Managing Information Technology in Small Business Term Paper

Managing Information Technology in Small Business - Term Paper Example Tebrak is a construction company that was established in 1979. The company was registered and started its operations in Riyadh City, Saudi Arabia. It was initially started as a family business and had 30 employees at the time it was being incorporated. Tebrak managed to grow its workforce and by 1995, the company had employed more than 250 workers. In the year 2000, the company was classified level B. The company also managed to diversify its operations and in 2005 it commenced the supply of medical equipment and devices to hospitals. The company has been managed by a family with the assistance of twelve management-level employees in each company. It has also recorded approximately 200 million Saudi Riyal in sales revenue. This has seen Tebrak grow into a large company that has been offering significant employment opportunities to the residents of Riyadh city. Despite the robust growth of Tebrak, there was the issue of centralization of decision making. Decision making was for a long time restricted to top level management. The lower level of management was never involved in any decision-making process. This restricted participation in decision making never provided freedom of decision making (Aksoy & DeNardis, 2007). The top level of management was involved in strategic planning while the lower level was involved in the implementation of policies devised by the top management. The organization managed to emerge as the market leader in an industry that was very competitive with large firms dominating the industry. Tebrak had adequate capital that saw the company invest in a number of economically viable projects that sustained its profitability for a very long time. There was less use of technology during the early 1990s and most of the firms were unable to remain competitive. This resulted in the exit of a number of companies because of decreasing profit margins.