Monday, July 26, 2010

Organization Structure

An organization structure is a mainly hierarchical concept of subordination of entities that collaborate and contribute to serve one common aim.
Organizations are a variant of clustered entities. An organization can be structured in many different ways and styles, depending on their objectives and ambience. The structure of an organization will determine the modes in which it operates and performs.
Organizational structure allows the expressed allocation of responsibilities for different functions and processes to different entities such as the branch, department, workgroup and individual. Individuals in an organizational structure are normally hired under time-limited work contracts or work orders, or under permanent employment contracts or program orders.
Organizational structure types
Pre-bureaucratic structures
Pre-bureaucratic (entrepreneurial) structures lack standardization of tasks. This structure is most common in smaller organizations and is best used to solve simple tasks. The structure is totally centralized. The strategic leader makes all key decisions and most communication is done by one on one conversations. It is particularly useful for new (entrepreneurial) business as it enables the founder to control growth and development.
They are usually based on traditional domination or charismatic domination in the sense of Max Weber's tripartite classification of authority.
Bureaucratic structures
Bureaucratic structures have a certain degree of standardization. They are better suited for more complex or larger scale organizations. They usually adopt a tall structure. Then tension between bureaucratic structures and non-bureaucratic is echoed in Burns and Stalker[1] distinction between mechanistic and organic structures. It is not the entire thing about bureaucratic structure. It is very much complex and useful for hierarchical structures organization, mostly in tall organizations.
Post-bureaucratic
The term of post bureaucratic is used in two senses in the organizational literature: one generic and one much more specific [2]. In the generic sense the term post bureaucratic is often used to describe a range of ideas developed since the 1980s that specifically contrast themselves with Weber's ideal type bureaucracy. This may include total quality management, culture management and matrix management, amongst others. None of these however has left behind the core tenets of Bureaucracy. Hierarchies still exist, authority is still Weber's rational, legal type, and the organization is still rule bound. Heckscher, arguing along these lines, describes them as cleaned up bureaucracies [3], rather than a fundamental shift away from bureaucracy. Gideon Kunda, in his classic study of culture management at 'Tech' argued that 'the essence of bureaucratic control - the formalisation, codification and enforcement of rules and regulations - does not change in principle.....it shifts focus from organizational structure to the organization's culture'.
Another smaller group of theorists have developed the theory of the Post-Bureaucratic Organization.[3], provide a detailed discussion which attempts to describe an organization that is fundamentally not bureaucratic. Charles Heckscher has developed an ideal type, the post-bureaucratic organization, in which decisions are based on dialogue and consensus rather than authority and command, the organization is a network rather than a hierarchy, open at the boundaries (in direct contrast to culture management); there is an emphasis on meta-decision making rules rather than decision making rules. This sort of horizontal decision making by consensus model is often used in housing cooperatives, other cooperatives and when running a non-profit or community organization. It is used in order to encourage participation and help to empower people who normally experience oppression in groups.
Still other theorists are developing a resurgence of interest in complexity theory and organizations, and have focused on how simple structures can be used to engender organizational adaptations. For instance, Miner et al. (2000) studied how simple structures could be used to generate improvisational outcomes in product development. Their study makes links to simple structures and improviseal learning. Other scholars such as Jan Rivkin and Sigglekow[4], and Nelson Repenning [5] revive an older interest in how structure and strategy relate in dynamic environments.
Functional structure
Employees within the functional divisions of an organization tend to perform a specialized set of tasks, for instance the engineering department would be staffed only with software engineers. This leads to operational efficiencies within that group. However it could also lead to a lack of communication between the functional groups within an organization, making the organization slow and inflexible.
As a whole, a functional organization is best suited as a producer of standardized goods and services at large volume and low cost. Coordination and specialization of tasks are centralized in a functional structure, which makes producing a limited amount of products or services efficient and predictable. Moreover, efficiencies can further be realized as functional organizations integrate their activities vertically so that products are sold and distributed quickly and at low cost [6]. For instance, a small business could start making the components it requires for production of its products instead of procuring it from an external organization.But not only beneficial for organization but also for employees faiths.
Divisional structure
Also called a "product structure", the divisional structure groups each organizational function into a divisions. Each division within a divisional structure contains all the necessary resources and functions within it. Divisions can be categorized from different points of view. There can be made a distinction on geographical basis (a US division and an EU division) or on product/service basis (different products for different customers: households or companies). Another example, an automobile company with a divisional structure might have one division for SUVs, another division for subcompact cars, and another division for sedans. Each division would have its own sales, engineering and marketing departments.
Matrix structure
The matrix structure groups employees by both function and product. This structure can combine the best of both separate structures. A matrix organization frequently uses teams of employees to accomplish work, in order to take advantage of the strengths, as well as make up for the weaknesses, of functional and decentralized forms. An example would be a company that produces two products, "product a" and "product b". Using the matrix structure, this company would organize functions within the company as follows: "product a" sales department, "product a" customer service department, "product a" accounting, "product b" sales department, "product b" customer service department, "product b" accounting department. Matrix structure is amongst the purest of organizational structures, a simple lattice emulating order and regularity demonstrated in nature.
• Weak/Functional Matrix: A project manager with only limited authority is assigned to oversee the cross- functional aspects of the project. The functional managers maintain control over their resources and project areas.
• Balanced/Functional Matrix: A project manager is assigned to oversee the project. Power is shared equally between the project manager and the functional managers. It brings the best aspects of functional and projectized organizations. However, this is the most difficult system to maintain as the sharing power is delicate proposition.
• Strong/Project Matrix: A project manager is primarily responsible for the project. Functional managers provide technical expertise and assign resources as needed.
Among these matrixes, there is no best format; implementation success always depends on organization's purpose and function.




