Business & management

Most impressive topic - GLOBALIZATION

2013-11-24T16:30:00.003-08:00

For me, the most impressive topic is Globalization as it is a controversial issue. It affect a lot on polities, cultural and economic. I am quite concern about the effect of economic globalization. Some people think this help to improve economy in the world while others argue it is harmful to society.

The book “Boddy” define the economic globalization as “Increasing integration of internationally dispersed economic activities.” (Boody, 2011, 125)

I think it is good for economy rather than bad, since it closer the relationship between countries.

Examples

Apple

Apple - products designed in the US, but produced in China

This chart revealed apple's product sell worldwide.

McDonald

McDonaldization transform the fast food culture in global society of McDonald.

Nowadays, there are more than 3,4000 in the world.

Coco-cola

Without globalization, we cannot drink coca-cola at anywhere.

Thus I think globalization is very important to economy.

My home country - Hong Kong

As I come from Hong Kong, so I want to talk a bit about my home country.

Before globalization:

Hong Kong could be defined as low living standard city since there are low level of scientific and education and low wage labor force.

Then Globalization attracted people to do business and build manufactory

After globalization:

High technology was imported, and employment opportunities was increased since companies need to hire more workers, some of the manufactory even moved to other low wage countries or cities so as to lower their production costs.

So globalization does improved our living standard and help to opening up to global markets.

There are many others benefit of improving economy:

Increased trading

This book mentioned Globalisation is "Invisible hand”, to regulate markets and competition in a global market place (Gangopadhyay and Chatterji, 2005, p. 165)

But how can globalization increase trading?

Decreased trade barriers

Without global trading, nations would be limited to the goods and services produced within their own borders.

I watched an article'The gated lobe' from a magazine "The economist" on Oct 12th 2013, it

talk about the trade barriers have been decreased.

From the magazine:

In 2013: the value of goods-and-services exports run to 31.7% of global GDP.

Moreover, the big emerging markets like Brazil, Russia, India and China have displayed a more interventionist approach to globalisation, they relies on industrial policy, so that they can lower their cost of tariffs and quotas.

Examples:

General Agreement on Tariffs and Trade (GATT) help to reduce international restriction

and tax problem

From a report:

According to the Global Enabling Trade Report 2012. Reducing Supply Chain Barrier , it stated that reducing supply chain barriers can increase global GDP.

Decreasing poverty

It might be quite hard to say why globalization decrease poverty, it seems the poverty was increasing, so let me explain more.

Globalization brings developing nations into the world marke such as US, China.

Also, richer nations are spreading wealth to poorer ones.

Examples: Export growth & incoming foreign investment reduced poverty from Mexico to India & Poland

From the research:

More important is that, A research showed the world poverty rates have steadily fallen over the past 20 years.

Decreased poverty in the world showed the economy was improved

Labour availability and skill

Lower labour costs and High skill levels from others countries

Examples: India has low labour costs (about a third of that of the UK), the clothing industry in Europe hire workers in India, so the productivity costs can be decreased by taking advantage of cheaper labour costs

The idea of example was taken from this BBC News, as it mentioned people will hire workers in India.

However, Globalization bring negative effect as well.

Globalisation is widening the poverty gap, which leads to economic inequality.

Poverty doesn’t decreased in all countries

Currency crises can cripple the poor

Example: Indonesia: poverty rates increased by at least 50 percent after the 1997 currency crisis

Meanwhile, rich nations profit come from the expense of the poor

And it harm third-world farmers as the removal of trade barrier, prices are too low so they cannot support agriculture

So this will increases economic inequality in the world

Only serves the interest of powerful states and capitalist elites

The New technology has only moved to elite nations in order to serve an economic interest

Some countries still suffers from deepening poverty cycles

Examples: Africa is not powerful at all, so they untouched the effects of globalization

This is not fair to those poor countries and larger the poverty gab.

Among those advantages and disadvantages, I still think globalization helping our world but not destructing it.

Improve economy in the world

As it moved countries away from agriculture to manufacturing, Unemployment has decreased significantly in poorer nations, especially in Asia

It increase social mobility & trade and prosperity extended to developing regions

So I think the world is brought closer together through the consciousness of shared global space.

