Virtual Organizations (graphics not included)
The virtual organization is a network of independent suppliers, customers, and even competitors, generally tied together by computer technology (Roger, 1991). They share skills, costs, and access to markets. It is tend to have flat structures in which information and decision making move horizontally (Judith R.G, 2002). Through the support of modern electronic system, it becomes possible to link people across formal organizational boundaries (Judith, 2002, quoted in S.G. Straus, S.P. Weisband, and J.M. Wilson, 1998).
Virtual corporations have some major characteristics (Judith, 2002, quoted in Byrne. n.d.) as following state: technology, excellence, opportunism, trust and no borders. Technology makes distance no longer a problem while entrepreneurs or companies far away from, due to the computer networks link people all over the world. Excellence was showed by each partner bringing its core competencies to the corporation, which can exert all advantages. Companies make alliances for specific market opportunity and this is a more efficiency work way than any others. Members in a virtual organization must trust their partners due to they meet the need by cooperating. The new communication ways were brought by computer networks, which blur the traditional hierarchies and boundaries.
Metersbonwe took the lead in adopting virtual organization among Chinese garment industry by brand chaining operation. The company stated to take full advantage of market resources by controlling, retailing, the core segment in the link in order to concentrate on its core business, Brand construction and Design, while non-core business was outsourced: Manufacturing and Sales network. At present, over 200 manufacturing factories have established long-term cooperative relations with Metersbonwe Group, saving 62.5m$ for the company. More than 900 franchising shops save an average of 62.5m$ every year as well. At the same time the company collects capital from the franchising fees. Metersbonwe achieved great success by using this model.
Figure 1: Metersbonwe¡¯s network
MARKET-ORIENTED STRUCTURES
The market-oriented structure groups workers according to the market they serve, such as product, project, client, or geographical area. Large companies that implement a market-oriented structure may have market-based divisions or create a conglomerate of separate subsidiaries (Judith R. Gordon, 2002). I believe that this structure is more adoptable by those multinational corporations which have to respond to diverse cultures and meet the unique needs of various countries. The teams have the same goal meeting the market demands.
In the past, college graduates would embark on careers in the business world with book learned business theory. Now the college curriculum can include practical use of real world situations in a web-paged virtual organization. This virtual organization allows students experience to review, analyze, troubleshoot and resolve real business problems. This paper will review the virtual company, Riordan Manufacturing, allowing students to review existing business systems, identify improvements or introduce new business systems to allow the company to thrive in the growing technology of the business world.
Yet, in a unique paradoxical way, the convenience of being able to avoid face to face interaction, or any means of transport, becomes inconvenient and sometimes ineffective due a phenomenon known as virtual distance (Lojeski & Reilly, 2007). While the dynamics of conducting business virtually present appealing opportunities in terms of staff flexibility, cost effectiveness and the elimination of geographical barriers (Pacuraru, 2012), virtual distance presents obstacles that leaders must strive, continuously, to overcome (Lojeski & Reilly, Traditional hierarchical companies are now flattening their leadership models to facilitate involvement of staff, throughout all levels within their organization (Gil-Estallo, Dolors, Aparicio-Valverde, Ferruz-Periz & Escardibul-Ferra, 2000). Technology advancement provides the mechanisms for this communication to occur in the form of emails, shared sites, instant messaging, teleconferencing and a host of other alternatives to face-to-face
The company has self organizing team and use groupware, emails and blogs to communicate with the customers.
The adjective "virtual," practically unheard-of a few years ago, has without a doubt become the number one buzzword of the nineteen-nineties. Virtual reality has become a catch phrase for the interactive multimedia technologies that have supplanted desktop publishing at the cutting edge of personal-computer graphics technology. The virtual communities which for years have flourished in comfortable obscurity on the Internet, have recently been thrust into the glare of publicity as commercial gateways have opened up the net to the public, while virtual corporations have transformed the world of business.
Developing a new sales organization, which it calls market organization structure where salespeople are assigned specific types of customers and required to meet their customer needs. That the advantage for Western Region when it organizing according to these customer types: grocery chains and food coops, distributor, and etc. This ensure the depth of understanding how their customer use and purchase their products. Decreasing the number of customer duplication. However, the disadvantage of this organization structure, salespeople would be more pressure due to so many of customer types. In addition, the company would spend more money just to meet the customer
Lin, C., Standing, C., & Liu, Y. (2008). A model to develop effective virtual teams.
