Organization Theory And Design Commerce Essay

Organizations are of different types and could be defined as societal entities that are end directed and are designed intentionally to construction and organize assorted activity systems and which are besides linked to external environment. An organisation is made up of assorted cardinal elements that include edifice policies and processs, developing dealingss between the each other in the company. A successful organisation interacts with each other to execute all the indispensable maps that help the organisation to accomplish its ends and aims. The dimensions of organisational design explain the assorted structural and contextual dimensions that are the most of import factors that make an organisation with the competitory market. The organisational design, construction, schemes, effectivity, invention, determination devising procedure, organisational civilization and ethical values are the major edifice blocks of any organisations success. If all these elements are efficaciously planned it leads to effectual organisational results.

This research chiefly focuses on the Organizational construction and design and its constructs of the selected company so as to understand in practical about an organisation.

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The chief purpose of this study is to concentrate on the overall scheme and organisational design and its effectivity of EMKE group. The chief aims include

Analyze the scheme and organisational design and its effectivity of EMKE group

To analyze the organisation construction and dimensions of EMKE group

Analyze the invention and alteration schemes of EMKE group

Analyze the organisational civilization and ethical values of EMKE group

Finally put frontward few recommendations consequently.


EMKE is largest retail merchant in UAE. It is an Abu Dhabi based company established in 1966 by Founder and Chairman Mr. M K Abdulla. Mr. Yousuf Ali M.A. ( his image below ) who is nephew of the laminitis joined the group as Managing Director in 1973. The Company ‘s overview indicates that the group started its activity as retail concatenation and Shopping Malls developers but the existent growing came from the diverseness of merchandises and diverseness in geographical countries. The doctrine of the Group as mentioned in their web site is “ right merchandises in the right topographic point at the right clip ” has brought the company in spotlight as the executing of the same has been done in the traditional supply concatenation methodological analysis ( ) .


This research has used both primary and secondary informations aggregation methodological analysiss. As a portion of primary informations aggregation methods we have conducted telephonic interviews with the HR directors. We have chosen secondary informations aggregation procedure for the intent of giving a strong theoretical footing. For this the research reviewed past literature, in position of the raised purposes and aims. This gave a clear apprehension on the constructs of scheme and organisational design and its effectivity, and the assorted issues related to this. Following related books were referred, this improved the criterion of the topic content and hence this helped the research to acquire more information on the proposed topic. Following reexamining assorted diaries and articles has helped me to cognize the research background of the subject. Finally assorted hunt engines ( Google, Google books, MSN, Yahoo etc. ) were used to garner more information so as to give a strong theoretical footing for the research. The analysis chiefly concentrates on the assorted facets of organisational construction and design.


The construction dimensions

The Group operates popular trade names of retail concatenation shops that include the celebrated Lulu concatenation of supermarkets, section shops, hypermarkets and now shopping promenades ( ) . Al Falah Plaza and Emirates General Market are other popular retail ironss operated by us ( ) .

The company recorded turnover $ 2.1 billion in 2008. In UAE market portion has increased to 40 % in the organized sector. Harmonizing to one of the bankers EMKE group is considered as one of the biggest group runing in UAE. The group has presence in 75 supermarkets in UAE, Oman, Qatar, Kuwait, Bahrain, Saudi Arabia, Yemen, India, Indonesia, Thailand, Hong Kong, China, Kenya, Tanzania and Benin which is about 15 states in Asia and Africa ( ) . Harmonizing to the estimations by the bankers EMKE group has US $ 1.18 billion and its retail concatenation cater to more than 320,000 clients every twenty-four hours. Market portion is reported be more than 32 % of the entire retail market portion within the GCC ( ) .