SWOT analysis

2013-11-24T16:30:00.002-08:00

As my last blog used PESTEL to analysis British airway (BA), but it can only analyze the how external environment affect BA, now I want to use SWOT to analyze the internal environment, so as to see how strong are their competitiveness on the market. SWOT stands for strength, weakness, opportunities and threats.

Strength:

Focus on both short and long haul flight

BA has both the short haul flight and long haul flight while many airlines only focus on local or long haul flight such as easy-jet, Flybe. BA has been the third biggest airline in the world on long haul aircraft in the world.

Their long haul flight goes to various parts of the world like India, Paris, Sydney and New York. And there are multiple aircraft types.

This video talks about BA have more flight to India as they understand the family matters.

Strong brand image

And BA has managed to establish a fantastic reputation, they established brand with high levels of consumer recognition and trust.

The profit per passengers is the highest. They carry out the most passengers in 2008. Now, they carry more than 50 million passengers worldwide.

Expanse aircraft fleet

Expansion of aircraft fleet, which access to around 238 aircarfts comprising 57 Boeing 747s, 42 Boeing 777s, 21 Boeing 767s, 13 Boeing 757s, 69 Airbus A319/320/321s, 33 Boeing 737s and 10 smaller aircraft being used in the company’s regional business.

Skilled staff

The staffs are trained 1200 hours, so they are skilld.

The sole airline occupant of Heathrow Terminal 5

They are strong presence at London Heathrow International airport. In March 2008, they help to boost the service offers customers in the UK.

The company principally conducts its business operations in the Europe and the Americas region, besides serving major routes across the Middle East and Asia-Pacific. British Airways is headquartered at Harmondsworth in the UK.

Powerful alliance

From the corporate responsibility report showed that in 2012, British Airways is a member of the oneworld alliance, along with other major players such as AMR Corp and Cathay Pacific, boosting its competitive powerat the global level. The alliance is powerful.

Weakness

High maintenance cost

The multiple aircraft types could cause high maintenance costs, such as fuel costs is one of them.

When the fuel prices rise or the pricing competition increase, they are vulnerable to these problems, since they rely heavily on the airline industry, accounted for 99.7% of its total operating profit in fiscal 2007.

Complex work due to multiple locations

Multiple locations served by BA could affect the work efficiency of them as different locations like local, regional, national and international have different business model. The works are much more complex.

Effect of cabin crew strike

Moreover, the problem with cabin crew in BA cost the business a lot of money, and it damaged the reputation due to cabin crew strikes, it affects on passengers, as they will think the airline is not reliable.

The survey showed less customers are likely to book BA flight.

Short haul business strategies

They don’t have continuity of strategies in short haul business.
They use large Boings during the short distance flight, this would increase their costs as it is unprofitable flight.

Suggestion: They can join these flight with other airline, so as to reduce their cost and not be wasted.

Poor cost-control

Their cost-control is poor. Top managers are given in high salaries and bonus.

Opportunities

Globalization

The increase in globalization cause the downturn in the business of BA, but this can also be opportunities as BA will persist the process of invention and innovation in order to be more competitive in the market, and new technologies are adopted to attract customers, such as the self-service check in, It lower the cost, which estimated saving at around $3.5 per person.

New technology

It predicted that the online travel booking of flight will be approximately 55% in 2014

And they created an outdoor campaign using new technology

My thought: I think this is quite interesting and creative, the little girl and boy act as looking on the sky and interact with aircraft flying overhead. This can attract more awareness of people.

Growth of the traveling trend

On the other hand, the trend of traveling is growing. This is benefit for increasing customers. Growing in emerging markets like China and India is a way to develop their international business. China and India are seeing investment in the travel infrastructure, so rising foreign tourism or expand in middle class can help to create opportunities.

Growing Asia Pacific market

According to the World Tourism Organization (UNWTO), international tourist arrivals grew by 4% in 2012 to a total 1,035 million, up from 996 million in 2011. In terms of regions, Asia Pacific was the best performer with a 7% growth in arrivals.

Furthermore, UNWTO forecasts international tourism to continue growing in 2013. Arrivals are expected to increase by 3% to 4% globally.

