Vege Oasis Was Established Commerce Essay

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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 Mr. Baldev Singh. 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, it only had 9 employees; now there are more than 24 employees in this store. When it started Vege Oasis was only dealing with fruit and vegetables but during last 10 years due to certain demands of Island and Asian people it has start dealing in complete range of Island and Asian groceries, meat, fish, dairy products and become very successful business in that area.

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 and the sole trader has successfully handled all the business issues. Not only does Vege Oasis retail vegetables and fruits they also have Asian and Island groceries, fish and other meat products.

2.2 Organisation Structure

2.2 a Findings

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Organization structure labels areas of responsibility and power, who should reports to whom, how tasks are allocated, and the formal coordination system and interaction model, which will be followed. See following figure for Vege Oasis.

CEO

Production Manager

Packers/

Graders

Checkout operators

Supervisor

Store Manager

Supervisor

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. Managers are responsible for hiring the staff for their department, making roster, salaries, allocating tasks etc. In this organization supervisor also have affective role which include training the staff he is responsible for task given by manager to be completed on time and they report to manager for the performance of staff. Both the manager reports to CEO

This structure working well for the organization and is not puting 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 follows a tall organisational structure. This type of structure is essential for the smooth functioning of an organization. As claimed by the subject, the tall structure proves to be effective in their organization as authority and decision making powers are define clearly. This type of structure is also known to fit well with other fairly big organisations. This structure helps the organization in allocating work and making decisions as managers in subsequent level.

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 which 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 capital and resources are formulated by them.

Employees

There is open communication for everyone within Vege Oasis. Most of the staff members are full time, of which the majority are young. Being young and active they keep the work speed fast and enlighten the atmosphere. The organisation 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

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Business's key values are what the company believes about itself. Vege Oasis, being a retailer totaly depand on customer satisfaction and considers customer service as the highest value. The most important culture they consider important for the success of their organisation is the open communication in the organisation.

Health and Safety

Good Customer Service

Vege Oasis Key Values

Open communication

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 priority. 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". With this type of open communication the staff gains confidence to communicate more with the managers. The sole trader especially helps the local community visiting temples (gurudwara, mandir, church, etc.) subsidised prices are promoted to help the people.

External factors-

- Customers/Demographics

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 free clean up fish for the customers.

The majority of the customers for this business are Islanders and Asian, thus they keep various types of islander and Asian food. Also heaps of other international foods are supplied to attract and create new customers.

- Economical

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.

- Technological

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 levelC:\Users\ha\AppData\Local\Microsoft\Windows\Temporary Internet Files\Content.IE5\7T406DRN\MM900354655[1].gif

- Competitors

For Vegetable and fruit there are no competitors. Though in grocery we have the toughest competitor of all.... 'Countdown'! Sitting right in front of store is the all famous Countdown, always taking all the attention of new customers. But they make sure their product prices are extraordinary competitive, products are of good quality and fresh and provide wide range of international groceries (specially Islander and Asian) which is not available at countdown and top of all excellent customer service so they do not lose customers!

2.3 b Analysis

Internal Factors

The internal factors of an organisation include the factors which are within the business and under the control of the business. 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

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Basically everything that Vege Oasis is doing is because of the orders handed down from top management (CEO). 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.

Employees

The Employee's ability, attitude and work ethic are the biggest internal factor of an organization. These affect the company's ability to satisfy customers and its operations' productivity and efficiency. Considering that Vege Oasis mostly employ full time workforce they all know their responsibilities. Open communication is key to resolve issues within organisation and main factor in the success of Vege Oaasis

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, customers always come on top priority. Excellent customer service along with their well being is their core key value. Organisation believes that being belong 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.

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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.

External Factors

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.

Customers/Demographics

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.

Economy

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.

Technological

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.

Competitors

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.

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.

In Vege Oasis these systems are very successful because the CEO (who has a lot of experience) controls most of them.

An example for the effects of having planning and control systems in Vege oasis is; Vege oasis used to purchase loads full of vegetables but the cold store was too small! So that's when the CEO decided to tactically, strategically and financially plan how to solve this problem. Firstly he decided that the cold store should not only fit the amount of vegetables, but it should also have extra shape so if by chance in the future he ever wanted to increase the amount of Vegetables even more then he would have the option to! Another great strategy he used was to find the lowest price to enlarge his cold store, which by chance he saved hundreds of dollars on!

The following information contains information based on my interview with the CEO (Baldev Singh) regarding the present planning and control systems in the company.

Financial planning

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.

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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.

