Organizational theory in a new company

Organizational theory in a new company

ORGANIZATIONAL THEORY: It is a deep and careful study of how people in groups or individuals behave within an organization.

THE PRODUCT AND COMPANY: We are launching a Root Beer (Energy Drink) made from different exotic herbs and spices which will give a unique and different taste to our target consumers. We will be delivering this product in USA and Canada with maximum capacity. The company will be opened in California (USA) and the products will be manufactured there and then will be distributed across different countries and regions. Our Product includes Taurine, Gluconorolactone, Caffeine, B Group Vitamins, Sucrose, Glucose and Aspartame. The company will focus on making a global brand loyalty by giving the customers superior quality of products. Since our brand is on the growth stage we will be promoting our product in variety of ways to enhance brand image.

ENVIRONMENTAL FACTORS FOR BEING GLOBAL: Since we will be expanding globally there are certain challenges and issues that managers should consider while making decisions and we as a new company will also focus on global factors to be successful globally. Factors include The Legal Environment, Economic Environment, Cultural Environment, Technological Environment and Political Environment.

GENERAL ENVIRONMENT: It includes broad conditions that may affect the organization. Changes in these areas have large impact on organization and managers should take these issues into consideration as they have to plan, organize, lead and control.

The legal and Political Environment is very important for us to establish a new company in the country or area we will operate. Since our company will be located in California (USA) we will have to sort out the legal issues. Since the law is strict over there we have to take permission for manufacturing an Energy drink and make them clear that we don’t use any ingredient that harms the health of people who will drink it. We also have to create awareness through different mediums that our brand doesn’t have any harmful ingredient that will affect them. The legalities of how to balance and maintain your company accounts require to study deeply the system of USA as global managers should be aware of these issues.

The Economic Environment is very important for managers to understand as the whole business structure depends on this issue. Managers should focus on Fluctuating currency, Exchange Rates, Inflation rates, Tax policies and Interest rates as well. Since our brand will be served in USA and Canada we have to be aware of the Exchange rates that the currency in which we are making a product is balanced with the currency we will export our sell our brand. Interest rates are very important for any business to run successfully, in any country. Now days in USA and Canada the economic conditions are getting worst day by day so we will have to make decisions accordingly. The purchasing power is getting down although the interest rates are very effective since these countries have cut their interest and tax rates but the cash is not available in the market.

Cultural Environment plays a major role in expanding brand loyalty. The company as the managers should be aware of cultural values in area they are operating. We will have to take care of certain cultural Attitudes in USA and Canada if we have to make a good positioning in the minds of our consumers. Certain characteristics of people living in USA and Canada are that they are very informal, Individualistic, independent, Direct, Competitive and achievers also.

STRATEGIC ALLAINCE: It is an approach for being global that is partnership between your organization and a foreign organization in which both agree to share resources and knowledge in developing new ideas and products or upgrading the technology for better productions. Our Strategic Alliances are,

1. Hunix Management (Drink Act Energy Drink), Canada: They are one of  the best distributor across Canada and they also are wholesaler which will be beneficial for us as they will distribute our brand as well as we will share information and resources with each other to get a higher market share. This company is a growing company like us and has a good image in the market.

2. A.C.T Energy Drink: This Company is also one of the leading companies of energy drinks and is also a distributor and a wholesaler which is a good alternative for us to be a strategic alliance with our company. The company has a large network of delivering the goods at the right place and at the right time which is an extra advantage we can use.

3. Cintron Energy Drink: This Company is located in USA and is well known for its different range of products globally. We can use this company as a strategic alliance of us as they are leading a good market share. They are wholesaler as well as distributor also. The important thing is that they have the latest technology and working methods which can increase our production as well as quality.

            The best Strategic alliance for us will be Hunix Management (Drink Act) as they are good leader of market in Canada and are wholesaler as well as distributor. The HR is good in this company which can effectively make good results.

Since many Countries don’t follow ethics very well in their business practice we will take care that our suppliers don’t practice procedures that are against our ethics as the law of USA doesn’t allow child labor. But in certain circumstances there is no choice and suppliers are limited to that area in which we are operating. Also if there is a recession going on in that country we don’t have choice as there are some monopoly going on. We will handled this situation by giving offers to small children’s to pay for their school fees so that they will study as well as earn for their expenses as well.

SOURCES

1. Stephen P. Robbins, Mary Coulter (2003). Management and Organizational Behavior. Prentice Hall.