BA with its strong operational base and expertise, is well positioned to benefit from increasing global tourism industry. This can help to generate additional revenues.

Threats

Change in customer behavior

The change in customer behavior is threat to BA, as there are lots of service provider, which will provide better services and low fare to attract the customers.

Suggestion: they can improve their market programme to attract new customers.

Raising fuel prices

And the raising fuel prices will also affect the future of BA. Their cost will then be higher. In fiscal 2007, the rising fuel price leads the companies fall in operating profit.

Strong competitive

Since there are many airlines focus on low-cost, easyJet and Ryanai are the examples, so the competitive is quite intense.

Weaken economic

In the US and Eurozone, the economic outlook become weak. BA may loss on these two markets.

Suggestion: They can try to enter new market, the potential countries such as China can be their choice.

As China have highly development growth, and more people in China choose to study abroad in England and travel here.

Unexpected events

The events happened unexpectedly, such as political instability and terrorist attacks, BA is vulnerable to those events.

PESTLE analysis

2013-11-24T16:30:00.000-08:00

As airline is one of the largest external economic activities, it is important to developing countries. From the BBC News on 8^th Nov, showing British airway (BA) owner IAG sees the profit rose nearly 8%.

Thus I would like to know how the BA can earn profit in marco environment and how it affect BA, which using PESTLE analysis, the tool that I learnt this week, to find out what the challenges are BA facing and the what factors have to be considered when they plan for future. PESTLE stands for Political, Economic, Sociological, Technological, Legal and Environmental.

Political:

It talks about how the rule of government affects the organization.

Comply on certain regulations

BA flying both nationally and internationally airplanes, so they need to compliance on certain regulations and policies of government, which are heavy, they control where airlines can fly, also on their products, planning and pricing policies. Also, the EU regulation on carbon emission reduction.

Unstable political environment

In recent year the political environment in the UK was unstable because of coalition government and the major spending cuts which for making savings and reducing on the national debt. As BA planned expansion of Heathrow airport, the budget cuts may leads the increased number of flight cannot go head but the revenue will increase when they brought it.

Taxation

In January 2011, the tax – VAT increase at 20%, this will affect BA and its shareholders.

Security checking and insurance fees

Moreover, they have to pay more for security check and insurance. This is important to competitive advantage.

My thought: I will consider all the past terrorist threats when I choosing the airline, if lots of accidents happened in that company, I will not choose it because I afraid and don’t have confident to this company, so the sufficient measures in needed, maintain consumer confidence is one of the main considered factors.

But the costs of BA will increased due to the expense on security check and insurance. They have to follow the security legislation as well.

Economic

It is about the economic factors affect the business operations and decision making of the organization.

Recession

Recession is one of the effects on BA, as the number of travelers tends to decrease, since some of the customers in Europe may choose to take train rather than airplane.

My thought: if under recession, I would prefer to take train even it spends more time to get to the place.

Rising fuel price

Another risk is the cost of fuel, as the raise oil cost will turn to increase the production cost. Usually, they will increase the tickets prices so as to share burden with customers.

My experience: again, if the price tickets increase, I will choose another substitutes or not to travel, for example, the tickets to Japan increased on last year, so I delay my planning and want to wait until the tickets become cheaper. I think this will leads to less people use planes.

Poor exchange rate

As poor exchange rate will affect BA as well, such as weakening Pound would reduced the amount of business travel, people may just talk on phone or internet call, such as skype.

Socio-culture

It is how the social environment of the market affect the organization.

Aging population

Aging population is happening in the UK, it means there are more older generation, which they have more leisure time to go travel. This is a potential opportunity to BA.
For example, my grandmother immigrated into Canada, although she is already 75 years old, but she always travel with her friends, such as they just went to Australia on last year.

Traveling trend

And there are more people like to travel because of different purpose.

This cultural trends could benefit BA.

From their corporate responsibility showed their social goals:

Technology

The innovation of technology may affect the operation of the industry and market.

As the technology advanced, BA invested lots of money on technology.

