Organizational Structure

The set organizational structure may not coincide with facts, evolving in operational action. Such divergence decreases performance, when growing. E.g. a wrong organizational structure may hamper cooperation and thus hinder the completion of orders in due time and within limits of resources and budgets. Organizational structures shall be adaptive to process requirements, aiming to optimize the ratio of effort and input to output.

An effective organizational structure shall facilitate working relationships between various entities in the organization and may improve the working efficiency within the organizational units. Organization shall retain a set order and control to enable monitoring the processes. Organization shall support command for coping with a mix of orders and a change of conditions while performing work. Organization shall allow for application of individual skills to enable high flexibility and apply creativity. When a business expands, the chain of command will lengthen and the spans of control will widen. When an organization comes to age, the flexibility will decrease and the creativity will fatigue. Therefore organizational structures shall be altered from time to time to enable recovery. If such alteration is prevented internally, the final escape is to turn down the organization to prepare for a re-launch in an entirely new set up

The management team on the first stage of the Company opening will include a general manager, 3 workers (2 craftsmen and 1 designer). As business is one the starting stage 1 show room will be available in Kiev.

General manager will be the main person who will take orders and communicate with customers. General manager will be responsible for the overall performance of business, providing the necessary expertise for rules and regulations. Sales representative will hold responsibilities for business profitability. Curriculum oversight and daily operations will be managed by sales representative, who will also perform the function of show room administrator and take care of promotion actions. General manager will have the general fiscal responsibility and will be the main contact person for the main office in Spain. General manager will be responsible for the overall performance of business in Ukraine, providing the necessary expertise for following local rules and regulations. Sales representatives will hold responsibilities for business profitability. Curriculum oversight and daily operations will be managed by sales representatives, who will also perform the function of stores/boutiques administrators.

Budget for fixed personnel (1 month):

General Manager	8 200.00 UAH
Worker (x2)	6 000.00 UAH
Designer	4 000.00 UAH
Total	18 200.00 UAH

Production plan

The production itself is not involved in the business plan, because the company will act as a Ukrainian distribution center of the products manufactured by Spanish company on its facilities worldwide.

However, the Company needs to put an office in a strategic location in Ukraine. This office will provide with faster communication, small warehouse for on call orders and easier way to contact the customers. It is suggested that Kiev would be the best place to settle it because of the potential market in this state. Miami is Ukraine’s trendiest, fashionable places to live. Kiev fits the niche for every line of our product.

An executive office is a solution than many businesses are using because it saves time and money. Executive office will provide all the Company will need to start the business without all the expenses that any other solution will have. This will help the new startups businesses to concentrate in their clients instead of hiring, or maintenance since it’s all included in the rent. A production plan is that portion of your intermediate-range business plan that your manufacturing / operations department is responsible for developing. The plan states in general terms the total amount of output that the manufacturing department is responsible to produce for each period in the planning horizon.The output is usually expressed in terms of pesos or other units of measurement (e.g. tons, liters, kgs.) or units of the aggregate product (this refers to the weighted average of all the products in your company). The production plan is the authorization of your manufacturing department to produce the items at a rate consistent with your company's overall corporate plan.This production plan needs to be translated into a master production schedule so as to schedule the items for completion promptly, according to promised delivery dates; to avoid the overloading or under loading of the production facility; and so that production capacity is efficiently utilized and low production costs result.Production planning is one of the planning functions that a firm needs to perform to meet the needs of its customers. It is a medium-range planning activity that follows long-range planning in P/OM such as process planning and strategic capacity planning. Firms need to have an aggregate planning or production planning strategy to ensure that there is sufficient capacity to meet the demand forecast and to determine the best plan to meet this demand.

Budget for flexible personnel (1 month):

Cleaning person	800.00 UAH
Security ( one for the whole building)	1 000.00 UAH
Total	1 800.00 UAH

Cash flow:

Estimated incomes:

The average price of 1 table – 1 900 UAH

Maximum number of tables manufactured by 2 workers within 1 month – 20 units

Maximum income – 38 000 UAH

The average price of one chair – 305 UAH

Maximum number of chairs manufactured by 2 workers within 1 month – 90 units

Maximum income – 27 450 UAH

Total maximum income – 65 500 UAH

Estimating that the company will have 50% for a start (70% later) of maximum possible level of productions we can estimate incomes.

Budget

Materials:

Factor (сорт) – 1.2 ( 0,75 is the lowest) - 700 UAH Oak

- 450 UAH Pine

1m

155mm

155mm

Equipment (depreciation – 3-year of useful life, in the balance sheet contra account is used when closing the period)

Equipment	Price
Hammer x 4	200.00 UAH
Set of planes	400.00 UAH
Drill x 2	1600.00 UAH
Saw	1200.00 UAH
Set nails and screws *	180.00 UAH
Polish ( 5 liters)*	280.00 UAH
Glue ( 5 liters)*	50.00 UAH
Total	3 910.00 UAH

*needed every month

Expenses:

• License: 200.00 UAH

• Tax: 150.00 UAH/ month

• Accommodation: work shop – ( 30 m ) renting in a factory building ( Vyl. Osvity, 7) – $250.00 – 2050.00 UAH / month, office (20 m ) vyl. Degtyarivska43/4, 8 - $300.00 – 2460.00 UAH

• Transportation: ( Kiev and Kiev region) , renting a truck – 150.00 UAH / hour

• Utilities: 570.00 UAH/month ( Water supply – 18.00 UAH / m ,Electricity – 0.70 Kop kvt / hour)

• Promotion – 11 300. UAH

• Wages – 20 000.00 UAH

Expenses
License	200.00 UAH (once paid)
Tax	150.00 UAH
Building	2 000.00 UAH + 25 000.00 UAH
Transportation	150.00 UAH ( per 1 hour)
Utilities	570.00 UAH
Promotion	11 300.00 UAH
Wages	20 000.00 UAH