Send My Bag: Door To Door Luggage Shipping Services - Company Overview And Strategy Essay.

Send My Bag is the leading company that provides door to door luggage shipping services to the customers. The company is based in Bangor, New York City, USA and Northern Ireland (Send My Bag, 2017). The company was founded by Adam Ewart who is the CEO of the company. In the 21^st century luggage payments are increasing day by day. Apart from it company charges extra amount for the excess baggage. Most of the airline customer gets disappointed when they find that they have to pay extra amount for the luggage. This enhances the demand of the Send My Bag for shipping luggage anywhere in the world.

Organizational structure is the process which consists of the implicit and explicit institutional policies and rules. Organization is formed to accomplish specific objective and goal; for achieving that goal organizational structure helps the company (Robbins & Judge, 2014). According to the Koontz and O’Donnell; organizational structure is formation of authority relationships with provision for co-ordination (Galetic, 2017). Send my bag company also follows organizational structure. There are different types of organizational structure, out of which functional structure is followed by the company.

The functional organizational structure is a hierarchical structure in which different people are grouped together considering their area of specialization (Jones, & Jones, 2010). In this each organization has its own managers who give the instructions to improve the quality. Functional organization structure involves different departments that include finance department, sales department, customer service department, IT department, etc.

 This is the diagrammatic presentation of the functional structure. This structure is followed by the company Send My Bag. The company consist of different operating units includes marketing, IT, Customer service and other logistics departments. These departments consist of the people or employees who have different skills and knowledge. Out of all these departments the company’s main focus is on the customer service. Michael who is head of the customer service department was previously ranked of a Sergeant Major. Carl Warwick moved different continents just to join the company Send My Bag as he wants to become the CTO of the company. For the smooth working of the company functional structure is best for the company. Though, by following this structure there might be lack of co-ordination and communication among the departments. By doing repetitive task the employees get efficiency in only type of task, further the employees will not be to perform the different task relating to the different departments.

Organizational Structure

Implementation of correct ways by the managers and leaders helps the company for achieving goals and objectives. Modern management approach focuses on the systematic practice of the mathematical methods in the system. This system helps in understanding and analyzing the inter-relationship of the workers and the mangers. There are different types of modern management approach. These approaches are applied by the different size of companies and it may vary according the working of the company.

Contingent or situational approach of management says that there is no set universal management principle which is used by the company to manage organization. The concept focuses on the changes due to the change in the environment. Different managerial problems occur in different situation which need to be tackle by the company by understanding the situation of the company (Huczynski, & Buchanan, 2010). The choice of the approach used by the company to deal with the situation is depended on the external situation. Managers should not apply management techniques and principles as universal. Implementation of the techniques, principles, policies should be done by considering the external situation.

The company tried to take decisions based on situations, as said by Ewart Send My Bag Company shipped 100,000 luggage bags after the opening of the U.K. office. These bags were delivered by the company in the 15 months prior to the opening (Send My Bag, 2017).

Send My Bag Company took decision on the bases of the situation, as before 2011 company was focusing on the students who want to shift their luggage from one place to another but after 2011 the focus of the company shifted to the airlines customers, airlines such as Ryan air. As the extra amount charged by the airline for carrying extra luggage was increasing. This enhances the opportunities for the company to expand the business. Ultimately the result is clearly now Send My Bag is offering domestic services in U.K. along with some EU countries (Geier, 2015). The decision took by the company is based on the situation faced by the company at that point of time. Though, considering the situation whenever manager of the company take steps there might be occurrence of complexity. As in the whole process manager needs to analyses the situation and then they have to take corrective approach but while implementing that approach on the company’s working manager might find complexity. As it is quite easy to identify and take approach but on the other hand it is difficult to apply it on the company. Send My Bag can take the corrective steps by considering the actual situation of the company. The company identifies that customers of airline feel disappointed for paying extra amount to the airline for luggage.

Functional Structure

Company manages the working by following few strategies to achieve the performance of the company. The working of the company gets affected by internal and external factors of the company.

Strength

• Company provides luggage shipping services to the students, travellers, business professionals, holiday makers, etc.
• Company provides door to door delivery with the low cost as compared to the airline fees.
• Send My Bag provides 7 days/week services to the customers on the 2,500 routes globally (Send My Bag, 2017).