Online internet services

Online Internet service has been widely used, it helps BA to reduce costs and become competitive. For me, now I prefer to use Internet ticket booking system rather than book via telephone or go to their office, since this is more convenience, and to BA, they could manipulate their resources efficiently, like they can ask their staff to do others jobs but not only for ticket services and they can cut the cost of travel agents as well. Meanwhile, they need to aware the elderly may not know how to use E-tickets service, so even they invest a lot on technology but they cannot be too reliant.

Also, now passengers can check in online.

My experience - I almost check in online every time, it saves time, more important is that when I do that, I will easily browse their site for cheap tickets, I think this could also be a way to attract customers.

Self-service check in

At Heathrow airports, there are self-service check-in machines, which mean passengers don’t have to queue up for check into the flight. This helps the process become faster.

My experience - To me, as a passenger, I feel more satisfy to BA with this service, as it gave me a good image.

Others services

And they also used security check technologies, and offered wireless LAN system for customers.

Legal

The certain law will affect business environment in certain country as they need to maintain policies for themselves.

Safety regulation

The European union restricted the air carriers based on safety reasons. The power of union is strong so this can affect BA, they will voice the opinion of workers, take Cabin Crew strikes as example, it happened few years ago, the workers decided to make a three-day-strike, I think the staff is important to a company and good employee relations are needed if BA wants to avoid industrial action or any conflicts between employees.

Terrorist attacks

Moreover the terrorist attacks cased the implement of new security regulations from the Europe and US, which leads to fall in customer traveling confidance.

Environmental

It is how the surrounding environment affect the organization.

Green issues

As people are being more aware of the environmental impact, if BA fail to integrate environmental strategy, it could lead to a huge effect on the BA’s reputation and income.

Environment regulation

Flying a flight could affect a lot on environment, as there are many carbon emissions and waste, this would affect local air quality and cause noise pollution.

Environmental regulation may increase operational costs each year. However, BA has set goals for further reductions in their carbon emissions. For example, their 191 aircraft engines can help to reduce NOx and improve fuel efficiency.

They have reduced 10.9% in CO2 emission in the UK.

For noise pollution, their new aircrafts such as 12 Airbus A380 and 24 Boeing 787 aircraft are quieter, so as to reduce noise pollution.

Climate change

Climate change is the key thing that BA needed to concern, and they are trying to invest new technologies and low-carbon fuels, to reduce greenhouse gas emission. They has recycled 35% of waste across Heathrow and Gatwick airport.

From their corporate responsibility showed their environmental goals:

Porters 5 forces

2013-10-27T20:13:00.003-07:00

For my future, I am interested on running my own business. After learning Porter 5 force, it let me know more how to analysis a industry in micro environment. Recently, Tesco puts U.S. grocery chain in bankruptcy. The reason may come from too many competitors in US like Kroger, which was the fifth and largest supermarket chain in the world or Wholefooods, the top 100 largest retail chains in the world. And the bargaining of buyer power is high. People have many choices to switch. Thus they may need to plan a unique strategy to catch back their customers, and they have to look at different level of supermarket as their competitors, cannot just look at those with similar level.

McDonald

I would like to look at why McDonald can keep their customers and being successful in such long run even there are others potential competitors.

McDonald in the past:

Now:

Threat of New Entrants: very high

Low level of experience, people don’t need professional skills or specialist knowledge or experience, and the training is easy as well.
Not expensive to enter the industry, the costs for foods are low.

Low economic of scale, as the industry can buy foods in bulk, so as to get lower cost.
Low barriers to entry, so it’s easy for new industry to enter.

Threat of substitute products: very high

Many substitutions like Mos burger, subway, Burger king, they both are the worldwide fast foods shop and they sell similar products. So customers can easily switch for similar products.

The substitute can also be the other fast foods shop that selling other products.

For example:

Bargaining power of supplier: Not sure

As I don’t know the number or size or their suppliers, so I can’t measure it. If the number and size of suppliers is high, then the supplier power is high. It is not good for company.

Bargaining power of buyer: very weak

Although there are many substitutes, but I found they are selling in a unique way. Other than products, they sell the experience, I mean the culture and the feeling that given to the customers. They mainly are bringing a message of happiness.