Organization construction

When we look at the Organizational construction of EMKE group it is seen that EMKE Group, which runs the LuLu concatenation of supermarkets and Hypermarkets across the Gulf provinces, has a really huge organisational construction with 18,000 employees out of which more than 13,000 are Indians. One of the most of import factors to be mentioned here is effectual Human Resources and Project Planning. With the experient direction and using the locals in the abroad subsidiaries the Group has been able to go on the growing tendency non merely on volume but besides in the merchandises and services profile. The local employees have been good for the accurate feedback of the civilization, merchandises and services etc. Taking a clue signifier such findings and expertness of locals the Company plans for the future undertakings. The geographical presence as a new mercantile establishment in other states depends upon the demands of the clients and this accurate place is one of the secrets behind the EMKE Group ‘s concatenation of mercantile establishments. There is perfect coordination between each sector of the activity which complements each other and reduces the cost of production and bettering the borders. The SAP execution is the advantage to the Group which enables the company to hold detailed information on manus at any point of clip. It saves batch of clip, labor and improves Customer Service which is of premier importance to the Group ( ) .

Strategy, Organization Design and Effectiveness

The company ‘s scheme to diversify into fabrication after get downing ab initio from retail is a good move for the hazard direction intents. The survey of the Group shows that in instance of the abroad investing in Indonesia, China, Hong Kong & A ; Thailand the Group has even diversified into fabrication and export of garments every bit good as fabrics, nutrient material, furniture, glasswork, footwear, baggage, paper merchandises and other general ware. From Jakarta the group earns export income by exporting the above referred points to figure of clients in the Far East, USA, UK, Spain, UAE, Saudi Arabia, Egypt, Kuwait, Qatar, Bahrain, Kenya, Senegal, South Africa, The Netherlands, India, Bangladesh, Sri Lanka, Australia, New Zealand, Fiji and Mauritius. The supply concatenation system has been established even through outsourcing the points for retail merchandises based on the civilization and demands of the states runing in ( ) .

The Group has entered into assorted sections as per the scheme and the effectivity is seen from the fact that the lag in the economic system has non impacted the group to big extent as the many-sided activities taking into consideration the undermentioned factors:

Large graduated table of domestic economic activity ( )

Turning in-between categories that are big in absolute size ( Numberss ) but little relation to the overall population

Foreign-based transnational companies that traditionally have struggled to interrupt into the market and serve the bulk of domestic consumers ( )

In position of the above, the company has maintained the quality and enlargement is the grounds that the trade name value has increased over the old ages.

The most of import facet of the retail concatenation is the execution of SAP. This is on record that EMKE is amongst the first in Middle East and North America ( MENA ) to increase the concern transparence. During September 2009 SAP AG ( NYSE: Sap ) has signed a trade to provide EMKE Group, the proprietor of a raft of well-known supermarkets and shopping promenades in the part, with its groundbreaking new SAP Business Objects Explorer solution back uping the retail group ‘s demand for concern lucidity and transparence ( ) .

This will enable the Group to cognize the product-specific information in real- clip and can be used to give a clear position of an administration ‘s day-to-day operations and inform critical determinations. This was top most necessity for the Group due to its big client base and figure of minutess that take topographic point each twenty-four hours. The package will streamlines the full information procedure, from internal procurance to the client experience ( ) .

The Design of Organization for International Environment

The group has engaged in Shopping promenades, Hypermarkets, Supermarkets – Retail concatenation and is diversifying into other activities.

EMKE Group with its trade names of Lulu hyper & A ; supermarket ironss is by far the biggest gulf based operator.

The Group has diversified into fabrication, import and export of assorted types of goods and besides under its trade name name LuLu.

The Group is spread outing in different states and taking advantage of the economic systems of these states.

The Group has besides entered into instruction field by set uping IT college. The Syscom Institute provides IT developing to corporate professionals and persons. The College is punctually approved by the Ministry of Higher Education and Scientific Research ( UAE ) , offers undergraduate classs to pupils of all nationalities, cooking the young person of today with accomplishments for tomorrow.

One of the major aims of the Group is the designing of each promenade or hypermarket as an art in itself. The company emphasizes more on dependability and lastingness as the list of demands set Forth by the Project Management squad as the promenade was to run for old ages on. Stringent quality criterions were to be met and dependable merchandises were sought. Choice of sellers is given premier importance to keep the quality criterions and trade name image.

The type of shopping promenades to be built in is indicated from the study sing Group ‘s investing in India.

