Organizational Analysis and Design

Introduction Etisalat is an international telecommunications firm based in the UAE. Many recognize it as a formidable force in data and voice services across the Middle East, Africa and Asia. The organization’s net revenue illustrates this; on this basis, the company lies among the top 150 most profitable organizations in the world.Advertising We will write a custom research paper sample on Organizational Analysis and Design – Etisalat specifically for you for only $16.05 $11/page Learn More Structural arrangement of the organization The company has a combination of the area-division structure and the product structure. Under the area division model, the organization divides its entities on the basis of their geographical regions. Through such an approach, the firm can analyze the profitability of each area and thus curve-out a strategy to correct cases of non-delivery. The firm also has a product structure that splits resources on the basi s of service portfolios. Some of them include data services, telephones, mobile network services, internet, sim-card manufacture, training services, financial management and many more (Etisalat, 2011). The company chose this approach owing to the need for greater standardization and specialization. It can also identify the non core or unproductive business services that it can eliminate. Shown below is an organizational chart for the firm. Forces for change and the obstacles to change in the organization Currently, the telecommunications sector in the UAE suffers from an oversupply. It is quite difficult for the firm to increase its penetration levels because of this fact. The degree of competition is a force for change because the company needs to innovate in order to ensure its survival. Etisalat faces a lot of competition in its international tariffs. The company’s competitors and other VoIP providers are causing the company to revisit its international tariffs. The preva lence of rigorous regulations in the international calls sector created these changes. Therefore, the organization needed to respond to these alterations in country regulations. Competition was not just limited to international tariffs; it also grew rapidly in the mobile data sector. Many rivals dwelt on smart phones, and this meant that the company’s voice revenue reduced dramatically. The need to increase its voice revenue was also a force for change.Advertising Looking for research paper on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Increased competition also emanated from the fact that Etisalat was no longer a monopoly in the UAE telecommunications market. Five years ago, a key service provider entered the market, and nothing has remained the same. This company now needs to guard it market share as it has been losing it to the new entrant (George-Cosh, 2010). Customers also required greater flexibility in connectivity arrangements. These needs applied to almost all product segments; television services, broadband services and fixed voice services. The organization needed to meet these needs promptly. However, it had to increase flexibility in a way that would not strain the consumers’ telecommunications budgets. The UAE is a high-growth state; it works on developing its economy through different sectors and channels. However, in order to achieve these benefits, the country must have a strong infrastructural base. The communications sector is imperative because it can facilitate greater transmission of oral and written information in voice and data services. Businesses now require greater convergence between data and voice, and since the Telecommunications Regulatory Authority in the UAE allowed this convergence, then Etisalat needed to respond by giving clients an integrated network. Some clients did not have access to Etisalat’s services. In other words, the companyâ⠂¬â„¢s reach was not one hundred percent in the UAE. This meant that it needed to target a new client base with its products and service; this was also another force for change. Many businesses are facing a lot of pressure to produce or offer their services and products in environmentally friendly conditions (Durant, 1999). Carrying out activities in a green building has become a common requirement for many companies. Furthermore, business practices now address carbon footprints and energy efficiency. Environmental concerns are, therefore, a key driver for change. Etisalat is a profit making venture, like any other business; therefore, it needs to look for cost cutting measures at all levels. This need is even more pressing now that the UAE telecommunications market has matured. It is imperative for the company to strengthen its position in the market by increasing efficiency in its operations.Advertising We will write a custom research paper sample on Organizational Analysis a nd Design – Etisalat specifically for you for only $16.05 $11/page Learn More Forces for change in Etisalat Resistance to Change Customers’ need for greater technology Staff hesitance, slow company response Dealing with greater competition Imitation, slow adoption Maximizing technology infrastructure for development Increased costs Environmentally friendly business practices Business disruptions Greater international expansion Unfavorable business climate Cost cutting Dwindling quality in services One of the main obstacles to change in this company includes reduced service offerings that may result for cost cutting measures. Employees may fear all these new changes or may be ill prepared for new technologies. Alternatively, if customers’ needs are always changing, the company may not respond promptly. With regard to greater competition, the rivals could imitate Etisalat’s new product innovations, and this may min imize company profitability. The need to practice business in an environmentally manner and the need to offer better technology infrastructure may cause increases in costs. They may also disrupt company flows. All these factors can minimize the incentive to change in the firm. Lastly, the company should consider international expansion, but it may find unfavorable business conditions in a new target market. Innovations that the organization has introduced It can be stated that this company has attained a perfect balance between incremental and quantum changes. Its innovations fall in the incremental category because it often improves its products and services (Morgan, 2006). The organization has achieved this by offering faster speeds for internet connectivity, better connectivity, greater reach and heightened value. It