Here are their slogans from the past:

1990 Food, folks and fun

1997 Enjoy more (United Kingdom)

2000 We love to see/make you smile

2000 Put a smile on

2002 Every time a good time

Thus it simply delivers a message to customers that eating in McDonald is enjoyable and joyful. This help to keep their customers loyalty. And this is the different with its competitors. Mosburger or subway doesn’t have such impressive message delivered. I think it also is the reason why they can catch their customers for not easy switch to others substitute.

Competitive Rivalry: Low

There are many competitors selling similar products and service.
Even though it is not commodity products. But they have high customer loyalty.

After analyze their 5 forces, I found they both have strength and weakness, which is easy to let the new industry to enter the market, however, their competitive power is very strong.

Analysis of planning my future business:

As I want to run my own business, so I am keep thinking which type of business should I operate with using 5 forces to analyze the market.

Finally, I prefer to open a chocolate industry. The reason was…. because I love to eat chocolates. Haha of course it’s not just only this reason. The main reason is I analyze the market with 5 forces.

Threat of New Entrants: High

Although the cost and time of entry is low, and it doesn’t need much experience, but it requires specialist knowledge of making chocolate, its not quite difficult, people can learn easily. So it's very easy to enter the market.

Threat of substitute products: High

Recently, chocolate shop becomes famous, some new chocolate store were opened such as Godiva, the famous worldwide brand. Other than that, I cannot just look at the chocolate store. There also have some brand that sell in supermarket. Also the own brand in supermarket, like Sainburys, they have their own brand chocolates.

Bargaining power of supplier: Not sure

As I still don’t know the actual number of chocolate supplier in the market, but I think there are quite many since I’ve search on the web. So I guess the supplier power could be quite high.

Bargaining power of buyer: strong

Since there are many substitutes, so it’s easy for customer switching to other brands. So it’s easy for them to drive prices down. It should have something unique to lower down their power.

Maybe to design more on the outlook to attract customers.

Competitive Rivalry: Low

There are many substitutes which selling the same type of products.

The intense competition puts strong downward pressure on prices. If I want to build customer loyalty, it may take more time.

Although it looks there are more disadvantages then benefit for opening chocolate shop. It seems quite easy to enter, but if I want to get over my competitors, I have to be special.

To be unique, I hope my store is not just for selling chocolates, but also be a café so to let people gossip or chat with their friends, to offer some coffee or juice as well. And design a relax place, to let them feel eating chocolate can bring joy and relax.

Maybe something like this,

or this,

Management Theory

2013-10-27T20:08:00.000-07:00

Based on the idea of Organizational structure and design taught on last week, management theory is to solve the management challenges, like span of control or chain of command will affect the running of its business. There are different management approaches that have evolved over 100 years covered in this week’s lecture.

It reminds me news on last year. I was quite shocked at it. A producer in China, Foxconn, it provided electronic manufacturing services, mainly for phone. In 2010, there were startling 18 staff commits suicide within 12 month due to heavy pressures, the media dubbed the tragedy as “suicide express.”, they treat their staff as robot, every staff just follow the order or superiors, they don’t have chance to express their feeling, so they chose to commit suicide to raise the society aware.

Workers report:

“working to the point of tears”

“we are more like machines than the machinery”

“the air conditioners are only here for the sake of the machinery”

This management approach was scientific management by Frederick Winslow Taylor, they streamlined the factory production process, the workers are required to repeat the same routine movements on the production line. They are not able to think, make changes. Just.like they have become part of the machinery, so they became lack of human dignity, social ability, even feel lost.

It also applied to bureaucracy by Max Weber, it brings lots of pressure to staff. Workers have to stick with rules or procedures, if they made mistakes or displease their managers are sometimes punished to spend hours writing out copies of CEO Terry Gou’s personal sayings. They manages their labor based on the principles of obedience.

A right approach can well develop strategies for operating a business, it could brings better planning, organizing, controlling and leading, and those can definitely increase work efficiency and motivated staff.

Take for example, if Microsoft operate under Max Weber’s theory, then the staff cannot express their thought, it leads to less idea come out, and they would not be so enthusiastic on work, it may affect the work effectiveness. So this theory is not suitable for IT or creative company.

However, there is no best way for management approach because organization are different in size, culture and value.

