Sample Essay on EZ Learning Company

1. Abstract

Organization expansion refers to growth in a business firm in terms of size and capacity. There are several elements involved in organization expansion, such as product diversification, better remuneration for employees, disciplined work force, profit maximization, and cost saving among others. Organization expansion is a mirage without considering human factors, such as decision-making, movement of goods, and marketing of products. For an organization to experience efficient growth and expansion, the most fundamental factor to be considered is putting more interest in the entire workforce. The expansion of an organization places it in a formidable position to stand out in the course of antagonistic conditions in relation to other business entities, which are intensely affected by such situations. This paper shall dwell on specific factors that need to be incorporated for the effective expansion of E-Learning organization selling children learning products. The paper will dwell on conducting a PESTEL analysis, identifying future trends and problems, initiating new positions to be created in the organization, coming up with an effective organizational chat, and setting up mechanisms for succession planning. All these are important requirements for an efficient organization that will see a smooth transition and growth of the organization.

2. Introduction

Expanding a business organization is a plan for every organization. Nearly all companies incorporate plans to grow their business in order to expand their sales and profits. These plans however need to undergo a given strategy of implementation in order to achieve effective growth and expansion. This will depend on the financial capability factors, such as competition and environmental factors and product diversification. This case will also apply for the EZ-Learning organization, whose operations have been on a small scale. Before investing in the organization expansion, several strategies need to be analyzed and put in place in order to foresee the smooth transition of the organization.

3. PESTLE Analysis

It is important to identify all the external factors in the organization’s environment, which would have an effect on the operations of the company. A good number of these factors are aspects that the company has no or less control over, but have direct consequences on its operations. The common tool used in identifying these external factors affecting the operations of a business organization is PESTLE Analysis that takes into consideration the Political, Economic, Social, Technological, Legal, and Environmental issues.

Figure 1.PESTLE Analysis factors

In the identification of these factors, all the planned disciplines and departments of the organization must be considered in order to get a full view of how they can be analyzed in relation to the organization through a research. The organization growth and expansion will need the PESETLE technique to analyze each of the elements to ascertain their impact on the organization (Kotler et al, 2009). The PESTEL Analysis is also important in establishing a framework in which the external factors of the organization are investigated and their impacts assessed.

PESTLE analysis factors as indicated earlier are aimed at identifying two critical issues, which are beyond the control of the organization and have an impact on the organization operations. In identifying these issues for the organization growth and expansion, it is important that a special attention should focus on identifying them rather than solving them. Implication of these factors need to be clearly identified, together with their likelihood of occurrence and avoid the challenge of trying to deliberate for possible solutions or any strategies.

Figure2. Showing PESTLE Analysis Process

PESTLE Analysis process is aimed at getting a clear picture of the business environment. This is important in evaluating possible risks associated with the expansion of the organization and measuring their impacts.

3.1 Political Factors

These are impending policy changes in the government in terms of policies that have an impact on the operation of the organization. Factors that cause such impacts include government priorities, thereby establishing new mechanisms in terms of trade guidelines and taxation. Among the changes that can directly affect organizations are employment laws, consumer protection laws, health and safety requirements, and environmental regulations among others.

3.2 Economic Factors

This process takes into account an assessment into the possible changes in the economy in terms of inflation rates, taxes, interest rate, exchange rates, and business regulations. In the expansion of the EZ- learning company, these factors will be vital to be investigated, as they will have a direct impact on the organization. In terms of the organization proficiency, factors, such as unemployment and availability of expertise labor should also be investigated. The economic viability of the market needs to be analyzed in terms of current cost of living and income.

3.3 Social Factors

This is another important element to be investigated in the expansion of the organization. Social factors in this context will look into the age distribution, population growth rate, income statistics, and education and career trend. This will provide relevant information for the organization target that is a specific age group, specifically young child. In this case, it is important to analyze the attitude of the population towards education and children development.

3.4 Technological Factors

This is one of the key elements in analyzing issues that will impact on the organization undertakings. Technological advancement is becoming rapid and usually has a huge impact on the markets from unexpected sources. In this regard, PESTLE will be vital in brainstorming the most inexplicable suggestions to handle the case.

