Exporting gems from Russia to International Jewelers

By

Prof

Class

Institution name, City, State

Date

Part 1
The idea in this paper is the business of exporting gems from Russia to international jewelry market. This is a noble and legal business to conduct since the jewelry market continues to expand as a result of increased demand for beauty accessories.
Goal
The goal of this business is to increase the amount and reduce the high cost of jewelry in the global market. This export business will create several jobs for many people in Russia and destination nations through the profits thereof. It will directly and indirectly be a solution to increased unemployment in the world.
Part 2
Question 1: Activities for successful export
The activities that are necessary in accomplishing the goals for establishing the Gemstone exportation firm include Activity | Qtr1 | Qtr. 2 | Qtr. 3 | Qtr. 4 | Qtr. 5 | Qtr. 6 | Exploration of options-at company level | XXX | | | | | | Market Research-new market | | XXX | | | | | Setting Marketing Strategy-at company level | | | XXX | | | | Strategic Planning – at company level | | | XXX | XXX | | | Determine Marketing Activities | | | XXX | XXX | | | Determine Price –at company level | | | | | XXX | | Logistical planning-continuous | XXX | XXX | XXX | XXX | XXX | | Design of Documentation tools- continuous | | | XXX | XXX | XXX | XXX | Determine payment methods- at company level | | XXX | | | XXX | | Recruitment of appropriate Staff –new market | | | | | XXX | | Training of Staff-In the new market | | | | | | XXX | Deployment of Staff –in the new market | | | | | | XXX | Address Customer Concerns -Continuous | XXX | XXX | XXX | XXX | XXX | XXX |

Exploring destination options
In order to identify the most appropriate destinations in the international jewelry market, a thorough study of the global community is essential. This review will provide basic information on hotspots and weak regions for gemstone. It will also help in early identification of export trends, competitors and customer preferences for proper planning and preliminary internal assessment and reorganization (FEA, 2011).
Market Research
After a market destination has been identified, market research will provide detailed information on the business demand and supply in the country. It will also help in identifying the market segments in that country.
Marketing Mix
Different methods of marketing will be used to reach the target population in that region. The company will give a lot of emphasis to a wide range of competition approaches including the four P’s for Promotion, Price, Product and placement.
Strategic Planning
At this stage, the executives in charge of the export business will use the information available from previous activities to develop a winning strategy for the company.
International Marketing Activities
There are several marketing opportunities the company will use to increase awareness of its products in the destination countries.
Selling Price determination
This is an important activity that considers the prevailing market prices of gemstone or related products in the market. It must be attractive enough for customers. The quality of the product must not be compromised in order to lower its selling price.
Logistics and Distribution
The distribution of products from Russia to the international destination will require logistical planning. The choice of shipping alternative will depend on the cost-effectiveness of each means.
Documentation and Procedures
The use of appropriate documentation will help in monitoring the progress of the business and in accounting for resources. The terminology in all these documents will be relevant to gemstone trade to make interpretation easy when filling or using the information to make decisions.
Payment Methods
The accounts department will help in determining the appropriate currency to be used in transactions. Exchange rates and interest rates in the international destination will influence the final cost of goods. This will receive adequate consideration in setting prices and quotations for customers. Customers will have several choices of payments. This will attract a wide range of customers.
Question 2: Types of organizational structure a) Wheel
In a wheel-and-spoke systems of organization functions are concentrated around a central focus. The other offices are able to perform their duties after the core completes its work. The whole organization will diminish upon the dysfunctional of the core. These systems are usually applicable in organizations with procurement and supply departments. At the core of the arrangement lies the procurement manager who is responsible for procurement of raw materials. The outside of the wheel consists of those responsible of distributing the raw materials to various production points. This system can exist within other organizational structures. It may not contribute effectively to full the potential of an organization due to pressure of work and possible delays at the core area. It is not very easy to identify a person that has the expertise to oversee all functions in an organization.
b) Traditional divisional structure
This structure recognizes the distinct features of every function and office and divides an organization into small business units that have their own authorities and mandates. An organization can have one main goal that is broken down into several sub goals. Each business unit has its own goals on which to concentrate its resources and efforts. Each can therefore focus to do their activities in the best way possible to achieve their goals. It is disadvantageous in that good results from one unit may not necessarily contribute to the overall success of an organization. A company can only succeed when all units focus on achieving best results such that there is internal competition. Unless the overall management is keen on the day to day operations of each unit, this structure is prone to high chances of duplication of efforts and functions.
c) Business Unit structure
This structure identifies the basic business units in organization and assigns specific individuals responsibilities pertaining to the objectives and activities of the unit. This provides clarity on the mandate of each employee without duplication of efforts and functions. On a negative note, this structure makes an organization to have a high number of employees. This can affect the overall profit an organization is able to make.
d) Matrix structure
This structure combines employees involved in a particular product or function. The organization recognizes the strengths of each employee and assembles them in such a manner that they form a strong team for a task. One employee can be responsible for more than one function depending inherent capabilities in this structure or report to more than one manager. The advantage of this structure is that it allows employees to interact with each other, identify their strong abilities and utilize them to achieve a goal. An organization that has multitalented employees may spend less through reduced human resource investment in employing people to perform specific functions.
It is appropriate for an organization whose main goal depends on successful achievement of sequential sub goals. The structure becomes complex and confusing in a multinational organization that provides a wide range of services. This might cause tensions among employees and minimize their productivity. In order to tap all the possible advantages of this approach to organization, an enterprise must hold a project manager responsible for all program activities. In addition to this manager, technical experts will provide guidance to other employees in their respective clusters (Oscar, 2014).
Question 3 a: Organizing 50-100 employees in well Established Organization Structure
President
President

