ORGANIZATIONAL

STRUCTURE

SUBMITED TO:
SUBMITED BY:
SIR NAVEED AHMED MEHREEN
AHMED
AREEBA BATOOL
REHAN SHAFIQ
TABLE OF CONTENTS

• Acknowledgement
• Introduction
• History
• Shangrilla private limited
• Nature of business activity
• Present situation
• Plant outline
• Board of directors
• Corporate philosophy
• Business philosophy
• Mission
• Core values
• Objectives and Goals
• Shangrilla
• Organizational Structure
• Work specialization
• Departmentalization
• Chain Of Command
• Span Of Control
• Centralization
• Formalization
• Organizational Structure Of Shangrilla
• Mechanistic Organization
 ACKNOWLEDGEMENT

DATE: 27TH May 2008

Dear Reader,

We are thankful to our teacher, Sir Naveed Ahmed of

BAHRIA UNIVERSITY KARACHI Campus for his
valuable guidance and encouragement. His
directions have certainly helped us in completing this
report in time.

We would like to thank all the people who have made

it possible for us to prepare this report. They guided
us through the whole journey of writing this report,
from collecting of information till writing of the main
report. It was because of their immense support, that
we have been able to successfully complete this
report.
 INTRODUCTION

Shangrilla Private Limited is the subsidiary of Young’s

food products, founded in 1988.It is now producing
seasoning sauces of different flavors to add taste in
continental foods.
Shangrilla came into being a year ago when Young’s
group split into two, the Young’s food and the
Shangrilla private limited.
 HISTORY
Young’s group started its operations in 1988 under
the title of “Marketing Paradise” with the launch of
French Mayonnaise in the Pakistan Market.

In the beginning it introduced Mayonnaise, Soy

Sauce, Chilli Sauce and Vinegar. The first ever
commercially produced and distributed Chicken
Spread was launched in 1989. The Young's brand
family continued to grow with the introduction of
Sandwich Spread, Chocolate Spread.

Over the years the portfolio is extended gradually

under two brands French for Mayonnaise based
products & Shangrila for the condiments range.

The Group now runs two separate companies naming

Young’s (Private) Limited & Shangrilla (Private)
Limited.

Both the companies maintain a leadership position in

the categories of their existence and are highly
acknowledged both locally and internationally
 SHANGRILLA PRIVATE LIMITED
NATURE OF BUSINESE ACTIVITY:

Shangrila (Private) Limited as the subsidiary of

Young’s Group - the leading national company
engaged in production and marketing of food
products.

PRESENT SITUATION:

Shangrilla brand has also proved its dynamism with

the launch of Tomato Ketchup and whole range of
Pickle in oil.
Today we enjoy brand leadership and a strong
distribution network across 125 towns in Pakistan. It
also has presence in Bangladesh, Oceania, The GCC
Region, Africa, Europe and North America.

SHANGRILLA PLANT OUTLINE

Location: Karachi Pakistan

Covered Area Facilities: Over 100,000 square feet

Number of Employees: 350 approx.

Headquarter : Bahadurabad, Karachi, Pakistan.

Shangrilla’s Product Range: Tomato ketchup,

Chili Garlic Sauce, Ginger Sauce, Soya Sauce, Chilli
Sauce, Vinegar e.t.c

Slogan: “Add taste to life”

Address: 293/16Block3,B.Y.J.C.H.S, Bahadurabad,
Karachi (Pakistan).

BOARD OF DIRECTORS:

MR.MANSOOR AHMED CEO

MR.MUNIR AHMED Director Marketing
MR.SOHAIL AHMED Director finance
MR.YOUNAS AHMED Director production
CORPORATE PHILOSOPHY:

Shangrila (Private) Limited is committed to deliver

the consumers with high quality food products of
global standards catering to local tastes and
convenience.

BUSINESS PHILOSIPHY:

To enhance the product portfolio with national and

international brands, which meet the company
standards and maximize the network potentials with
increased efficiency, greater coverage and effective
customer services.

MISSION:

To represent the fast-paced lifestyles that demand

convenience of usage, energy of wholesome natural
ingredients, great taste and quick serving all in one
food item and to represent a range of tantalizing and
mouth watering spreads for everyone.

CORE VALUES:

Customer Focus:
Relentless focus on understanding and fulfilling
customer needs through superior service.
Integrity:
Honesty to the organization and oneself with
relationships based on mutual trust and openness.
Teamwork:
Willingness to share the glory of achievements as
well as responsibility for failure.

