Organizational Structure Of Victoria Taxi: Impact Of Internal And External Forces On Business Performance

Organizational Structure of Victoria Taxi

Question:

Discuss about the Market Orientation and Hotel Performance.

Structure of an organization describes the hierarchy of authorities, duties and responsibilities within workplace. The major role played by organizational structure is to evaluate the ways in which roles, duties and responsibilities are regulated so as to attain organizational desired objectives and goals. Apart from this, it also engages the communication flow from top level management to the lower management. It is designed on the basis of the rules, policies and standards of the organization which are designed in order to accomplish organizational tasks in an effective manner. This essay will focus over the organizational structure of Victoria Taxi (Victoria Taxi, 2018). Along with this, impact of internal as well as external forces over the business performance will also be covered under this essay. Current risks factors confront by the organization, decisions taken by the management of Victoria Taxi in relation with uplifting organizational performance and crucial functions of the organization for developing effective strategies in relation with the accomplishment of the objectives will also be covered in this essay.

Organizational structure of Victoria Taxi follows the traditional system under which the highest authority controls every activity within the workplace. Top most authority of the organization is CEO (chief executive officer) and then board of directors are responsible for managing organizational performance. Primary role of Victoria Taxi is to provide travelling services to the people and along with the travelling services, they care for each and everything so that travellers could feel safe and secure while travelling with Victoria Taxi. After board of directors, senior level management holds the responsibility for accomplishing organizational tasks with the view to uplift its performance in the target market. further, middle level management and workforce comes as the organizational structure of Victoria Taxi and these are majorly responsible for performing physical tasks so that plans made by the senior level management could be converted as reality (Zheng, Yang & McLean, 2010).

External and internal environmental forces plays crucial role in uplifting or declining organizational performance. External forces are economic conditions of the country, technological factors, political environment and socio-logical factors. While internal forces which affect organizational performance are employees, company’s financial performance, resource availability, etc. As Victoria Taxi is engaged in travel industry, thus, both internal as well as external forces will affect their business performance and in order to avoid these impacts, management of the organization is required to adopt appropriate strategies and the policies. Their major objective is to attract people for consuming their taxi services while it is also necessary for the organization to adopt appropriate measures so that the policies could be developed by considering internal as well as external environmental forces (Chen, Huang & Hsiao, 2010). One of the major external environmental factors is innovation and in terms of Victoria Taxi’s activities, it is necessary for them to adopt this factor so that rapid improvements and new features could be added into their practices. Innovation in terms of Victoria Taxi could be improvisation in their services which will help them to develop a unique image in the market as compared to its competitors. Organization will be able make their practises effective as well as efficient through which desired goals and objectives would easily be attained (Chittithaworn, Islam, Keawchana & Yusuf, 2011).

Impact of Internal and External Forces on Business Performance

Risk factors confronted by Victoria Taxi are increase sudden increase in the fuel prices, entry of new companies in the taxi business, etc. These factors have the potential to affect organizational profitability directly. Apart from this, there are certain external risk factors such as increase in interest rate, exchange rates, etc. which could also affect organizational performance in negative manner. As Victoria Taxi is performing its activities in Canada and seeking for growth in international market, thus, they also need to confront the risk factor such as facing competition from the existing companies in the international market. For conducting taxi business in an effective manner, appropriate code of conducts needs to be practiced so that the travellers could feel safe and secure while consuming the taxi services. Along with this, Victoria taxi is required to improve their systems to match up with the international standards of taxi business in order to uplift its performance as well as to attain its desired goals and objectives. Competition risk plays vital role in the taxi business, thus, organization needs to adopt appropriate defensive strategies so that they could be able to save their acquired position in the target market for a longer time period (Wang, Chen & Chen, 2012). Certain other risk factors could also affect Victoria Taxi’s performance which is changes in the laws and regulations, new rule applied by the government, etc. Hence, organizational senior level management and board of directors are required to adopt appropriate measures so that all the above risk factors discussed above could not affect organizational performance in negative manner (Shneiderman, 2010). Apart from this, improvisation is necessary to grow and prosper for every organization along with confronting risk factors. Risk factors plays dominant role in adaptation of the strategies for improving organizational performance as well as it also lead the organization to adopt innovation in their practices so that the organizational profitability could be increased along with developing an effective position in the market (Wheelen & Hunger, 2011).

