[SOLVED] Management Strategy and Policy

Prepare and submit a term paper on Management strategy and policy. Your paper should be a minimum of 3500 words in length. The net revenue of the company in the financial year 2011 was $701.29 million, which reflects a reflecting a strong financial situation of the company. Aramex is a publicly-traded joint-stock company registered under United Arab Emirates laws and its shares are traded in Dubai financial market. The company is currently headquartered at Amman, Jordan, and has its business wings spread all over the world. The organizational structure of the company is well defined and is managed along two tracks – 1) by service 2) geographically, with the help of, country managers, regional senior managers and cross? functional country? based‘Aramexteams’ that is providing harmonization of all Aramex services on a modified basis to Aramex customers (“About Aramex”). The organizational structure of the company is presented below: – Organizational structure of Aramex and how it impacts the design and implementation of Strategy Figure 1 – Corporate management Structure of Aramex (Source: Aramex, “Sustainability Report 2006” 8) The above chart clearly points out about the departments or divisions of the organization. In addition, the chart also sheds light on the way Aramex is carrying out and managing its business functions. Presently the company has 4 major departments namely marketing, IT (information technology), finance, and the operations departments. Each of the departments is being headed by the VP’s (Vice Presidents). From the organizational chart, it has also observed that the company has appointed VP’s in different locations. Most of them are responsible for managing the operation of the allotted areas. The structure followed by the company is therefore clearly divisional structure. However, these VP’s do not report to any of the departmental heads, rather they directly report to the CEO of the company. Apart from them, other business heads such as the chief technology officer, chief marketing officer, group financial controller, Sr. VP Finance and CFO, VP logistics and ground operation, Sr. VP cargo, VP express, chief strategy office, vice president, as well as the in front managing director. Hence, it is obvious that the company has been able to streamline its business process with this organizational arrangement. On the contrary, if the arrangement wouldn’t have been appropriate the performance of the company was sure to be negatively impacted. However, the financial results of the company clearly point out that the company is doing well in the market place. The flat and decentralized management structure of the organization is one of the key drivers of success for the company. The simple and flexible structure of the organization has allowed them to empower the employees of the organization and also make a decision pertaining to the enhancement of the company’s service offerings irrespective of the location of the organization and the level at which they are operating (Aramex, “the age of entrepreneur” 4). Nevertheless, a number of studies reveal that the organizational structure has a strong impact on the design, formulation, and implementation of the organizational strategies. Organizational strategy and structure are highly related as the organizational strategy of a company help them to describe, identify, and build the organizational structure.

 

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