has done this by investing in fiber optic cables or by building its network infrastructures to a satisfactory level. In this regard, the firm has used existing techn ologies or methods that are not new to the country to alter service and product offerings. Conversely, the company has also implemented quantum changes. In this regard, the firm has introduced new technologies that did not exist before using breakthrough innovations. One such instance was the 3D TV; another was 4G technology. These emanated from the need to respond to greater pressures in the competitive landscape. Shown below is a summary of the two types of innovation prevalent in EtisalatAdvertising Looking for research paper on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Source: (Morgan, 2006) How the firm sought to manage innovation through structure, culture and organization This company responded to the difficulties in penetration levels by developing broadband services and other value added services. Technological introduction of a new generation of handset services and tools ensured that the organization could deal with the shift in company revenue from the voice sector to the data sector. Therefore, innovation was at the heart of this company’s changes. One of the new services offered by the organization was an initiative called ‘My Plan’. Another scheme was ‘Business Edge’. In both these arrangements, the company sought to give its post paid consumers minutes on their international calls. Since there was a serious problem with revenue generation in the international calls department, then the organization felt that it was necessary to deal directly with this problem. Additionally, the plans also entailed pro vision of data bundles to clients (Etisalat, 2011). Since the UAE had a lot of competition in the data sector, then it was only natural to respond to these pressures through such an offering. On top of these two service packages, Etisalat also created something that addressed the need for greater flexibility in connectivity and that was ‘eLife’. This package allowed consumers to utilize optical fibers in order to access television services, fixed voice services and broadband services at enormous speeds. It also launched that plan at a reasonable price for the market. Furthermore, the company was the first to initiate 3D television. In fact, technology experts rank the UAE as one of the top five countries in the world that have achieved this fit. The firm also enhanced this need for greater flexibility by launching â€Å"Business One Super’ which is a high-speed broadband service that reaches the mass market. This has radically changed the broadband landscape in the UAE. The organization expanded its service and product reach through a new partnership with JAFZA. It did this in order to offer customers in the Dubai free Zone some of its telecom services. Since some customers did not have access to high quality networks from Etisalat, the firm launched a Fiber – to – the – home network. It hopes to have achieved 100% coverage by the end of 2012 (Etisalat, 2011). As a response to energy need pressures and green production business practices, the company has launched a brand of 4G technology called Long Term Evolution. In this plan, the firm has combined technology advancement with environmental friendliness. It has selected fiber optic cables that are exceptionally energy efficient. They also have a smaller carbon footprint. The plan is still on a trial basis, but it can alter the manner in which the company does business. All the latter responses have dealt with the company’s innovative endeavors. The forces of ch ange also necessitated a need to alter the culture and structure in the organization too. The company changed these elements through a cost optimization program. In the plan, the firm started outsourcing some of its non core services. Therefore, previous components covered by the international departments were no longer part of the company. Besides this, the organization implemented a cost-cutting measure to improve efficiency. The company had to change its culture from technology leadership alone to cost efficiency and technology leadership, as well. Value creation is now a prime issue in the company. Furthermore, the business now focuses on sharing its services and infrastructure with different partners in the communications sector. It is likely that the cost optimization program will yield full results at the end of 2012. The organization has worked on international expansion, as well. It realizes that this is the lifeblood of the company. It intends on dominating the Middle East ern market through aggressive acquisitions. One such case was in Kuwait through partnerships with Zain. The company has also worked hand in hand with other kinds of organizations in its existing regional branches in order to meet the needs of the local market. Etisalat is becoming a force to reckon with in the Nigerian telecommunications sector, and this is through a reorganization of the corporate culture within that country (George – Cosh, 2010). Since this organization has a product-based and regional-based structure, then any creation of new services and products also alters its structure. When the company introduces a new service, it often places a new body of personnel to be in charge of the product. However, most personnel come from the existing body of staff members in the institution. Most senior level staff emanate from the host countries when the firm engages in expansion strategies. Conclusion Etisalat is a leading telecommunications provider in the UAE. It has at tained this position through continual investments in technology. Etisalat has also used new-generation products (quantum change) and systematic process-oriented changes (Incremental change) to achieve the same. The major drivers for change are competition and a changing technological landscape. However, the company must contend with slow employee adoption and ineffective cost efficiencies. If it can tackle these resistors to change, then it will maintain its position as a market leader. References Durant, M. (1999). Managing organizational change. Web. CRF. Etisalat (2011). Annual report 2010. Web. Etisalat. George-Cosh, D. (2010). Competition forces change of strategy in Etisalat. Web. The National. Morgan, G. (2006). Images of organization. Thousand Oaks, Sage. This research paper on Organizational Analysis and Design – Etisalat was written and submitted by user Nickolas Roth to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here. Organizational Analysis and Design