Information Management

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 email 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 email 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.

Store Operations

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.

Human Resources

Human resources are the uses of human skill in a business. The human resource manager is someone who employs, trains and assesses employees.

The person in-charge of human resources in Vege Oasis is the store manager. The part that human resource management plays on Vege Oasis is significant; because Vege Oasis employs mainly students or part time workers, which is why they have to employ new staff often. The store manager has to choose the right person for that certain job.

2.4 b Analysis

Planning is making tomorrows decisions today. It is also for you to learn about any obstacles that might come in your way. It identifies where you want to go, why you want to go there, how you will get there, what you need to get there and how will you know if you are there or not.

Financial planning

As mentioned before the store manager is responsible for all the financial planning. This appointed person is working well for this organisation as to he has heaps of experience in the store hence he knows how and what to plan. Having financial matters actually being cared for, provides order and direction for the business and shows the effectiveness of the planning and control systems of the manager.

Information Management

The information management is not set for a specific person or group to manage, but it is still token care of by setting staff meetings everyday and sending emails to discuss all the information the staff needs to know about. This way the staffs always know what's happening, what to be aware of and what will be happening soon.

Store Operations

The planning and control systems on the store operation side are as well admirable. The whole organisation is well informed of the plans of the organisation through their daily meetings and is able to put into practice effectively once they go on. Each and every member of the organization is thoughtful to the needs and wants of their consumers. This leads to more customer satisfaction which results as more regular customers!

Human Resources

Managing human resources well is essential for all organisations. Without the right person being employed for the right job, the business can't accomplish their goals with too much ease. We believe that the human resource management in Vege Oasis is very successful.

In Vege oasis part time employees outnumber full time ones. Thus, our human resource manager needs to be highly experienced, that's why the store manager was chosen. The human resource department has had a big effect to our turnover because with the right Human Resource manager, there is no time wasted to find a replacement for that leaving employee.

2.5 Team Structures and Dynamics

2.5a Findings

A team is any group of people organised to work together interdependently and cooperatively. Good teamwork in organisations is very important. The goodness of the team can be based on their structure and/or their dynamics.

How teams are organised.

In Vege Oasis there are only 4 teams; stock filling, store/checkout team, fish butchery team and Vege packing team. They are decided by the store manager as he is in charge of the human resource department.

First the manager takes interviews of new employees to check where they will fit in. When the employees have been appointed by the managers to their teams, the employees get training provided specific to their job.

There are 8 employees in the checkout group, 6 in Vege packing, 4 in stock filling, 3 in fish department and the two supervisors.

This business consists of formal groups, because these groups are all long term groups. Also the groups get an organisational chart which proves them to be formal.

How team membership and leadership is determined

To have a successful business, a responsible and formal procedure of determination of membership and leadership is necessary.

The managers annually meet and decide if anyone should be promoted to supervisor from the groups or not. They use peer voting for help as well. Overall, most of the staff is under in charge of the store manager.

How team roles are determined

How team performance is monitored

For individuals

In Vege oasis the managers observe the staff's behaviour through CCTV cameras and record who is actually working and who is just mucking around. A warning letter is sent to those who show unsatisfactory behaviour.

For the team as a whole

When the managers are looking through the CCTV cameras, they not only notice the employees as individuals they also look for their groups. Because it's the manager's full responsibility to encourage, improve and help their team out.

How team achievement is recognised and rewarded

In Vege oasis the four teams are monitored continuously by the managers; then at the end of each month a team is rewarded $200 to share between the teams. This method encourages the employees to work harder as they find out that the management will notice and reward them. When the rewards are presented, all the other groups are present to support and congratulate them.

2.5 b Analysis

How teams are organised

Teams are organised by the store manager. He trains and assesses the employees and makes the teams up. This has largely effected the organisation as now the teams are more prepared and strong.

How team membership and leadership is determined

The managers decide annually that if any employee should be given a supervisor role. If there is a tough decision to make, then the other employees vote. Letting other employees vote is a good strategy because at the end of the day, they will be the ones who'll have to follow the supervisor. So if their choice supervisor works then they will feel more comfortable

How team roles are determined

How team performance is monitored

The team performance is monitored through CCTV cameras, operated by managers. When the team performance is monitored then the strengths and weaknesses of the teams come out and later on can be improved.

How team achievement is recognised and rewarded

In Vege oasis the achievements of the teams are rewarded through financial prizes. Also, to create competition in the minds of other watching employees they get presented the award in front of them. This has had a major effect on the employees as now they work with more effort.