Nowadays company involves the stores in all regions of Georgia.
S.W.O.T. Analysis
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Strengths: 11 year experience, leader in the market, sales network in the whole territory of Georgia, consumer trust and loyalty, credit lines and marketing support from the suppliers, successful relationship with partners and positive credit history.
- Weaknesses: less developed e-commerce, prices for mobile phones. (Illegal market), entire system of resource planning, and not full bank services in the regions of Georgia.
- Opportunities: Entering international markets, market share growth, new services, developing of e-commerce, distribution of new brands, digital technologies and computer business development in Elitel’s sales network, Opening new stores in the regions, strengthening of market positions.
- Treats: entering of international level competitor in the Georgian market, unstable political and economical situation and force major situations.
Strategy
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.
And until leadership is unavoidable part of any organization we had to describe the leadership in Elit Electronics. We know that leader is someone who can influence others and who has managerial authority. This managerial authority is given to leaders according to five kinds of power:
- The power a leader has as a result of his or her position.
- In Elit Electronics manager has the right to lower subordinates’ position if the do not act according to company’s interests. But this lowering should be confirmed with HR department.
- In Elit Electronics manager has the power to reward staff member by promotion or give some premium as added to salary at the end of the month.
- Leaders in Elit Electronics have also expert power, because their experience and training.
According to behavioral theories developed by Iowa studies, there is mix of Autocratic and Democratic style, with high participation and feedback but centralized authority. And according to University of Michigan Studies, the organization is trying to develop the Employee oriented leader behavior, but it still feels Production oriented styles features, which is typical for Georgian organization. According current trends, our advice would be to develop Transformational Leadership, which prefers to inspire followers to transcend their own self-interests for the good of the organization by clarifying role and task requirements, and often result in Leaders who also are capable of having a profound and extraordinary effect on their followers; instead of Transactional Leadership that guide or motivate followers in the direction of established goals by clarifying role and task requirements. And also nurture and encourage leaders which have mix of features of Charismatic and Visionary leadership style. To our mind this is the best fitted to Georgian business environment.
And at least, as advice we can say, that there are substitutes for leadership; they include:
- Experience, training, professional orientation, or the need for independence
- Routine, unambiguous, and satisfying jobs
- Organization characteristics
- Explicit formalized goals, rigid rules and procedures, or cohesive work groups
Financial Plan
As we know Elit Electronics is one of the profitable companies in Georgian market. It has high volume of sales:
In 2003 the sales of Elit Electronics were 8.42 million US Dollars. In 2004 the sales grow by 4.78 millions and became 13.2 millions (8.42+4.78). In 2005 the sales were 22.94 million and in 2006 the sales reached the maximum amount in Elit Electronics sales history.
According to this data we can estimate the sales growth rate, which are following:
Elit Electronics’s total expenses include wages, rent expenses, taxes and other expenses. Expenses of the company in 2003 were 8.33, in 2004 – 13.1, in 2005 – 22.33 and in 2006 – 55.5 million dollars.
According to this information we may estimate profits of Elit Electroniks in 2003 – 2006 years.
We may see profit grows in following chart:
Appendices
So a as we stated Elit Electronics management we may say that it is a one of the best company in Georgia. This company have done thing that needs very careful management. In 11 years company with 3 members at the beginning become the leader in its industry.
Elit Electronics gets some rewards during his existence. These are:
ELIT ELECTRONICS has been certified by German company TUV SUD with ISO 9001-2000 certificate.
I n 2006 by the Financial & Global Idea Elit Electronics become the owner of Gold Brand prize.
ELIT ELECTRONICS has proved its leader position on the consumers' market of Georgia and has succeeded in the nomination " THE LEADER".
Reputation of ELIT ELECTRONICS has met approval with well-known agencies and has won the nomination "REPUTATION AND RELIANCE".
So Elit Electronics is really successful company in Georgian market.
Bibliography
The information what we use in our presentation was gathered from company staff , web site and interview with competent people.
