Bakhresa Group Organisational Structure and Innovation

Bakhresa classify Organisational Structure and InnovationIdentify the strand of presidential term building and regeneration address wasting diseased by the Bakhresa pigeonholing. Is it organic or mechanistic structure followed by the Bakhresa grouping? Among the ii which unmatchable is more suitable to purpose and why?How can Bakhresa group manage the tension between the pick out for creativeness and efficiency?Discuss the main organisational characteristics that facilitate the variety process in the Bakhresa group.Explain the key private roles within the mental hospital process and the activities they perform in the Bakhresa group.How did Bakhresa group establish innovative environment that propagates the pure(a) circle of institution? Explain its features.BACKGROUNDBAKHRESA GROUP OF COMPANIES TANZANIABakhresa free radical is one of the leading Industrial Houses in Tanzania, East Africa. Started in a humble manner with a comminuted restaurant in the larboard Ci ty of Dar Es Salaam, Tanzania, in mid seventies, it has now emerged as a respected business group in the Region. The sort has its operations spread in Tanzania, Zanzibar, Uganda, Kenya, Malawi, and Zambia and most recently in Mozambique. Plans atomic number 18 in place to spread its wings to other countries. The group now boastsof a turnover of more than Three Hundred Million United Sates Dollars and is a noble employer of more than two green employees associated directly. There are several companies under(a) its umbrella and have investments mainly in Food and Beverage Sector, forwarding, Logistics and Real Estate.The Bakhresa group of companies offers two groups of product and services that is food and beverage, and services. Examples of food and beverage companies owned by Bakhresa includes Bakhresa Grain Milling (Malawi) Ltd, Salim Bakhresa Co Ltd, Bakhresa Grain Milling (U) Ltd, Bakhresa Grain Milling (Mozambique) Lda, Zanzibar Milling Corporation Ltd, Bakhresa Food Pro ducts Ltd, Azam Bakeries Company Ltd, Salim Bakhresa Co Ltd and those of services includes Omar Packaging Industries Ltd, Said Salim Bakhresa Co Ltd, Paper Kraft International Ltd, Bakhresa Food Products Ltd, etcORGANISATION STRUCTURE AND INNOVATIONIdentify the strand of organisation structure and innovation approach used by the Bakhresa group. Is it organic or mechanistic structure, among the two which one is more suitable to innovation and why?The structure of an cheek is defined by Mintzberg (1978) as the sum total of slipway in which it divides its labor into distinct tasks and then achieves coordination among them. One of the problems is recognizing that different groups within an organization behave differently and act with different parts of the wider external environment. None the less, on that point have been numerous useful studies exploring the link between the organizational structure and innovative performance.Trott (2005) described the two organizational structur es such as Organic and Mechanistic structure as follows-Mechanistic organization tends to offer a less suitable environment for managing the creative thinking and the innovation process. From Bakhresa group of companies case study analysis the following facts were deduced The channel of communication is highly structured, in that location is restricted information flow, and operating styles are similar and restricted. Authority for decision is based on formal line counselling position and the management is reluctant to adapt changing circumstances. Therefore Bakhresa group of companies use the mechanistic organization structure which offer less suitable environment for innovation and creativity. The seminal work by Burns and Stalker (1961) on Scottish electronic organisation looked at the impact of technical change on organisational structures and on a system of social relationships. It suggests that organic, flexible structures, characterized by the absence of formalities and hierarchy, support innovation more effectively than do mechanistic structures.THE DILEMMA OF INNOVATION MANAGEMENTHow can Bakhresa group manage the tension between the need for creativity and efficiency?Trott (2005) explained that within an organization there is a fundamental tension between the need for stability and the need for creativity. On the one hand, companies acquire stability and static routines to accomplish daily tasks efficiently and quickly. This enables the organization to compete today, for example processing of millions of cheques by banks everyday. On the other hand, companies also need to offend new ideas and new products to be competitive in the future. Hence they need to nurture a creative environment where ideas can be tested and waxed. This poses one of the most fundamental problems for management today.The diagram below by Trott (2005) explains the tension Management between the need for creativity and efficiency.OrganizationEfficiency gainsThe efficient day to day operations within an organization require stable routines which can be achieved in stable and controlled environmentsThe tuition of new products/services requires creativity and mode to try out new ideas this is achieved in a loose and flexible environmentCreativity gainsFrom the Bakhresa group of companies study case analysis shows that The management of the Bakhresa assemblage is committed to long-term growth or else than short-term profit and the organization is willing to invest in the long-term development of engine room and is alive(predicate) of its threats and opportunities and and then comply straight to the organization creativity gains and efficient gains as described by Trott (2005) above.ORGANISATIONAL CHARACTERISTICS THAT FACILITATE THE INNOVATION PROCESSDiscuss the main organisational characteristics that facilitate the innovation process in the Bakhresa group.Trott (2005) explains the following organizational Characteristics that Facilitate the Inno vation ProcessGrowth OrientationIt is characterized by a commitment to long-term growth rather than short-term profit. Not all companies first and foremost objective is growth. somewhat companies are establish merely to exploit a short-term opportunity, other companies would homogeneous to maintain the party at its existing size the objective of innovative companies is to grow the business the actively plan for the long-term, as it has been beguilen