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Vege Oasis was established for the purpose of retailing vegetable and fruit in 2002, Massey Rd, Mangere by a sole trader. Although it started as a small organization, it has grown into a fairly large organization during the past 10 years. During the beginning of Vege Oasis Mangare it only had 9 employees; now there are more than 20 employees in this store.
2.1 b Analysis
Because the shop is Located in a residential area where there's no other Vege shop; Vege Oasis is a very successful business within itself. The increasing number of employees is one example of improvement. Though the business has expanded the sole trader has successfully handled all the business issues. Not only does Vege Oasis retail vegetables, they also have fish, other meat products and all types of groceries.
2.2 Organisation Structure
2.2 a Findings
Organization structure defines how tasks are to be allocated, areas of responsibility and authority, who reports to whom, and the formal coordination mechanisms and interaction pattern, of which will be followed. See following figure for Vege Oasis.
Figure 1 Organisation chart
This business has a tall organisational structure due to the amount of management levels. Another reason for this organisation to be tall structured is that the management is divided into 2 sections; store manager controls what is happening inside the actual shop like customer enquiries, checkout, stock check, etc. Production manager checks what is happening behind the shop like packing, grading, stacking, etc. The head of all management levels is the CEO (who managers report to).
This structure is used not to put too much pressure to any one of the managers and supervisors. With this method it is always easier for each department to identify and solve problems as soon as they occur!
2.2 b Analysis
Vege Oasis Massey Rd follows a tall organisational structure. Firstly, an organizational structure shows the work-flow map and chain of command in an organisation. The existence of such structure is essential for the smooth functioning of an organization.
As claimed by the subject, the flat structure proves to be effective in their organization as authority and decision making powers are centralized. This type of structure is also known to fit well with other fairly big organisations. The reason being that as the size of an organization grows; it becomes difficult if not impossible to maintain just one supreme line of command. This structure helps the organization in delegating work and making decisions as managers in subsequent levels can aid in achieving sub-objectives planned by higher management.
Another advantage for having this type of structure in Vege Oasis is that the responsibilities and authority of every person is clear, this minimizes if not eliminates the confusion on whom employees should report to. It can be clearly seen form the organizational structure previously illustrated that if one is a customer sales person, one reports to the corresponding supervisor and if one is a production supervisor, one reports to the production manager and so on.
2.3 Environmental factors
2.3 a Findings
Internal Factors -
Board of directors
As the business follows a tall structure, top management (Owner) significantly affect the overall operations and strategic goal planning in the company. Plans such as expansion and others that involve considerable capital and resources are formulated by them.
There is open communication for everyone within Vege Oasis Massey rd. Most of the staff members are part time, of which the majority are students. Being young and active they keep the work speed fast and enlighten the atmosphere. The shop conducts meeting for duty managers every week. They have supervisors and staff meetings every month to keep staff informed of upcoming changes/events.
Business's Key Values and Organization Culture
Business's key values are what the company believes about itself or strives for. Vege Oasis, being a retailer totally depends upon the customers and considers Customer Service as the highest value they uphold. The Customers always come on top. "Providing good customer service and following all laws are the key principles of this organisation" as stated by the Manager. The most important culture that they consider vital for the success of their organisation is the open communication being encouraged among all employees.
Health and Safety
Good Customer Service
Vege Oasis Key Values
Health and safety of the customers and staff is another key value of Vege Oasis. As they have to handle food, hygiene is a BIG matter. The employees get trained regularly for hygienic matters and safety (forklift safety).
Figure 2 Organisations' Key Values
Ethics and social responsibility
For this business Ethics is a big concern as there are types of jobs that are much harder than others. To divide these jobs fairly the quantity of the employees for each role equals things up. Also the management is always nice to the people below them in the organisation structure because this organisation works with the understanding of "Everyone is equal". Also the sole trader especially helps the local community visiting temples (gurudwara, mandir, church, etc.) subsidised prices are promoted to help the people.
