Comparison of Everton Engineering and TDP
From this I can tell that TDP is a more organised business because the staff in Everton Engineering have to go through six different levels till they get to speak to the people in charge, this means it has a hierarchal structure, where as TDP’s staff only have to go through three people to speak to the people in charge, this means they have a flat structure. This will make the staff feel more important because they are speaking to more powerful people and this will motivate the staff to work harder.
Also it would take the staff five promotions to get to the top in the Everton Engineering business and in TDP it would only take two, this is going to motivate the staff more as well. When staff are motivated then they are working hard and so more better quality and a higher quantity of work is getting done. How the business is run? Everton Engineering is an Autocratic Business, which means that the shareholders make all the decisions and the staff has no say in the running of the business what so ever.
It is also a Ltd which means that the shares have been sold to that family members and friend can only by share so most of their views could be the same and so there is very little chance of changing the business. I know there is little chance of change because in the text it says ‘ they had become comfortable with a stable organisation that gave the managers responsibility for the departments’. TDP is an Democratic business, which means that the staff of the business have got a say in the running of the business.
This can be set up by putting suggestion boxes around the building and staff can put in any ideas and if the partners think it would benefit the business they could put it into action. This would make the workers feel important and so will be happy and work harder. Flexibility TDP is a flexible business, which means that they can change their business to the demands of the consumer. I know this because in the text it says that Everton Engineering has been getting pressure from a large Japanese company.
These have been able to change quickly to changing consumer demands. This means the Japanese business TDP give the consumers what they want and so they go to them instead of Everton Engineering. Everton Engineering is not a flexible business, which means it can’t change to meet the demands of the consumer. I know this because in the text it says that the board of Directors have the overall say on what happens in the business, this makes it a inflexible business because he’s not going to change his ways because he got a good job so no need to change things.
Communication Everton Engineering has bad communication because in the text it says ‘issues regarding quality and customer care, which the marketing and sales department hear from customers, are rarely communicated to the production department. This proves there is bad communication because it shows the departments within a business are not communicating and so they are not learning from their mistakes they are making with their products. TDP has quite a good communication within its business.
I know this because in the text it says ‘considerable time is spent at TDP in team meetings’. This show that the staff is getting their point across and so they are communicating to each other. When they start to communicate there becomes more relationships within a business. These relationships can be formal which means it is within a department or just in working time or they can be informal which means they spend leisure time with each other, such as lunch or even outside work.
If the workers get along with each other then the work rate will go up. Teamwork Everton Engineering has very little teamwork involved in the running of the business, it the text it says that information between departments can only be exchanged in informal ways so there is no communication between each of the departments. It also says that another way is through change meeting between departmental managers. This tells me that they need some team and staff meetings so the departments can begin to communicate.
Everton Engineering also comes across as having no trust in their staff. I know this because in the text it says that each department has supervisors. This gives the impression that they need some one to watch them to make sure every thing is running smoothly. When workers think they are not being trusted they lose motivation and the work rate drops. TDP has very high levels of teamwork in their company, it the text it says time is spent on team meetings and TDP think it is time well spent.
This shows that they believe that team spirit is a vital thing for their staff to have. Also in the text it says they can be trusted to get on with their work and they have a good record for meeting deadlines. This shows that having a well-built staff that can be trusted can only benefit the business. This also saves money on the wages that Everton Engineering is spending on supervisors and they can put that into developing their products.
Looking at the information I have gathered when comparing the two businesses I have come to the conclusion that TDP is a better-run company because it meets deadlines, is flexible to meet consumer demands. Also with this good record it has staff it can trust and staff that want to work for them. Everton Engineering does not have trust in their staff and is not a flexible business so it can’t change with the external environment (PESTL). This already gives TDP the upper hand when selling their products and increases the chance of surviving in the business world.