Organization Design

Organization design involves the creation of roles, processes, and formal reporting relationships in an organisation. One can distinguish between two phases in an organisation design process: Strategic grouping, which establishes the overall structure of the organisation, (its main sub-units and their relationships), and operational design, which defines the more detailed roles and processes. The field is mainly practice-driven and many consulting firms offer organisation design assistance to managers. However, there is also a substantial academic literature. The most frequently cited book is still Thompson (1967); other key works include Galbraith (1973) and Lawrence & Lorsch (1967).
It is important to distinguish between organisation design and organisation theory. The latter is a descriptive discipline, mainly focusing on describing and understanding organisational functioning. Organisation design is (as the name suggests) a more normative, design-oriented discipline that aims to produce the frameworks and tools required to create effective organisations.












Organization Culture

Organizational culture is an idea in the field of Organizational studies and management which describes the psychology, attitudes, experiences, beliefs and values (personal and cultural values) of an organization. It has been defined as "the specific collection of values and norms that are shared by people and groups in an organization and that control the way they interact with each other and with stakeholders outside the organization."[1]
This definition continues to explain organizational values, also known as "beliefs and ideas about what kinds of goals members of an organization should pursue and ideas about the appropriate kinds or standards of behavior organizational members should use to achieve these goals. From organizational values develop organizational norms, guidelines, or expectations that prescribe appropriate kinds of behavior by employees in particular situations and control the behavior of organizational members towards one another."[1]
Organizational culture is not the same as corporate culture. It is wider and deeper concepts, something that an organization 'is' rather than what it 'has'. Corporate culture is the total sum of the values, customs, traditions, and meanings that make a company unique. Corporate culture is often called "the character of an organization", since it embodies the vision of the company’s founders. The values of a corporate culture influence the ethical standards within a corporation, as well as managerial behavior.[2]
Senior management may try to determine a corporate culture. They may wish to impose corporate values and standards of behavior that specifically reflect the objectives of the organization. In addition, there will also be an extant internal culture within the workforce. Work-groups within the organization have their own behavioral quirks and interactions which, to an extent, affect the whole system. Roger Harrison's four-culture typology, and adapted by Charles Handy, suggests that unlike organizational culture, corporate culture can be 'imported'. For example, computer technicians will have expertise, language and behaviors gained independently of the organization, but their presence can influence the culture of the organization as a whole.

Sunday, July 11, 2010

Marketing Feasibility
Study

The purpose of the Marketing Feasibility Study is
to determine the suitability of this property for
profitable development, and to define optimal
products and amenities in accordance with
projected market demand, and to project sales
absorption and annual revenues from
development of this property.
The methodology entails examination of the
site's market potential followed by research on
the real estate consumer market and on
competitive real estate products. Research
findings are analyzed with respect to property
location, potential competition, and preliminary
development plans to define marketing feasibility
in terms of potential market share, marketing
constraints and opportunities and projected
absorption rate and pricing ranges. These
feasibility components provide the basis for
definitive recommendations on development
potential, development strategy and a cost-
effective marketing and sales strategy.


Market Feasibility

This can be based on a market assessment that
you may have already completed.
Industry description
Describe the size and scope of the industry,
market and/or market segment(s).
Estimate the future direction of the industry,
market and/or market segment(s).
Describe the nature of the industry, market and/
or market segment(s). Is it stable or going
through rapid change and restructuring?
Identify the life-cycle of the industry, market and/
or market segment(s). Is it emerging, growing,
mature, declining?
Industry competitiveness
Describe the industry concentration. Are there
just a few large producers or many small
producers?
Describe the major competitors? Will you
compete directly against them?
Analyze the barriers to entry of new competitors
into the market or industry. Can new competitive
enter easily?
Analyze the concentration and competitiveness of
input suppliers and product/service buyers.
Describe the price competitiveness of your
product/service.
Market potential
Identify whether the product be sold into a
commodity market or a differentiated product/
service market.
Identify the demand and usage trends of the
market or market segment in which the product
or service will participate.
Examine the potential for emerging, niche or
segmented market opportunities.
Explore the opportunity and potential for a
branded product.
Assess market usage and your potential share of
the market or market segment.
Access to market outlets
Identify the potential buyers of the product/
service and the associated marketing costs.
Investigate the product/service distribution
system and the costs involved.
Sales projection
Estimate sales or usage.
Carefully identify and assess the accuracy of the
underlying assumptions in the sales projection.
Project sales under various assumptions (i.e.
selling prices, services provided, etc.).

