centercenter Managing organization project COUNTRY DELIGHT Group 07 Shiva Sudha SterbinGaganRupamMahalekshmi9410077300 Managing organization project COUNTRY DELIGHT Group 07 Shiva Sudha SterbinGaganRupamMahalekshmi TABLE OF CONTENTS S
Managing organization project
Managing organization project
TABLE OF CONTENTS
S. No Particular Page no.
1. Introduction 2
2. Environmental Analysis 2
3. Organizational Design 4
4. Structure of the Organization-Product Division Structure
Authority and control 5
5. Organizational Culture 6
6. Organizational Strategy
Strategy with 4 levers of control 6
7. Organizational Technology 7
8. Organizational life cycle
Survival Strategies 8
9. Decision Making
Knowledge Management System 9
Country delight, a start-up based out of Gurugram was formed in 2013. The founders Mr. Chakradhar Gade, and Mr. Nitin Kaushal established the organization with an aim to serve healthy milk and milk products to their customers in the premium segment.
The Company strives to break through the dogma in the industry and create a superior brand that gives Natural, Fresh and Unadulterated milk & milk products. The company’s mission, ” Bringing the goodness of farm fresh milk, so your family can enjoy health like never before” talks about the value proposition it offers its consumers for charging them in the premium segment.
It started with its service within the 100-mile radius of the suburbs of Delhi and Haryana which then went on to expand itself to Pune within 5 years of its inception. The number of employees has also gradually increased over the course of time from 30 to around 500 in the midst of changing the structure from a Functional to Product Division Structure.
The objective as framed by them is ‘To deliver Natural, Fresh and Unadulterated Milk directly at the doorstep of the customer’ through their App. The subscription-based model built on the App not only enhances visibility the company needs to keep a track of its customer’s choices and inventory but also eases the transaction faced by the user.
The vision of the company states that “We value purity in today’s time and live up to the promise of it, every day with every drop” and continues to propagate the same with each product sold to each customer. This is can be spotted by the Complementary test kit which they provide the buyers on demand used to gauge the milk on 75 different parameters.
Moving towards a healthy lifestyle – looking for fresh and healthy products.
Customers are Technologically savvy and have access to technology at their fingertips.
Seeking convenience – prefer things to be delivered at doorstep.
Willingness to pay more for more value.
Suppliers are local farmers, with whom daily interaction happen and strong bonds exists.
A premium is paid to them as there are no middle men.
The firm invests in setting up quality checkers at the farmers’ places, making them loyal
Suppliers are located within 100 miles of the supply radius.
Process of getting and maintaining license.
Complying with the standards of the dairy industry.
Milk was made GST free and only the income tax has to be paid.
The organisation has support from the start-up India scheme of the government.
Periodical quality checks and audit checks by the authority and renewal of license based on the checks.
Big players Amul and mother dairy have already set their name amongst the customers.
The informal milk vendors also offers fresh milk and provides some competition.
The targeted customers may stick with the premium brand they are familiar with than to try a new product.
As the organization operates at metro cities, which has a large amount of well off customers, people are ready to pay more for more.
Companies moving towards app based operations.
Popularity of digital payments.
Latest and advanced machinery coming up.
Organizations engaging the customers online in this era of digitisation.
Importance of milk in Indian societies increases demand
Desire for purity in the products used.
The rising number of urban population, who is looking for better life standards and a healthy lifestyle.
Households with disposable incomes going up.
Uncertainty in the environment
Environmental richness: Only limited number farmers are present within the 100 mile operating radius. So, Environment is not rich.
Complexity: The environment is simple, the specific environment is in good relationship with the organisation and are not interconnected much and are less in number.
Dynamism: The environment is stable with respect to the mass. The environment has evolved to the form it is today and is stable as of now and no visible signs of change predicted. (for both suppliers and customers).
Reputation of the company
The product offered by the organization us perceived pure and trustworthy by the customers and have kept them loyal. Even though a premium price is charged for the product, the urban customer is willing to pay for it because of it proven freshness and purity. The organization engages with its customers through its app and also print and social media.
