MIDDLE EAST TECHNICAL UNIVERSITY INDUSTRIAL ENGINEERING DEPARTMENT ENGINEERING MANAGEMENT PROGRAM

EM 503 – TERM PROJECT

Pınar KİRİŞÇİOĞLU – 1995398 Canset ARSLAN – 1496900

TABLE OF CONTENTS
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. SCOPE & GOALS OF TAI ............................................................................................................ 2 STRATEGY OF ULKER ................................................................................................................ 2 ENVIRONMENT OF IKEA ........................................................................................................... 3 CONFIGURATION & COMPLEXITY OF TOFAS ...................................................................... 4 DISTRIBUTED ORGANIZATIONS IN TURKCELL .................................................................. 5 TASK DESIGN OF UNILEVER .................................................................................................... 6 PEOPLE STRUCTURE OF SAMSUNG ....................................................................................... 7 LEADERSHIP AND ORGANIZATIONAL CLIMATE IN GOOGLE ......................................... 8 COORDINATION, CONTROL AND INFORMATION SYSTEMS IN PEGASUS .................... 9 INCENTIVES OF SOMA ......................................................................................................... 10

REFERENCES ...................................................................................................................................... 11

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1.

SCOPE & GOALS OF TAI

Turkish Aerospace Industries, Inc. (TAI) was established by Turkish and US partners in 1984 with the aim to coproduce of F-16 aircraft for Turkish Air Force. TAI is Turkey’s centre of technology in design, development, modernization, manufacturing, integration and life cycle support of integrated aerospace systems, from fixed and rotary wing air platforms to UAVs and satellites.  Score of Efficiency

TAI is constantly developing company. This development is supported by providing solutions for keeping the flow of information efficient. Efficiency is a primary focus on inputs, use of resources and costs so TAI will be analyzed according to these considerations. TAI is using tools and tasks like, 3D Modeling (Catia, UG), Structural Analysis (Nastran /Patran), Thermal Mathematical Modeling &Analysis (Thermice /Sinda) etc. TAI has also developed software called Risk Management (RM) for its own operations specially. So that using all the tools and tasks for also planning and consequently cost effective. In addition, planning actions of TAI is not only to develop new products but also for resource planning like human resources or materials. On the other hand, efficiency may not be a high scored value for TAI. Because of its structure TAI does not have an organization which produces lots of products with low cost, it can be said that TAI focuses on efficiency secondarily and score will be 3.5 out of 5.  Score of Effectiveness

Effectiveness is a primary focus more on outputs, product or services, and revenues so TAI will be analyzed according to these considerations. TAI is mainly focused on R&D project in aerospace sector. TAI’s operation area is not limited with Turkey, it is supplier for Aermacchi, AgustaWestland, Airbus, Boeing, EADS CASA, Eurocopter, Lockheed Martin, Northrop Grumman, MDHI, Sikorsky and more. So these situation causes to pay more attention to effectiveness while building company strategy, so the effectiveness score will be 4,5 out of 5.

2.

STRATEGY OF ULKER

Ulker was founded in 1944 and is one of the well-known brands in Turkey producing chocolate, biscuits, cake etc. Ulker has a strong position in the market, i.e. 48% in biscuits &chocolate and 33% cake segment, thanks to efficient marketing strategy and innovative new product launches. With 21st century, Ulker is building manufacturing facilities in foreign countries to be synchronous with local and international demand. In the last decade, Ulker started to invest international chocolate companies starting with Godiva. Through this acquisition Ulker has increased the visibility and confidence in global market. With the help of two dimensions (exploitation an exploration) we can analyze Ulker’s strategy.

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Score of Exploration:

Exploration is the process of seeking new technologies, or new ways of doing thing, it includes search, variation, risk taking and innovation. Ulker will be analyzed according to these considerations Ulker is old huge company and it has a leadership in the market. But it is a food company as known and there could not be a big chance of being innovative in food industry. The firm tends to produce new products and be innovative but it cannot be innovative like an electronic firm. Ulker is a mass production company and as it is said it has not much chance to be innovative because it is producing generally food. So, working habits do not change too much. Due to the given explanations, exploration score of Ulker would be 3,5 out of 5.  Score of Exploitation:

Exploitation is taking advantage of current or known technologies to do things in a new or novel way; it includes refinement, efficiency, selection and implementation. Since Ulker is well-organized and long-established company, the processes are well-defined. Ulker is working on marketing fresh food and ready meal with high quality and available price, added they will focus on chocolate, biscuits, snacks categories. Also, the market of Ulker is very price sensitive. Ulker have a dual focus on defending firm’s position in its markets while at the same time innovating with new products and services. Due to the given explanations, exploitation score of Ulker would be 4 out of 5. Ulker has a focus on both exploration and exploitation. Therefore we can put ULKER in group of “Analyzer Without Innovation.”

