Sunday, July 2, 2023

Organizational Structure Design

Bison Transport is a privately held, professionally managed transportation company established in 1969 by Duncan M. Jessiman in Winnipeg, Manitoba, Canada. With more than 3,700 workers and independent contractors running a network of 2,100 tractors and 6,000 trailers across North America, it has expanded to become one of Canada's largest trucking corporations. A prominent asset-based freight solutions provider, Bison Transport has over 4,000 qualified drivers and staff members working for them. The mission and the core values of Bison are the following:

We empower our people to put safety first.

We foster a spirit of family, fun and giving back.

We provide exceptional service to our customers and each other.

We promote creativity and innovation to drive a sustainable business.

We cultivate a habit of winning and the aggressive pursuit of success.(Bison Transportation, 2022)

 

I have been working there since June in the Customs department and my main responsibilities there are making sure that all items entering or departing a nation are thoroughly examined and taxed. I am also seeking to stop the smuggling of illegal goods between the United States, Canada, and Mexico.

Now I am going to analyze how the external factor can affect Bison Transportation using the PESTEL strategic framework:

Political Factors:

We are close to a new provincial election in Manitoba. It means that exists the possibility that the new administration could change some provincial regulations related to the transportation field such as the transportation of hazmat goods or change in regulations about changing gasoline vehicles into electric vehicles or maybe increasing transportation taxes and fees. All these factors could affect Bison transport especially the last one, which push Bison to change its fleet.

Economic Factors:

Bison Transport Company could be affected by an economic recession, the increase in fuel prices, and the base wage in the different provinces in Canada, because this company has many brunches around Canada. Also, now a day we are recovering from the pandemic, so the supply change issues are not completely overpassed. This situation could transform in logistic and rentability issues for Bison transport.

Social Factors:

For Bison Transport, these factors could include population growth, urbanization, consumer preferences for sustainable transportation, and changing lifestyle patterns. This situation could affect the dynamic of the business and the number of clients that this company could have because some of them would ask for example for a more sustainable company.

Technological Factors:

This is a key factor in this industry because if you have the right technological tool; it will allow you to prevent delays and manage them in a more effective and positive way. Bison Transport needs to consider factors such as automation, telematics, data analytics, digital platforms, and connectivity solutions. Adopting new technologies may boost operational effectiveness, improve customer satisfaction, and help the business maintain its competitiveness in the marketplace.

Environmental Factors:

These factors are important to Bison transportation because one of the most important sources of pollution in the world is the emission of greenhouse gases from transportation vehicles such as tractors, trailers, and so on. For that reason, is important for Bison to adhere to environmental standards, and embracing eco-friendly practices can not only reduce the company's environmental impact but also align with customer expectations and regulatory requirements.

Legal Factors:

Regulations governing data privacy, employment legislation, safety standards, and transportation must all be considered by Bison Transport. To prevent fines, preserve operational integrity, and safeguard the company's brand, compliance with the law is essential.

 

On the other hand, these are the key factors that can affect the Bison Transport organizational structure:

Organizational Tasks

The organization must address many activities related to the transportation field. There are four main areas in the company: Financial, Administration, Operation, and Trucking. Each of these areas is a specific task to run the business and only if all these areas work together the company could be a success. For that reason, is very important in the organizational structure.

Organizational Goals

The goals of Bison Transport are another significant factor impacting its organizational structure. For instance, Bison has the goal to run a more sustainable business. To achieve that, Bison Transport is including a Long Combination Vehicles (LCV) department in the company to save fuel and give less emission to the environment. It means that all the areas in the company should include new procedures to manage this way of transportation.

Job Characteristics

A person who works in Bison Transportation needs to have a level of knowledge, and preparation because you must work with a lot of technical definitions and much specialized software related to the industry. Also, transportation is a fast industry, so you must be able to find solutions to delays, for example, in a short period of time. Finally, you should have the skills to coordinate and collaborate with different departments because there, everything is connected.

Growth Cycle

The growth cycle of Bison Transport is an essential consideration when determining its organizational structure. The current structure might need to be modified when Bison will expand operations overseas to Europe and China for example. This might entail establishing additional levels of hierarchy, creating new divisions, or changing reporting arrangements.

 

I believe that the best organizational structure for Bison Transport is the hierarchical organizational structure because it allows facing external and internal factors of the company in a more effective and efficient way. Is important to have departments with specific tasks in the company and because of the huge work that a transnational company has, the company must have a level of employees. It should go from trainees, specialists, senior specialists, supervisors, managers, directors, and so on.

This situation will allow the organization to provide a quick response to issues that come from political, economic, social, technological, environmental, and legal because it will be always a person with more capacity for decisions and more experience to solve and go over an issue or challenge.

Bison organizational Chart:

References:

·       About Us | Bison Transport. (n.d.-b). https://www.bisontransport.com/about

·       Indeed, Editorial Team. (2023). Hierarchical Structure: Advantages and Disadvantages. Indeed.com. https://www.indeed.com/career-advice/career-development/hierarchical-structure-definition-and-examples

·       Sharkey, G. (2021, April 9). What is the carbon footprint of a truck? FreightWaves. https://www.freightwaves.com/news/what-is-the-carbon-footprint-of-a-truck

·       MacMillan, C. (2020, August 9). What You Need to Know About Long Combination Vehicles Trucking Jobs. Smart Trucking. https://www.smart-trucking.com/long-combination-vehicles/ 

2 comments:

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  2. I appreciate your in-depth analysis of the external factors influencing Bison Transport using the PESTEL framework. Your examination of PESTEL aspects demonstrates a thorough understanding of potential impacts on the company. Additionally, your insightful assessment of how these factors could affect Bison Transports' operations and profitability is well explained.

    Regarding the organizational structure your suggestion of implementing a traditional hierarchical structure appears reasonable as per the size and complexity of Bison Transport. This is particularly important in a company with multiple branches and a large workforce. A hierarchical structure facilitates clear lines of authority, efficient decision-making processes, as well as effective coordination across various departments. This is particularly important in a company with multiple branches and a large workforce.

    Bison Transport has made appropriate choices with regards to its organizational structure by considering both internal and external environmental factors that directly impact its operations. Such consideration has resulted in a solid framework upon which Bison Transport can confidently respond to these factors to remain adaptable and successful within today’s rapidly evolving business.

    It is my personal belief that there should be some levels of decentralization in your organizational structure at Bison. Doing so involves delegating decision-making authority to lower tiers within the organization itself. Decentralization can help the organization respond more quickly to local market needs and promote faster decision-making in certain areas of the business.

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