Report: Understanding Contemporary Organization of EMP Company

This report provides a comprehensive analysis of EMP, a multinational gold company with headquarters in Australia and operations across five countries. It examines EMP's organizational structure, which includes seven mines managed as profit centers and joint ventures, and employs a divisional design with separate departments for marketing, human resources, operations, and finance. The report utilizes the Business Model Canvas to outline key partners, activities, value propositions, customer segments, relationships, resources, channels, cost structures, and revenue streams. It delves into EMP's marketing management strategies, focusing on value creation, cost reduction, and exploration for new gold reserves, with an emphasis on skimming pricing and direct marketing. Furthermore, the report explores the finance management of each mine, highlighting the independence of marketing and finance departments, and their respective roles in revenue generation and expenditure control. The conclusion emphasizes EMP's effective strategy for market share capture, its long-term value creation focus, and the significance of efficiency across all production phases.

Running head: UNDERSTANDING CONTEMPORARY ORGANIZATION
Understanding Contemporary Organization
Name of the Student:
Name of the University:
Author note:

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UNDERSTANDING CONTEMPORARY ORGANIZATION
Table of Contents
Introduction......................................................................................................................................2
Discussion........................................................................................................................................3
Business Canvas Model...............................................................................................................3
Marketing management...................................................................................................................6
Finance management.......................................................................................................................7
Relation between marketing and finance department......................................................................8
Conclusion.......................................................................................................................................8
References........................................................................................................................................9

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UNDERSTANDING CONTEMPORARY ORGANIZATION
Introduction
EMP is a multinational gold company which has its headquarter in Australia and is one of
the listed companies in the Stock exchange. The mines of the companies operate successfully in
five countries. The company has substantial gold reserves that will provide 30 years of
production. As per the financial forecasts, the company will generate good cash margins by
providing high quality gold assets. The main emphasis of the company is long-term value
creation, which will be done by reducing the costs, increasing the reserves and production with
the help of efficient use of capita (Joyce & Paquin, 2016). The company has seven mines that are
managed separately as profit centers. EMP also operates through joint ventures and currently the
company has two mines of joint ventures in Asia and South America.

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UNDERSTANDING CONTEMPORARY ORGANIZATION
Discussion
Business Canvas Model
Key partners
Suppliers, who
provide mining
equipments and
tools and
vehicles like
trucks used for
mining and
exploration
distributors,
local and
national
authorities
Key activities
Spanning,
exploration, mining
and marketing of the
finished products
Value Proposition
Focus on each
stage of
production.
Increasing gold
reserves and cost
effectiveness
Customer
segments
Merchants, local
and international
smelters,
customers of
Australia, Asia
and Europe
Customer
relationships
Focusing on
quality and
ensuring the
customers to
provide the
best quality
Key Resources
Tools used for
mining, drilling,
exploration, trucks,
funds and skilled
labor force
Channels
Cost structure
Salaries, wages, cost of equipments and
tools, cost for operations like exploration,
Revenue Streams
Selling the finished gold products to the five
countries where the company operates.

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UNDERSTANDING CONTEMPORARY ORGANIZATION
mining and spanning
Fig: 2, Business Model Canvas, Source: (created by Author)
Key partners- Key partners of the company are the suppliers who provide vehicles and trucks
for mining activities, suppliers, who provide equipments used for the mining. Gold concentrates
are transferred to the refineries and smelters for further refining and smelting. The owners of
these refineries and smelters are the partners of the company. The lawyers are the legal partners
who would help in legal matters like licensing that are required for any business. Other partners
include distributors who would be distributing the processed gold product to the end users.
Key activities- The activities start with finding the right site that is rich in the gold ores. Another
major activity is setting up the site for routine mining activities. Generally, the refining and
smelting of the washed ores are done in separate refineries. Finally, the gold ores are processed
to make finished gold that can be sold or further used for other purposes (Shafritz, Ott & Jang,
2015).
Key resources- The key resource of the company include, land that is rich in gold ores, mining
equipments, vehicles like, trucks, fund to hire employees. Since the mining activity is both
capital and labor intensive, adequate amount of funds and labor are required for carrying out the
mining activity. Apart from the manpower required at mining site, a large number of skilled
employees are required for carrying out smelting and refining activities. Therefore, skilled
workforce is required at refineries as well.
Value proposition- The company creates value by focusing on quality, which is gained by
focusing in each and every step that is involved in the processing of the gold ores. EMP believes
that building good relationship with the employees should be built on mutual trust. They have in

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UNDERSTANDING CONTEMPORARY ORGANIZATION
total six thousand employees all around the world. The core value of the organization is to focus
on health and safety of the employees at the mining sites (Kotler et al., 216). Creating a good
will in the market is the prime objective of the company.
Customer segments- The main customers of the company include smelters in Australia, Asia
and Europe. They also sell their products to the merchants who are in contract with the company
(Cummings & Worley, 2014).
Channels- The distributors of the company transfer the gold to the smelters (Cummings &
Worley, 2014).
Customer relationships- The Company has established a good and healthy relationship with
their customers, like the merchants who are in contract with the company (Joyce & Paquin,
2016).
Cost structure- Cost structure of the company comprises of equipment costs, trucks, drilling
tools, tools used for exploration, monitors for monitoring. The salaries and wages of the
employees and labors all constitute to the cost structure.
Revenue streams- The company generates revenue from the selling the gold products to the
merchants and smelters in Asia, Europe and Australia (Joyce & Paquin, 2016).

