Introduction to Business: An Analysis of 3T Logistics

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INTRODUCTION TO BUSINESS

Table of Contents
INTRODUCTION............................................................................................................................. 2
FUNCTIONAL AREAS AND HIERARCHY OF MANAGEMENT............................................................3
COMMUNICATION IN LEADERSHIP AND MANAGEMENT..............................................................6
DRIVERS OF GLOBALISATION AND THEIR IMPACT ON BUSINESSES...............................................7
COMPARISON OF STYLES OF LEADERSHIP/MANAGEMENT...........................................................9
CONCLUSION............................................................................................................................... 11
REFERENCES.................................................................................................................................12
Table of figures
Figure 1: 3T Logistics Logo............................................................................................................. 2
Figure 2: Hierarchy of management at 3T Logistics.......................................................................4
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INTRODUCTION
Globalisation process has made a strong impact on the leadership and management of the
companies. The present report explains the hierarchical structure and different functional areas
of 3T logistics which is a UK based time logistic company. 3T logistics provides an end-to-end
solution to different transportation-related tasks of the companies and provide a facility of
continuous tracking of the shipments with the help of different GPS and Cloud-based storage
systems. This report will also discuss the importance of communication systems for leaders and
managers. Next, the reports will address different factors which can be considered as the
drivers of globalisation. Different leadership styles and the most appropriate leadership style
for 3T logistics is also discussed in the report.
Figure 1: 3T Logistics Logo
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FUNCTIONAL AREAS AND HIERARCHY OF MANAGEMENT
3T logistics provides expert solutions in reducing the costs of the clients. The company works
with a variety of clients and suggest innovative solutions to improve service and reduce the cost
of operation. Below mentioned are the key functional areas and the hierarchical management
structure of 3T logistics.
FUNCTIONAL AREAS OF 3T LOGISTICS
Inventory planning and management
It is one of the most important aspects of logistics management. The logistics management
includes maintaining the right balance in the inventory items so that various supply chain
functions can work efficiently (3T Logistics, 2019). It also includes making sure the items are
safe form damages, pilferage and other storage losses.
Warehousing
Warehouse stores finished goods until they are sold in the market. Warehouse management
plays an important role in the logistics management functions of the company (Richards, 2017).
the size of the warehouse, layout, the location of the warehouse and the design of the building
are some of the important factors to consider.
Transportation
Transportation includes movement of raw material, finished and semi-finished goods from
supplier to the buyer. The transportation functions have developed fast and modern
transportation functions are completed with an amazing pace (Shiau and Lee, 2010). It has
become possible due to the introduction of modern technology such as GPS and cloud storage.
Information technology
The IT department is the key functional area of 3T logistics. The IT specialists make sure that
that the consignments are delivered oThe transportation systems are enabled with GPS
connectivity which helps in tracking the orders. The cloud storage systems provide the ease of
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storage of data in large amount (Cantle, 2012). The IT department also takes care of the
internal functions of the company like Human resource management and production.
Human resource
The human resource department at 3T logistics makes sure that the employees are getting the
right environment to enhance their knowledge and skills. better reward and recognition
systems is also an important function of the HR departments which makes sure that the better
work of the employees is acknowledged on various public platforms (Chandes and Paché,
2010). Better management of different HR functions make sure that employees are able to feel
connected with the organisation.
HIERARCHY OF MANAGEMENT
Figure 2: Hierarchy of management at 3T Logistics
Source: Author’s work
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BOARD OF
DIRECTORS
PRODUCTION
QUALITY
CONTROL
PACKAGING
AND LABELING
PURCHASE
RECIPTS PAYMENTS
HUMAN
RESOURCE
RECRUITMENT
AND
SELECTION
EMPLOYEE
RELATIONS