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ENVIRONMENT OF IKEA

In 1940 the establishment of IKEA Company is done based on the concept of the innovative idea which offers home furnishing products both with a good quality, genuine design and low prices. Throughout the world, 342 IKEA stores and retailers are currently established in 41 countries in Europe, North America, Middle East, Asia Pacific and Caribbean, as well. From the first day of establishment, IKEA’s aim is to generate ways of reducing the cost while preserving the quality of its products.  Score of Complexity:

Complexity is the measure of number of factors in an organization’s environment and their interdependency. IKEA has many critical factors that influence the operations and outcome of organization. These critical environmental factors include the new technology, the competitors, suppliers, the financial system, the human resource talent pool, prices, quality requirements, financial conditions, governmental relations, and political conditions, etc. For example, IKEA Company is in a highly competitive industry, characterized by other low priced furniture producers such as Galiform of England and retailers such as Wal-Mart of the United States in addition to local competitors. According to above given information, complexity score of IKEA would be 5 out of 5.

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Score of Unpredictability:

There are many interdependent factors which are not predictable. If we consider IKEA globally, its market has less accurate forecasts and more uncertain management for future. For example, IKEA should forecast not only the future customer requirement but also competitors’ behavior like Wal-Mart. Also, market forecasts (emerging fashion, trends) and people choices cannot be easily predicted. Due to given explanation unpredictability score of IKEA would be 4.5 out of 5. IKEA is in the turbulent environment that has both high complexity and high unpredictability. Goals and strategies quadrants fit well with our chosen organization’s environment.

4.

CONFIGURATION & COMPLEXITY OF TOFAS

TOFAS is the only Turkish automaker that manufactures both passenger cars and light commercial vehicles. It is one of the biggest automakers in the sector with its 6500 employees and 400.000 vehicles annual production capacity. TOFAS also manufactures for the Fiat, Citroen, Peugeot, Opel and Vauxhall brands in Bursa.  Score of Functional Specialization:

This indicates that work will be divided by specialized activities. If the company has departments with function names it has more internal focus and high in functional specialization. In TOFAS, the jobs and work are all specialized and done by specialized company groups such as; planning, production, sales, marketing, engineering, finance etc. with their subunits. Score of functional specialization of TOFAS should be: 5 out of 5.  Score of Product/Service/Customer Orientation:

TOFAS has regional management committees and these committees’ aim is for the organization to be closer to customer needs and for budget management to be closer to the ground. As a result of this organizational move, decisions are made quickly and at deep-rooted level, in line with customer requirements. In addition to that subunits are formed in the same manner in every factory of TOFAS. The score of product/service/customer orientation 3.5 out of 5. So, TOFAS has matrix configuration.  Score of Horizontal Differentiation:

This is the degree of task specialization across the hierarchy. By looking from the organization chart of TOFAS, has many subunits more than 5. It is obvious that in a gigantic firm such as TOFAS work can be done simultaneously in the horizontal subunits. This leads a high score on horizontal differentiation; 5 out of 5.  Score of Vertical Differentiation:

This is the degree of depth of the hierarchy, top to bottom. There are many levels of workers and management with different operation centers. The flow of information from top to bottom obviously has many stages. For example; just considering 6500 employee, from CEO to a single employee there must be more than 5 stages, and

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leads to a conclusion that TOFAS is high on vertical differentiation and the score would be 5 out of 5. So, company is symmetric.