3.5 Legal Factors

Legal factors are current legislations that have a direct impact on the organization, such as employment and competition. This also includes anticipating changes in trading terms in all intended markets. These factors put together have a direct impact on how an organization operates, and must be but into consideration in laying strategies for the growth and expansion of organization.

3.5 Environmental Factors

These are factors surrounding the environmental protection due to the effect of organization actions. Their neglect attracts severe penalties. These factors at times go hand in hand with social responsibilities that an organization needs to do with regards to improving the social harmony with the society around.

4. Organization Future Trends

Organizational trend refers to the statistical analysis of data or information of the organization in a given time in order to chart the progression and projection of what will happen in the future. This information is helpful in the expansion of the organization because it enables the leaders to predict the future strategies, and the decision-making element in the organization expansion.

Information provided about the trend of a business will assist in decision-making. Decision making refers to the process of selecting a course of action in addressing a given opportunity or problem, and involves several steps. Decision making effects mostly rely upon organization trend in which decisions made align with how the organization has performed, and how it is projected to perform in the future.

The most common future trends the organization needs to consider in its expansion plans are financial trends, market, and industry trends. Financial trends deals with measuring financial lifeblood of the organization regarding the expected investment in relation to its expansion. Market trends are important in ascertaining the future trends of the organization in terms of existing market conditions. For instance, similar organization performance in the existing market condition is a clear indicator that the organization will fare on regardless of its nature. Industry trend is also important in forecasting the future trend of the organization.

5. Company’s Key Problems

Expansion of EZ- Learning will encounter a number of challenges. Normally, as the organization moves to its new levels and status, there will be different problems and opportunities that will in effect demand for different solutions. One of the fundamental aspects to consider is that ascertaining and dealing with problems associated with growth and expansion of the organization is important for a healthy growth of the organization. It is imperative to ensure that not all steps and decisions that will be made in the course of expanding business will be the source of more problems for the organization in future. This therefore requires effective leadership to create opportunities and sustainable growth for the future of the company. There are several problems associated with growing or expansion of the organization as discussed below.

5.1 Keeping Up with the Market

Marketing research is an important element in launching an expansion vision for the organization that is a continuous process. It is important in ensuring that the organization makes decisions based on current information about the products being distributed for children learning. This is an important tool in understanding what exactly the customers need, and therefore being able to supply the needs. In as much as EZ-Learning Company does not deal with clients directly, this technique is important in the sense that should their products lack market, their supply will also fall. This means that the product’s lifecycle is important in ensuring it gains value. However, it needs a heavy investment in innovation and research considering that the organization is entering a new phase that requires deep investments.

5.2 Planning Ahead Headache

The plans that made sense to the organization will no longer apply. This is because the organization is achieving a new shape and structure, and marketing conditions are ever changing. A business plan will require a thorough review in order to achieve its intended objectives. The organization does not only need to be opportunistic but also focus on the strengths and vision. The new development also has different risks to be addressed.

5.3 Problem Solving

Business expansion comes along with continuous crisis modes. Each day and time presents a problem that requires a solution where organizational leaders end up trouble shooting the issues. As the organization expands, there are short-term crisis that may not matter in comparison to other things being done. Business expansion therefore requires that new problems should be dealt with in terms of priorities, as problems will never end.

5.4 Investing in the Right System

As the organization grows, there would be a need for large volume information, that is, financial records, business contacts, employee details, and other regulatory requirements. As a result, the organization will need the right systems for storing the data. Solid management information system is a key element in proper management of a growing organization. This therefore means that as the organization grows, there will be a problem in sharing information between different functions working together in the company unless they have the correct system in place.

5.5 Skills and Attitudes of Current Employees

Employees or the workforces are the main factors in the growth and expansion of any organization. In this case, as the organization is moving to a new level, it is vital to realize that the current employees will not have the ability to help it grow. This will only come into effect through training and learning of new skills. This will also need the help of outsiders in different areas who have experience that involves price.

5.6 Adoption to Change

This can be one of the most dangerous threats to a growing organization as a result of complacency. Many employees and leaders have the attitude of doing things the way they are used to, which is contrary to growth and development in organizations. Employees and leaders need to be part of the change strategy although it might be difficult. Hard decisions may take shape, for example, supplier’s reluctance to swap supply or business away from one of the friendly retailer whom there is a personal connection. This however requires a thorough preparation in order to avoid putting the company if a jeopardy situation.