Humility:
Display self-belief as well as modesty and be
respectful to all customers, colleagues and business
partners.

GOALS AND OBJECTIVES:

Build profitable customer relationships by creating

environmentally better products and getting them to
market faster at lower cost, earning profits and
maintaining customer relationship.

• Building & maintaining customer relationship

• Give better products to customer & satisfaction
from it.
• Earning profits.
• Capturing value in return from the customer.
Organization design is a important factor for
shangrilla, as it is growing organization in the
food industry, many efficient employees are
working under the brand of shangrilla, there
business started 20 years back in 1988 by the
name of “marketing paradise” with the launch
of French Mayonnaise by four brothers,
Mansoor Ahmed, Munir Ahmed, Sohail
Ahmed and Younis Ahmed.
Now Young’s group have two divisions namely
Young’s food and Shangrilla one-year back this
division took place functionally.
Young’s food main products are mayonnaise
chicken spread and different kinds of spreads,
and shangrilla mainly distributes ketchup,
pickle, Soya sauce, vinegar and much more.

As shangrilla is an old organization it is still

working in the traditional style.
ELEMENTS OF ORGANIZATIONAL
STRUCTURE

The senior manager of the SHANGRILLA foods said

that:

“Organization structure gives working

boundaries to employees. Good organization
structure provide much information to the
employees in order to do their respective jobs
efficiently.”

The manager also mentioned that Shangrilla’s

organization structure based on the following key
elements:
• Work specialization
• Departmentalization
• Chain of command
• Span of control
• Centralization

WORK SPECIALIZATION:

The top manager of Shangrilla foods believes in work

specialization and division of labor. He said:

“We are following Adam Smith’s

philosophy of work specialization and
division of labor since our beginning.”
Shangrilla foods consider work specialization as a
very important element for good organization
structure because by this each employee can
produce efficient output. In the making of their best
selling product “ketchup”, the pulp of tomato is
make by a special person, the flavor is add by
another specialized person and the recipe is finalize
by other special person.

DEPARTMENTALIZATION:

There are five forms of departments.

1. Functional departmentalization.
2. Product departmentalization.
3. Geographical departmentalization.
4. Process departmentalization

Shangrilla’s manager said about their

departmentalization:

“Our jobs are grouped together on the bases of

functions we perform”

Shangrilla foods follow functional

departmentalization. They have:

• Product department
• Sales & Marketing department
• Human Resources department
• Accounting department
• IT department

CHAIN OF COMMAND:

Shangrilla’s chain of command starts from top

management to the lower level of management.
Being a traditional organization it follows:

• AUTHORITY:
The manager of Shangrilla foods has the
authority to order their peoples what to do and what
to do not.

• RESPONSIBILILTY:
The employees of Shangrilla foods take the orders of
their managers as the obligation to perform their
duties and they also feels the sense of responsibility
to perform well.

• UNITY OF COMMAND:
Unity of command also exists in Shangrilla. Each
employee in the company reports its own manager.

SPAN OF CONTROL:
 Director Marketing & Sales

GM Sales

Sales Manager

Regional Manager

Zonal Manager

Area Manager

Sales Executive

Booking Rep

Sales Operation Manager

Marketing Services Team

Media Manager

Although Shangrilla foods is a small organization

but it has wider span of control. Approximately it
has 10 to 12 managers and each manager is
controlling approximately 35 to 40 employees. Its
wider span of control helps it to generate more profit
as it has low number of managers so the company
saves management salaries.

CENTRALIZATION:

Centralization exist very much in Shangrilla foods,

decision making is concentrated at a single point at
high rate at shangrilla .Its top management makes
decisions with no inputs from lower management and
employees due to which the environment of the
organization remain stable.

FORMALIZATION:

Shangrilla has strict rules and regulations. They

have highly formalized structure. Every job is
assigned is to the employees and taken care that it
should be performed according to the policies.
 Organizational structure of
Shangrilla

• Mechanistic organization
• Contingency Factors

Mechanistic organization
A rigid and tightly controlled structure will be
called a mechanistic organization

o The Shangri-La (Pvt) Ltd. Has a very

strong mechanistic design but no
organization is completely mechanistic
so the company also follows few organic
characteristics.

o High specialization

 The Shangrila (Pvt) Ltd. Being a

mechanistic organization has a
specialized departmental system. It
has highly specialized departments
such as Media and Creative,
 quality, production, HR department
Etc.

o Rigid departmentalization:

 Shangrilla have very rigid

departmentalization. Every job is
assigned to different departments
according to their specialization. As
the organization follow a functional
design.

o Wider span of control

 The company has a wider span

system and that’s why they have
an effective and efficient
employees network.

o High formalization

 Shangrila (Pvt) Ltd. Has a very high

formalized network which means
that they carry out lot of paper
work and rules and regulations are
also clearly defined and are
followed in the organization
o Limited information network

 The Company follows a downward

communication network in making
a decision but some suggestions
are observed which are given by
the lower staff or employees

o Low decision participation

 Employees are involved in the

decision making process but the
final decision depends on the upper
managing staff whether they want
to include the decision of the lower
staff or not.