In order to uplift Victoria taxi’s performance in the target market along with ascertaining various other opportunities to grow and prosper in international markets, it is necessary to adopt certain advanced measures within the workplace. Along with this, optimum utilisation of internal resources is also necessary so that cost could be reduced and profitability and turnover could be increased. Organization could also evaluate other factors for improving its performance such as setting benchmarks, developing quality standards and providing adequate training sessions to its employees in order to improve their efficiencies. Victoria Taxi is a service rendering organization and in service industry, it is necessary for organization to set appropriate benchmarks related to their services so that customers’ needs and requirements could be fulfilled. Apart from this, employees who perform significant role in the success of the organization should be treated in the same manner by the organization (Trkman, 2010). It is necessary to provide appropriate training and counselling sessions to the employees of Victoria Taxi so that their efficiencies could be improved (Casadesus-Masanell & Ricart, 2010). Apart from this, employees’ skills, talent and knowledge and other factors should be valued by the management along with fulfilling their needs and requirements. With the help of these measures, organization could make employees feel motivated towards work as well as it also helps to develop a positive image amongst the employees towards organization. organization could also invite employees to take participate in the decision making process so that appropriate decisions could be applied in the organizational context for attaining further goals and objectives along with developing an effective image in the target market. With the help of above discussed practices, Victoria taxi could easily uplift its performance along with gaining a big part of the market share which will result in attainment of organizational desired goals and objectives (Lustig, Roussanov & Verdelhan, 2011).

Risk Factors Confronted by the Organization

With the objective of attaining organizational strategy, it is necessary for the organization to involve innovation and its related practices within the workplace. Strategy of the organization is to acquire a big portion of the market share along with the attainment of competitive advantage in the target market. in order to acquire these objectives with the concern of attaining strategy, it is necessary to adopt practices which are capable enough to fulfil target audience’s needs and wants. Customers also plays vital role in the success of service based companies and for the same purpose, it is necessary to utilise organizational resources so that the functions of the organization could be improved as per the quality standards built up by the management (Bryson, 2018). Apart from these functions, organization needs to evaluate its internal requirements departmental wise. Furthermore, advanced measures need to be adopted with the motive of fulfilling each department’s needs in terms of capital, resources, man power, etc. Above discussed functions would play crucial role in attaining the desired strategy for the organization along with the development of an effective image in the target market (Teece, 2010).

From the aforesaid information, it could be concluded that Victoria Taxi is performing well in their industry. In order to expand its operations, organization has conducted evaluation of its structure so that performance of the organization could be reviewed along with determining any error if found. Apart from this, external and internal environmental forces have also been discussed in this essay with the objective of establishing appropriate measures for facing those challenges in an effective manner.

References

Bryson, J. M. (2018). Strategic planning for public and nonprofit organizations: A guide to strengthening and sustaining organizational achievement. John Wiley & Sons.

Casadesus-Masanell, R., & Ricart, J. E. (2010). From strategy to business models and onto tactics. Long range planning, 43(2-3), 195-215.

Chen, C. J., Huang, J. W., & Hsiao, Y. C. (2010). Knowledge management and innovativeness: The role of organizational climate and structure. International Journal of Manpower, 31(8), 848-870.

Chittithaworn, C., Islam, M. A., Keawchana, T., & Yusuf, D. H. M. (2011). Factors affecting business success of small & medium enterprises (SMEs) in Thailand. Asian Social Science, 7(5), 180.

Lustig, H., Roussanov, N., & Verdelhan, A. (2011). Common risk factors in currency markets. The Review of Financial Studies, 24(11), 3731-3777.

Shneiderman, B. (2010). Designing the user interface: strategies for effective human-computer interaction. Pearson Education India.

Teece, D. J. (2010). Business models, business strategy and innovation. Long range planning, 43(2-3), 172-194.

Trkman, P. (2010). The critical success factors of business process management. International journal of information management, 30(2), 125-134.

Victoria Taxi. (2018). About Us. Accessed on 30^th March 2018 from https://victoriataxi.com/

Wang, C. H., Chen, K. Y., & Chen, S. C. (2012). Total quality management, market orientation and hotel performance: The moderating effects of external environmental factors. International Journal of Hospitality Management, 31(1), 119-129.

Wheelen, T. L., & Hunger, J. D. (2011). Concepts in strategic management and business policy. Pearson Education India.

Zheng, W., Yang, B., & McLean, G. N. (2010). Linking organizational culture, structure, strategy, and organizational effectiveness: Mediating role of knowledge management. Journal of Business research, 63(7), 763-771.