Aramark Assignment-organizational structure, the control mechanism, & entrepreneurial orientation
Please use the company Aramark Corporation (https://www.aramark.com/) and fill out the template that is attached. All you will need to do is fill out the template attached but it focuses on the areas below.
During the assignment and using Aramark Corporation you will:
1. identify a group of evidence of the contemporary control system the corporations use (informational and behavioral control), and discuss what the main advantages of using contemporary control systems over traditional control systems are for these corporations.
2. identify the body of evidence you see of effective and/or ineffective corporate governance and discuss the role of effective corporate governance in improving the corporations’ performance and ensuring that managerial and shareholder interests are aligned.
3. find a group of evidence of the organizational structure of the corporations and describe it, identify the advantages and disadvantages of the structure, and discuss if the organizational structure is consistent with the strategy that the corporations have chosen to implement.
4. compare and contrast these corporations in terms of their entrepreneurial orientation, and discuss how the corporations’ entrepreneurial orientation is reflected in their strategy and organizational structure.
ANSWER
Task #1
Using the Internet, go to the corporate site of the Fortune 500 Corporations you have been working with. Then, complete the following activities:
- Identify a group of evidence of the contemporary control system the corporations use (informational and behavioral control).
Table 1
| Informational control evidence | Behavioral control evidence | |
| Corporation 1 name: Aramark Corporation | The company employs various types of Transaction Processing Systems like the payroll systems, inventory control systems as well as accounts payables and receivables systems. The organization also uses Office Automation Systems like the internet tools as well as integration systems to supports the networking operations of the company. Armark corporation also uses Decision Support System and Executive Information System like communication driven DSS in supporting the company’s decision making processes (Armark Corporation, 2020). The company also adopts Decision Support System and Executive Information System in managerial decision making throughout its processes.
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The company uses signs to remind employees of their expected behavior while using toilets and smoking. |
| Corporation 2 name:
Walmart Company |
The company uses Processing Systems like inventory, payroll and cash management systems.
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Walmart Company uses signs to create an awareness as well as warning employees of the expected and the undesired code of conduct while carrying their duties. |
- Then, discuss what the main advantages of using contemporary control systems over traditional control systems are for these corporations.
The contemporary control systems are adaptive to the changing business environment. They are therefore preferred for their flexibility in adjusting to a new busies need. The contemporary control systems are also associated with low operating costs and minimal wastages. They are preferred for their efficient processes that helps in meeting the overall smooth running of the organization. The contemporary control systems are also beneficial in supporting the decision making needs of the organization. They present a valuable future decision making platforms that the traditional control systems cannot comprehend in meeting the organizational objectives of a firm.
Task #2
Using the Internet, go to the corporate site of the Fortune 500 Corporations you have been working with. Then, complete the following activities:
- Identify the body of evidence you see of effective and/or ineffective corporate governance.
Table 2
| Effective corporate governance evidence | Ineffective corporate governance evidence | |
| Corporation 1 name: Arnark Corporation | The organization or Armark has a strategic plan for the next 30 years (Armark, 2020). The organization also operates within the rule of the law. The organization is effectively managed under a board of management that oversees the decision making of the organization.
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The strategic plan of Armark Company does not address the transition needs of the company. The CEO of the company has been in position for nearly a decade without bang replaced. The CEO is also presented to execute numerous oversight roles within the company. The company has also been facing inclusivity issues as well as gender stereotyping (Armark Corporation, 2020). The performance of the company is also poor as compared to other companies in the same industry as the organization of Armark.
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| Corporation 2 name: Walmart Inc. |
Better remunerations as compared to those of their competitors. Employee training Management’s role in defining the strategic goals of the company
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Employee complaints of mistreatments.
Employee complaints of unfair overtime payments Customers’ complaints of poor services. |
- Then, discuss the role of effective corporate governance in improving the corporations’ performance and ensuring that managerial and shareholder interests are aligned.
Corporate governance plays a key role of optimizing the value of all stakeholders of an organization. For instance, a firm with a defined corporate structure pays its employees fairly and promptly. Organizations with good governance also rains ad provide better fringe benefits to its employees. The reward of maintaining the welfare of the employees is also reflected on a company’s sales revenue. The motivation of a company’s staff members encourages them to be hardworking leading to higher business profitability.