The hierarchy of management at 3T logistics is shown in the above figure, the board directors
are the prime decision-making body which managed funding for different activities and form
policies to improve the quality of services. Moving down the hierarchy, there are three primary
departments which are production, purchase and human resource. The production
departments look after the logistics and construction business of the company and make sure
that the right quality is maintained in the products and services. Under the production
department there are two sub-departments which are quality control department and packing
and labelling unit. The quality control functions make sure that the goods and products are free
from damage and are delivered at the right time (3T Logistics, 2019). The purchasing
department has two sub-departments which are receipts and payments. The purchasing
department helps in regular maintenance of cash flow for the business. The human resource
department comes next in the hierarchy. The sub-department under Human resource
department is recruitment and selection and employee relations. Both of these departments
make sure that the right candidates are selected and retained in the organisation. Good
employee relations are maintained by enforcing better reward and recognition policies and
other benefits for the employees.
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COMMUNICATION IN LEADERSHIP AND MANAGEMENT
Communication is the process of extending the ideas of leaders to the followers so that these
ideas can be implemented accurately and within stipulated time. Communication process plays
an important role in effective management by the leaders because impressive communication
abilities not only help the leaders to express him better but it also helps him motivate the
followers. It is important for the managers to communicate effectively which helps them
complete the projects successfully and achieve success and growth. When a leader is a good
communicator he can share his knowledge and experience with the team members and also
makes them aware of his expectation (Alexander, 2015). Good communication by the leaders
and managers motivate people to improve their performance and develop the qualities that the
leader is expecting from them. A good talker should not be confused with a good
communicator. A good communicator not only speaks he is also ready to listen to the words of
others. Such leaders are able to get useful ideas to form the teammates as the teammates also
feel comfortable with such leaders.
Good communicators are also good observers and they have a sharp eye to judge any
dissatisfaction in the team members. Such leaders follow a proactive approach to address
problems and manage the team effectively to achieve their designated goals. By interacting
regularly with the team members, a leader can further enhance his leadership qualities and can
also motivate the team members to improve their performances. A leader should act in a
planned manner to assess the knowledge level of the receiver so that he is able to grasp the
message completely and prepare himself better to achieve the desired goals. The leaders and
managers should also be able to increase their knowledge base so that their communication
skills can be enhanced (Caraballo, 2013). Having information about the recent industry trends
and the technical issues the leaders can effectively communicate with the team members and
provide them relevant guidance on varied topics. When the team members are aware that the
leader is a good learner and keeps his knowledge updated, it motivates them to improve their
knowledge base.
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DRIVERS OF GLOBALISATION AND THEIR IMPACT ON BUSINESSES
Globalisation is the process of unification of major markets of the world which makes it possible
for the companies to take the benefit of lenient trade laws and economical labour availability.
Below mentioned are the key drivers of globalisation and their implication on the business
process of 3T logistics:
NEW TECHNOLOGY
Instruction of technologies makes it necessary for companies to collaborate with different
technology firms. These technology providing companies may be present in a foreign country
and it is necessary to form a cross border collaboration to take advantage of the latest
technology (Loppacher et al., 2011). Better technology has helped the company reduce its
delivery time and provided the facility to track the shipments in real time.
IMPROVEMENT IN LOGISTICS FACILITIES
The improvement in logistic facilities has also become one of the primary reason companies
feel comfortable in shifting their operations overseas. All the major automobile companies of
the world export some of their parts from different manufacturing facilities present in different
corners of the world and logistics plays an important role in this process (Villaverde and Maza,
2011). 3T logistics has also experienced improvement in the basic function of the company with
the use of advanced technologies in the logistics sector.
LIBERALIZATION IN CROSS-BORDER TRADE
In the emerging economies of the world like China, India and Gulf nations, the government has
formed favourable trade policies for foreign a company which has created a better
environment for these companies to establish their business (Brewster et al., 2016). A large
population in these emerging economies also offers good business opportunities for foreign
companies. Improved facilities in foreign countries help in smooth functioning of different
multinational companies.
DIFFERENCE IN COSTS
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The labour cost in the emerging economies of the world is much lower than the developed
economies like the UK. Companies wish to expand in these countries to take advantage of the
low labour cost and reduce the cost of operations which results in a reduction in prices to the
end consumer.
CHANGED CONSUMER BEHAVIOUR
The changed behaviour of consumers is also one of the primary reasons for increased
globalisation. The customers have developed a cosmopolitan feature in which the customer
demand patterns are homogeneous across different nations of the world which facilitates large
scale manufacturing (Cantle, 2012). The companies produce similar goods for large masses and
transport these goods to different countries of the world.
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COMPARISON OF STYLES OF LEADERSHIP/MANAGEMENT
To lead a group of people and motivate them to increase their current performance level, a
different leadership style can be chosen. The two most widely used leadership styles are
Autocratic and Democratic leadership. The distinctive features and the comparison between
these two leadership styles are explained in the table below:
AUTOCRATIC LEADERSHIP DEMOCRATIC LEADERSHIP
The autocratic leadership style is based on
control. Autocratic leaders give clear orders and
expect to follow the orders promptly.
The democratic style of leadership is based on the
participation of the team members (Alexander,
2015).
The autocratic leadership style the access of
information is to only a few people who make
the ultimate decision of different matters.
In democratic leadership, all the team members
can have access to information so that there is no
confusion regarding policies and procedures.
Autocratic style of leadership manages a clear
distinction between the one who will lead and
the one who are the followers.
Democratic style of leadership offer guidance to
the team members and seek their advice when
taking big policy decisions.
The authority of taking decision recedes in the
hands of the leader. He does not feel the need to
consult the team members before taking big
decisions (Hendriks and Karsten, 2014).
The decision making in a democratic style of
leadership works in a collaborative manner and
everybody have a say.
This style of leadership is effective when the
team members are new and are not competent
enough to complete their tasks independently.
This style of leadership is effective when the team
members are experienced and skilled and they
have the capability to complete their tasks in an
independent manner.
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Out of these two styles, the democratic style of leadership will be a more effective leadership
style for 3T logistics because the team members are found to be more creative under such
leadership style. This happens so because the democratic leaders motivate the team members
to share their views and by the help of these inputs they make such policies which are
compatible with most of the team members. The leaders are the one who takes the final
decision in the important matter but by inviting the team members to share their views, the
leader is able to understand the concerns of the employees and can incorporate these views in
the final decision taken (Hendriks and Karsten, 2014). Democratic style of leadership is
influential because it considers that the views of employees are an important part of the
decision making and in absence of this collaboration the system may lose its essence. It has
been seen that the leaders which prefer the democratic style of leadership are able to increase
the satisfaction level of employees.
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CONCLUSION
This report discussed the hierarchy management of 3T logistics and the importance of
leadership and better communication. 3T logistics provides reliable transportation services in
different countries and to manage the team of employees the leadership need to communicate
effectively. The globalisation process has helped the company to expand its operation. The
majority of clients of the company are the multinational automobile and construction
companies who need logistic services to transport goods from one country to another. The use
of modern technology such as GPS and Cloud storage system has facilitated different functions
of the company and the services have become fast and reliable.
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