The Decision Making Procedures

The Group follow the policy that top direction focuses on productiveness and future class of activities and measurings that are aligned with company program. Bing a retail concatenation the scheme is most of import for stock list retention and uninterrupted supply of the goods. Second line direction individuals i.e. supervisors takes attention that the Strategic Planning is being executed as per the program. As, mentioned above there are specific enlisting as per occupation profile, consequently, Financial Analysis and Forecasting, Marketing Strategy, Supply Chain. Management are taken attention by top direction individuals. The fiscal determinations are effectual planning is effectual which is the duty of top direction, who are non responsible for direct line supervising ( ) .

Following the top companies demoing steep growing on annual footing the Group has besides established good organised Human Resources division. The enlisting and preparation which develop the accomplishments and actuating the employees for keeping is straight supervised by the Managing Director. The policies have been good defines for the administration demands so that right individuals are recruited harmonizing to the occupation profile. On the occupation preparation along with uninterrupted rating is uninterrupted procedure in the Group. The scheme of the Group for the human Resources is of great significance as the employees are recruited from different states with different civilization and societal behavior. As per the Group ‘s records the employees belong to 29 states and there is perfect harmoniousness ( ) .

Invention and Change

The Group implemented the radical alterations in the logistic constructs by presenting the Warehouse Management System. The company has reported that they will follow with all International logistic criterions. The company imparts developing to the employees for the logistic criterions to implement the construct of optimizes the warehouse procedure through the application of LFS 400. To clear up the modular LFSA 400 warehouse direction system is used across assorted industries and is designed particularly for more demanding demands. The standard system supported by a relational database controls the full stuff and information flow in logistics Centres by agencies of duologue supported applications ( ) .

As per the media study and imperativeness release as mentioned above the debut of LFS 400 in the Abu Dhabi warehouses was disputing since a partial reorganisation of bing warehouse operations was necessary, even though the credence of the WMS was really high. “ We chose the LFS 400 as the preferred system due to its flexibleness and easy to utilize customized solution which meets all the criterions in our concern. And with E + P ‘s planetary experience and German expertness we are confident of meeting and fulfilling the demands of our clients ” , Mr. Ashraf, the Executive Director of EMKE noticing on their pick to utilize LFS 400 ( ) .

Even in the past i.e. during the twelvemonth 2007, EMKE Group was involved in Research and Markets. At that clip EMKE Group, Lulu Hypermarket and Masafi are among the Companies Operating in the UAE Food and Drink Industry. In the same twelvemonth 2007 the Group was involved in research and inventions for recognition card. The history of the Group indicates the advanced thoughts and diverseness in merchandises. In continuance to the referred constructs EMKE Group that spearheads the popular LULU concatenation of Hypermarkets launched a co-branded recognition card with Abu Dhabi Commercial Bank ( ADCB ) . This has benefited the Group in bettering the turnover as the recognition card users will acquire the

usual characteristics of an ADCB recognition card but besides alone extra benefits to honor them for their trueness to EMKE shops ( ) .

Harmonizing to the ADCB statement “ Co-branded recognition cards make for an improbably powerful client proposition. They are good for the bank, the strategic spouse and most significantly, the client. We are thrilled that our first such sign language is with EMKE Group, which is doubtless one of the taking retailing groups in the part and besides a valuable client ” ( ) .

A The Group besides implemented SAP system and harmonizing to the statement of Ramon Thoms, Regional Manager of Ehrhardt + Partner Solutions EMKE will be befitted to big extent which will include smooth operational sequence and a really easy communicating with SAP system. With LFS 400 and the SAP arrangement the group was able to link even Bahrain sites with the cardinal machine at the beginning of 2010. The Group is being benefited by LFS 400 which is designed in a manner that different warehouse sites in different states can be connected with merely one package installing. This enabled the Group in Transforming into a pioneering place in the supermarkets through invention and transparence on the market spread over so many states ( ) .

Organization size, life rhythm, and diminution

EMKE Group though non amongst the top 500 Fortune companies published by USA but it attracts all the fortune 500 companies due to its many-sided activities and presence in developing states. However, EMKE Group is ranked 12th in the African & A ; Middle East Top 30 Grocery Retailer list. Harmonizing to the survey the Group will be at 10th place by 2010 ( ) .

The company has got the advantage of Geographical diverseness by acquiring cognition of their demands as per their civilization. The company has besides taken into consideration the societal demands of the parts where they are runing. The gustatory sensation and tendency of these markets has been followed to bring forth the gross and better net incomes ( ) .

