The External EnvironmentThe external environment can be understood as the factors that affect the operations of the organization such as the price of raw materials among other factors. The two main components of the external environment associated with the AVS include regulatory environment and technology. The two components would have a great impact on the business because they have been highlighted as key challenges in the operations of the business and they also influence every aspect of the business in the company. The regulatory environment includes the landscape of laws and regulations which determines what can be done and that which cannot be done. In respect to AVS, the regulatory environment has been shaped by the animal-derived product ban by different animal rights activists in India. The concerns regarding the treatment of crocodiles in India affected the operations of the supplies. Further, countries today have enhanced legal measures to protect the endangered species like crocodiles and leopards whose skins have proven very valuable in the fashion industry.
Technology is another component of the external environment that would have a great impact on the operations and performance of AVS. Today's global market is influenced and determined by the ability to incorporate technology into the business. Technology has proven to be advantageous in AVS marketing strategies, for instance, the online marketing platforms have increased the company's revenue income. Therefore, increasing online presence is most likely to improve the brand recognition and brand equity in the global market.
The Organization Structure
The organization structure in AVS is mechanistic structure because of the small size of the company. The organization is headed by the director and founder, Michelle. Michelle makes all the decisions regarding the operations of the organization and the rest of the members are tasked with the implementation. Michelle is assisted by the two gentlemen, Justin and Eric. Justin is the head of Design while Eric is in charge of supplies in the company. The rest are employees making up the organization structure. The three key contingency factors that favor mechanistic organizational structure include rigid and tightly controlled structures, centralized decision-making, standardization, and formalization. These three contingency factors define the mechanistic structure of AVS. First, the rigid and tightly controlled structure involves the internal policies and measures that the business operates. Unlike the organic organization that is associated with the highly adaptive and flexible structure, the mechanistic structure like AVS is controlled. For example, it was difficult to move from the animal-based products to synthetic materials because it had been the tradition of the business. Eric explains that AVS has been focusing on high-leather materials and shifting to synthetic materials would affect the business's integrity and would be against the very foundation that it was established on. Centralization factor involves the decisions were made by the executive or the head of the company in the case of AVS. Michelle, who is the director, makes all the decisions and Eric and Justin, as well as the employees, are expected to follow and implement the decisions. For instance, from the case study, Michelle uses the word that "I have made my decision." This phrase means that the other members of the organization are not involved in the decision, but instead, it is the director who makes all the critical decisions regarding the operations of the business. Standardization and formalization factors mean that all tasks undertaken in the organization are formalized and standardized to enable the business run smoothly. Michelle decides to shift to synthetic materials after the animal-based leather materials become a problem to get due to restrictions from the animal activist groups. She does not want to get her supplies from the black market because she believes in formalization.
Factors That Are Reshaping and Redefining the Job of Michelle
Michelle's work is redefined and reshaped by the following two key factors; changing technology and global uncertainties. The changing technology is one of the factors identified that reshapes and redefines Michelle's job. Businesses today have realized the importance of integrating technology into the business. Technology is influencing the way businesses are carried out. In the case of AVS, Michelle is compelled to focus on online marketing strategies because of its potential. Michelle attests to the impact of online business due to the increasing popularity of online shopping in different areas within Singapore and even across the Asian continent. As a result, this creates a potential opportunity for increasing the product sales; thus, improving the company's revenue and performance.
The global uncertainties include the changes in the global market in terms of raw material sourcing. The changes in Indian market to control the exportation of crocodile skin due to the endangerment that these species face also changes the business operations of Michelle. She is forced to shift from leather materials to synthetic materials due to the global uncertainties. These uncertainties cannot be predetermined because every country makes its policies on a daily basis. Other uncertainties include the consumers in the market. Michelle was used to delivering consistent high-quality leather products to customers. However, changing to synthetic products may affect the survival and success of AVS especially with the competition from companies that are willing to obtain raw materials on the black market.
