Preliminary Proposal

ELAUTO ENGINEERING AND TRADING

BY

OFFICE OF STRATEGY AND BUSINESS

ELAUTO

DRAFT Paper for COMMENT

Preface

Elauto Engineering and Trading plc which is also known as ELAUTO is one of

the giant group companies in Ethiopia which was recently established and

highly entered into an Ethiopian business market. Founded in ………, a

collection of legally independent firms bounded together with formal and

informal ties, one of the pioneers of professional vehicle transport Assembler

Company in Ethiopia. As the demand of the vehicle market is highly growing in

the country, Elauto Engineering and Trading plc responded to solve the growing

request for vehicle transport and has since grown its business substantially to

become the leader in vehicle transport provider that it is today. The group

company is a socially responsive, friendly environment, highly economical with

affordable price deemed to solve the issues of the shortage of transportation in

the country. In addition to facilitating the vehicle ownership to various

individuals and association by arranging loan provision from different banks in

Addis Ababa, the company is also providing vehicle transport provisions in

major regional cities like in Dire-Dawa, Adama, Hawassa, Jigjiga, Gambella,

Assosa, Bahar Dar, Gondar and Mekelle. On this way, the company is

aggressively working on solving the shortage and issues of transportation as a

whole. Moreover, the company had been greatly contributed for the socio-

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economic development of the country. Many business sectors, companies,

associations, individuals and others have been benefited from various products

and services of Elauto is supplying. In parallel to assembling automotive vehicle

Elauto offers the following products and services:

 Vehicle assembling and workshop ,

 International trade businesses such as Export-Import,

 Logistical services, custom clearing, freight forwarding, warehousing,

 Distribution of construction materials: Cement, reinforcement bar and

others,

 Real state, high quality houses with affordable prices,

 And others.

Partially, the above listed independent companies are actively participated in

various businesses and running their own protagonists and responsibilities. The

management of Elauto and its employees are properly managing and leading

day to day operation of each company to keep the business growth and its

sustainability. In 21st century, market and businesses are always volatile due to

different factors. In this vibrant environment, it’s all about the management and

stakeholders of the companies who design a business strategies and direction

for the success of the businesses. Now a day, Elauto is running a giant capital

with dedicated managements and aggressively doing a business with good

reputations. While companies are doing a business there might be bottlenecks

which can challenge the performances of the company. Then, to be a

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competent and sustainable company, an internal and external business

environment of the Elauto should be skimmed and reviewed for the decision

making process of top management.

A business strategy is a roadmap and a basic foundation for every business

organization. It encompasses the financial and physical activities of an

organization which further helps them to monitor day to day operational

activities. A business development strategy helps leaders keep their sights on

organizational goals while ensuring readiness for future challenges. This is

essential whatever level you are working at be it leader of a business unit,

function, division, country or region. A strategy is not enough, however leaders

must also build teams and manage internal and external relationships in order

to execute the strategy and build a sustainable organization.

Therefore, the strategy and Business Development Office has been skimmed the

internal business environment of the company and identifies the following

thematic areas which has to be considered as a gap and be a challenges for the

Elauto businesses. To make Elauto the most competitive and strong company in

East Africa and beyond, the following fundamental principles should be

developed and considerable by the management urgently.

1. The Elauto should develop its own: -

Vision

Mission

Values

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 Goals

Together, the vision, mission, and values statements provide direction for

everything that happens in an Elauto. They keep everyone focused on where the

Elauto is going and what it is trying to achieve. And they define the core values

of the Elauto and how people are expected to behave. Mission and vision

statements play three critical roles: (1) communicate the purpose of the Elauto

to stakeholders, (2) inform strategy development, and (3) develop the

measurable goals and objectives by which to gauge the success of the Elauto’s

strategy.

2. Elauto Organizational structure

Organogram make planning easier and defining the organizational structure,

culture, working line of authority and responsibility of each individual in the

organization smart. It is a pictorial representation of a company’s structure

which indicates clearly the relations between people within the organization.

The order in which the authority and power in an organization is exercised and

delegated is important for executing the related activities and achieving the

goals and objectives successfully. So, the organizational chart graphically

illustrates the concept known as chain of commands and shows the flow of

authority, responsibility and communication. Even it helps to fulfill the vacant

and critical places that the company required to hire urgently. It also solves the

unnecessary hired and idle man power in the company. It should be urgently

developed.

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The importance of using organizational chart is felt due to the fact that a

business organization needs to provide guidance and clarity on various

organizational and human resource issues. It is through the organizational

chart it is ensured that the responsibilities are being allocated, activities are

being performed and management authority has been established in a way as

needed. An organizational chart is of great support to create and define the

organizational structure, so that the business objectives may be accomplished

accordingly and yet successfully. It not only helps in dividing the functions of

an organization in an appropriate manner, but it also aids greatly in developing

the structure of reporting while guiding the employees properly, as the

connecting lines on the chart show who is accountable to whom and who is in

charge of what department. This organogram should be prepared by

experienced and professional consultants.

3. Working Manuals and Procedures

Policies and procedures are an essential part of any organization.

Together, policies and procedures provide a roadmap for day-to-day

operations. They ensure compliance with laws and regulations, give guidance

for decision-making, and streamline internal processes.

Policies and procedures provide a guide for meeting Elauto’s objectives and

describe the steps that employees are to take when creating a product or

delivering a service. This ensures consistency in practice and helps to maintain

product quality.  A policy will set the expectation for employee behaviors and

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the procedure outlines the steps for it. Therefore, the company should set a

direction to develop the following manuals and procedures based on

completion of organogram.

 HR policy and procedure,

 Code of conduct,

 Work ethics,

 Annual leave

 Work culture

 Dressing code and others

 Finance procedure,

 Payment,

 Collection

 Advance

 Purchasing and others

 Operation procedure,

 Workshop procedure,

 Standardization procedure,

 Quality Assurance procedure,

 Distribution procedure,

 Construction procedure.

 Marketing and sales procedure,

 Marketing procedure,

 Sales procedure,

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  Branding procedure,

 Promotion procedure

 International market procedure,

 Export procedure

 Import procedure

 Customer clearing procedure

 Logistic procedure

Finally, my recommendation is going to the following tips

 Hierarchical work flows and system should be developed,

 Formal and standardized reporting format should be developed for

all organs,

 Weekly review meeting should be developed and encouraged be

reported as per the would be approved format to the concerned

department.

 Internal and external assessment on their performances and

challenges should be made periodically,

 Training should be provided as per the department requests,

 Strategy and plan should be developed for each departments,

 Business model should be developed based as per the company

vision and mission,

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  Standardized Office layout should be designed as per the

department.

END

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