a direction. It will outline where the company want to be in the next time. What type of strategy that will lead Harrison brewery into competitive advantage?
The type of leadership that will help Harrison brewery into competitive advantage is the Cost leadership. Cost leaders ship involves a company trying to have competitive advantage over its competitors by selling its products at a lower price compared to their competitors. This will help Harrison breweries because they will be leaders in terms of cost i. e. their prices will be cheaper as compared to their other competitors. Harrison breweries should adopt the following sources of cost advantage: ? Economies of scale –
There should be a relationship between the size of Harrison breweries in reference to the volume of beer being manufactured and the cost measured. Harrison brewery should ensure that they obtain an optimum volume of beer production. An optimum volume will be reached when the average cost of manufacturing per unit is minimized. The following are the sources of economies of scale overhead cost and the cost of production, employees specialization and the volume of production, specialized machines and volume of production, volume produced and sophisticated machines. (Richard 1995 page 45)
The company should try to avoid diseconomies of scale because diseconomies of scale will make the company be disadvantaged as compared to its competitors. Other sources of advantage include the learning curve, having technological advantages, policy choices and differential low cost accessibility to production factors. Cost leadership will work best for Harrison breweries, when they have many buyers and the buyers have immense power, when the needs of the consumers are the same, when the standards of the beer are the same, and when the beer prices in the market is so competitive.
Part B Nokia is an organic organization. This is because the company allows its employees to make decision on its own. Nokia also changes its structure, process and roles so as to respond to the ever changing needs of the market. Nokia being an organic organization is characterized by the following organization structure: decentralization, employees initiatives, the communication is multi directional, the structure is also flexible and is defined clearly, and lastly employees at Nokia usually participate in solving a problem and in making decision pertaining to a product..
As an organic organization Nokia emphasizes on the problem solving, effectiveness, creativity, adaptability, innovation and responsiveness. The organization structure of Nokia has been influenced by technology. Through the following Technology mainly information technology has improved decentralization of organizational structure of Nokia. The company has branches world wide with several regional representation.
Despite the fact that headquarters is located in Finland the company has been able to coordinate all the activities from its headquarters because of the availability of technology which allows for communication between different managers of different regions. The advanced technology like email services has allowed individuals to communicate with ease. Technology has made Nokia company to come up with an organization structure that enable it to manage it employees effectively while coming up with many new products. (Thomson eta, l 1996)
Recommendations to Nokia To become a learning organization Nokia will have to ensure that their employees undergo regular training. This is mainly meant to improve their skills. Nokia can come up with a department that will be responsible for employees training or they can outsource. The best type of learning that can be done is on job training. This is because on job training has the following advantages: Advantages of on job training are: – They are cost effective in the long run. – It does not disrupt the business
– If an employee is trained in a working environment, with tools and equipments that they are familiar with, they can have direct experience as per the standards of the employer Trainees get the confidence when using on job training because they are supervised directly, this makes them feel that they are doing the right job. (Spletzer eta, l 1991 page 70) Part 3 Training- I will organize training for all the employees. The training will aim at equipping employees with ideas and techniques that will greatly help them. During the training employees will be taught how to work as a team (Team learning) employee will learn as a team (Senge 2005).
Another goal that I want to achieve is that I want to develop personal mystery amongst the employees. Employees will continue to deepen and clarify their personal visions. My goal will be to entrench mental models in employees – these will be improving employee’s assumptions. Their assumptions will be generalized, ingrained deeply and it will have impacts on how they understand their action mental. Am also planning to achieve the goal of building a shared vision – The leadership that has been offered has enabled the organization to perform well over the last ten years.
I will share the picture of the future that I want to come up with for the company. The vision will uplift and it will encourage innovation and experimentation. The vision will be spread because clarity will increase the process of reinforcing and rub off commitment. (Senge 2005) I will motivate them to take the ideas by telling them the importance of adopting the five practice of core discipline. I will also go ahead and give them few examples of companies that have adopted the practice and are now performing well. The changes which are necessary for an organization to become a learning organization are:
Cultural changes – the company have to change its culture for it to be a learning organization. The culture should include an innovative approach towards solving a problem.
Reference: Deceenzo A, Robbins P, Kotze S & Stewart B 2005 Fundamental of Management essential concepts & application Richard K 1995 why a learning organization retrieved from worldstd. com on 15th January 2003 Senge P 2005 Learning organization PDF retrieved from omahaodn. com on 16th 2009 January 2009 Thomson A, & Stricker J 1996 Concepts and Cases of Strategic management journal of long range planning, 29th volume number 6 page 902 909