By come ining Indian market with the proposed farther enlargement after completion of the Kerala project the market portion of the company is expected to better to big extent. The company, which has a footmark in 15 states in Asia and Africa with involvements in fabrication, garments, trading and transportation, is besides doing a raid into Egypt by opening a shop later this twelvemonth and a hypermarket due to open in 2010 ( ) .

The Group is besides engaged in trade good exports which include Anacardium occidentale nuts, betel nut, chocolate, java, Piper nigrum, copra, fertilisers etc. , to markets like India, Sri Lanka, Vietnam, Malaysia, Europe and Singapore. It is besides a fact that the Group has entered into concern of imports and distribution of edifice & A ; building stuffs, hardware, cloves, rice, wheat and pulsations. The variegation of Group activities and merchandises has benefited the group and shows the vision of the boosters for the hereafter developments in the universe. One of the abroad associate of the group in Kenya is besides involved in Commodities and it procures all the agricultural merchandises to cover the market needs of the African Continent. The Company in Kenya has consistently organised to secure the stuff even from the insides. This division is treated as 100 % export oriented and has major market portion in the African agricultural green goods exports ( ) .

Harmonizing to the survey done by KPMG group in India the group operates the biggest hypermarket concatenation in the Middle East under the LuLu and Al Falah trade names is come ining the moneymaking Indian market by developing the biggest shopping Promenade in Kerala by July 2011.The group controls about a 3rd of the UAE ‘s organized retail market and is be aftering to put USD 1.2 billion to spread out its web within following three old ages ( ) .

The organisational civilization andA ethical values

We have noticed that EMKE group takes effectual stairss to keep a positive work environment that encourages both employees and the direction to work is a standardised manner where in the employees are trained to develop good civilization in work procedures and besides in client service. Being ethical towards showing their merchandises and services is one of the well know characteristic of EMKE group. It is said that Customer Service is of premier importance to the Group ( ) .


The Group is not proficient particularly in IT services and use. Though the professionals have been employed but the premier importance to the proficient resource allotment and service direction is one of the countries to be continuously upgraded. Bing operational in more than 19 states in Far East, Middle East and Africa ; and headquartered in Abu Dhabi, UAE, the cyberspace is the Group ‘s premier manner of communicating. The Group should take Information protection on the top precedence. EMKE has undertaken a major substructure upgrade which needs that the Group ‘s IT section to analyze all its cyberspace traffic. The group needed a network-based IPS with alone protection against external and internal onslaughts.


The Group started with retail concatenation but as the construct of hypermarket shopping was going celebrated amongst the shopper communities all over the Earth and besides across the part EMKE Group implemented the altering market tendencies and responded based on addition in turnover. The Group started with offering its clients bigger and better designed shopping environments by manner of LULU shopping promenades and hypermarkets. EMKE has involvement in all type of merchandises whether nutrient or non nutrient which subsequently on changed to service sector besides. The group, was known earlier merely for sweeping and retail distribution of nutrient and non-foodstuff but subsequently on it added fabrication, export-import, frozen and processed nutrient industry and IT has operation bases in all major metropoliss of the Middle East, Asia and Africa as portion of the concern potency and scheme. The Group maintained its strength by turn outing significance of developing the local young person in the category suites and on the occupation. As being done in large corporate for developing the well known governments in retail preparation were called for preparation to develop and implement employee preparation agenda.


Middle East is cardinal market for the retail merchants across the universe. It is good known fact that the part is witnessing rapid transmutation in retail industry. During the past few old ages at that place have been enormous alterations in the retail civilization across the Middle East which has evolved from traditional mercantile establishments to big shopping promenades, hypermarkets, supermarkets and organized ironss. As per the studies there will be a fringy consequence of the 2008 fiscal crisis on the retail market in the Middle East, and it will see a growing of around 14 % during 2009-2013. Except for the worsening oil monetary values which may be a cause for concern for most of the oil exporting states at that place may non be any inauspicious impact on retail industry. One of the most of import factors in retail industry in the Middle East states particularly UAE is the presence of big expatriate population ( Agrawal and Sharma ) .


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