Business Management: Business Analysis

Introduction:

Jumbo Books, located on the main road in H-market Defence, is owned by Mr. Altaf Ahmed. The shop offers a wide range of items such as fiction novels, textbooks, school bags, stationary items, toys, gift packs and even computer related products such as mass storage devices and CDs. Mr. Ahmed opened ‘Jumbo Books’ in 1998 after gaining experience and knowledge about the business by working in family owned bookshops and even in a book shop in Karachi. The initial funds for the project were provided by a Supplier in Karachi who was in good terms with Mr. Ahmed while he worked there. Mr. Ahmed pays rent monthly for Jumbo Books. He has a three year contract with the land owner but feels maintaining good relations are vital for running a successful business and long term progress. Therefore, rather than signing and renewing the contract he has kept the rent agreements solely to verbal negotiations. Mr. Ahmed doesn’t have a formalized set mission or vision for ‘Jumbo Books’. It is seen as mode of sustenance for his family and the shop is run without any clearly identified purpose. The shop is run by four people: Mr. Ahmed, his brother and his two cousins. Mr. Ahmed manages the shop and divides the work between the three employees based on the needs of the walk-in customers. There are no additional employees hired by Mr. Ahmed.

Organization Structure:

Jumbo Books follows a hierarchical organization structure with ultimate authority and power resting with the owner, Mr. Ahmed. Important decisions such as the introduction of new products, diversification, time period for product testing, division of labor and delegation of tasks are controlled by him. Mr. Ahmed plays many vital roles in the shop. He acts as a planner as he makes the decisions about the goals and activities that employees and the shop will follow and an organizer as he manages the workforce and the finances of the shop. He also acts as a controller as he monitors the performance and makes...