in the Bakhresa group of companies The management of the Bakhresa Group is committed to long-term growth rather than short-term profit and the organization is willing to invest in the long-term development of technology and is aware of its threats and opportunities.On top of that Trott (2005) added the following characteristics that facilitate the innovation process.VigilanceIt is characterized by the ability of the organization to be aware of its threats and opportunities. Vigilance requires continual external see e.g. within the merchandiseing function the activity would form part of market research and competitor analysis collecting valuable information is one thing, still relaying it to the necessary individualistics and acting on it are two necessary associated requirements. Presently Bakhresa group is catering the fuel needs of customers in Zanzibar and Local bunkers. The vision is to commemorate the international bunkering business in near future since Zanzibar is the gateway to the East African coast.Commitment to TechnologyIt is characterized by the willingness to invest in the long-term development of technology. Most innovative firms exhibit patience in permitting ideas to geminate and develop overtime. This need to be accompanied by a commitment to resources in wrong of intellectual input without a long-term approach it would be extremely difficult for the company to attract good scientists. As seen in the Bakhresa group of companies technology is highly applied, most of the tasks are machine ry operated. On the other hand the Company has a well supported IT system to run its day to day operations.PC WorkstationInternet AccessSatellite base Fleet Management Solutions Tracking SystemFleet Cost and Maintenance Management System Road pesDaily Reporting Fleet Management SystemReal time location of trucks at finger tipsSpeed monitoring feedback on screen at all timesTelephone and SMS availability at all times rentance of RISKSIt is characterized by the willingness to include jeopardyy opportunities in a balanced portfolio. It mean the willingness to consider carefully risky opportunities. Ability to take calculated risks and include them in a balanced portfolio of projects. Being an entrepreneur Bakhresa took a great risk to even in the foreign land and still think to spread its wings all over the African countries.Cross-functional CooperationIt is characterized by mutual respect among individuals and a willingness to work together across functions. Inter-departmental c onflict is a well documented barrier to innovation. Often conflict has been observed between marketing and R D functions as the two groups often have very different interests.ReceptivityIt is characterized by the ability to be aware of, to identify and take effective reward of externally developed technology. Most technology based innovations involve a combination of several different technologies. It would be unusual for all the technology to be developed in-house. That is why business is witnessing an in chasing number of joint ventures and alliances.SlackIt is characterized by an ability to manage the innovation dilemma and provide room for creativity while organizations place a great emphasis on the need for efficiency, there is also a need for a certain amount of allay to allow individuals room to think, experiment, discuss ideas and be creative.AdaptabilityIt is characterized by a readiness to accept change. The development of new product innovations will invariably lead to disruptions to established organizational activities. Major or radical innovations may result in significant changes, although the two are not necessarily linked. The organization must be ready to accept change in the way it manages its internal activities. Otherwise proposed innovations would be stifled due to a reluctance to alter existing ways of working or to learn new techniques.Diverse Range of SkillsIt is characterized by a combination of specialization and potpourri of knowledge and skills organizations require individuals of a loan-blend nature who are able to understand a variety of technical subjects and facilitate the transfer of knowledge within the company. It is the ability of the organization to manage this diversity of knowledge skills effectively that lies at the heart of the innovation process. Bakhresa Group started in a humble manner with a small restaurant in the Port City of Dar Es Salaam, Tanzania, past three decades, it has now emerged as a respected busin ess group in the Region. The Group has its operations spread in Tanzania, Zanzibar, Uganda, Kenya, Malawi, Zambia and most recently in Mozambique. There are several companies under its umbrella and have investments mainly in Food and Beverage Sector, Packaging, Logistics and Real Estate.The Bakhresa Group has established companies dealing with variety of products from manufacturing of Food and Beverage Sector, Packaging, Logistics and Real Estate and has become a market leader because of innovation and entrepreneurship.THE ROLE OF THE INDIVIDUAL IN THE INNOVATION PROCESSExplain the key individual roles within the innovation process and the activities they perform in the Bakhresa groupTrott (2005) explains innovation process is essentially a people process and that organizational structure, formal decision making processes, delegation of authority and other formal aspects of a so-called well run company are not necessary conditions for successful technological innovation. The study o f Rubenstein has revealed that certain individuals had fulfilled a variety of roles that had contributed to successful technological innovation.Technical InnovatorThis individual is an expert in one or two fields. Generates new ideas and sees new and different ways of doing things. Also referred to as the mad scientific. In the Bakhresa group of companies there is no technical innovator.Technical/Commercial ScannerThis individual acquires vast amounts of information from outside the organization, often through net working. This may include market and technical information. For the company to survive and perform effectively, technical information is very important as seen in the Bakhresa group of companies.GatekeeperThis individual keeps informed of relate developments that occur outside the organization through journals, conferences, colleagues and other companies. Passes information on to others, finds it easy to