Coteminas. Organizational structure - Essay Example

The company has set roots in the north (Great River), United States, Argentina, and Mexico. From these ventures, it is evident that the company uses admirable strategies to penetrate the market. In reference to the company’s financial records, it is evident that a larger percentage of the revenue is from external ventures. Its expansions are resulting from mergers and acquisition. One of the significant acquisitions is the amalgamation of Spring Industries. The company has been working on extending its global reach through the creation of global spring.

This is by the formation of joint ventures with other textile companies. 10 years after its establishment, Cotminas’ capital increased from US$ 40 million to over US$ 496. From this growth, it became difficult to manage the company, leading to it becoming a public company. In relation to its financial records, the company has been experiencing steady growth, resulting from quality management skills (Walter 12). In reference to poly-centralization, which means development of infrastructure, housing, and urban land, the company is leading in opening up remote areas.

This is because its leading branches are in the under developed areas. With this, the company ends up enhancing development and creation off employment in the rural areas. It also enhances extension of other services such as banking, security, and other welfare (Jay 23). Decision making processes It is evident that Coteminas uses mergers and acquisition to expand its dominance. An ideal example is the merger with the Wentex textile. This is a company that dominates the manufacture of t-shirts in china.

Chinese prefer the products of the company because they are cheap, and the same time they are of quality. This has led the company to expand to the extent of making US$ 600 million in a single financial year. These are the financial records of 1995. These are the financial records that enticed Conteminas’ joint venture (Institute of Textile Technology 45). Conteminas decisions are on the availability of raw materials. The joint venture with Wentex exists on the fact that the firm had access to cheap raw materials.

This made it produce quality products on a competitive ground because its products would reach the markets on favorable terms. These raw materials are polyester which it access on 11% cheaper than the prevailing price in china, and cotton. The company is also fast is producing t-shirts. It produced four times more efficient than the average speed of its competitors (Gary 34). The company also targets areas with low cost of labor. This is evident from its venture in the northern region of Brazil.

The area fully depends on the relief aid from the government. It is also under developed thus offering chances of low labor. This is the reason behind the success of the venture in Paraiba, northern region of Brazil. The wages in the region are below the average wages paid on the southern region of the country. The cost of other resources such as electricity and waters is also cheap in reference to other regions in the country. This has led the company to making admirable profits resulting from the low cost of production.

This is the reason behind the location of three main branches in Brazil, a Termeletrica plant, located in Christmas, The Great River of the North, and a hidreletrica of the situated in Minas Gerais. On the other hand, the company has centralized its administration and commercialization in a central region, in the country. The company’s has these capabilities from the extended partnership with other multinationals. This is a strategic tool to ensure that a sustainable environment prevails (Icon Group International 23).

The company has been working on building it basis