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UNDERSTANDING CONTEMPORARY ORGANIZATION
Fig 2: Organizational design of EMP, source: (created by Author)
The organizational design of the company is divisional, as shown in the figure, each of
the seven mines of the company operate as strategic business units, so it can be said that the
company has seven strategic business units. Each of the divisions has separate marketing, human
resource, operations and finance departments (Armstrong et al., 2015).
Marketing management
Each of the seven mines of the company are separate profit centers, therefore each of the
business units have their own department for marketing management. The company implements
marketing strategies based on the country it is operating. The focus of the company is value
creation for which the company is continuously focusing on quality that it provides to its
customers. For fulfilling the demand of its customers, the company is also focusing on
exploration to find new gold reserves. The customers of the company are merchants with whom
President
SBU1
HR, Marketing
Operations, and finance
SBU2
Consists of all forur
department like SBU1
SBU3
HR, Marketing,
operations and fianance
departments.

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UNDERSTANDING CONTEMPORARY ORGANIZATION
the company has signed contract. Majority of the production of the company is transferred sold
to the smelters in Asia, Australia and Europe (Armstrong et al., 2015). To find new gold reserves
that are a complicated task, therefore the company is finding new and innovative ways for
explorations. The company for its production efficiency focuses on all the stages of production,
spanning, exploration, mining, operation, processing and research and development. Another
most important strategy of the business is reduction in costs. Large open pits and underground
mining technology is used for mining so that the cost can be controlled. Each of mines ship their
transformed ore to gold concentrate to smelters for final refining. Cost reduction and increasing
the gold reserves are some of the main strategies used by the company for gaining competitive
advantage in the market. The company can apply skimming pricing strategy because the cost
involved in the production of the product of the company is too much. In order to cover that cost
the company can target the premium clients and apply skimming pricing strategy. The
advertising of the gold products can be done in premium magazines. For promotional activities
more emphasis should be given to direct marketing and personal selling.
Finance management
Each of the mines has their own finance department and they handle the financial
transactions separately. The working capital of the company comes from the revenue it earns by
selling the gold products to the customers and merchants. EMP’s strategy is to keep the
operational cost minimal so that the company can have a cost benefit. EMP plans to use the
capital efficiently in each of its operations and activities (Arnold, 2013). The company operates
in five countries and through the sales from all these countries, the company gets a major portion
of its revenue.

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UNDERSTANDING CONTEMPORARY ORGANIZATION
Relation between marketing and finance department
Marketing and finance department are very much independent, the finance department
maintains the revenue generated by the marketing department. Finance department handles all
the expenditure that are required for carrying out the various activities whereas marketing
department carries out all the activities that are either directly related to revenue generation like,
sales or support sales, like promotional activities. All the four departments are crucial for any
business organization but it can be said that marketing and financial departments are backbone of
any organization (Brigham & Ehrhardt, 2013). The main source of revenue in the company is the
sales of the gold products to the customers across the world. The revenue generated is further
used for various operations and providing wages and salaries to the employees. The finance
department keeps an account of all the income and expenditures of the company. It allocates
funds for carrying out various activities.
Conclusion
Thus, it can be concluded that the strategy adopted by the company to capture maximum
market share is very effective, because the company is not concentrated to one country rather it
is operational in five countries where the company has separate functional departments. The
divisional organizational design of the company helps the company to operate easily in each of
the seven mines as separate profit centers. The gold reserves of EMP will provide 30 years of
production to the company. The focus of the company is long-term value creation, and so EMP
focuses on efficiency in each of the phases of its production. The main strategy of the business is
reduction in costs and increasing the gold reserves.

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UNDERSTANDING CONTEMPORARY ORGANIZATION
References
Armstrong, G., Kotler, P., Harker, M., & Brennan, R. (2015). Marketing: an introduction.
Pearson Education.
Arnold, G. (2013). Corporate financial management. Pearson Higher Ed.
Brigham, E. F., & Ehrhardt, M. C. (2013). Financial management: Theory & practice. Cengage
Learning.
Cummings, T. G., & Worley, C. G. (2014). Organization development and change. Cengage
learning.
Joyce, A., & Paquin, R. L. (2016). The triple layered business model canvas: A tool to design
more sustainable business models. Journal of Cleaner Production, 135, 1474-1486.
Kotler, P., Keller, K. L., Brady, M., Goodman, M., & Hansen, T. (2016). Marketing
management. Pearson Education Ltd..
Shafritz, J. M., Ott, J. S., & Jang, Y. S. (2015). Classics of organization theory. Cengage
Learning.