6.0 Proposed New Position for Business Expansion

6.1 Human Resource Position

The Human Resource (HR) position in an organization focuses mainly on employee recruitment, management, and offering direction on how the organization roles ought to be performed. The main center for this position is to influence the employee’s behavior, attitude, and performance. The current management of the organization does not have the position. However, due to EZ Learning Company’s need to expand, this position will be very crucial to be established. The human resource position is the backbone of the organization success or failure and the person who will hold it need to be a true leader to steer the organization to success.

The key roles of HR for the effective transition of this organization include recruiting and training of employees, performance appraisals, maintaining work atmosphere, handling disputes, and developing public relations.

 

Figure 3. Showing roles of a Human Resource Manager

6.1.1 Recruitment and Training

This is one of the core responsibilities of this position. The success of an organization and its expansion relies of human workforce. This organization is in the process of expansion, which will require additional employees to join. As a result, it will be imperative for the organization to put up this position. The HR manager will therefore develop the best strategy for hiring competent and qualified personnel to ensure the company moves to its intended destination.

6.1.2 Performance Appraisals

These are important features within an organization that allow the HR leader to assist the employees to work to their best ability. In this regard, the position will create a direct connection between the employees and the HR leader by exchanging information regularly pertaining their performance. As a result, an outline for achieving a specific goal is drawn, thereby encouraging all the employees work towards the objective.

6.1.3 Maintaining Work Atmosphere

This is an important role that affects the performance of employees in an organization. The environment atmosphere and work culture in the organization will be associated with the HR department. Creating this position will see the employees benefit for the company and their needs taken care of.

6.1.4 Conflict Management

Employees and employers are all human in nature. This means that in their course of undertaking different roles in the organization, issues arise, which might cause misunderstandings. This is one area that can affect the operations of companies. In such scenarios, it is important for the organization to have a HR position that will foresee the mediation process in ironing out the issues. The leaders in the position come up with solutions to the impeding issues in order to ensure the organization runs smoothly.

6.1.5 Developing Public Relations

For the organization to grow, it must establish good working relations internally and externally. This implies that EZ-Learning organization needs to have a good relationship with the surrounding public in order to co-exist in harmony. This role is spearheaded by the HR leader in ensuring that the company builds healthy relationships with the environments around and its clients.

It is important to have this position in the expansion plan for the organization. Lack of this position will make it hard for the organization to manage its regular activities and operations.

6.1.6 Marketing Position

This is a position headed by the marketing manager. The marketing department in the organization will indulge in the process of forecasting, and implementation of the products price and distribution. This does not involve selling of the organization products but rather art of selling the organizations products to the retailers.

The marketing department in the organization under the leadership of a marketing manager will undertake research to clearly find out the requirements of the clients. These findings are vital for the organization in distributing products that are needed for the satisfaction of consumers. Marketing will also play an important role in informing consumers about the organization’s new products or improved ones.

The marketing position will also be responsible for identifying new market opportunities or unexploited markets through marketing analysis. This involves several elements, such as getting to know the purchasing patterns of the clients, and demand peak and off peak for children learning materials to estimate the future performance of the organization. The strategies involved in the marketing department will also provide vital information for the organization to remain relevant in the competitive market.

6.2 Finance Department

This is an important position in the organization for creating monetary value from investments. Finance managers will be involved in preparation of organizations financial reports and executing cash management strategies (Siegel & Shim, 2009). Financial managers will also play an important role in profit and wealth maximization. The organization should also include the information technology and customer service department positions.

7.0 Organizational Structure

The best organization structure for the company will be functional. This is where employees are grouped together based on their roles and characteristics. In this structure, different heads work together under the leadership of the organizations Chief Executive Officer. This is the preferred organization structure because of its economy of scale nature. Communication within this mode of structure is also excellent in the departments due to simplicity and specialization.

Fig.4. Functional organization structure.