The Essential Management Skills
A good manager possesses various management skills that are associated with the success of the business. First, a good manager possesses good and effective decision-making skills. Managers are presented with challenges regarding the business operations on a daily basis and they are expected to find solutions to deal with the problems. A good decision maker is able to listen and analyze every aspect of the problem before making a decision that will impact all stakeholders positively. Decision making in mechanistic organizations like AVS is a responsibility of the top level in the management. Michelle is responsible for all the decisions to be made regarding the operations of AVS on a daily basis.
Secondly, a good manager possesses effective communication skills. In a mechanistic organization like AVS, effective communication is an essential part of management because it determines successful execution of directives. Effective communication enables the manager to explain her plans and objectives in a precise manner to allow the subordinates implement the plans effectively and correctly (Mueller, 2017). Communication is accompanied by listening skills that every manager should possess. In the case of AVS, Michelle is considered to be a good communicator because despite that the firm is experiencing many challenges; it is still able to expand its operations. Michelle makes the decisions and her subordinates including Eric, Justin, and the employees execute the plans. Communication is appropriate at every managerial level because each level involves people who rely on communication to perform their duties.
Lastly, team building and leadership skills are also essential in management because the success of the organization does not rely on one person or two, but it relies on every member of the organization (Mueller, 2017). The success is achieved by both the executive or management and employees' effort combined. Such effort can only be combined with collaboration, partnership, and teamwork. A good manager works with every member of the organization to achieve the success of the whole firm. Teamwork is appropriate at all managerial levels because once the benefit is achieved, everyone identifies with it. Team building ensures that the individual abilities of every employee or member of the organization are combined to strengthen the outcome. Michelle practices effective team building and teamwork in her company. Every decision she makes, she ensures that she calls upon Eric and Justin, who are her immediate subordinates, to ensure that that the plans are effectively implemented. She realizes that everyone has to work towards achieving the success of the firm.
Difference Between Programmed and Non-programmed Decisions
Programmed decisions can be understood as the choices or decisions that a manager has made or encountered in the past. These decisions are considered to be correct or right because the manager may have received the assistance of the established internal policies, computations as well as set decision-making procedures. In most cases, programmed decisions are repetitive because they were successful or led the organization to achieve success. Therefore, it is most likely that such decisions would be made again in the future. Programmed decisions are effective in the organization because they save time especially when the manager is faced with challenges that he or she had already encountered in the past. It is easy to arrive at a conclusion or decision when the manager is faced with a business-related programmed decision because the challenges are not new to the organization. Programmed decisions in AVS include the strategies to deal with competition. Michelle understands that competition exists but she is able to overcome it in the market through high-quality leather products that meet customers' expectations.
Non-programmed decisions in the business involve problems that are new to the firm and the solution may not be easily achieved because there are no procedures set to help deal with such problems. In a case that the organization is faced with the non-programmed-related problems, the manager needs to come up with unique solutions that will fit the unique situation. Non-programmed-related solutions take time to achieve due to the challenges or variables that the management must consider. AVS is faced with many non-programmed problems; challenges that had not been experienced before. For example, a limited supply of raw material due to the restrictions associated with the animal protection measures in different countries. It is not only India where such restrictions exist, almost every country today has a policy that protects the animals that they feel are endangered by commercial activities. Like the case of India where crocodiles are protected from suppliers and manufacturers who rely on animal materials. AVS has to seek another supplier, but because almost every country seems towards protecting the animals that have been the source of raw materials for many fashion firms, Michelle, and other players will have to design a unique solution that can be able to solve the problem without getting the company out of business. Michelle's shift to synthetic materials is such a unique solution.
Definition of Decision-Making
Decision-making is the act of judging or making a judgment regarding a certain issue or problem in the organization. Decision-making is choosing between the available or possible options to determine the best and probable choice that would impact the organization positively. Decisions are made on a daily basis because problems also emerge daily. Decision-making requires different techniques to ensure that the conclusion does not affect the business or any other stakeholder negatively. A good decision should be able to impact everyone positively. The two techniques that can be used to improve the decision-making process in today's world include intuition and reasoning...
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