Comparing Two Companies Management And Organisational Behaviour Commerce Essay

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It is serves 2.3 million customers in commercial, infrastructure and public sector as well as the domestic customers - representing 80% of Hong Kong's population - in a 1,000 square kilometre area encompassing Kowloon, the New Territories and most outlying islands. With this extensive and diversified customer base Company A plays a vital role in fuelling the growth and prosperity of Hong Kong society.

Electricity is first generated at the Company's power station on Lamma Island. It is then transmitted and supplied via an extensive cable network to its customers. The generation, transmission and distribution of electricity are monitored and controlled by the System Control Centre which uses advanced technologies to ensure exceptional reliability around the clock.

Currently, Company B is building an extension to its Lamma Power Station to allow the use of natural gas for future power generation. At the same time, Hong Kong's first commercial scale wind power station - Lamma Winds at Tai Ling on Lamma Island was commissioned by Company B in February 2006,  representing a pilot Company B project to explore the wider use of renewable energy in Hong Kong.

For the strengths comparison for company A and company B, company A has favourable conditions of geographic, which is nearby the developing country - China, it can create most of business opportunities. But, in company B, it is now using the renewable energy for power generation, it can improve the environment and that reduce the capitalized cost.

Compare the Weaknesses of Company A and B

The Weakness of Company A:-

The operation level staffs have the bad culture which is emphasized that maintaining the status quo in contrast growth.

In company A, analyses of renewable energy for power generation is now in processing. But recently, the world is concerning environment protection, the renewable energy has widely been used in other countries instead of coal/ fuel.

The Weakness of Company B:-

The organization goals/ objectives are set up by top management only, therefore the goals/ objectives are hardly to achieve. And then, all staffs are only focus on the bonus, so it will induce staff's competition malignity and also induce the company has a fast turnover rate.

The communication problem will also affect the whole organization structure, due to the communication culture in company B is the upward/ downward direction. It will affect the problem resolving time.

Since company B is only serve two Islands which is Hong Kong Island and Lamma Island. It will constrain the business to other countries.

For the weaknesses comparison for company A and company B, company A has two mainly weaknesses on the organization culture and operation. The first one is bad culture of staffs and the second one is unable to use the renewable energy at the moment as there is under the analyzing stage. But, the weaknesses of company B are mostly on organization management such as communication and leadership and one of the services boundaries.

Compare the Opportunities of Company A and B

The Opportunities of Company A:-

To take over, merge with, or form strategic alliances with other town's electricity company in the developing country - China.

Strongly study the renewable energy, such as wind, sea water, solar, etc. to reduce the capital and toward to environment protection, which is the world direction.

To study and develop electricity automobile and enter to automobile market, construct the electricity charging station and establish the automobile retailers.

The Opportunities of Company B-

To take over, merge with, or form strategic alliances with other town's electricity company in the developing country - China.

To study and develop electricity automobile and enter to automobile market, construct the electricity charging station and establish the automobile retailers.

Strongly knowledge on renewable energy for generation of company B, it can be set up a renewable energy consultant department for providing the consultant services to other company, focusing on specific markets such as Europe or the Greater China Region.

For the Opportunities comparison for company A and company B, due to the both companies are the same nature of business, so both companies should put more efforts to explore the business opportunities in developing countries, such as China, India etc.. Otherwise, another opportunity is environment protection. As in the world, there is focusing on the amount of carbon dioxide emissions by the automobile. So that, electricity automobile is the other opportunity for both companies. But, in view of renewable energy usage, company A should put more effort on this. Contrarily, company B has strongly knowledge on renewable energy for generation, it can provide the profession knowledge to other country's electricity companies.

Compare the Threats of Company A and B

The Threats of Company A:-

Increasing cost of fuel and copper will affect the whole company's profit.

Hong Kong government wants to entry other country's electricity company into Hong Kong in order to increase the competitive forces in electricity market. The feasibility is now analyzing.

The Threats of Company B:-

Increasing cost of fuel and copper will affect the whole company's profit.

Hong Kong government wants to entry other country's electricity company into Hong Kong in order to increase the competitive forces in electricity market. The feasibility is now under analyzing.

For the Threats comparison for company A and company B, due to the both companies are the same nature of business, so both companies are faced to material cost increasing and entry the competitor in electricity market in Hong Kong.

Changes toward Effective Performances

Changes Recommended for Company A

For company A, I would like to recommend some changes in organization structure to improve the weaknesses, directed against the opportunities and overcome the threats as follows. First of all, there is a bad culture in operation level of company A, although this strong culture are difficult for managers to change, but it can arrange some workshops to operation staffs in order to improving their personal work attitude. The second change, I am proposing to create a director position under the managing director namely development and analysis director, the responsibilities of this director are analyse and practice the feasibility of every renewable energy for generation, and that study and develop electricity automobile and enter to automobile market, construct the electricity charging station and establish the automobile retailers. All the aforesaid work need directly report the progress and process to managing director. Using this approach, it will solve the problem of analysis cost, problem, etc. in a short time. The third change is also create a new position as corporate development manager under the corporate director, this position is only focusing on exploring and discussing the higher potential companies to take over, merge with, or form strategic alliances with other town's electricity company in the developing country - China. If this action has been taken, there are less choices provide to government to entry other country's electricity company into Hong Kong. For the threat of increasing cost of fuel and copper will affect the whole company's profit, company A had a team under financing director already, this team is responsible for close monitor the market price of all materials.

Changes Recommended for Company B

For company B, I would like to recommend some changes in organization structure to improve the weaknesses, directed against the opportunities and overcome the threats as follows. First of all, although the company profit is the top priority in company B, but the top management need to coordinate with subordinates to introduce the organsiation goals and receive the comments/ difficulty from the subordinates to proceed the adjustment of organsiation goals in coming year. It can let the subordinates to know the organsiation goals in first time to prepare any works at priority, and that as the goals are committed among top management and subordinates, the subordinates to be willing to complete the goals. For the aforesaid changes, it will improve two problems of exist organsiation structure, the first one is, form the existing transactional leadership change to transformational leadership and due to this situation it will also affect the communication form the upward/ downward change to verbal communication style. For the services boundaries is limited in two Islands in Hong Kong, I propose to create a new position as GM - organisation development under the Director of Engineering Under the GM - organization development, there are three division of managers are responsible for various type of duties, the responsibilities of the first division manager is mainly to explore the high potential electricity company along the coast of china, such as Zhuhai or Macau, to take over, merge with, or form strategic alliances with other town's electricity company. Also, it can lay some seabed cable to this town in order to link up the electricity network. For this change, it will settle the limitation of services boundary, and it will also increase the chances of joint venture with other companies, and that it can decrease the choice to government to entry other country's electricity company into Hong Kong. The responsibilities of second division manager is study and develop electricity automobile and enter to automobile market, construct the electricity charging station and establish the automobile retailers, but it this change is similar to company A. Due to company has strongly knowledge in difference types of renewable energy application, so the third change is depends on this. the responsibilities of the third division manager is provide the consultant services of the aforesaid knowledge to other company, focusing on specific markets such as Europe or the Greater China Region. For the threat of increasing cost of fuel and copper will affect the whole company's profit, company B also had a team under group finance director, this team is responsible for close monitor the market price of all materials.

Conclusion

After completion of this report, it is concluded that by using the SWOT analysis to find out the strengths, weaknesses, opportunities and threats for each company, due to in the same business market, all companies are confront the same opportunities and threats as resulting the above company A and company B, it's only the strengths and weaknesses will be different but it's very subjective. Furthermore, the SWOT for companies will change at any time, it is depends on the organization development, market changes, environment changes, etc..

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