Organizational Structure Words: 3343 Pages: 13

As a private company, Galanz consists of 14 production facilities that operate across China. It is one of the largest companies in the world in the microwave business. The structure of the company is based on three main segments. The first structural segment deals with Original Equipment Manufacturing (OEM). It helps in the production of most of the microwaves that foreign brand owners outsourced to the company due to its low cost of production. The second structural category is the Original Design Manufacturing (ODM) which deals with the production of the company’s original microwave products. The last segment of corporate structure deals with the Original Brand Manufacturing (OBM) for the local market.

The company has successfully applied the low-cost strategy for its product to command the global microwave market. Despite a humble beginning, the business strategies involving partnerships with international and local companies have stabilized the production, distribution, and logistics for the Galanz Company. The company is currently facing the challenge of market sustenance, expansion of production, sustainable innovation, and remaining competitive within its low-cost pricing strategy despite the high quality of its products.

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Galanz’s current business strategies

Sustainable development is vital in a business environment. Reflectively, this concept defines the feasibility of a company and its solvency within a specified period. In contemporary society, the term sustainability refers to the ability to survive within a profitability model. In a business environment, sustainability is affected by forces in the market, decision science, corporate structure, and real financial management, in the short and long term. A properly designed operations management system labors to embody business process aspects and simultaneously assemble them as a single unit that operates efficiently within a stringent procedural code. Therefore, a business organization must put in place stringent measures and strategies aimed and monitoring expansionary modules within feasible levels.

Galanz Company has efficient knowledge and experience in the uniqueness of products and services in terms of their requirement to produce high-quality products in its local and international business system. The main variables of its business operations are connected at the central point of strategic planning which encompasses cost, speed, quality, flexibility, and dependability to create a smooth continuous operation tracking model from one segment to another. For instance, the company has been in a position to establish global microwave manufacturing leadership besides establishing more than 14 production lines within a decade.

The major part of the success puzzle for the Galanz business management delivery operates on the periphery of the soft skills involving the timeless vision of organizational principles, defining the value of the business, determining requirements, clarifying the vision, building teams, mitigating task, resolving issues, and providing direction as incorporated in the operations management system of the Original Equipment Manufacturing and the Original Design Manufacturing segments. This strategy besides the low-cost pricing has ensured that the company maintains dominance over other local and international competitors such as Toshiba, Sony, and Samsung among others.

The management of the company through the senior and junior Liang and other management realized that its success rested in the credo and corporate strategy on these values. The corporate strategies of the company were then based on production, marketing, human resources, and efficiency monitoring units. Being a company that manufactures a home appliance product, its main objective was to ensure that they produce a product of high capacity and quality. Continued production of the microwaves has made the company increase its revenues six times as generated from its main brands.

The second corporate strategy of the management was to create a decentralized system in terms of a production line for the much-needed magnetron which is a key component of a microwave. The approach adopted by the management was to ensure that the decision-making process is shortened thus, avoidance of the bureaucracy in its product lines. Furthermore, the adoption of decentralization by management was to ensure direct contact with customers who proposed a reliable contact point.

Current problems Galanz is facing

Sustainability of the low-cost pricing strategy/Inventory management

The company is not sure of the sustainability of the low-cost pricing strategy in the long term operation focus since this inventory management strategy is likely to reduce its revenues. Despite having penetrated the market with the strategy, the company must take care of the logistics and customer care despite selling its products at a price which is thirty percent below the market price. The company is facing the dilemma of maintaining its OEM and OBM segments for the overseas and the local markets respectively.

The management is in a dilemma of balancing both the short term and long term consideration towards decision making. The management has to ensure long term obligations are fulfilled and must consider mostly the role played by resources invested in technology, continued innovations in the production of new products, and conducting intensive researches in the market to identify fresh market niches.

Customer satisfaction sustainability

Customer satisfaction is the focal point of the company in attaining a competitive advantage in the market above other players. Specifically, operations systems are employed in the Galanz Company to monitor and increase productivity at the minimal error and poor quality is not satisfactory since the company has very little activities aimed at customer satisfaction assurance. This has not been possible because its model of running overseas customer assurance strategies does not allow for customer preference tracking. B


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