Value webs are concerned with what goes outside of the firm, and how well the firm coordinates direct, and direct suppliers, and delivery firms, and customers. By working with other firms, and using information systems, an advantage can be gained, by developing industry-wide standards for exchanging information, which eventually forces all market participants to subscribe to similar standards. Information exchange becomes more fluid, which positively influences efficiency, this in turn, makes product substitution unlikely. Such efforts also increase barriers to entry, which discourages new entrants. The internet has made possible to create highly synchronized value webs that integrate different business processes among the whole industry. These value webs are highly responsive and adaptable to environmental changes in supply and demand, as relationships can be bundled or unbundled, depending on the market conditions. Quick decisions can be made in order to optimize the value web relationship in order to deliver the required product or service in the right place and
This paper will provide a hypothetical discussion of how each of the four “worldviews” (post-positivism, constructivism, advocacy/participatory, and pragmatism) might apply to the proposed study. It will refer to the topic paper developed during the class RSH9101B (Research Topic, Problem, Purpose, and Questions) with the assistance of Dr. Kenneth Gossett, class mentor. The portion of the Topic Paper to be used will be the problem statement, which will provide the foundation for this discussion and completion of this assignment. This discussion ultimately will lead to the strengthening of this research and the understanding for the need of better researches to help today’s virtual organizations.
In addition to urgency, Gustavsson could not create a powerful guiding coalition. He established a cross-functional team to develop a new moisture-resistant product. But the team did not include a sales manager who knows customers' needs and eventually sells the product. Although the team developed a commercially-viable product, their efforts, at least in the short term, were unsatisfactory, because with sales people's own doubts about the new product, they were afraid of jeopardizing the reputation of current product. Moreover, these cross functional teams operated within the established organization maintained the company's dominate culture and past norms. We know that structurally independent teams that are tightly integrated into the existing hierarchy with different cultures and processes are often more successful.
A virtual team is a group of people working interdependently via various types of electronic media across organizational and geographical boundaries for a shared purpose (D’Souza & Colarelli, 2010). Research indicates virtual teams are becoming increasingly popular in organizations across the United States and the world (D’Souza & Colarelli, 2010; Rusman, van Bruggen, Sloep, & Koper, 2010). These teams vary in size, degree of geographic dispersion, prior shared work experience, nature of assignment, and expectations of a common future (Rusman et al., 2010). Although virtual teams have potential advantages like the removal of physical boundaries, the ability to form new partnerships, and optimization of competencies (Chinowsky & Rojas, 2003), they also introduce many challenges that may not be as prevalent in traditional teams.
It encompasses all those activities in which one business builds relationships with other businesses for efficiently managing several of their business functions. Thus it involves co...
In today's business environment, there is sustained pressure for companies to maximize productivity in order to be competitive in the marketplace. Many businesses are moving a variety of activities, such as manufacturing and product development, to countries with low labour costs. They are also opening up sales channels in many new markets. The resulting global organizations need to structure themselves, so that they can effectively manage operations across numerous locations. This paper looks at how the organizational structure of a global company influences decision-making at the regional level, and how this can affect the business performance. This paper will:
Matrix structure is first introduced in the aerospace industry in the 1960s and become one of the popular organizational design options in today’s business and industry (Derven & Alexandria, 2010). Burns and Wholey (1993) poinited out that matrix structure were used in advertising agencies, aerospace firms, research and development laboratories, hospitals, government agencies, and universities. Matrix structure is the combination of two or more different structures and take the advantages of the pure functional structure and the product organizational structure (Robbins & Judge, 2011, p. 497). The employees in the matrix may have two bosses: their functional department managers and their product managers. For example, all engineers may be in one engineering department and report to an engineering manager, but these same engineers may be assigned to different projects and report to a project manager while working on that project. In many organizations, a matrix structure is implemented to address the requirement to do more with less and become more agile. The matrix structure, which focuses on horizontal as well as vertical management, has become more widespread as a result of globalization and the...
In today’s virtual society our office experience is getting more and more dependent on cyber culture. Due to the increase in employees working at home, virtual offices have become a convenient way for staff, clients, educators, students and all other types of business people to stay connected. Teleconferencing, skyping, e-mails, and texting have become mainstream ways of conducting business so it seems pertinent that businesses learn to effectively create and conduct virtual teams.
Organizational structure within an organization is a critical component of the day to day operations of a business. An organization benefits from organizational structure as a result of all it encompasses. It is used to define how tasks are divided, grouped and coordinated. Six elements should be addressed during the design of the organization’s structure: work specialization, departmentalization, chain of command, spans of control, centralization and decentralization. These components are a direct reflection of the organization’s culture, power and politics.