While the early stages of growth for the shop were going on, there was a demand for fish thrown in by the customers! Just for the satisfaction of customers, a whole section of the shop was filled up with various types of fish and there were professional fish butchers hired to slice, cut and clean up fish for the customers.
The majority of the customers for this business are Islanders, thus they keep various types of islander food. Also heaps of other international foods are supplied to attract and create new customers.
The core suppliers for this business are:
Vege- Turner and Grower, Fresh direct, Fresh Max
Grocery- Pak n Save, New world, etc,
Fish - Moana Pacific Fisheries
This business always tries to find grocery at prices very cheap so they can sell it at an outstandingly low price.
For Vegetable and fruit there are no competitors. Though in grocery we have the toughest competitor of all.... 'Countdown'! Sitting right in front of our store is the all famous Countdown, always taking all the attention of new customers. But we make sure that our prices are extraordinary so we do not lose customers!
The Economy plays a big role in most organisations but it does not apply to vegetable shops. Vege Oasis contains stock that is used regularly by all humans (fruit, vegetable, etc.). So even if a consumer does not have too much money they will still come and purchase goods from this shop.
Nowadays technology is a must for almost every business. The management team assures that Vege Oasis is always up to date with the highest technology. Like Vege oasis holds a tight security system with their sharp surveillance cameras operating at all times, and the computer scanning system is also a piece of technology that's very useful. In this system all the quantity of the stock is stored in the memory of this software. As soon as a product of this shop is purchased / scanned it automatically deletes that product being purchased from the memory. These systems are very beneficial to this organisation as they stop stealing from staff and they make it much easier for managers to control the stock level
2.3 b Analysis
The internal environment of the company includes the factors which are within the company and under the control of the company. The subject clearly shows that the factors that pose a great effect in the organizations are its employees and values. These factors are co-operatively handled with ease in Vege Oasis. From staff to Senior Management everyone is treated fairly and all follow the Key Values. Because of the staffs' positive attitude all customers that come to this business become loyal and attached customers to this shop.
Board of directors
Basically everything that Vege Oasis is doing is because of the orders handed down from top management (CEO, Managers). This factor says aloud the overall operations of the organization and though open communication is encouraged, the final decision still rests with the top management.
The internal issues concerning an organization's employees are their ability, attitude and work ethic. These affect the company's ability to innovate, please customers and its operations' productivity and efficiency. Considering that Vege Oasis mostly employ a part time workforce specifically students, they are after fresh ideas coming from employees to continuously innovate the operations of the company and hence attract more customers as long as these suggestions are cost effective. This practice of open deck for communication complemented with the workforce selection proves to be a beneficial action of managing one of its internal factors.
Business Key Values and Organisation Culture
This Business's key values are better described as guiding principles and are thought to be the reasons why the business was started in the first place. This is to some degree a part of the organization's culture. As defined, the set of values, beliefs and attitudes that help out members of an organization recognize what it stands for, how it does things and what it considers important is known as organization culture. As concerned with the Vege Oasis Massey Road, customers always come on top. Excellent customer service along with their well being is their core key value. Though their values may be indistinct, the company believes that belonging to the vegetable and food industry makes their survival dependent on their customers thus putting them at the top of their priorities and fulfilling their needs as their most important value.
Ethics and Social Responsibility
Well handled ethical behaviour and business social responsibility can have major, positive results for employees, customers and communities. In contrast, poor managerial ethics and social responsibility can produce harmful publicity which in return may hurt a company's reputation and income.
The external factors are those which are not under control of the organisation. These factors were very important for this organisation as they showed all the problems that needed to be solved; technological factors created a tight security system, competitor factors showed us that we need better branded and well priced items to beat Countdown to new customers.
At present, lots of migrants from a range of countries all over the world are coming to live in New Zealand. These individuals come from different cultures with unique tastes, likes and dislikes. These factors always have a major impact on our type of products. Around our area, islanders are more common than others; hence they keep a variety of food that that culture would like. Another change they had to make was to add the fish segment, reason being that there was a high demand for fish in this particular area and there were no other fish butchery shops nearby.