There are some theories that I am quite appreciate and prefer to used in modern company, which are human relation described by Elton Mayo, scientific management by Frederick Winslow Taylor, and theory Y by McGregor. Since I am the person who don’t want to be strict controlled by others, if I were the worker, I will feel stressful if just doing what others asked me to do, and too many rules restricted, it causes me staff discretion, so I am sure I cannot fit in Max Weber’s theory, what he said is to stick with and obey rules, just followed manager’s order. It may suitable for government organization but not in business organization.

Although it can maintain the consistency of the work, I have to say I am not agree with that, we should think what we want, to me, life would be meaningless if treated me like machines, I think personal growth and development is more important, it could bring better work if allow everyone to say their opinions, as they may have brilliant ideas. And being innovative is good for planning business.

Elton mayo-human relation

I hope to work in a company that treats me as a human being but not just workers. So I prefer human relation approach by Elton mayo, it focuses on job satisfaction and group behavior. For example, a nice working environment can motivate staff to perform better. If I working in that environment,

I will be more satisfied on my job, and likely to spend more time to work. Because I will enjoy working here, good mood is always performing better than bad mood. It may bring up more ideas which benefit productivity and efficient. Job satisfaction could always motivate staff to work harder.

Example:
IKEA believe that employees were more productive and committed when the company took care of them and their needs. Its’ culture is to give family-like feelings that makes relationships between employees strong and open.

And I think teamwork is very important in a company, it always works better than individual. More idea or thought can create through discussing with colleges, same as doing projects in school, the work can be more efficiency and improving quality. In addition, it facilitates the exchange of ideas and opinions. For instance, I did a creative activity with four of my classmates in the first week, it has to combine three elements to create a product, and we come up more creative and innovative ideas during the discussion, members are motivating each others in a team, if I only work in individual, I am sure the work quality must low down.

Combining different thought and knowledge of people could bring up a brilliant idea.

Example:
In IKEA, their culture is based on the positive spirit of team, enthusiasm and fun. They strive for people who share positive attitude and values. And they stated working with them is like working with friends. In the video, they talked about the culture of IKEA is
moving, to find a better way and how the staff think the company.

Frederick Winslow Taylor-scientific management

On the other hand, although people dubbed it as emotionless, but I think part of the approaches should keep. Select staff to train and teach to develop their skills is important to a company, train and develop not only do improve staff’s skills but benefit to company as well. It takes advantages on both sides.

Example:
In IKEA, they will select high potential leaders and specialists to be Backpacker, which they can go on two six-month assignments in two countries. One of the assignments will be in another area than the one they are working in now. For the fellow staffs, they offers a variety of internal training programmes for those who want to learn something new and grow.

Dougals McGregor-theory Y
Another theory that I appreciate was theory Y mentioned by Dougals McGregor, he concerned about self-motivated and self-control, he emphasized to trust employee’s abilities. To me, being trust is a large motivation for work. For example: IKEA believe every individual has something valuable to offer which means they trust their staff.

Example:
I quite appreciate IKEA will review what’s done today and ask what can be done better tomorrow, so as to find new ideas and inspiration. This is kind of self-reflect and self-motivated, to keep improving themselves in reviewing the work on each day.
And self-motivated and self-control is needed for everyone, especially in work place, it can do better work if you always motivated and well control by yourself, if not, you may slow down the work efficiency.

An organization even can mix several approaches. Actually I think combine few approach is more effective, it is perfect to have several good approaches together. IKEA is the company which use several approaches.

Other than that, Google also combine few approaches, it combined theory of human relation, scientific management and Hawthorne effect. Because Google emphasis on “Don’t be evil”, and they are quite concerned about team work and nice working environment which is defined as human relation, and they provide free training to staff. Moreover, they offer lots of good service such as free foods, free health care, they regard staff’s feeling, not only for staff, they even benefit to their family, which covered travel insurance and emergency assistance. And they state “We Are Family”, it gave better feeling to employees.

Organizational design and structure

2013-10-15T06:00:00.004-07:00

Different organizations are working under different structure, so it has different ways to divide work and co-ordinate activities to achieve certain objectives. This week we learnt in class about formal VS informal, like Apple is a formal organization, they concerned with the relationship on hierarchical, and has its own set of distinct rules and regulation while informal focused on relationships between employees, such as, Sussex study group, we get together informally within University of Sussex, the communication is very fast and efficient. Also, I’ve learnt different structure like tall, flat and matrix structure, both can be centralized or decentralized, in which showing different chain of command and span of control, those are very important for organizing an organization.

