Bureaucratic Organization Structure

Bureaucratic organizational structures are "top-down" hierarchies, in which

communication flows downward from the leader; in corporate structures, its leader
is the CEO. He shares information and orders with other C-suite executives, such
as the corporate Chief Operating Officer. From the C-suite, communication flows
further downward in successive management levels, until it reaches the lowest
levels of the hierarchy; often, these are the hourly workers that have limited
opportunities to inform, criticize or feed information upward. In 2018, this
organizational structure is broadly criticized.

What are the advantages of a bureaucratic organization?

Bureaucracies can help organizations run smoothly and efficiently. This
allows large organizations to streamline processes and bring order to systems and
procedures. Management becomes easier and processes become less chaotic.

What are the disadvantages of the bureaucratic organizational structure?

Low creativity and lagging adaptation are the disadvantages of bureaucracy.
Employees may find it difficult to actualize personal initiative. That's because the
company didn't allow them to do so. In addition, they also do not have the autonomy
to organize their work.

What is value chain model?

A value chain includes the activities that take place within a company in order to
deliver a valuable product or service to their market. Each stage of the value chain
adds more value. The value chain provides a tool to visualize a firm's productivity
by identifying the thousands of discrete activities involved.

What is value chain in business management?

"Value chains are an integral part of strategic planning for many businesses today.
A value chain refers to the full lifecycle of a product or process, including material
sourcing, production, consumption and disposal/recycling processes.”

What is the Porter’s Value Chain Analysis Model?

The strength of this analysis is its approach. It focuses on the systems and business
activities with customers as the central principle rather than on departments and
accounting expense categories.

It links systems and activities to each other and demonstrates what effect this has on
costs and profit margins. Consequently, the Value Chain Analysis makes clear where
the sources of value and the losses can be found in the organization.
The Value Chain activities
It consists of a number of activities, namely primary activities and support activities.

Primary activities have an immediate effect (cost advantage) on the production,

maintenance, sales and support of the products or services to be supplied. These
activities consist of the following elements:

Inbound Logistics
These are all processes that are involved in the receiving, storing, and internal
distribution of the raw materials or basic ingredients of a product or service. The
relationship with the suppliers is essential to the creation of value in this matter.

Production
These are all the activities (for example production floor or production line) that
convert inputs of products or services into semi-finished or finished products.
Operational systems are the guiding principle for the creation of value.

Outbound logistics
These are all activities that are related to delivering the products and services to the
customer. These include, for instance, storage, distribution (systems) and transport.

Marketing and Sales

These are all processes related to putting the products and services in the markets
including managing and generating customer relationships. The guiding principles
are setting oneself apart from the competition and creating advantages for the
customer.

Service
This includes all activities that maintain the value of the products or service to
customers as soon as a relationship has developed based on the procurement of
services and products.
What is meant by value creation?
Value creation happens when a business or organization uses its work and resources
to create something of value that is sold to a customer base. In turn, the business
earns a profit for what it has created and the customers have a want or need fulfilled.
What are the main elements of value creation?
The value creation process consists of three key elements: determining what value
the company can provide to its customers (the 'value customer receives');
determining the value the organization receives from its customers (the 'value
organization receives'); and, by successfully managing this value exchange, ...

Enterprise Systems

Enterprise systems are pieces of software that senior management figures can use to
monitor their business' performance. Firms can then more easily monitor their own
productive efficiency, brand exposure and costs, before creating data-driven
solutions to progress towards their financial goals.

The 3 Types of Enterprise Systems

 Customer Relationship Management. Customer relationship management
(CRM) is a software that helps organizations present a consistent message
about customer insights by gathering the latest information about a lead. ...
 Enterprise Resource Planning. ...
 Supply Chain Management Systems.
Customer relationship management systems (CRM)

Customer relationship management systems analyses sales and marketing data to

gauge the performance of past marketing campaigns. These often provide shared
data pools explaining customers' perceptions of your brand's image and what they
expect it to deliver. You may use this data to craft tailored marketing strategies that
reflect the target audience's values, boosting your brand's exposure. You may also
use these systems to learn more about customers' typical sales journeys before taking
action to make this process as convenient and intuitive as possible.
You can use customer relationship management systems to complete the below
tasks:

 compiling data about consumers' shopping habits, personal tastes and values
 planning marketing campaigns that appeal to specific demographic groups
 projecting revenue generated by different marketing strategies
 producing regular written reports that detail the progress made by a marketing
campaign
 retaining customers by issuing regularly personalized marketing emails or
digital adverts
 tracking customer complaints and identifying common themes

What are enterprise systems in ERP?

 ES is another common acronym to denote enterprise systems. ERP is
typically one application that is a set of modules. This software is focused on
several back-office functions of a business, like finance processing,
manufacturing, and inventory control. It relates to the planning resources for
the enterprise.
What is difference between ERP and enterprise system?
 ERP facilitates information flow between all business functions inside the
organization, and manages connections to outside stakeholders. Enterprise
systems (ES) are large-scale application software packages that support
business processes, information flows, reporting, and data analytics in
complex organizations.
Enterprise resource planning systems (ERP)

Enterprise resource planning systems merge firms' procurement, human resources

and budgeting functions onto a single digital platform. By using these tools, you may
easily share key financial data with management colleagues, allowing them to make
informed investment decisions. You could also use such tools to monitor how
productively each department uses its allocated funds, using your results to
determine how to create a more streamlined production process. If some production
lines remain inefficient after such changes, you may opt to divest from them and
priorities more profitable ventures.
You can use enterprise resource planning systems to complete the following tasks:

 calculating the value of the company's physical and liquid assets

 determining annual departmental budgets
 measuring each department's productivity
 monitoring inflows and outflows of cash and cash equivalents
 assessing the profitability of different product lines
 determining pay rises based on a colleague or department's productive
efficiency
 measuring actual performance against initial projections

Supply chain management systems (SCM)

Supply chain management systems monitor the flow of raw materials, money and
products at every stage of the production process. Using this software, you may
compile data about your firm's performance during this process to ensure that it's
allocating resources efficiently. If not, you can use this data to identify and improve
any unproductive processes, creating a more integrated supply chain as a result. You
might also use these tools to plan and track repeat transactions with suppliers,
allowing you to maintain a constant flow of consumer goods by minimizing
bureaucracy.

You could use supply management tools to complete the following tasks:

 procuring raw materials from trusted suppliers

 monitoring the flow of material in and out of your organization’s inventory
 planning future deliveries
 monitoring the output generated per colleague or productive asset
 projecting how output or costs may change in correlation with certain
financial variables, such as rising inflation or an increase in the minimum
wage
 logging product returns and their financial cost
 monitoring cash spent on procuring, delivering or distributing products