CEO takes all the decisions with little power given to product divisional managers and functional divisional mangers, hence organization is highly centralized. Employee while performing respective organizational roles follows standardization as well as mutual adjustments, since it’s a growing organization were roles have to be changed now and then.
Mechanistic Structure: Organization operates in a stable environment where the centralization is high and the integration is low. Even though the product is differentiated because of the highly centralized authority and since the environmental uncertainty is low.
Structure of the organization- Product division structure
The company follows a product division structure because their products are broadly similar and comes under one category. Country delight mainly focusses on cow milk, buffalo milk and other (curd, paneer) dairy. The company currently has three levels of hierarchy i.e. CEO, Departmental managers and the product divisional managers. The inter divisions (Operations, Marketing, IT/technology, Finance, Delivery and customer support) with all their resources support each product line.
The materials management department helps in procurement of the raw materials from the local vendors and deliver it to the respective can check the product quality. There are product division managers for individual product. Under each product division manager there is a quality testing team, processing team, and packaging team. The packaging team has to make sure that the Testing kit is included with the product so that customers. The products from each division is moved to the common delivery department. Delivery department team delivers the product to the customers with the help of delivery boys.
Authority and Control:
The level of hierarchy in the organisation in 3 levels: The CEO, The Functional heads and Product divisional managers. The decision making is centralized and is done by the CEO along with the functional heads. Hence, the organisation has an optimal level of hierarchy for the amount of employees in the organisation (500+). This is in accordance with the minimum chain of command meeting its goals and environment requirements. Thus, it has a optimal number of span of control as well, where in general a manger will have to manage around 3-4 employees under him. The divisional managers are empowered and are allowed to take certain decisions related to the function that they do. The co-ordination and motivation of the employees are done by the managers in the level right above them.
Factors that led to optimal level of hierarchy
High level of specialisation of tasks and hence horizontal differentiation.
Centralisation in decision making.
Proper Standardization of activities.
Moderate amount informal ties between employees.
The organisation follows a bureaucratic model and follows Webbers six principles of bureaucracy, which are:
Organizational culture is defined as the set of shared values and norms that control organizational member’s interaction with each other and with suppliers, customers, and other people outside the organization which affects an organization’s performance and competitive position. Values are the general criteria, standards, or guiding principle that people use to determine which type of behaviours, events, situations, and outcomes are desirable or undesirable.
Tactics to induce newcomers used in this organization led to the Institutionalized orientation in the culture. New employees in this organization are providing common learning experiences designed to produce a standardized response to a situation. Training are given to newcomers by segregating and from rest of the employees. Newcomers are given with explicit information about the sequence in which they will perform new activities as the advancing in organization. New comers have been mentored by existing organizational members.
Functional level: Company achieves core competences by providing better quality product. The structure of the organizations allows coordination between functional managers and product division managers. Technology is one of the core competences in production department.
Business level: The above mentioned things help us to create competitive advantages in the business level by differentiating our product.
Porters strategy: The company focused differentiation on superior quality of milk targeted for the premier customers
Miles and snow’s Strategy: The company follows Defender strategy typology which focused on efficiency orientation and production efficiency.
Strategy with the 4 Levers of control
1. Diagnostic Control systems: Management by objectives (MBO) are set to evaluate the employees and to ensure that the goal of delivering the best quality product in the right time to the customer is being done properly. This is done by setting performance, quality, sales and efficiency goals. The CEO monitors the functions and sets targets and goals and make sure that they are met. He checks these with the 6 Departmental Heads.
2. Belief Systems: The organisation works to keep up with vision and mission to provide fresh and pure quality products to the customers at the time that they want it.
3. Boundary systems: The marketing department are given instructions on specific segments they cater to and guidelines on which kind of supplier that they are supposed to select. SOPs of all departments specifically contain what should not be done along with what is to be done.
