Structure analysis
Almeco CM Lab

1. Introduction
The purpose of this assignement is to conduct a structure analysis of the company in order to indentify which of the factors of the environment determine the organisation of the company, what strategy should the company choose and if the company is mechanistic or more organic.
As the medical industry is one of the leading industries in the Danish business world Almeco CM Lab is very provocative and interesting subject for analysing. The company has the ability to differentiate in such a big environment, because of that fact, the main aim of their organisation is to keep innovation. 2. External environmental analysis Each organisation’s activies, structure and choices are influenced by different factors, conditions, entitles and events. The main stakeholders of an organisations can be the surrounding industry, raw materials, Human Resource Management, financial resources, market, technology, economy, government and the internationalisation. The medical industry, being one of the leading industries in Denmark, has the biggest influence of Almeco CM Lab. The industry has expirienced global growth rates of approximately 7 % over a period of 4-5 years , owning to this fact, the ability to be more innovative is being given to the organistion, which means that the company should provide higher level of professionalism and specialisation. Almeco set up 1 000 m2 of production facilities and their plan is to grow and create more jobs, so the formalisation of the organisaion will be influenced. As long as the medical industry is young and diverse , it can easily satisfied the need of raw materials for production of medical treatments. So the competion in this area is mostly dependant on an advanced production method , which definetely can influence the centralisation of the company. Almeco produces three secion tube for freezing and storing biological materials. The special about their tube is that part of it may be broken off and used for testing . Also they produce support materials like labels, dispensers, etc. , which means that technical production workers would be wanted , the personnel quoata is also influenced. When there is few competitor globally of Almeco company, the other fact that influence the ogranisation is the internationalisation. Almeco has made an agreement with distributors in 37 countries and has production in China and India, which definetely affect the company’s hierarchy, because now being so broad it has to be well organised. The environmental uncertainty of the Alemeco’s organisation can be defined as simple and stable with a low uncertainy, because only industry, technology and international affect it. On the other hand the industry is not following any trends , so the changes can be few and predictable. 3. Overall strategy assumption Strategy involves all areas of the firm from operations to finance to human resources. Almeco CM Lab company’s strategy must include innovation if they want to be success in the stable environment such as the medical device industry. Innovation gives the company opportunity to improve the working process, quality of product and create new device . Almeco CM Lab should choose the differentiation strategy. This is the best idea of creating a product or service that is perceived as being unique throughout the industry. The emphasis can be on brand image, proprietary technology, special features, superior service, a strong distributor network or other aspects that is specific to Almeco. In addition, some of the conditions that should exist to support a differentiation strategy include strong marketing abilities, effective product engineering, creativity, the ability to perform basic research and a good reputation. Very important thing is promotion the products. The Company should be entirely familiar with the factors that establish products and services competitive in the marketplace. Almeco is not good enough in familiarity with advertising and promotion and they should be more focused on this point. The ability to generate good publicity as measured by past successes, contacts in the press, quality of promotional literature and market education capabilities. This is very important thing, one of few to achieve success. The strength of the customer service function has a strong influence on long term market success. Almeco has also a problem with commercialization of their products.

4. How Almeco CM Lab could design their organisation ?

When a company designes their organisation and wants to be succesful , they should focus mainly on their structure, their coordination, the teams and the motivation of the company because these are the characteristics that can lead the company to higher level.
When it comes to structure of an organisation, there are six key factors, which can describe it. The formalisaton of Almeco CM Lab can be improved by providing regularly controls of the products, which must have approval before it is put on the market.For globally operating companies this process can be very complicated. As long as the competion is between the advanced production technologies, the company should invest in specialisation, because as much are the new technologies, as many specialist would be needed. Almeco in Denmark only consist of 8 people but they expected to grow and create more jobs. Almeco has production in China and India and the distributions in 37 countries, the best way for the company to manage in the future is to have managers under the CEO to make decisions instead of asking and waiting for the CEO to make all the decisions, so their centralisation can be improved. In this industry is complex factor to pintpoint the target groups of your organisation, which means to have very clearly established hierarchy. As the technologies are fast- developing the company has to have the best employees, who need really good training and education so the professionalism should be on the highest level. When it comes to personal quota, the company has to provide more employees, because when it operates on globally and more and more products are ordered, the number of employees has to increase.
For an organization, coordination is the most important part when it comes to the design and also all the activities from the company must be well synchronized in order to have a high quality production. Almeco should have a training program for each new employee, but more important, is to have competent managers, in order to not be beginner when it comes to the new technology.
Another very important factor in keeping balanced organisation is to have a lot of team working. Almeco CM Lab produces main product , who is patented and some support products. The company should be devided into two different teams, which are responsible for the main and the support products. In this way, the employees would be devided by their skills and the result will come by collective performance. The teams would be easily composed in order to reach team effectiveness. By doing the same activity again and again, they will become better employees and the quality will increase. Also the employees create their own atmosphere, which can lead them to the best results.
Motivation is the set of forces that cause people to choose certain behaviors from among the many alternatives open to them. An employee's performance typically is influenced by motivation, ability, and the work environment.The motivation of the employees is connected with their relations with co workers and bosses. According to the theory of Clayton Alderfer's ERG when needs at one level are satisfied, they are no longer motivators and the individual "moves up" the hierarchy to satisfy needs at the next level. Maslow's view of motivation provides a logical framework for categorizing needs, but it does not supply a complete picture. As long as the company helps employees to have their own inspirational atmosphere and satisfies their psychological ( for ex. Warm offices and workshops), security ( for ex. Insurance) and other needs, they will be highly motivated.

5. Mechanistic or organic structure ?

5.1 Mechanistic structure The Company should be headed by one CEO to set the tasks and also find specialized people for each area of the company, from production to marketing, in order to be considered a strong competitor in the industry. Communication should be in between vertical and horizontal, vertical because they need clear rules, to guarantee effectiveness of the quality of decisions, and a horizontal communication, because they must have a good communication between employees in order to have innovative ideas and they need to create a good work environment.
5.2 Organic structure Organic structure is based on teamwork and verbal communication, in order to create good products and for Almeco company this is an important thing. The company cannot be centralized, because it is a large company which already produces at a global scale. A decentralized organization can act more faster to solve problems, more people deliver inputs into decisions and employees are less likely to feel alienated from those who make decisions that affect their work lives. Almeco company needs to have parts from the mechanistic structure, to have strict rules, specialized people with divided tasks, but in order to make innovation the company should also be organic, to create a good working environment, to develop teamwork and communication

6. Conclusion
It can be concluded that Almeco CM Lab being one of the newest companies in the medical industry, has really good conditions for developing . Not so many factors from the environment are now influenced it, but in the future, when it enlarges its capacity and most of the organisation’s characteristics are better suit to the environment , the company will perform more effective.