Management And Organizational Behavior: Product-Service Systems Essay

Question:

Discuss about the Management and Organizational Behavior for Product-Service Systems.

Answer:

1: The main issue that Jack needs to consider is the downward trending annual target of production since 1985. Since, the case study highlighted that Jack’s father Errol has consciously tried to implement business strategy that not only help to gain revenue but also will have positive impact on the sustainable growth of the business so that Glasshouse Avocados can able to maintain its position in the market (Hatten 2015). However, downward trend of annual production highlighted the issue that the company is facing huge amount of challenges from different external market factor, which creating negative impact on the overall businesses of the company.

The study mentioned that before 1985, the target was set at 3000 tones whereas current target is set at 2000 tones. In addition, the company has failed even to achieve this revised target in the year of 2014 and 2015. This established the fact that the Glasshouse Avocados is facing major issues in order to maintain its position in the market (Ebert et al. 2014). Since, the study highlighted that Jack has implemented innovative technique over the last decade smooth out avocado harvesting process of the company. Still it was not proved to be enough for maintaining its position in the market.

Glasshouse Avocado is facing challenges, as there are many external factors mentioned in the case study. For instance, the case study highlighted the fact that Queensland market is continuously getting consolidated every day. Since, many other new boutique operators are also targeting organic market of sunshine coast. Therefore, the market size of Glasshouse Avocados is kept on facing immense challenges from the market (Boehm and Thomas 2013). In addition, the study mentioned that new boutiques are also able to produce quality products as compared to Glasshouse Avocados. Therefore, these new companies are not only able to receive a significant portion of the market but also able sale their products at a comparatively higher price. This is creating problems for Glasshouse Avocados to maintain its position in the market of high price avocados. In addition, the market of Queensland is also facing impacts of the introduction of cheap overseas avocados. As a result, the cheap avocado market of Glasshouse Avocados is also under immense threat. In addition, Jack identified that the company will have to face the effect of the increase in the operational cost, as the company will invest extra amount to maintain its equipment. Hence, Jack will have to face issues in order to sustain his family business for a long time.

2: As mentioned earlier, Glasshouse Avocados is facing challenges in order to sustain business for a long period of time. Therefore, Jack will have to implement rational decision-making process so that the company can able to regain its position in the market. First off all, Jack will have to identify the exact factors that are having major impact on the production process of Glasshouse Avocados. The study mentioned the fact that extended summer in Sunshine Cost has created major impact on the overall production process of the company. However, this is out of control of Jack. As a result, Jack ration decision-making process will have to consider about the other factor associated with the production level of the company (Scarborough 2012). For instance, Jack will have to implement high tech equipment for irrigation so that the roots of the plants can be taken care of properly. In addition, the study highlighted that the cost of maintaining present level of irrigation equipment actually increasing the cost of production. Hence, if Jack considered to implement high tech irrigation equipment in the production processes, it will minimize the operational cost of the company. Therefore, it will provide more opportunity for Greenhouse Avocados to improve its position in the market.

Thereafter, rational decision-making of Jack will have to consider key factors regarding the nutrition management of the plants. Therefore, Jack will have to implement correct irrigation technique and also will have to ensure that the avocado pickers of the company has got sufficient amount of training so that the production process can get smoother in near future (Rosemann and Brocke 2015). Jack also will have to consider the land and plant allocation of the company so that it can able to have maximum amount of support from the environment of Sunshine Cost as well. Jack decision-making strategy can also involve Sunshine Coast Food Growers Association in order to utilize other local growers to reach economies of scale. However, the study mentioned that Jack’s father Errol has already implemented the last strategy. Therefore, Jack’s strategy will have to focus on to execution of this strategy and also to make sure that all the local growers are included in the strategy (Carraher and Paridon 2015). Hence, this will ensure that Glasshouse Avocados can able to maintain its sustainable growth for a long time.

3: The case study highlighted that Jack’s father Errol has able to implement effective strategies regarding the business expansion of Glasshouse Avocados. As a result, the company has able to create a good reputation for itself. In addition, the company is present in Sunshine Cost for over seventy-five years. Thus, it is obvious that the name Glasshouse Avocados is popular among the local people (Carroll and Buchholtz 2014). This reputation or goodwill can be considered as one of the valuable assets for Jack. The study highlighted that Glasshouse Avocados was established at the foot of Glasshouse Mountains with an area of 80 hectares. Thus, this also can be considered as one of the most valuable resources available for jack.

