As we know from our textbook every company have some different missions and goals, so to achieve its goals company should develop some strategy. It consists from decisions and actions that determine the long run performance of the organization. Elit Electronics is one from these companies, as we already mentioned this company has its missions and goals which should be achieved. To develop Elit Electronics’ strategy as in every organization needs strategic management. Strategy in Elit Electronics is developed by top management. Top management in Elit Electronics typically is responsible for corporate strategies.
From our textbook we know that there are three types of corporate strategies: growth, stability and renewal. Elit Electronics has growth strategy because it continues to grow by opening new stores as in Georgia. And in the future it desires to become international company. Middle managers in Elit Electronics are responsible for business strategy. It is a strategy focused on how an organization will compete in each of its businesses. As we know Elit Electronics has four main competitors in Georgian market and should be mentioned that for the time company is the leader in this industry.
Leading position of Elit Electronics is caused by some competitive advantages that this company has on its competitors. We have already mentioned that the main competitive advantage is product, which company distributes in Georgian market. Lower level managers are responsible for functional strategies. Elit Electronics uses functional strategy to become more competitive company and to develop its service. For example this company take debt from TBC Bank (it’s business partner of Elit Electronics) to invest in building of a new stores in whole Georgia. Industry in which Elit Electronics operates is very fast developing and volatile.
So as company do its business effectively and efficiently it has the ability to recognize major external environmental changes, to quickly commit resources and to recognize than a strategic decision is not working. It is known as strategic flexibility. By new directions in organizational strategies Elit Electronics has used in its activities all three strategies which are important in today’s environment: E-Business, Customer Service and Innovation. In 2006-2007 company made its website by which its customers can view product, get information about product and book it through internet without going anywhere.
The product of Elit Electronics will be brought in the destination place frequently. Customers’ service strategy is on a high level in Elit Electronics in all three main parts. Company offers high quality product, communicative staff and positive environment from staff to customers. This is a reason why number of company’s customers year-to-year are becoming bigger. Innovation Strategy is also used in company. Elit Electronics offers to its customers well-known brands developed products. Organization Chart As we see, company’s entire structure is best introduced with its organization chart.
We discovered Elit Electronic’s organization chart and have defined some conclusions: Elit Electronics’s organization structure is centralized under general manager’s authority, which is followed by six department chief officer which had developed and maintain corporate strategy of growth type. This type of structure is caused by the key element of organizational design: departmentalization. In Elit Electronics is used Functional departmentalization, which means, that jobs are grouped by functions performed. There are six departments in organization:
Under the subordination of chiefs of these departments there are approximately ten middle managers, which are responsible for business level strategy. With this function they decide how an organization should compete in each strategic business unit. In the case of elite electroniks, they have chosen Low-cost provider strategy, but as they have very broad range of products and market segments expanded geographically, they even don’t leave a chance for already existing companies Or potential entrants to compete by differentiation or focus/niche strategy.
And there are nearly forty five first line managers in elite electronics which manage the work of non-managerial employees. About contemporary organizational structure we can conclude, that there are matrix and project structures in organization, because Specialists for different functional departments are assigned to work on projects led by several managers, (their decisions and activities often need to be confirmed by their chiefs) and this violates the idea of unity of command, which says that a person should have one boss and should report only to that person.
In my mind this may weaken flexibility. And at least, about communications between the members of organization structure, we discovered that there is All-Channel Network which means, that Communications flow freely among all members of the work team. This causes high member satisfaction but less accuracy when comparing to chain and wheel networks and it may prevent to appear strong, identifiable leader in organization. Staffing Plan
Recruitment of staff members in a company, their training, promotion and deciding active decisions are made without consideration of gender, religion, nationality, marital status, skin color and so on. Out of this company always cares about staff’s skills, knowledge and doing their best. Every staff member has the similar rights in the company. Nowadays in Elit Electronics work about 600 people and in the near future company plans to increase this number to 1000.
Current tendency shows that in a company people are working in a four different classifications. If the person wants to work in Elit Electronics, first of all he or she have to go through testing period. This may be from 2 to 6 months. By the normal-full day, the workers are working more than 35 hours a week. People, who are working in normally in half-time basis, work in a company less than 35 hours during the week. Elit-Electronics has also temporary workers, who are working in a company to accomplish specific task.
Their activities are bounded only by the given task. After recruiting a new employee, instructors will make them aware of the company and their task. During the “orientation training”, new member should become aware about organizational missions, objectives and principles and what to do and how to do. Estimation of the working process is being done by objectives and plans. The purpose of the estimation process is to define how work was done and to give relevant feedback to employee.
Every employee is measured by a single supervisor and HR department reports before one week to a senior manager the date of the evaluation. Measurement of the employee is made once in 6 months. Physical Layout The company has 29 Elit Electronics ; 56 dealer shops in major cities of Georgia. It continues to expand its network and it plans to have at least one store in each Georgian city by the 2008. As we have said in history part, the headquarter of Elit Electronics at the beginning was located in Batumi, but in 2001 the main office was moved to Tbilisi, in Business Centre Metekhi.
December 1 of this year Elit Electronics opened the biggest store by space in Caucasus, this is more than two thousand square meters with six floors, where the first two floors trading centre and the other four floors are for administration. On same day it opened two more branches one in Vani and one in Tbilisi. As Elit Electronics is the distributor of home appliances and digital technologies it has not many equipments, basically company uses human resources, but it uses some technologies in fully servicing the customers. Company has its own cars for delivering goods form store to customers home.
Description of the leadership From our view, at the top level of leaders in elite electronics, the decision impotence has A philosophy driven by continual improvement in the quality of work processes and responding to customer needs and expectations, which is not directly related to cost. This condition and trend inspires middle, first-line and non-managerial employees Giving the customers what they want and Communicating effectively with them. As we know manager does not need to have leader skill, but leader must have good managing skills.