E-commerce is one of the most sought after business platform in India recently. Currently, the
penetration of e-commerce is low but the e-commerce user base is increasing day by day. This is mostly
due to fast rate of new entrants in the Industry. Thus there is a need to understand these organizations in
detail as they may shape the future of retail industry in India in near future. We have selected 4 big e-
commerce players Snapdeal, Flipkart, Amazon and e-bay to analyze organizational design and how they
are responding to increasingly complex and changing environment.
SNAPDEAL
Snapdeal.com is an e-commerce platform started by Mr Kunal Bahl (Wharton University
graduate) and Mr. Rohit Bansal (IIT Delhi Alumnus).
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The bureaucracy is not present here and collaborative environment
is supported. Horizontal co-ordination is achieved through task forces, cross functional teams and
pilot groups whenever a new product has to be launched. These teams and groups take strategic decisions
pertaining to evaluation and launch of the product.
The organizational culture at Snapdeal supports collaboration among employees, provides
freedom to employees, inculcates responsible behavior and recognizes and rewards innovative ideas. This
is evident from day one when a new employee joins and is assigned a buddy from the team and a mentor
from senior management (rite of passage). The company sponsors successful launch of products and all
teams celebrate thereby creating bonding between employees (rite of integration).
FLIPKART
Flipkart was founded by Mr. Sachin Bansal and Mr. Binny Bansal both alumni of IIT Delhi.
Flipkart, other than being traditional platform for e-commerce also boasts of good distribution reach.
Business
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However as the company grew its operations hiring for senior manager posts increased and the
structure became functional where each unit was headed by a senior member. Since there was less
competition when Flipkart started inefficiencies of the system were hidden. However, as competition
enhanced and new players with innovative ideas started capturing the market Flipkart found it difficult to
respond. Hence, Flipkart with its functional structure is experiencing many problems related to supply
chain inefficiencies, private finance, eroding market share etc. This is due to the delay in decision making.
It is also believed that innovation has ceased in Flipkart because the decision making power informally
rests with the founder group (source:“Can Flipkart deliver” , a cover story from ForbesIndia.com).
At the initial phases Flipkart was the major player in Indian e-commerce space owing to its
innovative capability of employees. However, traditional structure has curbed the innovativeness of the
organization. Culture within different functions is reported to be innovative and open but resignation of
some senior managers has posed serious questions on this portrayal of culture and structure of
The first section of this essay focuses on the possible causes of corporate failures, including dominant CEO, poor strategic decisions and the failure of internal control.
2019). Transparent information-sharing, collaborative decision-making, and effective delegation of responsibilities are crucial elements (Morley & Cashell 2017). Building positive working relationships among colleagues leads to streamlined service delivery, improved coordination, and a supportive work environment (Morley & Cashell 2017). A person-centered approach is at the core of partnership working with the individual (Kwame & Petrucka 2021).
1. Introduction to Organisational Structures The Organizational Structure within a company determines the way in which an organization’s operational activities are performed. Some of the main operations defined within an organizational structure include the allocation, supervision, and coordination of how a project is to be completed. The organizational structure will determine how tasks are performed during a project and who the tasks are to be performed by. The organizational structure also states who will manage or oversee the project and the processes or protocols that will be implemented during the time frame of that particular project.
The Importance of a Company’s Culture The culture of a company is one of the most important and sometimes overlooked factors in an organization. The culture can increase employee engagement and increase productivity which will allow a company to reach its goals, “From productivity and engagement in the organization’s day-to-day, to an employer brand that naturally fuels recruiting efforts, to creating a lasting brand that customers immediately recognize, there’s no escaping it – culture radiates outward into the marketplace” (Straz 2015). The culture can have a great impact on the employees. Employees thrive in a positive working environment and the ability to engage with their managers without fear of retaliation.
3. Threat of new entrants High barriers to entry in the industry. Licensing requirements are high. There is a minimum size requirement to achieve profitability and the initial investment is required and fixed costs of operating. How much of the control is in the hands of existing players of the market or key resources?