Introduction The analysis of the OAD case regarding two companies enables the students to understand the importance of management style in the overall performance of the organization. Those who will analyze the details pertaining to the case will come to realize that the management of a particular organization is dependent on leadership and management style of the top executive and how he or she deals with the different factors that affect the organization (Wasson, 2006, p.12).Advertising We will write a custom case study sample on Organizational Analysis and Design specifically for you for only $16.05 $11/page Learn More In this particular case it is important to focus not only on the management style of the two leaders but also on the different factors that contributed to the outcome of the bidding war. It is of great importance to learn from the lessons that can be gleaned from this study, especially when it comes to developing strategies to ensure th e sustainability of the company. It can be argued that ACME was at the right place at the right time and they benefited from high demand of electronic products. But in an instant the circumstances can change so quickly and it may not favor them the second time around. Background Both Acme and Omega came from the same parent company. When the parent company was bought by a Cleveland manufacturer the buyer had no interest in the electronics division of the said company. Thus, this division was subsequently divided into two smaller companies based on the location of their respective manufacturing facilities. Thus, the facility located in Waterford, Pennsylvania became the Acme Electronics Company while the facility located in Erie became the core component of the Omega Electronics Company. The two investors retained the core personnel that were working at the time when they bought their respective businesses. But Acme promoted its general manager to President while Omega hired an outsi der, to fill in the position of president of the company. In the former it was the promotion of someone who has known the electronics business for a very long time especially when it comes to the projects that both Acme and Omega are competing against. On the other hand Omega hired someone from a research laboratory. This professional background would play a major role in the development of Jim Rawl’s leadership philosophy that he utilized in dealing with the problems he encountered at Omega. The different approaches to hiring the top leader of the company can help explain why Acme surpassed Omega in all aspects of the business. Acme is more profitable than Omega. Acme can hire more people than its rival. This means that it is able to secure more contracts and expected to work on more projects as compared to Omega. However, both companies will be tested when they come across a project that forced them to build from scratch.Advertising Looking for case study on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Linkage to OAD This case relates to the issue of organizational structure (Daft, 2007, p. 99). It highlights the pros and cons of two types of organizational structures: the organic versus the mechanistic structure of corporate governance. It is important to tackle this issue and based on the details of the case there are certain ramifications if a leader chooses organic over mechanistic form of management. In this particular case the author made a clear argument that there is no method that can be used to deal with any specific issue or problem that would crop up in the course of a business cycle. However, there are principles that can be observed based on how Rawls and Tyler dealt with the situation. In the end management styles and leadership principles are overly dependent on the context of the issues that the leader has to deal with. Compare and contrast the management styles of Acme and Omega. Omega utilized an organic management style. This is based on the philosophical beliefs of the CEO Jim Rawls. It requires a certain leadership philosophy to develop a management strategy that relies more on networking and maintaining close relationships with co-workers. It is easy to understand why many leaders prefer this management style as opposed to the more formal method utilized in big corporations. In most cases, organic management styles are common in small firms. Due to the size of the company the CEO can afford to use a more personal approach. A more technical term is the utilization of a flat structure as opposed to the hierarchical structure found in most firms (Baligh, 2006, p.15). The second reason why an organic style is chosen over a mechanistic form of management has something to do with the history of the firm. In the case of Omega, the company was an offshoot from a bigger firm. Jim Rawls was an outsider and therefore he has not mastered the form and fun ction of an electronics company. His former job required him to oversee an electronic research laboratory. Although a research firm focused on developing cutting-edge technology for the electronics market has many things in common with an electronic manufacturing firm it can also be argued that these two are worlds apart. The laboratory background of Jim Rawls also explains why he utilized a flat structure and insisted that he did not believe in the importance of organizational charts. In the laboratory there is a greater need for collaboration because engineers and scientists are dealing with theoretical problems and issues that they have never encountered beforehand. Thus, they need to build professional working relationships that entail sharing of information.Advertising We will write a custom case study sample on Organizational Analysis and Design specifically for you for only $16.05 $11/page Learn More John Tyler on the other hand believes in creat ing an organization that is managed like the military. Precision and speed is of utmost importance in a manufacturing facility. An electronics laboratory can afford to make mistakes and can afford to have slight delays in their projected goals. This is based on the fact that the laboratory does not have a clear deadline when it comes to the delivery date of their products. People working in the laboratory do not have to worry about the cost of the experiment because they are paid to produce experimental results. But there is nothing experimental with a manufacturing firm. The sub-contractors like Acme and Omega are expected to deliver on time and with lowered costs. How do the differences between the companies’ management styles explain the way they coordinated the production