Real life examples that I can think of:

Tall structure

The government organization like Bank or NHS is tall structure, lots of process needed to go through for a decision, if you were sick, after you have to fill in form, it needed wait for long time to consult the client. Or if you want to open a bank account, it has to wait for around 5 days, they need to run lots of process. For instance, after I arrive here, I had some problems of opening bank account due to my surname, at first the staff in bank said it's fine to put it in the front, but after that they block my account because the superior don't allow it, then I have to wait 5 days again to activate it.

org chart:

Flat structure

Google is considered as flat structure, since they had short chain of command, they split into small team for projects, delegated the decision-making to lower level. Manager have to in charge fifty to hundred of people, they giving chance for every employees to share their opinion or idea, so to have faster communication, and more idea can be created.

org chart:

Matrix structure

A bag manufacturer like Channel was divided into the sales and distribution, financial accounting, and production departments. They manufactures a variety of products, for project, they will name in Model 1, Model 2, Model 3, and so on. A person or several persons are selected from different department to communicate with others department. The Salesperson position will report to the Sales and Distribution department, and to the Model 1 department.

org chart:

Further research on organization design structure

It raised me a question, Apple and Samsung, both private technological organization are the well-known companies of the world, their selling are substantial increase in a short period. So I am interested in how different or any similarity on their structure or management, since they both are the big competitors within the market of mobile phone.

Decision-making can be either centralized or decentralized. If most of the important decisions are made at the top, it’s centralized. If decisions are delegated to lower level, it’s decentralized.

After doing some research, it’s interesting to note that both of them are centralized. There are many advantages and disadvantages.

Samsung:

Example

“I think elsewhere top managers respect their chief designer’s decision, but at Samsung, they overrule designers and have the final say about what design we go with. That limits our capability. To be better than a good fast follower, Samsung needs a more horizontal culture and to empower designers.”

Reason

It seems their decision-making are done by top manager but not listen to their designer. They just giving command to their staff.

 Apple:

Example

Just over a month before the first iPhone was to be released in 2007, the authors report, a frustrated Steve Jobs summoned his senior team.

Steve had been using a prototype iPhone for a few weeks, carrying it around in his pocket. When his lieutenants were assembled, he pulled the prototype out of his pocket and pointed angrily to dozens of scratches on its plastic screen.

People would carry their phones in their pockets, Steve said. They would also carry other things in their pockets–like keys. And those things would scratch the screen.

And then, with Apple just about to ramp up iPhone production, Steve demanded that the iPhone’s screen be replaced with unscratchable glass.

“I want a glass screen,” Steve is quoted as saying. “And I want it perfect in six weeks.”

Reason

Although Steve jobs have already gone, but he is the previous CEO of Apple, I really appreciate of his talent. By the way, the story shows he made the decision of replace the iPhone’s screen with unscratchable glass, and just inform his staff during the meeting.

Centralized

From the above stories of Samsung and Apple, there are only number of supervisors centralizes the control. Direct control and supervision can bring better co-ordination and management control, which had less conflict of authority and duplication of work, it also can reduce costs. And it can provide a consistent strategy across the organization, which easy to implement a common policy.
However, it shows the staff will not have loyalty to work, just like the designer in Samsung are not satisfy of its structure, it leads to less consistency and responsive.

In this photo, the hand looks like it controlling many subordinates.

My experience

After the lecture, I also reflected of my father’s job, he organized a handbag company in Hong Kong, China and Italy. I’ve been to working trip with him, so I knew a bit how he manages his staff. Since his company is not really big, so there are fewer layer of management, which means short chain of command, and wide span of control, so he act as the boss and manager at the same time, he delegated the authority of decision-making to his staff, and I found the decision can be made very fast, this is essential for work efficient, since his staff don’t have to ask before making decision. For example, the staff don’t need to ask for the shifting date every time, they can decided on their own, it help efficiency the work. And he knows all the staff well, thus he can distribute the work based on personality or what they good at, like if the staff is very careful, putting him to be the accountant is the best choice, different people responsible for different part, higher efficiency can be made. Also, closer relationship can motivated his staff, a harmony-working environment can be maintained .