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DISTRIBUTED ORGANIZATIONS IN TURKCELL

STRUCTURES FOR SPANNING GEOGRAPHY  Score of Local Responsiveness:

Turkcell distributes work in many locales such as Marmara Region, Mediterranean Region, versus consolidating work in one or a few centralized locations. In addition Turkcell has highly distributed workforce for example mobile salespersons, software programmers, service operators, etc. These workers organizes by special region, this situation provides close contact with customers or suppliers and the ability to anticipate and response to their needs. Score of local responsiveness is very high for Turkcell; 5 out of  Score of Optimal Sourcing:

Turkcell is a regional leader by being the market leader in five countries out of nine it operates in.(Turkcell Turkey, Ukraine, Kazakhstan, Moldova, Georgia, Azerbaijan, Belarus, Northern Cyprus, Turkcell EuropeGermany Based) When looking at the regions and plants the company covers very small region in the world. Also, Turkcell had signed 3G contracts in more than 110 countries, ranking it among the world’s top operators in terms of the provision of international data services. Closeness to resources is not much in Turkcell. This leads a low score optimal sourcing; 2.5 out of 5. Thus Turkcell is Multi-domestic company.

STRUCTURES FOR MANAGING KNOWLEDGE EXCHANGE  Score of Virtualization:

Turkcell is a company affected by the developments in the world. In 2009, Turkcell bringing the Internet at 3G speeds to Turkey and opened the door to a new era. Also as we mentioned before Turkcell has many specialized groups, business units for example sales, purchasing, software development etc. and Turkcell has a complicated corporate structure which consists of several foundations and holdings, Global Bilgi, Superonline etc. In the light of this information, score of virtualization is 5 out of 5.  Score of Information Technology Infusion:

Turkcell relies on information technology-based systems, including data processing and computer-based communication systems to manage knowledge exchange. As all know Turkcell wants to continue a leader in the market and therefore it invests so much money to improve their features. Business process is one the investment subject and it is very important. For communication with people, actually Turkcell uses both electronics and face to face contact. It both uses e-mails or TV advertisement and stands in the shopping malls to contact and ask some questions about its products to customers. On the other hand, it is hard to define Turkcell as an innovator firm in the global market as its focus is on catching up the industry leaders. Due to the information given above IT Infusion score is 2.5 out of 5. So Turkcell is Cellular company.

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TASK DESIGN OF UNILEVER

The task design is decomposing work into subtasks while considering the coordination among the subtasks to meet organizational goals.  Score of Repetitiveness:

Repetitiveness can be defined as task such that it is undertaken again and again. From the information in Unilever Website, it can be said that there is a good deal of variation in Unilever. The Unilever is trying to become more efficient and effective in the market and in order to this it is trying to be more innovative and trying to answer customer’s basic needs. There is different kind of development and innovation teams in Unilever and so tasks are always improving by help of innovation. On the other hand Unilever is a mass production company. With the above mentioned reasons, repetitiveness score would be 2 out of 5.  Score of Divisibility:

Divisibility can be defined as breaking down a bigger task into subtasks which require little coordination. Unilever has a lot of different kinds of products in home based or food based etc. Although Unilever has this kind of various products, subtasks are connected to each other and require a lot of coordination in themselves. First reason is that there are a lot of R&D and innovation teams in Unilever and these employees should work together to work better and efficient. Therefore subtasks are connected for this reason first. Secondly, a Unilever’s product such as Algida has different subtasks and products and the subtask are very interrelated and connected because of all subunits use similarly same subtasks. In the light of above mentioned reasons, the score of divisibility of Unilever is 2 out of 5. Space is knotty. Knotty task design also fits with analyzer with innovation role of Unilever as the firm was ranked among the 10 most innovative companies in consumer products while it was also awarded as the world’s fourth most innovative company in advertising & marketing. Moreover, Unilever is operating in a very competitive market involving complex and unpredictable environment. Efficiency and effectiveness are likely to be critical goals in such a turbulent environment. Likewise, a matrix organizational structure fits to that picture as both functional divisions and cross-functional teams are required to cope with such a complicated environment.

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PEOPLE STRUCTURE OF SAMSUNG

Samsung is a South Korean multinational conglomerate company headquartered in Samsung Town, Seoul. It comprises numerous subsidiaries and affiliated businesses, most of them united under the Samsung brand, and is the largest South Korean chaebol (business conglomerate). Samsung was founded by Lee Byung-chul in 1938 as a trading company. Over the next three decades, the group diversified into areas including food processing, textiles, insurance, securities and retail. Samsung entered the electronics industry in the late 1960s and the construction and shipbuilding industries in the mid-1970s; these areas would drive its subsequent growth following Lee's death in 1987.  Score of Number of Individuals:

Samsung Electronics — not Samsung as a whole but just Samsung’s electronics division — employs an astonishing 275,133 people. For perspective, that’s more than the combined number of people employed by Apple, Google and Microsoft. This number is more than sufficient for Samsung to qualify for a 5 for “number of people” criterion.  Score of Professionalization:

Number of employees who hold advanced (university) degree or with the years of specialized training and experience determines the degree of professionalization. Samsung has highly skilled professionals who must be coordinated in complicated detail to meet the needs of the client such as R&D department at Samsung Mobile. Also in Samsung, people have relatively little specialized expertise and the routines are relatively simple, meaning that their work tasks can be executed repetitively following training such as washing machine factory. According to above given information, degree of professionalization score of Samsung would be 3 out of 5.

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LEADERSHIP AND ORGANIZATIONAL CLIMATE IN GOOGLE

Larry Page and Sergey Brin, the founders of Google, met at Stanford University in 1995. A play on the word “googol”, the mathematical term for a 1 followed by 100 zero, leads them to name “Google” entity. Google Inc. was born in 1998 – when Sun co-founder Andy Bechtolsheim wrote a cheque for $100,000 to that entity – which until then didn’t exist. Today millions of people throughout the world use Google, a tremendous firm having large number of products. Google has more than 70 offices in more than 40 countries around the world.  Score of Preference for Delegation

Even though top management of Google tends to control every detail, they are also eager to share the responsibility. Also, top management uses the direct reports effectively, but when it is time to make a decision they use their privilege to make decisions. But usually actions are taken in accordance with the reports. Top management tries their best to maintain high preference for delegation. Nevertheless personal views and perspectives of managers might be stepped in while the final decision is made. Considering these approaches the score of preference for delegation would be 4 out of 5.  Score of Uncertainty Avoidance

Uncertainty avoidances low if the top management tends to be risk taking, whereas uncertainty avoidance is high if the top management tends to be risk averse. In the beginning, Google’s goal was to make an efficient search engine which users can find relevant links in response to their search requests. Today, Google’s core purpose is still this, moreover their services are widened. Now, the company provides services ranging from e-mail, productivity software, document storage and mobile phone operating systems. Google can remain as just a search engine without innovations and further services. However, the company has taken risks and managed to improve itself, explore innovations and bring them together with the people all around the world in the most correct way. According to above given information, uncertainty avoidance score of Google would be 1 out of 5.  Score of Readiness for Change

Google is one of the biggest innovative companies in the world. Nowadays Google has great market share in software industry and it maintains this by doing always new things and applications. Also it has a Google Play Store in Android and people are also helping to Google to be innovative by doing their new applications. Considering these approaches the score of readiness to change of Google would be 5 out of 5.  Score of Tension

In Google the salary policy is mostly depend on performance levels. So, rewards are very determinative on monthly income of an employee. Google has many trustable leaders in many levels of its organization thanks to its “preference for delegation” policy. Credibility of the leaders is high. In Google, both accomplishments and failures are evaluated in workgroup levels, individuals are not judged directly according to company policies. Therefore blaming and scapegoating may only affect groups. It is easier to survive and resist in such work environment. Due to the given explanations, tension score of Google would be 2.5 out of 5.

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COORDINATION, CONTROL AND INFORMATION SYSTEMS IN PEGASUS

Pegasus Airlines is a low-cost airline headquartered in the Kurtkoy area of Pendik, Istanbul, Turkey. Formerly a charter airline in partnership with Aer Lingus, Pegasus is now completely controlled by Esas Holding.

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Score of Decentralization:

If the coordination and control of the company is managed by a core person or level of the organization the company can be named as centralized. Since Pegasus is managed by a core person, we can say that score of decentralization is 1.  Score of Formalization:

Airlines industry rules are determined by Federal Aviation Administration and each airline company has to obey these rules. Quality Assurance is provided in accordance with Joint Aviation Authorities rules. By being dependent on these rules we can say that the score of formalization of Pegasus would be 5 out of 5.  Score of Tacit Nature of Information:

Pegasus obeys the pre-defined flight standards and stores big amount of information each and every day about the flights. All the data is analyzed and flights are planned accordingly. The score for Pegasus for tacit nature of information would be 1.  Score of Amount of Information:

As discussed above, the number of people using airlines is increasing day by day. In order to plan new routes, number of flights in a route there should be more than enough information. Score will be 4.5 out of 5.