4. Interactive control systems: As it is a small organisation which has some forms of mutual adjustments, Uncertainty is addressed by face-to-face meeting with managers of different levels and the problems are addressed from the data from the collective insights.
Being a start-up, technology plays an important role for Country Delight. It helps them to enhance their operational activity by understanding their customer and their choices and make alterations to their product or process.
Milk being a daily consumable in India which accounts for almost 8% of average Indian monthly household expenditure requires planning and scheduling by the company to decide on the quantity to be produced.
As a dairy product company, Country Delight follows a traditional long-link Technology. The process begins with procuring milk from different farmers to processing the milk at the dairy processing unit. It is then distributed to individual customers depending on the orders placed by them through the Country Delight App. Since each task depends on its preceding task, makes them inter-dependable jobs.
The process is a very routine job as the products offered by Country delight requires very less or no innovation and variation, enabling them to use a large batch and mass production technology. As the process involves no fluctuations the complexity of the entire process is highly reduced. Hence the technical complexity is medium and task variability and analysability is low.
Essentially a start-up, the company not only uses technology extensively to make their operations simple but also to enhance the customer’s experience. This leads them to develop and launch an App apart from the website which it holds, allowing the customer to make hassle-free online payment through an e-wallet and update the details of non-availability or non-requirement of the products in case they do not intend to purchase the product.
Organisation Life cycle
Organisational life cycle is a phase that an organisation may pass through in its life. It is generally believed that an organisation will experience the organisational life cycle. There are four principal stages in the organisational life cycle, namely birth, growth, decline, and death. It is not necessary that every company follow the organisational life cycle. Some company go directly from birth to death if they do not attract enough customers, and some go into decline stage and after taking corrective action recover themselves.
Country Delight started 2013 and after establishing itself in Delhi, it has started its operation in Pune as well. They started with 5 employees and then expanded themselves to more than 500 employees. Country Delight falls under birth stage of the organisational life cycle. When Country delight started in 2013 there was no organisation structure and all their activities were performed from trial and error method, later on the organisation structure emerge that we know now. Country Delight is enjoying a good growth as of now and in after few years we can see it transforming from birth stage to growth stage.
There are two sets of strategies that one organization follows to survive in the environment: (1) r-Strategy versus K-strategy and (2) specialist strategy versus generalist strategy.
Country Delight falls under the r-specialist as they operate in one niche and have an early entry into environment. This is the first company that have combined the app and door step delivery of milk. Country Delight moved quickly to serving the needs of this particular customer groups. As one company grows they go from r-Specialist to r-Generalist. The important points about the r-Specialist are that they have great ideas and they charge premium price for their service.
(Operates in one niche) Generalist Strategy
(operates in several niches)
r-strategy (early entry into environment) r-Specialist
COUNTRY DELIGHT r-Generalist
K-strategy (Late entry into environment) K-Specialist K-Generalist
Company follows Incrementalist model since the environment in which the company operates is stable and managers mainly refer the previous decisions to make a new decision. Being a start-up, decision making is a crucial part and managers are very cautious when they take any decision. Also, time being an important parameter, managers don’t look for all the alternative options and will make the decisions based on the available information. Anyhow the focus of the organisation during decision making will be on the risk and what will be the impact if the decision goes wrong.
Knowledge Management System:
Even though the product of the company is differentiated, it gives the same product to all the customers. More over operational know-how is an important parameter in the production department, hence tacit knowledge is required to solve any problem rather than explicit knowledge. So a personalised approach is required for such problems.
However, the market data can be stored and used as a reference for future purposes by different divisions and hence there is a need for an inventory based setup where multiple files can be stored.
In a start-up where the employee turnover ratio is high, documentation plays a crucial role so that when an employee leaves the organisation the work or the task which he/she was doing will get documented and can be used for suture purposes.
New employees can refer the documents initially to get a better understanding of the process and then later on can seek advice from experienced people in the company to solve issues.
Hence both codification and personalisation is required for the better improvement of the process as well as to increase the organisational efficiency.