Disruptive Innovation Xiaomi is often mentioned in the context of disruptive innovation. But does Xiaomi qualify? Figure 2.0 (Christensen ) https://www.interaction-design.org/literature/book/the-encyclopedia-of-human-computer-interaction-2nd-ed/disruptive-innovation The theory of disruptive innovation was introduced by Clayton Christensen, of Harvard Business School, in his book “The Innovator’s Dilemma” (1997).
Apple’s organizational structure Introduction Attention Getter Apple Inc. is an American multinational corporation, which designs, manufactures and sells personal computers, consumer electronics and software, and provides related services. The company has experienced a tremendous growth since it introduced an iPhone smart phone in 2007, it is considered to be the most successful electronics company in the world. [1] Thesis Statement During the last few years, Apple company has achieved great successes in the electronic domain.
The fragmentation stage is also known as the infancy or the embryonic stage of the industry life cycle. This is where early adopters of new products, technology or processes are carving out a niche market and developing products and services in response to an identified need. We have to note that there is little to no competition unless similar companies have identified the same opportunity. Companies involved in this stage are typically active in sourcing investment capital to execute their business plans. Profits are not yet created because the industry is new to the market and revenue is usually reinvested in business expansion.
Additional, they were lack of communicate and lack of understandable roles. They were lack of control environment that they did not assign a good duty of segregate for each level. The company just focus on solving extreme high risk problem and ignored the expert advices, demonstrated by Tony Hayward. When the disaster appeared, the board is lack of oversee in operation, had a slow reaction on solving. This failure is resulted in inconsistent of organizational culture.
There are many different definitions of workplace culture. Charles Handy an Irish author/philosopher specialising in Organisational Behaviour and Management famously said that, “Culture is the way we do things around here,” but if someone was on the outside looking in how would you explain that to them. Would you have to be working there a long time yourself before you could see “how things work around here”. Because culture in an organisation is what makes it unique, it’s the personality, the attitudes, and the way we interact and relate to each other these are the things that attract the best and Brightest talent to a company. So, if an organisation has a “strong, positive, clearly defined and well communicated culture with strong core values” (Deloitte) that company is onto a winner.
The networks can cut through formal procedures to start initiatives and meet deadlines. Learning how to map these social links can help managers harness the real power in their companies and revamp their formal organizations to let the informal ones thrive. It is said that if the formal organization is the skeleton of a company, the informal is the central nervous system driving the collective thought processes, actions, and reactions of its business units.it is designed to facilitate standard modes of production. Some examples explaining how these networks breaks are given in the article.
EXECUTIVE SUMMARY EMPLOYEES RETENTION Employee retention means to retain the employees in the organisations and not giving them chance to leave the organisations at any cost. The burly block for any organisations is just not to get the best employees for the organisations, but to also retain them in the organization. There are number of reason because of which an employee leaves or try to quit the job, some of them are: 1.
Causes According to Amin & Noor (2013), the E-consumers generally refer to the purchaser of goods and services over electronic systems such as Internet and other computer networks. This new group of consumers is increasing in number over the years as on-line shopping become a trend and manifestation of modern life style. Based from the Paynter & Lim (2001), E-commerce would provide consumers with benefits such as interactive communications, fast delivery, and more customization that would only be available for consumers through online shopping. Product information in the Internet is more compact and it ranges from various sites.
As a result, the company has suffered for disappointing earnings and sales. One of the reasons is because in the attempt to turn around the company, the raw material and labor cost increased which lead to an increase of 20% per item. As a result, now the company is facing struggles because foreign competitors such as Zara, H&M, Walmart and Target are stealing its customers with cheaper and fresher fashion. Another driving force that affects the fashion industry is the information revolution. The instant availability of information and instantly interaction are the implication that has changed the nature of competition in the fashion industry.
Flipkart is an Indian e-commerce company headquartered in Bangalore, Karnataka. It was started in the year 2007. In its formative days Flipkart mainly dealt with books but now, it has expanded to electronic goods and a variety of other products. Primary categories of products sold at Flipkart are: • Books • Mobiles & Accessories • Computers • Home and Kitchen • Personal and Health Care • Gaming • Watches and Fragrances • Music and Movies • Stationery Some other facts about Flipkart are • It has 2,000,000 registered users • 8,000,000 customer visits every month.