Final Project Scenario Solutions
The increasing number of population as well as the relocation of many employers to the local community made the demand for MRI to raise giving way for a market opportunity for a potable MRI. This only means that the one that triggers the opportunity for a portable MRI are the booming population size and the transfer of the employers to local community. Answer#2 The ability of an administrator to turn a challenge into an opportunity would signify the level of its managerial capability.
It is not always that one can encounter such kind of person. Having this kind of individual in an organization would simply having an “asset”, an asset that is very important since he/she is the one that will drive the organization towards the attainment of an impressive growth. Based from most of the reason why companies and other organization shut down from their operation is due to a lack of skilled top managers that in the first place should be the one serve as a role model to other managers from various level of the company.
In order for an organization to succeed, there is a need for them to have a person that will influence the entire system
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One type of organizational structure that is being widely used in the business world would be the functional organizational structure wherein the employees are being grouped based from their functions and detailed jobs in the organization (Bushman, 2007). This structure is being known for having various departments that specializes into specific undertakings in the market. Examples of this are the production department, sales department, marketing department etc. There is a formal distribution of authorities in this structure.
Another type of organizational structure would be the Divisional organizational structure wherein the entire organization separates and work independently to one another just like having another different entity. This is being used in order for the organization to easily identify which unit incurs the highest profitability as well as to give each unit equal chances to use their own skills in operating their unit and not depending on their “mother company”. The last but not the least type of organizational structure that is being used in the business world would be the Matrix Structure.
It is said that this structure is a combination of functional and product organizational structure (Visitask, 2004). This structure works by having some distortions in the distribution of authority. For instance, project managers can directly report to the vice president or the general manager of the company. This power of project managers to directly report to higher officials can only be given by the vice president or the general manager. As compared to the Bureaucracy, Matrix Structure seems to be effective in construction companies wherein there is a need for the organization to monitor the individual profitability of each project.
Based from the above example organizational above, and considering the fitness of these organizations into the product that we are launching, I think functional organization would be the best one. Matrix organizational structure would not that suit the organization since we are only catering into a single product line. While divisional structure is not advisable since the company is about to pilot test the portable MRI. Moreover, the organization is cannot be separated into independent unit since the organization has only one product to introduce and their size is not that significant enough to sustain the division.
Answer#3 Competition in the market is a normal condition in establishing a business especially when the company is not the one that pioneered the provision of products in the economy. The only thing that those companies facing tight competition could do is to minimize the effects of their competitors to their stability as well as to find other ways in attracting more customers so as to gain more market acceptance and share. As for the new entrants, in order to survive the existing competition in the market, it is important for them to have some competitive advantage over their competitors.
In our case, since the company has an advantage when it comes to the quality of our orthopedic group. Compared to our competitors in the market, our orthopedic group has the ability to provide high quality medical services that cannot be matched by them. Moreover, the organization has experienced staffs that would increase the probability of getting well by the patients. When it comes to the employment, the company finds it hard to hire professional people due to tight demands in the market. In order to attract those skilled personnel into our organization, we have to offer them good compensation scheme.
The only problem is, this offering of good compensation scheme would only increase the operational costs of the organization leading for us to charge higher prices from the product. It could also be that, in order to offset the additional expenses of hiring skilled personnel in the organization, we have to cut the projected sales as well as to increase the charging price into a level wherein it is still lower than with our competitors to attract the target customers. With this, the organization could sustain the hiring of skilled personnel and maintain the projected revenue at the end of the period.
Demand for the portable MRI is becoming to deplete due to the cutting of the cots of companies availing the product. And in order for the industry to attract those companies back, they resulted into offering them with lower prices portable MRI. With this, our organization has to go with the flow in order to “catch” customers”. By the time the market starts to boom and the organization becomes stable from the costs of establishment, we could now start increasing our prices to generate more revenue.
We could also give packages into the customers that will serve as promotions in order to advertise our product in the market. This would hasten the publicity of the product in the industry. Answer#4 Slowly but surely, the company should penetrate the market by conducting thorough studies like surveys and customer feedbacks regarding the performance of the product as well as the suggestions of the customers to further improve our brand, by this, we could easily know the tastes and preferences as well a the behavior of the consumers in the market.
By studying the market we could plan for our long term strategies and would give us some hint on how to allocate our capital to sustain our production for the next coming years. Another human resource plan would be to conduct training and seminar for those “not so skilled” workers in order to solve the problem regarding the shortage of skilled workers in the market. The said training and seminar would be facilitated by those hired skilled personnel of the organization.
A systematic shifting of schedule for the workers must be planned smoothly in order not to affect the operation of the business. Investing into this kind of strategy would not cost the company much, not to mention the possible benefits that the organization would get by the time these trainees starts to work into the company. With regards to the efficiency of the workers, it would surely increase after they finished the training session and attended the entire seminar that would broaden their horizon with regards to their product line and operational functions.
Since the company is just starting in the market, the management should conduct multi tasking to the employees so as to maximize the potentials of the workers as well as tom increase their flexibility with respect top operating the company. I personally believe that through multi tasking, workers would discover the importance of various units or departments in order to secure the continuous flow of the commands and instructions coming from the top management. By appreciating the various department would make them “value” their work and thus increasing their efficiency.
They would start to show “affection” to the organization and this would set the core value of the company as well as setting harmonious working environment in the company. This strategy would help the company in surviving the tight competition in the market by using these competitive workers and management team to surpass those existing companies in the market. Answer#5 Budget proposal for Personnel Costs Annual cost of hiring new radiologist……………………………….. $500,000 Costs of hiring four additional technical staffs [full time]… …………$240,000
Total………………………………………………………………….. $740,000 Budget Proposal for Personnel Costs per MRI procedure Total personnel costs…………………………………………………$740,000 Total number of MRI operations per year………………………………10,000 Total personnel costs per MRI procedure per year……………………. $7. 4 Budget Proposal for Clinic Cost [for 300 patient visits] Cost of the machine…………………………………………………$360,000 Maintenance and warranty…………………………………………….. $9,000 Cost of additional space for MRI…………………………………….. $30,000 Other operating expenses…………………………………………….. $15,000
Total clinic costs for 300 patient visits…………………………….. $414,000 Computation in determining the total clinic costs: • [Cost of machine / total number of MRI operations in 1 year] * no. of patient visits • = 1,200,000 / 10,000 = $120 * 3,000 visits = $360,000 • [Maintenance and warranty / total number of MRI operations in 1 year] * no. of patient visits • = $30,000 / 10,000 = $3 * 3,000 visits = $9,000 • [SF * rent price] /total number of MRI operation in 1 year * no. of patient visits • 5,000 * $20 = $100,000 / 10,000 = $10 * 3,000 = $30,000
• [other operating expenses / total number of MRI operation in 1 year] * no. of patient visits • $50,000 / 10,000 = $5 * 3,000 = $15,000 REFERENCES Visitask. com. (2004). Matrix Organization and project management [Electronic Version], 1. Retrieved 9-14-07 from http://www. visitask. com/matrix-organization. asp. Bushman, M. (2007). Functional, Divisional and Matrix Organizational Structures [Electronic Version], 1. Retrieved 9-14-07 from http://www. associatedcontent. com/article/120970/functional_divisional_and_matrix_organizational. html.