of the prototypes? These two types of management styles were heavily contrasted when Acme and Omega were faced with a new challenge. In the past they had to manufacture printed electronic circuits. But a t the decade of the 1960s came to a close, printed electronic circuits was about to be taken over by integrated circuits. As a consequence both Acme and Omega had to find new markets to be able to utilize the full power of their manufacturing facilities. In 1966 a photocopier manufacturer asked both companies to submit 100 prototypes of an internal memory unit that is built into the copier. This project requires the use of integrated circuits. Both companies where treading into uncharted territories and in order to deal with the new challenge Jim Rawls and John Tyler knew they had to start from scratch. How they complied with the requirements provided a glimpse into the inner-workings of a mechanistic and organic management styles. It is interesting to find out that Omega edged out Acme in the production of 100 prototypes. Omega passed the test with excellent results. Acme on the other hand failed miserably and their reputation was close to tatters. The explanation can be seen in ho w effective the organic management style can be when faced with a new problem. The secret of Acme is in its efficiency. But efficiency as demonstrated in this study is borne out of routine. In other words, Acme was able to surpass Omega for many years because John Tyler, the head of the said firm had a clear understanding of the industry. The same thing cannot be said of Jim Rawls who was relatively inexperienced when it comes to this particular industry.Advertising Looking for case study on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Although, Acme had an excellent track record it soon became evident that new projects, with new requirements require an organic management approach in the initial phase. John Tyler used a more mechanistic method in dealing with the problems of a tight schedule and unreliable suppliers. John Tyler was in unfamiliar territory for probably the first time in his life as the head of an electronics company. They had to deal with other companies that they know little about. This unfamiliarity is the reason why they did not know that the main supplier of a memory chip shuts down during the holidays. Jim Rawls on the other hand succeeded because the lack of formal structure enabled his engineers and other employees to share ideas. The purchaser may have problems with their suppliers but an engineer who is not part of the procurement departments happens to know of an alternative component that they can use. John Tyler and his management style prevented his people to share ideas that are cruci al when it comes to developing prototypes. Jim Rawls understood this perfectly because in his previous job he was familiar with the requirements of developing a prototype. If Omega was so much more effective than Acme, why didn’t it win the final contract? Omega came on top and defeated Acme in the said bidding war. However, the final contract was awarded to Acme. Part of the reason was that Acme already built a reputation when it comes to efficiency. It can be argued that Omega also demonstrated its ability to become efficient especially in the way they handled the delivery of the 100 prototypes with zero error. Nevertheless, there is one particular factor that worked in favor of Acme. The industry experienced high demand. Therefore, the client cannot afford to simply rely on one company. The electronics boom of the 1960s enabled these two companies to continually share a significant portion of the market. In the long run this was beneficial to Acme because they were able to correct their mistakes. The mechanistic approach enabled them not only to become efficient but also cost-efficient. What changes would you recommend to Acme and Omega? Based on the case, it would be best if the leaders realize the importance of using both organic and mechanistic approach (Wesson 25). In the event that a prototype is needed, the organic management style is well-suited for this project since it would be the first time that the company has to deal with the specific requirements of such an assignment. On the other hand when the firm has already made the necessary adjustments then it would be best to utilize a mechanistic approach. This is important because both Acme and Omega will encounter significant changes in the future and both must learn to adapt to changing needs of the industry (Landy Conte, 2010, p.296). Do you think Acme and Omega should merge to better compete in the future? It is not advisable for these two companies to merge. The differences in leadership philosophy are too significant to be bridged. John Tyler will never be able to work under Jim Rawls. He seems to believe that he knows more about this industry as compared to his competitor. On the other hand a merger will enable both companies to reach a high-level of efficiency. A merger enables both companies to create a competitive advantage over other firms. These two groups can secure a significant portion of the electronics manufacturing market in their respective region. But for this to succeed, Acme has to absorb Omega in order to prevent conflicts in leadership styles. Conclusion This case study demonstrates the need to be flexible especially when an organization is faced with a new challenge. Due to the need to build a prototype, Acme was forced to tread into unfamiliar territory. As a result they were unable to setup a process that would have enabled them to work more efficiently. Omega on the other hand used the organic approach to solve a problem, a technique familiar to Jim Rawls because he used to work in an electronics laboratory. But in the long run the weakness of this approach was made evident. It is important that both leaders appreciate the strengths and weakness of both management styles in order to develop a sustainable business model. Reference List Baligh, H. (2006). Organization Structures: Theory and Design, Analysis and  Prescription. New York: Springer. Daft, R. (2007). Organization Theory and Design. OH: South-Western Cengage. Landy, F., Conte, J. (2010). Work in the 21st Century: An Introduction to  Industrial and Organizational Psychology. New York: McGraw-Hill. Wasson, C. (2006). System Analysis, Design and Development: Concepts,  Principles, and Practices. New Jersey: John Wiley Sons. This case study on Organizational Analysis and Design was written and submitted by user Shane Winters to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.