Weakness

• For availing the shipping services customers need to book the packages with the company that to several days ago. If customers book the shipping services at the end then they might have to pay huge amount.
• Customers have to pay extra amount if their luggage goes high up to a specific depending on the criteria.  

Opportunity

• Company has vast availability of the opportunities as the prices for the extra luggage is increasing day by day. So companies can get connected with more and more new customers.
• The changes for expanding the business will increase with the increase in the customers.
• As the company provide discounts and attractive packages to the customer along with the domestic and international shipping services.

Threats

• Company can face the threat of the decrease in the prices of the addition luggage by the airline. With the decrease in the prices by the airline customer demand for the shipping service will decrease.
• Company can face threat from the different strategies implemented by the competitors (Luggage free, sports express, baggage quest, etc.).

This strategy is followed by the company to increase the market share of the company. Send My Bag Company can try to acquire the competitors in the same field. The price kept by the company is quite low which helps the company in attracting the customers. If the luggage bag does not arrive on time then the company transfers half of the amount of the transit in the customer account (Rosenbloom, 2016). This makes the customer loyal towards the company and helps in attracting new buyers by doing personal selling.

Market development refers to as when the company decides to enter into the new markets (Robinson, et.al. 2016). Over here Send My Bag Company needs to identify in which new markets they will be able to get the benefit of expanding business. Company needs to identify the places that are popular for the visit purposes. So that they will be able to expand their business and can increase the number of routes. Though, the process is the time consuming process but it is must for the company.

Product development includes the introduction of the new product by the company. Over here, Send My Bag can thing on introducing the system of shipping the parcel along with the baggage. This will provide an opportunity to the company to get connect with the customers. 

The process refers to as the expanding or enlarging the range of the product and services. Company should try to expand the business with the new product range in the market. The company can also think of unrelated diversification which helps the company to introduce new products such as insurance, café, etc.

Conclusion

The analysis of the report shows the working and organization structure followed by the company. Structure followed by the company is appropriate for the company and according to the situation company took the corrective management approach. Company should take corrective steps after understanding the situation. Company need to work on the weakness of the company. Company should be prepared for the threats that the company is going to face in the future. Send My Bag objectives are clear that is possible with the help of the innovative strategic management framework. Considering the objective company should take the step for the future growth.

References

Galetic, L., 2017, ORGANIZATIONAL STRUCTURE, viewed on 23^rd July 2017, https://web.efzg.hr/dok/OIM/inacinovic/LECTURE%20org%20stucture.pdf

Geier, 2015, Startup SendMyBag launching a domestic U.S. service, viewed on 23^rd July 2017, https://fortune.com/2015/01/21/startup-sendmybag-launching-a-domestic-u-s-service/

Hanlon, A., 2013, The Ansoff Model, viewed on 23^rd July 2017, https://www.smartinsights.com/marketing-planning/create-a-marketing-plan/ansoff-model/

Huczynski, A. & Buchanan, D.A., 2010. Organizational behaviour. Financial Times Prentice Hall.

Jones, G.R. & Jones, G.R., 2010. Organizational theory, design, and change.

Market Business News, 2017, What Is Organizational Structure? Definition And Meaning, viewed on 23^rd July 2017, https://marketbusinessnews.com/financial-glossary/organizational-structure-definition-meaning/

Robbins., S., P. & Judge., T., A. 2014, Essentials of Organizational Behaviour 12th edn. FT Prentice Hall

Robinson, P., Fallon, P., Cameron, H. and Crotts, J.C. eds., 2016. Operations management in the travel industry. CABI.

Rosenbloom, S., 2016 May 31^st, Too Much Baggage? How to Ship Your Luggage, The New York Times, viewed on 23^rd July 2017, https://www.nytimes.com/2016/06/05/travel/how-to-ship-your-luggage.html

Send My Bag, 2017, ABOUT US, viewed on 23^rd July 2017, https://www.sendmybag.com/about

Send My Bag, 2017, AFFILIATES AND PARTNERS, viewed on 23^rd July 2017, https://www.sendmybag.ie/affiliate-program

Send My Bag, 2017, Why Use a Luggage Delivery Company, viewed on 23^rd July 2017, https://www.sendmybag.com/