Evraz Company, founded
in order to deal with the trading of metal is characterized by an
organizational structure that is vertically integrated and highly sufficient in
the production of iron ore and coking coal. The management of the company
sought to establish a separate division to deal with railway products so as to
ensure that there is continuous improvement of the processes and that intensity
is placed on the management of the company’s key products. The railway products
division majorly deals with the manufacture and sales of railway applications (Evraz
Company, 2012).
The management of the
company is characterized as having an eye for detail in regards to the processes
and the functionalities of the company. This is the reason why despite the many
branches that have been established in regards to the Evraz shops, there is
still very close supervision of the processes by the vice president. To ensure
that the activities are properly coordinated and efficiency is highly realized
has ensured to use the centralized management system. This is so in order to
enable easy decision making and proper flow of processes. This is due to the
fact that most of the sub divisions have been directed to be managed by the
steel division. An example is the Evraz ZSMK and Evraz NTMK shops, including all
the companies under Evraz holdings and east metals (Evraz Company, 2012).
The management
positions have been highly personalized with Ilya Shirokobrod, vice president of
the railways division assuming lead over most of the company’s dictions like
the production and sales function, and the management of the railway products
in order to supervise both the local and the oversees functions of the company’s
business.
In order to expand their operations in the South Australian market, it
is important that the management of the company considers the implementation of
the global standardization of their goods and services and also, of their
operational structure so that they can enjoy economies of scale due to the standardization
of their processes (Bartlett and
Ghoshal, 1990).
However, in their quest to do so, it is important that the company considers
the difference in the Australian market in relation to the other markets that
they are used to operating in. Through taking into consideration the local
sensitivities of the Australian market, then they will be able to comfortably
satisfy their Australian customers and increase on their market share. It is also
important that the company aligns its structure to suit that of the south Australian
market and their environment (Caves, 1984). It is important for the organization to understand that the
greatest solution to market penetration in a newly developed market is the
ability to have an administrative heritage that was shaped by the culture of
the people. In this case therefore, a functional organizational structure would
be most appropriate so as o form a locus of power (Chandler, 1962).
Due to the ever changing market and environmental needs, it is important
for the company to position itself in transactional model way where it could
link the units that required a higher level of specialization as compared to
the others, in one network so that the multidimensional aspects of strategic goals
can be attained (Egelhoff, 1989) .This way, there will be increased efficiency in terms
of responsiveness to the needs of the market (Davis and Lawrence, 1974). This will also allow the company to be
able to innovate as per the requirements of the Australian market and even better,
create potential markets. Through this model, even though the company will be
acting to meet the needs of the local community, its main global objectives
will be realized.
In order to ensure that the company effectively expand it processes in
the Australian market, it is also necessary that the management considers the
adoption of the matrix style of management. This way they can be able to build
a balanced portfolio in regards to proper coordination of the key processes
(Drucker, 1988). The essence is to
ensure that the management is balanced in decision making. This way all the
vital issues regarding the heterogeneity of the market and economies of scale
will be appropriately addressed.
Finally, it is very important that the management incorporates the key strategic
principles of leadership focus and discipline (Levitt, 1983). This way, it is easier to ensure that
positive accountability is executed and the company is able to deliver the
stated results. It is very essential that the leadership of the Company is
strengthened through strategic management skills so that they can in turn
empower the employees of the company to better envision the vision of the
company and strive to execute them as though they were their own. This way,
there would be no need for constant empowerment of the staffs through training
and development. Through maintaining the focus o the company in ensuring that sales
and revenues are improved and that processes are at the best quality
(Sumantra and Nitin, 1993). This
way, the guarantee is a bigger market share and a gradual improvement in the
profitability of the company.
References
Bartlett, C, A., and Ghoshal, S, (1990) ManagingAcross Borders: The Trunsnational Solution, Wutchinson
Business books, UK, 1989, pp. 30-32.Business Week, The Stateless
Corporation
Caves, R, E.
(1984), Industrial Organization, Corporate Strategy and Structure, Strategic Management, Prentice-Hall Inc., Englewood
Cliffs, N.J., , pp. 134-170.
Chandler, A, D.(1962). Jr. Strategy and Structure:
Chapters in the History of the Industrial Enterprise, Cambridge: MIT Press
Davis, S.M., and
Lawrence, P.R (1974).., Matrix Management. Reading,MA: Addison-Wesley.
Evraz Company (2012), Evraz company History.
Retrieved from:www.evraz.com/about/history
Drucker,
I’(1988) The Coming of the New Organisation, HarvardBusiness Review. Vol.
66, No. 1,
Egelhoff, W, G.
(1989)., Strategy and Structure in Multinational Companies: A Revision of the Stopford and WellsModel, Strategic
Management foumal, Vol. 9, No. 1,January February
Financial Times(1990), series of articles on BP in March.
Levitt, T.
(1983), The Globalization of Markets, Harvard Business Review, pp.
92-102.
Sumantra,G and Nitin,N,(1993),, Horses for
Courses:Organisational Forms for Multinational
Corporations,Sloan Management Review, Winter pp. 23-35.
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