This business has Countdown as their main competitor. With a highly popular store as your competitor, the organisation uses a simple but attractive strategy 'Low prices!' as stated by the CEO.
As stated before, the economy does not affect the organisation. No matter what, the customers will come to this shop because food is one of the human needs; thus heaps or no money the customers will still have to come.
As time goes by technology is becoming a must for any successful business. Vege oasis takes good care of this factor by keep on updating the business technology. These factors have affected this business by indicating the updates required e.g. surveillance cameras, computer stock storage. This factor has had a great impact on this organisation as now it has a secure security system and a fast customer service.
2.4 Planning and Control systems, processes and strategies
2.4 a Findings
Planning is centred on the future of the organisation, a decision-making procedure that will help the company to achieve their goals. There are 3 types of plans, strategic plans, tactical plans, and operational plans. The manager is in charge of assuring that these plans are implemented through control by supervising the activities of the organization and making sure that the plans are implemented according to the standards set by the organization. If any deviation is observed, corrective measures are undertaken to make sure that the organization is heading towards its specified goals.
Strategic planning is centred on the over-all long-term plans to achieve the goals of the organisation where they focus on both the demands of the external environment and the availability of internal resources to realise their goals. The top management is responsible for this type of planning.
Translating the strategic plans into certain goals is what we call tactical plans. These plans are formulated for the specific parts of the organization also by the top management.
Organisational plans are the ways to implement the tactical plans. These are the plans that the lower management need to focus on to execute the strategic plans of the organisation.
As what has been previously stated, Vege Oasis Massey Rd is owned by a sole trader, wherein the overall plans and goals of the organisation are overtaken by him. Tactical planning is done by the managers. These are the plans made by the supervisors of the various departments on ways to implement the tactical plans laid out by management, communicating them to the staff for implementation.
On the other hand, every plan of an organisation needs a certain amount of control to make sure that the plans are carried out the way management intends them to be. Control processes help separate distinctive behaviours and keep the members of the organisation conformant to the logical plans of the organisation.
The following information contains information based on my interview with the CEO (Baldev Singh) regarding the present planning and control systems in the company.
Small business operators often overlook the importance of financial planning. It is through financial planning that the organization is able to plan, evaluate and control the business, which is important for the survival of the organization.
This organisation has given the store manager full responsibility of the finance department. All the staff members have fixed rosters which are recorded and reported by the managers. The CEO provides the wages on time and calculates any incurred bonus on the salaries as well.
The skill of a manager to communicate successfully to the members of the organization is strongly connected to managerial and organizational success.
Vege Oasis Massey Road does not have a specific department that is responsible for information management. However, according to the CEO, what they do to distribute information is through meeting with the staff on a daily basis before the start of the shift and communicates with them through electronic mail as well.
A short meeting is conducted every day before the start of the staffs shift. In this meeting the store manager in a few words communicates the important matters that the whole team needs to be aware of, stressing their goals and objectives and at the same time discussing issues relevant to the business. For further information that needs to be shared with the employees, an electronic mail is sent to them and the employees in return are required to respond to them. According to the manager, sending the staff an email is the best way to inform their employees especially those who are on holiday about updates or relevant issues that needs to be addressed instantly.
After the employees attend the daily meeting with the managers and are informed of the strategies to be undertaken to achieve the goals and objectives of the business, they go on the floor and attend to the customers who come in the store. As a customer arrives, the client will then be looking for the certain department to which they are interested of buying a product. Alongside, they will be looking for certain promotions if there are any. If they find whatever it is they need, they will go straight to the checkout counter to purchase their product of choice. However, some of them will probably be needing assistance from the members of the organisation where a staff member will be ready to assist them the best way possible. There will be other clients who will not be satisfied and will therefore decide to leave the store and maybe come back another time. On the other hand, satisfied customers, through the aid of the staff members, will be able to come across their desired product and would afterwards proceed to the checkout counter and pay for their purchase.