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10. INCENTIVES OF SOMA Soma Groups is the biggest coal producer from underground mines in Turkey. They started coal mining with Soma Coal Inc. in 1984. They also lead with the biggest mine accident in Turkey, which occurred on May 13th. Incentive design has taken a control perspective, so that, they control either behavior of employees or the results of what managers or employees do. Controlling behavior is simply monitoring the individual, whereas controlling results is monitoring the outcomes when work is done.

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Score of Basis of Evaluation Includes Behavior and Result:

The incentives based on behavior enable employees to carry a risk on the results. The incentives based on results are to increase the productivity and the efficiency. In Soma Komur Inc, there were some incentives based on the production of coal, which is earned by sub-contractors, not workers. This can be considered as an incentive based on result. If we consider incentive based on behavior we cannot see any positive item. When the Soma Coal Mines were operated by government, the coal was produced for 100$/tone. Soma Coal Inc is producing 26$/tone. This shows that the working conditions are not attractive. Turkey, with Pakistan and Afghanistan, are the only three countries who did not sign the “Security in Mines and Health Agreement” of International Labor Organization which entails safe rooms in mines. Considering these items the score will be 1 out of 5.

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Score of Target of Incentive:

The workers are paid on a man-hour basis. Actually the quantity or quality of their work output is not important for Soma Holding. The workers just take the wages form on the job efforts or experiences etc. The head-offices are not interested in how a team of workers managed to get over a stubborn rock but rather in seeing the numbers representing the quantity of production. Due to the given explanations, target of incentive score of Soma Holding would be will be 1 out of 5.

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REFERENCES
1-TAI Retrieved from https://www.tai.com.tr/en/about-us/company-profile 2-ULKER Retrieved from http:// northstarinnovation.com.tr/ Retrieved from http://www.ulkerbiskuvi.com.tr/documents/Ulker/pdf/ulker-ar-2013-eng.pdf Retrieved from http://www.ulker.com.tr/en/meet-ulker/about-us/ulker-from-consumers-point-of-view Retrieved from http://www.ulker.com.tr/en/whats-new/news-from-brands 3-IKEA Retrieved from http://www.ikea.com/ Retrieved from http://www.ikea.com.tr/hakkimizda/vizyonumuz.aspx Retrieved from http://www.ikea.com/ms/en_GB/pdf/yearly_summary/ys_welcome_inside_2012.pdf Retrieved from http://maxolex.wordpress.com/2014/02/02/ikea-a-global-leader-in-efficiency-and-effectiveness/ 4-TOFAŞ Retrieved from http://www.tofas.com.tr/tr/yatirimci/Faaliyet%20Raporlari/TOFAS.pdf Retrieved from http://www.tofas.com.tr/tr/hakkinda/Pages/Hakkimizda.aspx 5-TURKCELL Retrieved from http://en.wikipedia.org/wiki/Turkcell Retrieved from http://www.turkcell.com.tr/en/aboutus/company-overview/history 6-UNILEVER Retrieved from http://www.unilever.com.tr/innovation/productinnovations/default/index.aspx Retrieved from http://www.unilever.com/aboutus/ Retrieved from http://en.wikipedia.org/wiki/Unilever 7-SAMSUNG Retrieved from http://en.wikipedia.org/wiki/Samsung Retrieved from http://us.vibescaster.com/Technology/if-apple-google-and-microsoft-merged-they-still-wouldn’temploy-as-many-people-as-samsung/ 8-GOOGLE Retrieved from http://www.google.co.uk/intl/en/about/company/ Retrieved from http://techie-buzz.com/social-networking/google-wave-officiallyshutdon.html Retrieved from http://buzzom.com/2010/01/10-toughest-competitors-of-google-in-2010 9-PEGASUS Hunter, L. (2006). Low cost airlines: Business Model and Employment Relations.European Management Journal, 24(5), 315-321. Lu, W.Wang, W., Hung, S., & Lu, E. (2012). The effects of corporate governance on airline performance: Production and marketing efficiency perspectives. Transportation Research, E48(2), 529-544. Retrieved from http://www.flypgs.com/en/about-pegasus/why-pegasus.aspx 10-SOMA HOLDİNG Retrieved from http://tr.wikipedia.org/wiki/Soma_Holding Retrieved from http://www.tilaga.com.tr/tarihce.html

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