talk to colleagues. Serves as an information resource for others in the organization, consequently for the organisation to meet customer needs it is important to search for the outside information to see what other organisation do.Product jockThis individual sells new ideas to others in the organization. Acquires resources, aggressive in championing his/her cause, takes risks. As per Bakhresa group of companies there is no product champion.Project LeaderThis individual provides the team with leadership and motivation. Plans and organizes the project ensures that administrative requirements are met. Provides necessary coordination among team members sees that project moves forward effectively. Balances Project goals with organizational needsSponsorThis individual provides access to a power base within the organization a senior person. Buffers the Project team from unnecessary organizational constraints, garters the project team to get what it needs from other parts of the organization. Provides legitimacy and organizational assertion in the projec t. The Bakhresa Group engages commercial scanner, gatekeeper and project leader and sponsor to facilitate the innovation process. Even though the Bakhresa Group of companies lack product champion and technical innovator still the innovation activities within the organization is excellent.ESTABLISHING AN INNOVATIVE ENVIRONMENT AND PROPAGATING THE VIRTUOUS CIRCLEHow did Bakhresa group establish innovative environment that propagates the virtuous circle of innovation? Explain its featuresAs from (Porters 1985 cited in Trott 2005) explained that, given the importance of innovation, many businesses have spent enormous sum of money trying to develop an environment that fosters innovation.Creating a virtuous circle of innovation means getting competitive advantage over others.Virtuous circle of innovationThe organizationsReputation for innovationHigh morale and Attraction ofRetention of creative creative peoplepeopleMotivates people and organizationalReduce frustration encouragement ofCrea tivity and innovationA willingness in theOrg. to accept newideasDevelopment ofInnovativeProductReputation of the OrganizationIt takes many years to develop. It is strongly linked to overall performance. Some companies are able to achieve wide exposure of new products or new research as seen in the case analysis Bakhresa group of companies started in a humble manner with a small restaurant in the Port City of Dar Es Salaam, Tanzania, in mid seventies, it has now emerged as a respected business group in the Region. The Group has its operations spread in Tanzania, Zanzibar, Uganda, Kenya, Malawi, and Zambia and most recently in Mozambique.Attraction of creative people original people will be attracted to those companies that themselves are viewed as creative. TOP scientists and researchers will seek employment with such companies. Currently Bakhresa group of companies is an employer of more than two thousand employees associated directly.Organizational encouragement of creativityThe cr eativity has to be supported with actions and resources with the time to be creative Organization can try to build sufficient unstrain into the system to allow for creative thinking and tolerates errors and mistakes and successful ideas need to be rewarded.Development of Innovative ProductsDeveloping new products that are genuine improvements compared with products currently available. victorious an example of Bakhresa Food Products Limited (BFPL) is based in Dar Es Salaam, Tanzania and produces high quality, delicious and nutritious Azam brand Ice Creams, Fruit Juices, Frozen Chapattis and Uhai (means Life in Kiswahili) brand Pure Drinking Water.Azam Bakeries, the largest bakery in Tanzania, produces the popular Azam brand bread, cakes and donuts. The state of the art technology is used for producing the bakery products making the company proud of supplyingessential food in the country.It has a modern biscuit factory producing the finest varieties of biscuits. Many varieties of b iscuits such as Chai, Creams, Glucose, Coconut, Nice, Marie, and Shortcake are popular in the country.Willingness to Accept New IdeasMany organizations suffer from an inability to implement changes and new ideas even after rewarding the people involved in developing those ideas. Once a new product idea has been accepted it is important that it is carried through to completion. In future Bakhresa group of companies expect to tradeLubricantsJet A1LPGWith 60odd resorts of 150beds capacity each, in Zanzibar there is also ample scope for bulk supply LPG (In tanks), if they will able to arrange logistics.Increased Motivation and Reduced frustrationsIndividuals within the organization can see their ideas and efforts contributing to the performance of the business they will be encouraged still further on the other hand if seemingly good ideas are invariably overlooked, this will lead to increased frustrations.High Morale and Retention of Creative peopleA rewarding and enjoyable working env ironment will help to retain creative people. This in turn should reinforce the companys innovative capabilities.The Bakhresa Group, given the importance of innovation, has spent enormous sums of money trying to develop an environment that fosters innovation. The Bakhresa Group is aware of developing a reputation for innovation which helps propagate a virtuous circle that reinforces Groups abilities.RECOMMENDATIONS AND CONCLUSIONAs seen in the case study analysis, Bakhresa group of companies is now expanding towards all over the Africa supplying services and products. The company mainly caters through the food and beverage products and service products. The organisation structure of Bakhresa group of companies is characterized by mechanistic structure which is not very much conducive for enhancing innovation process within organisation, for more efficiency and effectiveness I suggest Bakhresa group of companies to start adopting organic structure. Meanwhile the structure of Bakhresa group of companies lacks the product champion and technical innovator so I suggest also including those two individual roles for maximum output of companies. Despite various organisation that falls under the umbrella of the Bakhresa group of companies the top management of all sub companies is comprised by family members, something that tycoon bring trouble when family instability happens.