Qualification Pre‐Master Course (Business Studies) Assignment title Essay

1.0 Executive Summary PNG Co.Ltd was specialized in supplying Electric Resistance Welded pipes(ERW Pipes), Longitudinally Submerged Arc Welded pipes (LSAW Pipes) and drilling bits mostly from Asia market to oil and gas industries in Myanmar. PNG feared well and generated profits in last two years. Reaching the third year from it started, PNG’s business life cycle is in the declined stage because there was much weakness in all departments. So PNG needs to reform the company to improve the reputation. PNG has to fix this problem by proper vision, mission and objectives. By seeking and grasping business opportunities, PNG will create markets through our synergistic partnership, reputation and reliability. ‘Cordiality, loyalty and sincerity to partners and customers are the most important ingredients of our corporate life’ will become our corporate mantra. 2.0 Company Profile Company Name † Paing Nagar Trading Co.Ltd Looking for the New Next Golden Myanmar Group of Companies 2011 Medium†sized oil and gas equipments trading company Room†8A, Building 99A,Shwe Padaut Condo, Sanchaung Mr.PhyoKyaw Thu Chief Executive Officer,MBA (UK) Director of Golden Myanmar Groups of Companies. Ms.KayZin Han Manager (Sales and Marketing), MBA (UK) Ms.MyatTheingarHtut Manager (Human Resource), MBA (UK) 65 Company Logo & Slogan † Mother of company Established Business Type Company Address Management Team Total Employees † † † † † † Analytical Report on Business Organisation by Group 5 (PMBA†03/2013); PhyoKyawThu,KayZinHan,MyatTheingarHtut Page 3 2.1 Background Paing Nagar Trading Co.Ltd (PNG) is a recognized distribution of high quality products which are widely used in the oil and gas sector of Myanmar since 2011. PNG provides pipes and drilling bits to oil and gas industries both private and government enterprises, especially exist on government tender projects. First of all, PNG Company was started by 3 officers and 10 staffs. Now it is being run with total number of 65 employees. Within a few months after establishment, for the sake of better improvement and better communication with oversea suppliers and manufacturers, PNG opened an oversea branch office in Singapore. PNG did pretty well and reached our target market sales in 2011 and 2012. But nowadays, there are many competitors who are interested in oil and gas field because of many opportunities. At that time, PNG Company’s reputation drops slowly because of internal weakness. 2.2 Vision †¢ †¢ To get innovative, proactive and progressive company culture To be the multi†national professional company by delivering quality products and services to meet our customers’ satisfaction in the future 2.3 Mission †¢ †¢ †¢ †¢ To abide by the requirements detailed in the strategic business plan To deliver our services in time To work in a corporate manner with our clients, employees and shareholders and to align clients and company expectations To penetrate global market from local market Analytical Report on Business Organisation by Group 5 (PMBA†03/2013); PhyoKyawThu,KayZinHan,MyatTheingarHtut Page 4 2.4 Objectives †¢ †¢ †¢ †¢ †¢ To expand our products range at least 20 categories in 2014 To increase at least 30% of market share in O&G equipment sector in 2015 To deliver quality products with fair prices To serve our clients with sincerity and cordiality to achieve strong customer relationship To create a teamwork with employees to get better working environment Analytical Report on Business Organisation by Group 5 (PMBA†03/2013); PhyoKyawThu,KayZinHan,MyatTheingarHtut Page 5 3.0 Situational Analysis PNG has to analyze the current situation of the company to evaluate weak points and to solve the problem effectively by using situational analysis (SWOT and PEST analysis). Strengths † deals with the suppliers that have good reputation mostly from Asia † strong financial resources Weaknesses † faces the high turnover rate of employee, so PNG cannot manage the operational process in time †chooses the quality assurance that can be †previous organization used a centralization acceptable by our customers †has oversea branch office in Singapore to communicate with foreign suppliers more effectively approach alone †managers could not establish a good relationship with staffs †have not adequate skilled workers †the structure of organization was not systematically demonstrated Opportunities †now our country allows many Foreign Direct Investments (FDI), so the market demands in oil and gas field become increase sharply †can deal with many suppliers rather than Asia now Threats †for the time being, our country’s policies have not been stable yet †needs to compete with many competitors because of the development of oil and gas industries so many investors are engrossed to invest 3.2 PEST Analysis When PNG researches about the external environment by PEST analysis, the following impacts effect on PNG Company. Analytical Report on Business Organisation by Group 5 (PMBA†03/2013); PhyoKyawThu,KayZinHan,MyatTheingarHtut Page 6 Political†Legal Now our country steps towards the democracy, economic sanctions are released, so become interested by many foreign investors. But, for the time being, the government is in the transitional state, policies and foreign trade regulations have not been stable yet. Besides, Tax policies are going to release compare to the past. Economic Our country’s economic state becomes improve and growth. But PNG should think about the inflation rates and exchange rates which are closely related with price of inputs. Socio†cultural According to our country’s culture, PNG might to concentrate the attitude to work and leisure of our employees and try to fulfill their desires as much as it can. Simultaneously, PNG should consider the education level based on not only the graduation subject but also additional qualifications such as computing, languages, etc. Technological Techniques associated with oil and gas industry are changing a lot so PNG needs to catch up the technologies continuously. Therefore, PNG ought to update IT technologies to communicate with customers and suppliers smoothly. 4.0 Analysis on Organization Management Previously the old PNG’s management team had not clear organization structure, the practices of commanding, allocating responsibilities and delegation were not managed well suited. Every successful company must have definite organization structure which shows the set of formal tasks and formal reporting relationships. So PNG Company constructs the organization structure well and shown by organization chart, visual representation of an organization’s structure. Analytical Report on Business Organisation by Group 5 (PMBA†03/2013); PhyoKyawThu,KayZinHan,MyatTheingarHtut Figure 1: O Organization n Chart Organization structure m O means the f framework in which th organization defines how he tasks are e divided, re esources are e deployed a and departm ments are co oordinated. Our organization has six m major depart tments. PNG delineates the chart with relative few hier G s ely rarchal level By ls. seeing th he chart, work specializa ation and cha ain of comm mand can be clearly seen n. 4.1 Wo ork speciali ization In order to perform the work more effici m iently, comp pany divides the tasks individually and s y describe clearly wh hich tasks w be resp will ponsible by whom. By doing this employee can s, e emphasiz ze his own d duty. But PNG considers that work specialization n can make employee boring jobs and feel isolatin ng from othe ers. So comp pany plans e employee to o rotate amo ong the separate jobs ever ry three mon nths to enco ounter the g greater challe enges and p perform vario ous jobs by team work. Analytical Re eport on Business Organisation by G Group 5 (PMBA†03 3/2013); PhyoKyaw wThu,KayZinHan,M MyatTheingarHtut t 4.2 Chain of command Every organization must have distinct authority and responsibility for different kinds of tasks. Thus, every employee can know to whom they report and management levels of the whole organization.Chain of command is important for this reason. Each employee should have his own authority and responsibility and how much he can make effort for the job. According to management level, delegation is the useful process for the managers. Good managers should delegate authority to the possible lower levels and give the chances to the subordinates. 4.3 Span of management Span of management means the number of employee reporting to a Supervisor. Our company’s span of management is based on seven subordinates per manager. Controlling level is closely involving with subordinates; it can get better team work form. 4.4 Centralization VS Decentralization To get the correct hierarchical level at which to make decisions,