8. Succession Management

Succession management process refers to the identification of job opportunities within an organization that are anticipated to occur through factors, such as retirement, and deaths. It is a process that assesses the skills and requirements of current employees in an organization by filling the void gaps between their needs and skills through training and development.

8.1 Importance of Succession Management Process

Succession management process is important in recognizing employees with existing skills or prospective to expand the skills in order to become future leaders in the organization whenever there is a gap. In as much as it acts as a building block to existing skills among employees, succession management can also point out other areas employees may be underperforming, thereby developing mechanisms to improve them for the overall benefit of the organization. The process is also beneficial for the organization in terms of savings in the process of recruiting and training new employees in cases where there is a need to fill a vacant gap.

Succession planning also goes beyond training and prepares an organization to face future vulnerabilities, such as filling the gap of a top employee. This provides an organization to fore plan and assesses risky areas and positions, thereby training internal employees. This is a defensive mechanism against any risk of loss of an employee. In addition to that, succession planning plays a vital role in pointing out the existing gaps between what employees ought to know and what they already know, also called competency gaps. Filling these gaps is very crucial in the event that an employee exits the organization since there will be no much loss in terms of productivity and performance.

The organization will also enjoy the benefits of succession planning from employees, as it is a clear communication to them that the organization values their input. This will motivate and increase their morale, increasing their engagement and performance.

9. Succession Planning Process

The most underlying factor in succession planning is the fact that there are some positions in an organization, which cannot be left vacant and must always be filled with qualified persons. Qualified persons means that no one is allowed to fill them for the sake of it. An effective succession process ensures that an organization mission is achieved through an efficient procedure of pointing out, growing and retaining leadership talent.

Succession planning process is a deliberate mechanism through which an organization ensures there is an uninterrupted effective performance through leadership continuity. There are several steps involved in the succession process planning for replacement of key leaders. The potential leaders are identified and prepared efficiently to assume the responsibilities. Succession planning process entails a number of factors in selecting an individual and not only simple aspects of being right for the job. Other elements within an individual, such as personality, leadership skills, and ability to take up the challenge are important factors to be considered before making a selection.

The next phase involves determining the employees to be considered for the position. This can be done in a number of ways, but the objective system should be given preference instead of favorites. Members should be allowed to self-select through volunteering, as it will help in determining employees who are serious and determined. These employees will then be groomed for the positions.

In the process of training and preparing members for the new challenge, it is vital to establish the gap between what they have and what they need to know. Having this information will be used to determine the level of training and mentoring needed. The information together with their past history and experience amalgamated together is used to groom the employee to the required levels. Members being groomed should also be ready to carry on with organization mission and objectives.

After identification of potential leaders among the group, a plan is developed for each of them. They are assigned mentors, in most cases the individuals they would replace. The party then forms a teacher student working relationship in which the student is allowed to take part in solving problems on issues arising within an organization. The potential leaders are also allowed to shadow leaders in position, for instance, sitting in board meetings and taking part in decision making process. It is an important aspect in determining how they handle the aspects of problem solving and decision-making.

Another important development aspect is allowing the potential leaders to be part of goal setting undertakings like budget setting and strategic planning. In some occasions, the board conducts interviews in determining the skills and competencies of the potential leader.

Evaluation of the whole process is also important in determining its effectiveness and pitfalls in order to ensure that recommendations are made for a better process in future. Once the planned process is successful, a smooth transition is ensured within an organization and a prepared leader assumes new roles effectively.

Fig.5. Sowing succession planning process

10. Conclusion

There are several factors to be considered before an organization undergoes expansion like the case of EZ-Learning Company. The first element understands the environment in which the organization operates. Future business trends and challenges need also to be determined in the process of goal setting. This will provide a roadmap for establishing an organization structure and an effective succession planning to oversee the smooth running of an organization.All these elements put together will foresee the smooth succession of the company to its required shape and succes

References

Kotler, P., Keller, K.L., Brady, M., Goodman, M., and Hansen, T. (2009). Marketing Management, Pearson Education.

Schmermerhorn, J., Hunt, J., & Osborn, R. (2005). Organizational Behavior. Indianapolis, IN: John Wiley & Sons, Inc. decision making

Siegel, G., & Shim, J. (2009). Schaum’s Outline of Financial Management. London: McGraw-Hill.