Wednesday, July 7, 2010

The Background and Significance

Rexobar - a combination of Exotic Food Restaurant and Bar. It is basically a business associated with the products and services it offers particularly the food and drinks. This is the ideal business we would like to develop. It is generally a commercial business that offers products such as food and drinks and services like the ambiance and musical performances.
We have come up of thinking this business idea because it is a rare business wherein a restaurant bar offers exotic foods. Exotic foods are excitingly different or unusual foods offered in few restaurants. These foods can't be found in just any other restaurants. Crickets, rats, cockroaches, frogs, snakes, wild pigs, wild ducks and lizards are just some example of exotic foods.
Although the Rexobar also offers regular food and drinks and live musical band performances, the exotic food is the main attraction of the business specially for tourists or foreign customers. Because of it more potential customers are more likely to try the Rexobar because of its somewhat unique offers.
In a Restobar or Restaurant Bar, most customers find their way to spend their leisure time for relaxation is through drinking and viewing musical bands performing on stage while others would prefer to look for a new and exciting way of relaxation and this one would attract them, to try the exotic foods. So while enjoying a live performance or to match with their drinks, eating exotic foods as well would add some more pleasure and enjoyment inside the restobar.
In overall, the Rexobar is a Restaurant Bar that serves exotic foods and gives a greater and different way of fun and enjoyment to its customers.


General Objectives

Since the food industry and entertainment are good target to have plenty of customers, the business proposal is in the line of offering musical entertainment and selling food and drinks that emphasizes the selling of exotic food. The main purpose is to introduce the exotic food in public and intentionally, to attract potential foreign customers with the attraction and ambiance of the Rexobar. In general, the Rexobar intends to be a different and good choice of both local and foreign customers for foods, drinks, and musical entertainment.


Specific Objectives

¤ To establish a feasible business in food and musical entertainment.

¤ To introduce an exciting way to enjoy the experience inside a restobar by means of exotic foods.

¤ To have a loyal and valuable customers in both local and foreign citizens.


Hypothesis

The Restaurant for Exotic Foods plus bar (Rexobar) might provide a good business opportunity to introduce exotic foods and serve as tourist attraction as well for local and foreign customers in restaurant and bar business.


Aim of the Study

This is just a business proposal aiming to introduce a different variation of Restaurant Bar (Restobar) - the Rexobar. The business is primarily a restaurant that offers foods but concentrates on exotic foods and also manages a bar. This is a rare kind of a restaurant selling exotic foods but also engaged in running a bar. The business proposal assumes that it will be a good business plan to pursue in a long run since the business idea is known to be a good business for commodity and entertainment.

Tuesday, July 6, 2010

A. The Company

Rexobar Company


Nature of the Business

The Rexobar is basically a business for profit. It sells products and services in exchange for profit.


Type of Operation

The Rexobar is engaged in merchandising and service concern. It sells food and drinks and also provides services like entertainment through musical performance.
The most possible sources for its food products specially for exotic foods will come from rural areas near in Quezon City like Laguna, Bulacan and Pampanga. Others will come from Quezon City.


The Length of Study

The Rexobar assumes to exist in a long run and would able to regain its capital within five (5) years. It would gradually meet its financial stability and financial performance in the succeeding years.


B. Products and Services

The products that the Rexobar will going to offer are: 1.) regular foods such as local and foreign dishes, classic daily meals 2.) exotic foods like adobo/fried/roasted rat and frog, fried beetles, adobong kambing, fried crickets, papaitan, balut, sauted (ginisa) huge worms and 3.) drinks specifically wines, juices, liquor and variety of beverages that are always available in all Restobars. The Rexobar is also in the service concern. It offers services like daily musical band performances for customer entertainment, delivery service and other exclusive services.


C. The Market and Marketing Strategy

The Market

The Rexobar Company targets to have all the customers in the legal age (adults) for all the products and services its offers but for minors the company will strictly don't allow to sell any alcoholic beverages. In general, Rexobar company covers all the potential customers for the product and services it offers.

Marketing Strategy

In able for the Rexobar to be known, it will undertake the following promotional activities:
1.) Advertisement - the Rexobar company will release ads in newspapers and online ads in websites for better promotion.
2.) Free taste - In order to let the customers know that the Rexobar's foods are sure to have great and delightful tastes.
3.) Promos - The Rexobar will also provide limited promos like discounts, freebies, free delivery and other seasonal offers like venue for special celebration.


D. Competition

There are only few competitors particularly in the area of Quezon City the sell exotic food but may competitors within the general line of the business - Restaurant and Bar.

E. Project Sight or Location

Within the vicinity of Quezon City as possible - in Timog where large number of people are living. There's is no common restaurant in Quezon City that specializes the selling of exotic foods so it is good to start in this place where there are no known competitors yet.


F. Financing or Capitalization Requirement

The Rexobar needs a great capital to start the operation. Since it is a partnership company, the capital is equally shared by the partners. Eighty percent (80%) would come from the equal shares of each partner and twenty percent (20%) would come from loan from bank. The estimated initial capital would gone up to three million (3,000,000) pesos base on the Rexobar's estimated operating expenses.