Organizational Structure & Function

2013-10-07T14:05:00.000-07:00

As the world are changing with expanding business, although US business is starting to suffer from federal shutdown recently, but there are still various kinds of organization keep increasing within the changed environment and trying to enlarge itself by having new people in, which they need is identify a clear objective, so each department can set the coordinate goal with their objective. No matter the organization are public or private, I think a good structure is more important than objective or management. But a goal, people, objective, management is needed to made up an organization.

Although below is a toy for kids, but it gives me the feeling of business rather than a toy, it seems the organization are expanding, and having lots of connection between a organization, just like there are different departments linking together.

A Journal of Economic Literature also mentioned that organizational structure is one of the essential element, since planning and implementation stage is a key point of running a company, its about coordinating and organizing the way of work.

A movie related to orgainzation

I watched a movie called "The internship", the lesson on this week leads me be interested to watch again, actually it is a comedy, it mainly talks about two men, Vince Vaughn and Owen Wilson, they realized themselves in a digital age, and they lost their job, so they want to apply internship in Google company, and they need to competitive with a group of 20-years-old teenagers, but the teens seems not willing to group with them because they looks old.

Here is the trailer of "The internship".

It tells about Google-techonologial organization, its culture which introducing their working environment, and how they organize the way of people's work. It's really nice!!

In the movie, I found their structure are quite different with the outside company, the outside company are more hierarchical in managing their staff, just like when making a decision on products or services, almost is the top or middle manager take the direction. However, Google are very different, they always reinforce about the collaboration and creative but not the level between the staff, I think that is their objective, and they seems treat well to their staff since the very nice working environment and they provide free foods in the canteen. Also, no matter what level are they in, all their advices will be accepted and listened by the senior staff. I think it is important on having better management since good communications between colleges are benefit to management. Below is the management team of Google.

One of the most impressive scene was the ending, the final mission was persuade the company to cooperate with Google, the more contract signed, the winner will be belongs to, Vince and Owen's group can only convince a small shop to signed, everyone thought they were the loser again, but they all wrong, because the small shop have a large potential on opening chain store. Its so amazing that the relationship between two organization will become a larger business, just like when the small shop work with Google, it will bring some positive impact while the organization work together, because they expanded their business. Google is a technology organization which bring us better lifestyle, they provides us a lot of convenient tools such us :

This Google blogger,

the searching engine which a lot of information provided.

Youtube for entertaining.

Thus, an organization can bring a lot of impact to society, it can positive, negative or both. For example, McDonald bring both in positive and negative, they earn a lot in their business, but they do sell unhealthy foods which harm to people.

First Post about product ideas

2013-09-23T08:16:00.000-07:00

Last friday we did a creative business activity.

We were asked to divided into a small group and create a product using three random chose items, my group chose a belt, a kerchief, and a shoes fixer which helps your shoes become flat.
It was quite difficult to come up an idea with these three items, because it seems no connection between them.

At first, both of us don't have any ideas on how to combine those confused items into one, but we've just got 15 minutes to design it, in such rushing time, we keep sharing our ideas even its not possible at all, but my group-mates will keep on thinking about the impossible ideas, to see can we find out any possibility on it, finally, we tend to make it become a product for sport after our discussion.

Let me explain more, its a product for kids, imagine the shoes fixer putted on the shoulder for absorb vibrate when they are doing sports, the belt and the kerchief is like a mail, its a kind of clothing that putting on the front to protect themselves, reduce to chance of getting hurt. I know its quite difficult to visualize this products from words since you haven't seen it before, its a product that are not really realistic. Ahh, so just try hard to imagine it.

This activity are very interesting, it comes up some crazy ideas like putting the shoes fixer on the shoulder, that is the things used in daily life but we haven't thought to have others purpose before, creative can let an object become multi-purpose, sharing our crazy ideas are lovely, lots of fun was brought during the discussion. Hope to have some more activities like this, so we can learn through interesting way but not the normal formal one.