Director Marketing
Director Marketing
Director Logistics
Director Logistics
Director Finance & Procurement
Director Finance & Procurement
Director Production
Director Production

Ads Dept
Ads Dept
Supplies
Supplies
Procurement Chief
Procurement Chief
Chief Accountant
Chief Accountant
Research Dept
Research Dept
Transport
Transport
Operations
Operations
Equipment
Equipment

General Officers
General Officers
Account officers
Account officers
Skilled & Unskilled staff
Skilled & Unskilled staff
Maintenance Experts
Maintenance Experts
Research assistants
Research assistants
Media designers
Media designers
Supplier agents
Supplier agents
Drivers
Drivers

(b): Analysis of Matrix organizational structure over other methods
Employees is a matrix structure report to both functional and product supervisor. The functional supervisor’s responsibility is to ensure each employee carries out their duties within a team appropriately. The project supervisor is responsible for overall implementation of project activities and oversees general activities. This arrangement has several advantages over its disadvantages that make it appropriate for quality and profit oriented organizations. This system is ideal for cost-effective management of resources to achieve desired goals in an organization. It allows flexibility among employees such that one multitalented individual can support more than one teams at different times (Vanhaverbeke and Torremans, 1998).
Maximum Resource Utilization and Coordination
Each employee works in an area they qualify best. Although they can serve in other areas, their major responsibility is to carry out those activities that require their specific skills and capabilities. Managers can focus on enhancing the capacity of employees for maximum performance of functions. The overall managers of an organization ensure that specific goals are assigned to a group that has best abilities to give best results. This will require close supportive supervision to identify the strengths and weaknesses of employees with an aim to empower them through internal reorganization and capacity building.

Specialization
An organization can easily identify individuals that need specialized training. Investing in specialization enables employees to have in-depth skills, knowledge and expertise to handle highly demanding tasks. These people help in the production of highly desirable commodities that are suitable for customers’ preference even at high cost. This will provide high profit returns to the organization.
Increased Skilled Personnel
Some individuals are multitalented and capable of conducting multiple activities. Such people can motivate their colleagues as they interact. In a functional organizational system and wheel system, it may not be possible for such people to share their skills with their colleagues. The matrix system allows people to interact with each other freely with the objective of meeting the goals of an organization. This helps in creating more skills amongst employing hence enhancing production. This can make an organization to expand its service delivery coverage when it has sufficient resources for capital investment.
Enhanced Communication
Matrix system allows employees to interact closely with each other. This interaction enhances the level of communication among employees and increase flow of information in an organization. Employees are more likely to share their opinions in regard to a certain issue way far in advance before and can contribute towards the final decision making process. The clusters can easily handle challenges that arise in the middle of their work easily due to varied experiences and expertize.
References
Food Export Association of the Midwest USA and Food Export USA-Northeast 2011. Programs & Activities - Export Essentials Online, https://www.foodexport.org/ProgramsActivities/EE.cfm?navItemNumber=946
Oscar Guzman, 2014. The Advantages of Matrix Organizational Structure. http://smallbusiness.chron.com/advantages-matrix-organizational-structure-286.html
Wim Vanhaverbeke and Huub Torremans. 1998. Organizational Structure in Process-Based-Organizations. The 14th EGOS-Conference in Maastruchat 9-11 July 1998.