• Course: MBA 591-1
• Assignment: TMA 1
• Title: The Structure And Culture Of Big Blue Bins In The Context Of Its External Environment
• Word Count: 1956 (excluding Executive Summary)
• Name: Rowan Reitze Keizer
• Student Number: 72764791
• Tutor’s Name: Clifton Singh
THE STRUCTURE AND CULTURE OF BIG BLUE BINS IN THE CONTEXT OF ITS EXTERNAL ENVIRONMENT
TO: S. White, Managing Member.
FROM: R. Keizer, Manager.
DATE: 16th August 2010.
TABLE OF CONTENTS
|Executive Summary |3 |
|External Environmental Factors ...view middle of the document...
1. External Environmental Factors:
• The purpose of this report is to analyze the structure and the culture of Big Blue Bins in the context of its external environment and the challenges this is likely to present in the next five years, forecasting from 2011 to 2016. My report will recommend changes to the structure, procedures and culture that will increase the organizations effectiveness in dealing with these external challenges.
• On reflection of what external factors are likely to influence the organization in the future, I identified two of the main factors as described in the assessment of the far environment (STEEP.) These factors have affected the organization in the past and are likely to continue impacting negatively on it in the future, namely economical as well as environmental (although political could also be strongly interlinked.)
2. Internal Environmental Factors:
• Looking at the change that would need to be made to the structure and culture of the internal environment, I will be analyzing the degree of differentiation and integration, I will closely investigate the ways in which Big Blue Bins are achieving this with regards to vertical and horizontal differentiation as well as discussing the procedures in place for integrating these various structures.
• With regards to defining the culture of Big Blue Bins, I will explore the ‘low-profile’ symbols and how it defines the internal culture of an organization. I will also be using one of the most widely quoted models of culture that of Handy (1988), who identified four groups of behavior, namely: power, task, person and role cultures, in particular I will discuss the Power culture and how it is defined within the borders of Big Blue Bins.
2. External Environment Problems:
2 Economic Factors:
1. Background and Identification:
• The economy tends to move in what is termed ‘economic cycles,’ where the economy can turn from being highly profitable to barely able to survive. This is very undesirable because it creates uncertainty and inefficiency in reacting to various unpredictable situations. In order to do any future predictions, however unreliable, we must look at the economical history of the organization.
• In 2008, Big Blue Bins had a drop in gross turnover of 20 % compared to that in 2007, reasons leading to this were the dramatic increase in the diesel price and escalating landfill charges having a major impact on cost of service. In 2009 the world, including South Africa, felt the strains of a global recession. This recession lead to a dramatic decline in the construction sector, with only the contractors working on the World Cup projects having any substantial work. Government projects were put on hold, and a lot of the smaller construction companies lost out to the larger ones who now needed to target smaller projects in order to survive. Together with these factors, the domestic market, which...