This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
within our company which will need to be managed. Unfortunately our top
management is not well equipped with leadership skills due to previously held
positions. In the best interest of our staff members as well as for sake of the
company growth, our top management will constantly go on monthly basis for
workshops to acquire leadership and managerial skills.
5. TYPES OF ORGANSATIONAL ACTIVITIES
Innovation activities: We are predominantly charged with Sales and Marketing,
Product research and development. We are doing this through local newspapers,
sales agents, text messaging technology as well as through our newly launchedweb site. This has enabled us to reach new customers that are geographically
dispersed.
6. LIFE STAGES OF A COMPANY
Direction: Our Company’s power still resides in the hands of the top management
which are also the co-founder of the business. They take charge of the direction of
the company. Functional tasks such as production, distribution and marketing are
the responsibility of supervisors. The functional organisation structure of our
organisational structure can best be depicted with the following histogram.
Figure 1. Functional Organisational Structure of Zengani Building Projects.
ZBP being a newly formed company has not fully gained a market share for its
services. We therefore face threats from competitors that have been in the business
industry for decades with similar products and services. This is true especially
when customers do not incur switching costs between providers.
ii. The threat of new entrants:
The rate of South African young entrepreneurs is growing in the constructionindustry. This brings another threat to Zengani Building Projects as many young
entrepreneur enthusiasts are entering the construction industry with similar
services and product features.
iii. The power of buyers:
When buyers have information about the costs of production, they can negotiate
prices down and reduce our industry profitability. To avoid this, we will insure that
price acquisitions and costs of our resources are kept as confidential as possible.
iv. The power of suppliers:
This is high when there no substitutes for the supplied products. As a result of this,
such products can command high prices.
v. Rivalry among industry members:
Competition tends to be high when demand growing slowly or declining. This
causes greater rivalry when it is difficult to leave the industry due to costs incurred
or failure to sell off fixed assets.
8. SWOT ANALYIS
i. Strength:
The strength of our company lies in its distinctive and quality services it offers to
its clients at competitive prices. Any work performed is assessed to ensure that it
has met quality standards set by its top management. The launch of our new
website has not gone unnoticed – it has improved customer liaison and acquired
new customers on the go. Customers are able reached the company at their
Despite the company’s strengths, it acknowledges the challenges that it currentlyfaces within the management. The top managing members that sit with
organisation’s power come from a diverse culture with little previous managerial
experience. This has made them difficult to secure many tenders.
Another concern is the presence of their website. Initially the website was
launched to enhance and integrate the business processes with its clients. The
website has so many flaws, first being static in nature which does not rely on user
input as opposed to modern dynamic websites that have captured the hearts of
many internet users. The website has very basic content that lacks an element of
marketing. This reduces its new potential customers.
iii. Opportunities:
The coming of soccer world cup has seen an economic boom in the construction
industry and we view this as an opportunity. We therefore intend to extend our
services on a wider platform to meet the growing needs of our clients.
iv. Threats:
The global economic meltdown poses the biggest threat by far in any industry and
our organisation is not exceptional to that. Customers’ spending power is reduced
and this slows down the economic growth of our business and we might eventually
find unbearable to meet our obligations and be forced out of the business.
9. FACTORS THAT CAUSE A FIRM TO DECLINE
Poor Management: The role of top management cannot be overlooked in the
success of any organisation and its failure equally is attributed to top management.
To curb this problem, our managers will undergo training to acquire necessaryskills from recognised institutions as well as attend workshops and seminars that
equip people with leadership skills and managerial skills.
Another approach is to have an open decentralised management leadership style
where staff members’ opinions in decision making would be valued. This creates a
free and open atmosphere between managers and staff members which in turn
promotes harmony in the organisation.
Lack marketing effort: Our marketing effort is constrained due to financial
hurdles. As a result, we do not have a strong client base. We have identified that by
enhancing our website we could use it as our core marketing tool to reach new as
well existing customers.
10. SUCCESSFUL ORGANISATIONS
i. Strategic planning relationships:
These are relationships whereby the centre actively participates in strategy
development and implementation.
This does not necessary apply to ZBP since it is a single business unit. However, it
has partnered with SafeGuard as its core supplier for ZBP. This could see the twoorganisations develop long term perspectives and lead to business sharing ideas.
ii. Financial control relationships:
These relationships are defined on the basis of the main centre setting financial
targets and delegates strategy development to business units. This not only is
appropriate for urelatedly diversified corpaorations, but also helps motivate
managers to focus on short term performance and identify short-term weaknesses
in strategy.
iii. Strategic control planning:
These are intermediary relationships that lie between financial control relationships
and strategic planning relationships developed by the business units often
approved by the centre.
11. ANALYTICAL PROCESS
i. Preliminary Corporate analysis:
ZBP is a neatly structured and identifiable business that operates mostly aroundGauteng area, but also stretches its operations as far as Pretoria. It deals with
building, painting, renovations, and waterproofing of houses.
The organisation structure of Zengani is small. As a result communication between
the top management and staff members is quick and efficient.
The financial performance of ZBP is just above the average. However, it heavily
relies on a substantial upfront payment when a certain tender has been secured.CUTHBERT