Hypothetically, son and daughter of Jack namely Elias and Jacqui can also be considered as one of the valuable resources available for Jack to utilize. Since, the study highlighted that both of them has huge potential to enhance the present condition of Glasshouse Avocados. The study highlighted that Elias is a marketing specialist with three years experience in Unilever Australia. Therefore, the knowledge of Elias can play a vital role in influencing the present business situation of the company (Franz and Kirchmer 2012). On the other hand, Jacqui has proved herself that she has the potential to manage her family business in an effective way. The study highlighted that Jack was very happy with the performances of his daughter. Therefore, they can be considered as one of the major resources available for Jack.

Sunshine Coast Food Growers Association can be considered as another important resource available for jack. Since, the study highlighted that in past it has help the company to develop an effective local network for business. Local networking is an important factor for any business in order to gain the attention of the local customers much more effectively. In addition, the study highlighted that Glasshouse Avocados is currently facing issues in sustainable business development (Wood et al. 2015). Therefore, local networking can help the company to achieve its objective in an effective way. Another factor that Jack can consider as a resource that may help to gain sustainable development of business is the consideration of alternative production such as Custard Apple and Passion Fruit. Especially, as the company is facing to meet its targeted amount of production in case of Avocado. Consideration of alternative production can have major impact on the business performance of Glasshouse Avocados.

4: As Jack is considering the future of Glasshouse Avocados, The McKinsey 7-S Framework have the potential to play a critical role in it (Myers 2013). Since, it is a very popular framework used by many organizations in order to improve the present level of performance of the company. In the study, it was highlighted that Glasshouse Avocados is facing number of challenges to maintain its position in the market. Therefore, 7-S framework can play a critical role in order to have a major impact on the business of the Glasshouse Avocados. The framework has seven different factors, which is elaborated as follows:

Strategy: This will allow Jack to analyze strategies implemented by other organizations in critically. Therefore, it will allow Jack to develop strategy in such a way that it could able to counter the strategy of its competitors, which will help Glasshouse Avocados to gain competitive advantage in the market.

Structure: This factor will allow Jack to develop an organizational structure that will have the potential to implement all the strategy of the organization effectively.

System: It will allow Jack to handle daily activities of the organization in an effective way, which will help Glasshouse Avocados to meet the objective of the organization.

Shared values: It will help Jack to set realistic goals for the organization (Weske 2012). So that it can able to motivate all its employees.

Style: Style of this model reflects the leadership style (Jeston and Nelis 2014). Thus, it will help Jack to identify the kind of leadership strategy have the higher potential to grab the major portion of the market.

Staff: It will help Jack to identify the required necessary knowledge for different level of staffs in order to fulfill the business objective of Glasshouse Avocados.

Skills: It will help to identify present level of skill of the employees of Glasshouse Avocados. Therefore, it will also provide an indication the kind of skill is required for the organization in order to grow in the market.

References:

Boehm, M. and Thomas, O., 2013. Looking beyond the rim of one's teacup: a multidisciplinary literature review of Product-Service Systems in Information Systems, Business Management, and Engineering & Design.Journal of Cleaner Production, 51, pp.245-260.

Carraher, S.M. and Paridon, T.J., 2015. Entrepreneurship journal rankings across the discipline. Journal of Small Business Strategy, 19(2), pp.89-98.

Carroll, A. and Buchholtz, A., 2014. Business and society: Ethics, sustainability, and stakeholder management. Nelson Education.

Ebert, R.J., Griffin, R.W., Starke, F.A. and Dracopoulos, G., 2014. Business essentials. Pearson Education Canada.

Franz, P. and Kirchmer, M., 2012. Value-driven business process management: The value-switch for lasting competitive advantage. McGraw Hill Professional.

Hatten, T.S., 2015. Small business management: Entrepreneurship and beyond. Nelson Education.

Jeston, J. and Nelis, J., 2014. Business process management. Routledge.

Myers, M.D., 2013. Qualitative research in business and management. Sage.

Rosemann, M. and Brocke, J.V., 2015. Handbook on Business Process Management 1: Introduction, Methods, and Information Systems.

Scarborough, N.M., 2012. Essentials of Entrepreneurship and Small Business Management. Instructor.

Weske, M., 2012. Business process management: concepts, languages, architectures. Springer Science & Business Media.

Wood, C.R., Thompson, D.C., Picus, L.O. and Tharpe, D.I., 2015. Principles of school business management. R&L Education.

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