Task #3
Using the Internet, go to the corporate site of the Fortune 500 Corporations you have been working with. Then, complete the following activities:
- Find a group of evidence of the organizational structure of the corporations and describe it
- Identify the advantages and disadvantages of the structure
Table 3
| Corporation 1 name: | Corporation 2 name:
|
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| Evidence of the organizational structure |
The structure of authority adopted by the two organizations is based on employee ranking with the CEO assuming the top most position. Other executive members of the management team follows. The support staff members appear third on the ranking followed by the subordinate staff members at the lowest ranking |
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| Probable organizational structure |
The organizational structure adopted by the two companies is a vertical /hierarchical structure.
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| Advantages of the organizational structure | A hierarchical organization structure provides a clear line of authority. This helps in accounting for a clear reporting procedures in eradicating job mismatch. The hierarchical structure also provides a clear distinction in the employees’ roles and responsibilities. This ensures that employees are accountable for their actions. This is key in developing the motivation of employees necessary in building their career path.
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| Disadvantages of the organizational structure | A hierarchical structure of authority is territorial to those in power. High ranked employees can use their authority to dominate others while unfairly advantaging other employees. This structure may create lack of collaboration and therefore reducing the level of internal innovation. The hierarchical structure is also associated with communication barriers as well as procedural bureaucracies limiting the smooth operational flow of work processes. |
- Then, discuss if the organizational structure is consistent with the strategy that the corporations have chosen to implement.
The hierarchical structure of authority adopted by the two corporations is consistent with their organizational strategies. For instance, the structure provides an appropriate environment that identifies every business opportunity as part of the organizations’ strategy. The structure unveils different operational units for which the management can assess the level of competition, consumer trends and corporate culture needs as integral factors to be considered in implementing the strategic plans of the organization.
Task #4
Using the Internet, go to the corporate site of the Fortune 500 Corporations you have been working with. Then, complete the following activities:
- Fill in the table below comparing and contrasting these corporations in terms of their entrepreneurial orientation
Table 4
| Corporation 1 name: | Corporation 2 name:
|
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| Autonomy | Armark Company is self-reliant on its production and distribution networks. The company operates with a large production unit supporting all its manufacturing needs. The company also relies on its internal transport system to deliver goods to its customers.
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Walmart Company relies on external production of some of its products. The company also contracts other transporting companies to deliver goods to customers. |
| Innovativeness | Armark is more innovative in its production processes. The company constantly unveils new brands to meet the changing demands of educational and medical institutions.
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Although Walmart Company is innovative, it cannot be compared to the level innovation adopted by the organization of Armark in meeting the needs of its customers. Walmart’s innovativeness is only seen in its distribution processes and not in its final products. |
| Proactiveness
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The company of Armark is proactive in creating new product lines to meet the changing demand in educational and health facilities. | Walmart’s proactivity is seen in its technologically intensive advertisement and distribution systems but is less proactive in identifying new business opportunities for its success. |
| Competitive aggressiveness | Armark is competitively aggressive in finding new business opportunities by developing new brand lines to match the behavior change of customers. | Walmart Company is less proactive in identifying new product lines to meet the changing customer needs (Walmart Inc., 2020). This has undermined its competitiveness within the food industry. |
| Risk taking
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Armark Corporation is a risk taker in developing new product lines. | Walmart s Company adopts a risk aversive approach of managing the changing customer demand. |
- Discuss how the corporations’ entrepreneurial orientation is reflected in their strategy and organizational structure.
The organizational structure of Armark Corporation reflects on its proactive role of developing new product lines. For instance, the organization has a strategic product line developer position as part of its functional unit key in assessing the level of competition as well as the consumer trends. The role of strategic product line developer is therefore key in implementing the strategic marketing plans of the organization. Walmart s Company’s proactive role in advertisement and distribution processes is also seen in its structure. The organization has a strategic marketing manager ranked in the same position with other executive management team. This is seen to influence its major strategic decagons in the marketing unit.
References
Aramark Corporation (2020). Company Profile. Retrieved from: https://aramark.gcs- web.com/company-profile
Armark (2020). The Official boar. Retrieved from: https://www.theofficialboard.com/org- chart/aramark#
Walmart Inc. (2020). Company Description. Retrieved from: https://money.cnn.com/quote/profile/profile.html?symb=WMT
