At this level, organization decides in what business the company should be in or wants to be in overall goals and mission of the organization. Asia mills have an overall mission to regulate their business activities on Islamic principles. They run their business units from the profits they earn, rather than borrowing money from banks because company has a policy to avoid interest and Riba in their business
Other strategies include:
Managing resources effectively and efficiently
Providing high value
Firm relationship with stakeholders and employees
Diversification (company is currently running a number of businesses e.g. Ghee Mill, Flour Mill, Cotton industries, CNG filling stations)
Profit maximizing being a private company
BUSINESS LEVEL STRATEGIES
Following are the strategic business units which are working under the name of Majeed Group of Companies
Asia Ghee Mills Ltd
Asia Flour Mills Ltd
Bismillah Cotton Industries
Rohi Cotton Industries
Asia CNG Filling Stations
Mahmood CNG Filling Stations
Asia Ghee Mills follows quality leadership strategy while Asia Flour Mills focus on Market development and Product Development Strategy
QUALITY LEADERSHIP STRATEGY
Continuous improvement in quality of products by using modern technology and provision of maximum satisfaction to the customers
MARKET DEVELOPMENT STRATEGY
Northern areas and Khyber Pakhtun seems to be a new potential market for this product (Flour) because in market development strategy, company introduces existing product to the new market
PRODUCT DEVELOPMENT STRATEGY
It refers to the development of new product and offering it to the existing market. Asia's current product development strategy is the production of fortified flour from wheat taken from different regions of Punjab in order to fulfill the deficiencies of iron in the human body
1.3. DEPARTMENT LEVEL STRATEGIES (Sales and Marketing)
On time delivers
Creating long term relationship with wholesalers and retailers.
Boosting the level of sales of product
Handling complaints & providing satisfaction to the customers.
Streamlining the flow of communication between different distribution network channels.
Taking market information and making actions accordingly.
Determining what needs to be done, how it will be done, and who is to do it
Span of control
Chain of command (Organizational Hierarchy chart)
Asia Flour Mills and Ghee Mills follow a mixture of three departmentalization structures. Departmentalization means basis on which jobs are grouped together. Organization may follow a no. of departmentalization forms according to its needs and structure.
In this type of departmentalization, jobs of similar nature and functions are grouped together. E.g. HR department, sales department, production department, accounts department etc.
This type of departmentalization means jobs are grouped together by product line. Majeed Group of Companies is carrying out various types of businesses, so they have to group together the jobs according to product manufactured also.
Process departmentalization groups jobs on the basis of product flow. In Asia Ghee & Oil and Flour mill too, product is manufactured through processing as it completes its first phase, it is sent to the next processing phase and so on.
SPAN OF CONTROL
Organization follows wide span of control. Wide span of control means one supervisor has at least eight number of subordinates.
CHAIN OF COMMAND (ORGANIZATIONAL HIERARCHY CHART)
HIERARCHY / BOARD OF DIRECTORS OF MAJEED GROUP
Vice Chairman / CEO
Senior Executive Director
Director Marketing & HR
RESPONSIBILITIES OF KEY POSITIONS
Chairman: It is responsibility of the chairman to supervise the performance on board of directors and to keep a "check and balance". Any decision is not full and final unless and until approval is made by the chairman. The respected Chairman of Majeed Group served twice as President of Bahawalpur Chamber of Commerce and Industry.
Vice Chairman / Chief Executive Officer: The major responsibilities of Vice Chairman / Chief Executive Officer are developing business strategies, planning for new projects / products, up gradation of existing technology and diversification requirements if necessary after consulting members of Board of Director.
He served as Chairman of the Task Force for Development and Up-Gradation of Ginning Machinery. he is member of the Board of Directors of Pakistan Cotton Ginning Research.
Senior Executive Director: The senior executive director is responsible for Relations with Utility Departments such as Electric Supply Company, Sui and telecommunication companies.
All legal matters are dealt by senior executive director and relations with Bar Associations are dealt by him. He is also responsible for, procurement of special items such as machinery, electrical and electronic items, transport vehicles and costly equipment from out of city and out of country.
Executive Director: The executive director is responsible for, relations with Food department, Law enforcing departments, Public & Political relations and Trade Organizations and finally he is also responsible for overall supervision of Asia Flour Mills.
Organization is basically centralized. Top management issues the orders that are trickled down the hierarchy. There is somewhat employee participation but organization is not fully decentralized.
Rules are strictly implemented and followed. There is high formalization in the organization
2.1.6. WORK SPECIALIZATION
The degree to which activities in the organization are divided in to separate jobs is known as work specialization. There is high level of work specialization in Asia Mills
2.2. ORGANIZATIONAL DESIGN
Organizational design is Mechanistic and Functional. Mechanistic organizational design means High specialization, high departmentalization, clear Chain of Command, Centralization, and high Formalization. But organization follows wide span of control. Organizational design of Asia Mills is an example of Functional structure which is an organizational design that groups similar or related occupational specialties together. E.g. Marketing, HR, Finance etc
2.3. MANAGING IT
Organization always strives to adopt innovative methods and utilize modern technology to manufacture its products. Recently it replaced its Ghee and Oil plant which was imported from China. Chinese Engineers came to Pakistan to install that plant and keep visiting to scrutinize it's working.
Directing motivating all involved parties and resolving conflicts
3.3.1. LEADERSHIP STYLE
Under the head of Behavioral theories, leadership style in Asia Mills can be expressed as (Style with respect to proposed theories):
Democratic (University of Iowa)
High Consideration and High Initiating Structure (Ohio State)
Team Management: Work accomplished is from committed people interdependence through a common stake in organization purpose leads to relationship of trust and respect (Managerial Grid)
In Contingency theories:
Good leader member relation, High Task Structure, Strong Position Power (Fiedler Model)
Selling style: leader provide both directive and supportive behavior (Hersey Blanchard Model)
Moral leadership (Related to ethics)
Monitoring activities to ensure that they are accomplished as planned
4.1. COMMON SOURCES OF INFORMATION FOR MEASURING PERFORMANCE
4.2. TOOLS FOR CONTROLLING ORGANIZATIONAL PERFORMANCE
4.2.1. Feed forward Control (Focus on averting expected problems) e.g. back-up in case of unusual electricity shortages
4.2.2. Concurrent Control (It refers to the control that takes place during the work activity is performed) e.g. visits during production, analyzing and solving problems if transpire.
4.2.3. Feedback Control (Control that takes place after the accomplishment of work activity). E.g. After packaging rechecking
Weight of product
Leakage if any
Appropriate number of units in carton
Performance appraisal system
Comparing employee's performance with the standards already established to measure their performance.