Factor of organic structure

followed by Shangrilla.

♦ Open communication is done

among the lower staff and the
middle and upper staff because
strong communication is a key to
success for any organization and
 this communication network is
followed in Shangrilla

Contingency Factors

Overall strategy of the organization

o Strategy is very important factor for
every organization, first the strategy is
planned then the structure is designed.

 The Shangrila (Pvt) Ltd. Firstly started

the organization as a organic
organization but later on they grew
with there strategies and adapted the
mechanistic organization strategies
as the organization started with a
single product and now they have
more than 9 products in a particular
product line. They are following the
stability strategy.

Size of the organization

o Firms change from organic to

mechanistic organizations as they grow
in size
  The Shangrila (Pvt) Ltd. Started the
business on a smaller scale but later on
after the passage of time they turned
the organization into a large scale. They
started the business with 15 employees
and now they have more than 300
employees working in the organization.
 First Young’s company was a single
company then it divided in to two
groups namely Young’s and Shangrilla.

Technology use by the organization

o Firms adapt their structure to the
technology they use

 ortant for every organization to use the

technology to its best extent in order to
become a highly successful
organization Here Shangrila follows an
upgrade system of machinery and
technology.

Degree of environmental uncertainty

o Dynamic environments require organic
structures; mechanistic structures need
stable environments

 An organization has to be very adaptive

in order to minimize environmental
uncertainties.
  Shangrilla is very less adaptive to
Envoirment changes one of its example
is they still use print media for
advertisements and promotion.

Shangrilla’s Organization
Design
Shangrilla organizational design is traditional and
mechanistic. As their organization goal is to provide
“highest quality food product”, to achieve this goal
they have adapted the traditional style of
organization designing.

According to the Marketing manager of

shangrilla

“Organization frame is very important and they

give it great importance”.

Traditional Design
Shangrilla like other firms started at the lower level
with a simpler structure, with little numbers of
employees.
As the organization started to grow they adapted the
functional structure.
 Functional structure
Shangrilla is divided in to different departments
o Production department
o Quality department
o Sales department
o Finance department
o Marketing department
Each department has its own manger and grouping
the people together who are specialist in their job
makes these departments. They believe that every
person should do for what he is assigned for.

ORGANOGRAM OF SHANGRILLA PRIVATE LIMITED

CEO
CEO

DirMkt
Dir Mkt DirFin
Dir Fin DirProd
Dir Prod

NSM
NSM MrktHead
Mrkt Head A/cMgr
A/c Mgr ITMgr
IT Mgr HRMgr
HR Mgr PlantMgr
Plant Mgr QltyMgr
Qlty Mgr

Salesforce
Sales force ATLSec
ATL Sec

SalesOprtn
Sales Oprtn BTLSec
BTL Sec
Co-ordination between departments
Shangrilla follows a certain process for sales
o Secondary sales
o Primary sales

Secondary sales:
The process of sales from distributor to the shop is
called secondary sales.
In order to make secondary scale more effective and
fast two departments, sales and marketing
department work together.

Primary sales:
The process of product availability from the company
to the distributor is called secondary sales. This
process is completed by the co-ordination of three
departments, production, quality, and finance

By these processes it is obvious that each respective

department do their assigned job by the co-
ordination of departments.
This type of structure has both strengths and
weakness.

Strengths of Shangrilla’s organizational design

o Faster decision making
o Cost saving
o Grouping of people who have similar jobs and
task make the work easier and simple

Weakness of Shangrilla’s organizational design

o Less adoption of changing Envoirment for e.g.
they haven’t been into electronic media for
promotion of their products.
o Functional specialists are insulated, they don’t
think out of the box, which is requirement of
changing Envoirment.

After the survey of shangrilla organization we got to

know that it is not a learning organization and
because of which their growth is very slow they are
not sensitive to changes.