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Hello ladies and gentlemen. I am Ali and these are my partners: shan, junyun, and Hiro.
We will propose to you our business idea of establishing Capital Empowerment Agency or (CEA).
We will provide you with a quick introduction to our project
by showing how we will adopt a functional organisational structure to suit our company,
and how we will employ various theoretical concepts
such as Porter’s value creation analysis to add value to our services which we provide.
Next page. [click]
As you can see, these are the contents of the presentation:
First we will give a brief outline of our proposal.
Second, we will show you why we will adjust our company to a functional organisational structure,
and the benefits associated with adapting to this structure.
Thirdly, we will show how we will consider Porter’s value creation model as our strategy to create value to our services.
Then we will focus on how the use of competitor intelligence can be beneficial to our company.
And finally we will conclude this presentation.
Junyun now will continue after me.
Capital Empowerment Agency (CEA) is an employment agency opened to provide work opportunities to people.
We have taken into account many obstructions that are standing in front of the dreams of recently graduated students,
and decided to provide any work opportunity to include them in the evolving and progressing workforce.
How we would finance our project?
We are originally from a larger market, and we decided to open a branch in London in order to connect individuals with companies.
By doing that, we will be able to reduce the cost of time and money of businesses in organising and training potential employees.
This will be specially attractive to a number of start-up companies
that may face the problem of human capital scarcity.
Our objectives for the first years of serving include:
to operate in accordance with theoretical concepts such as Porter’s value creation analysis;
and raise our number of customers served by 20% per year
through high-quality performance and word-of-mouth testimonials.
Hiro will now talk about our functional organisational structure.
Thank you, Junyun.
My part will be the functional organisational structure.
On the top of the structure, we have the director of the company.
And in this one we have five sections which are: Human Resources Specialist, Finance office
And Customer Services, Marketing, and I.T Department.
According to Canals (2010) and Sathe (2009),
an enterprise needs to function inside a structure
that is positively suited to its objectives in order to accomplish its mission effectively,
without wasting time, efforts or expenses.
Therefore, due to the type of services that CEA provide, an appropriate structural design for the company can be the functional structure.
Reid (2009) stated that a functional structure can help a business to function effectively
as individuals with similar expertise work together and share similar interests.
In addition, adopting this structure may help put a strong hold on the internal relations between the employees.
Parker (2009) reported that this hierarchical structure represents many layers of management, each with a narrow span of control,
allowing feedback to come from the lower levels to upwards.
This diagram shows an example of the adapted organisational structure.
As it can be seen in the diagram, CEA is a highly centralised organisation.
Centralization can have a variety of benefits.
For example, to eliminate the wasteful duplication of efforts, having tight level of control,
and the risk and cost of passing jobs to departments can be avoided. This is the end of my part, now I direct over to my partner Ali.
Thank you Hiro. A vital area that CEA should take into account is creation of value.
Michael Porter in his book The Competitive Advantage introduced the Value Chain model.
According to the work of Sekar (2010) the concept suggests that all activities in a business are part of a chain
where each part must be operated at an optimal level to contribute value to products and services,
and give a Competitive Advantage to the business.
Porter pointed out that the value chain model is distributed into two main activities.
The first is Primary activities, which are directly involved in producing and selling a product.
The second is support activities, which are essential to the success of the system and chain altogether.
This diagram shows an example of a value chain model.
It can be seen that as a product pass through all activities of the chain in order and at each activity, the product gains some value.
The chain of activities gives the products more added value than the sum of added values of all activities.
Sekar (2010) showed that the ‘Margin’ shown in the value chain model is the total added value from all links or activities in the chain.
Of course, a bigger margin implies a larger competitive advantage for the business.
The role of value chain analysis is apprehended due to its vital importance in creation of value.
As a result, it may be easier to link together the majority of main activities of CEA, leading to creation of value.
Why do we want to create value? Because by creating value, we are giving our business a Competitive Advantage over rivals.
If we want to apply porter’s value creation analysis, it will be a good idea to associate it with our functional organisational structure.
How can we do that? Human Resources Specialists can contribute to value creation through organising actors, resources and business relationships.
Whereas the Marketing department can contribute to value creation through managing and controlling advertising processes,
and the Finance office through producing and managing economic information.
It wouldn’t matter where our competitors hit us, and it wouldn’t matter how hard they hit, with this strategy, we can continuously make profit.
Shan will now talk about how we will use competitor intelligence as another method to gain competitive advantage.
Thank you, Ali. Another domain CEA have to be aware of is how we can compare our company with other organisations.
Fine and Sivonen (2009) stated that a useful tool which helps in comparison is the competitor intelligence,
where any information about competitive businesses or organizations can be generated.
The work of Kressel and Lento (2007) mentioned three different types of competitors: existing direct competitors that businesses meet on daily basis,
new entrants to the market, and indirect rivals who offer a substitute service.
For example, Kellog’s competitors include not only other breakfast cereal makers,
but also the makers of other alternative breakfast options such as croissant or even coffee.
Why do we want to use competitor intelligence? Because CEA may be able to alter its strategies to gain an advantage,
identify and exploit the weaknesses of our rivals, and even evaluate our own performance against other organisations.
The reason behind why businesses and organisations may be attracted to CEA is that our company
can offer a quick solution to the problem of finding, controlling, and managing professional employees.
This issue can be prominent especially in organisations that do not have a personnel management department.
Therefore, this type of organisations will be targeted by CEA as frequent customers. Junyun.
Thank you Shan. The main mission of Capital Empowerment Agency is to establish a mutual and strong connection
between the Londoner's community and companies by occupying a need for hard-working, professional, and specialised workers.
Because we mainly target university graduates, CEA will be able to supply industries with a high-grade of excellent employees
obtainable and accessible for projects, part-time, or permanent work.
By following a number of eminent theoretical strategies, such as porter's value creation analysis,
CEA will be capable of achieving high ranks and be profitable.
By offering work opportunities to people, crime rates may decrease
and therefore CEA will be able to achieve a strong commitment to corporate social responsibility.
This is the last part of our presentation. Thank you for listening. If you have any questions please ask us.