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The Star-Model Framework

In the Star Model, design policies fall into five categories. The first is strategy, which

determines direction. The second is structure, which determines the location of decision-making

power. The third is processes, which have to do with the flow of information; they are the means

of responding to information technologies. The fourth is rewards and reward systems, which

influence the motivation of people to perform and address organizational goals. The fifth

category of the model is made up of policies relating to people (human resource policies), which

influence and frequently define the employees’ mind-sets and skills.[1]

A. Strategy

Crystal City Marketing Company

Mission

To be the No. 1 distribution company in Central Luzon that provides excellent

service to our principals and high satisfaction to our customers and consumers.

Vision

To become the most known and trusted distribution company in Central Luzon in

terms of growth and profitability by providing consumers with the highest quality of

service through excellent performance and trade execution.

Strategies

Sales

 Building sales capability skills of Distributor Salesmen

 Enhancing the visibility execution in Key RD outlets


 Increasing horizontal coverage in Traditional accounts

 Improved product line distribution per outlet.

 Seek and develop new accounts (open trade).

 Deployment of additional sales support or man power.

Marketing

 Expanding the product portfolio catering to downline accounts through the

introduction of new products.

 Brand building activities to increase brand awareness

o Above the line activities – TRI-media (TV, radio, print advertisement)

o Below the line – product sampling.

B. Structure

Organizational Chart
Crystal City Marketing Co. is a hierarchical organization, in such a way that every unit in the

organization, is subordinate to a single other department. The power, responsibility and the

authority are concentrated at the top of the organization and the course of decisions flow from

the top downwards.

C. Process

Operating Cycle

Accounts
Purchasin Payable
g

Order
Processing

Inventory
INVOICING Accounts
Receivable

DISPATCHI
NG

DELIVERIE
S

In the PURCHASING procedure is where we record our orders from our


Bookkeeping

principals and update our inventory upon stocks delivery from our suppliers.

Basically it is the IN and OUT control/monitoring of the company’s inventory

system.

Financial
report
In ORDER PROCESSING, this is where we enter all our customer orders

on the system. Then it has an arrow linking to the INVENTORY and to the

ACCOUNTS RECEIVABLE, means that as we serve our customer’s orders, the

system will automatically update our INVENTORY and it will also record a

RECEIVABLE from that customer.

The ACCOUNTS PAYABLE is where we record our payment to the

principal. It is also connected to the ORDER PROCESSING because of all the

other procedure, only Accounts Payable is not updated automatically. Recording

of Accounts payable is done manually by encoding the amount seen on the

Principals invoice.

In BOOKKEEPING, all our transactions are summarized, posted and

reported. It provides a solid foundation for all accounting operations by accurately

tracking business activity, generating reports that aid in management decision-

making and maintaining a complete audit trial of business transactions. Then

lastly after all information was gathered in bookkeeping we will be presenting

them in FINANCIAL report formats.

D. Rewards

All our employees are entitled of the company’s benefits. They have their SSS,

Pag-IBIG, and Philhealth. Promotions are usually on the sales force. We recommend our

newly hired salesman aspirant to undergo training. The leveling on this is that first he
must be a junior salesman, then an ex-truck salesman, next is booking salesman, lastly

as a field sales supervisor. We give cash incentives to our sales force whenever they hit

their monthly sales versus target.

E. People

Our company doesn’t have an HR department; instead we have our administrator

who handles HR responsibilities. We shall recruit and staff the company with highly

competent, well-trained and motivated individuals who are generally considered above

average performance. Selection of candidates shall be based on merit and capacity to

perform the duties and assume responsibilities of the job. Applicants go through the

usual process; they must submit all requirements before they will take an exam.

Qualified applicants will be interviewed to determine suitability for the position. A medical

examination may also be required to determine if he/she is physically and mentally fit to

work. Candidates who pass the pre-screening and are found suitable for the position will

undergo a six-month training program. This period gives management the opportunity to

evaluate his performance and determine if he is the person for the job. If during this

period the manager decided that his performance does not meet the minimum

requirements of the job, he/she may be released upon written notification.

Organizational Life Cycle

From all the articles I’ve read about organizational life cycle they all look the same for

me. They discussed four stages of an organization life cycle; they are the birth, growth, decline,

and death. Then I came across to this one article from the internet, “Organization’s Changes
Through its Lifecycle; A System Dynamics Approach” by Sarah Nazzari and Hamid

Foroughi. Here they discuss about Dr. Ichak Adizes’ model of organization life cycle, Adizes

model consist of 10 stages, first five explain development phase and next five discuss decline

phase.

Courtship

“In this stage, the company is not yet born. The preliminary goal of this stage is to build

founder’s enthusiasm and commitment to his dream. The higher the risk, the dipper

commitment needed.”[2]

Back then my father’s dream is to have a small distribution business. He knew to himself

that his experiences and knowledge in sales is enough for him to manage this type of business.

Infancy

“Infancy begins the moment financial risk has been undertaken and the founder quits

[his\] her paying job, signs the loan documents and etc. the focus instantly changes from ideas

to action.” [2]
That’s exactly what happened, he quit his job as a Operations Manager form their

company and begin to take actions to fulfill his dreams.

Go-Go:

“A Go-Go organization is a company that has a successful product and service, rapidly

growing sales and strong cash flow. The company is not only surviving, it’s flourishing success

quickly transforms this confidence into arrogance. Go-Go companies are like babies that have

just learned to walk. They can move quickly and everything looks interesting. Fueled by their

initial success, “Go-Go”-s feel that they can succeed at almost anything that comes their way.”

[2]

Crystal City Marketing Co. was formed in 2001, the nature of the business is distribution

of consumer goods. Our first principal was Wrigley Philippines, and we are serving the area of

Pampanga and Tarlac. In almost a year we grew the business from 3M to 5M. In year 2002, two

widely known companies appointed us to be their exclusive distributor; the Unitrade and

Unilever Philippines, Inc..

Adolescence:

“In this stage the company must find a life apart from that provided by its founder”. In

transition from Go-Go to adolescence, organization encounters three principal challenges:

• Decentralization of authority

• Change in leadership from entrepreneurship to professional management.

• Goal displacement. In Adolescence, the company must change from the Go-Go's "more-

is-better" goals to "better-is-more" goals. Profitability emerges as the most important

goal for the organization in this stage. [2]


Today our company's main area of distribution is in Pampanga, Tarlac, Bataan and

Zamblaes. After years of experience and specialization in the field of distribution, opportunities

and growth increased which opened doors for other principals like Fonterra Brands Philippines,

Inc., Kimberly-Clark Philippines, Inc. and Perfetti Van Melle. We are also well known to have

developed and grew the business of our principals. We are established in the community that

we serve. We have excellent rapport with our principal’s sales management team and with our

customers.

References

[1] Galbraith, J. R., The Star Model.


[2] Nazzari,S., Foroughi, H., Organization’s Changes Through its Lifecycle; A System Dynamics

Approach.