a. Given the information above, construct XYZ's current organizational structure. b. What type of departmentation does XYZ employ? Briefly explain your answer.

Understanding Business
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Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
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IV. Organizational Structure: XYZ INTERNATIONAL
XYZ International is recognized in the trade as the leading original equipment manufacturer of
jeans. The business includes in-house brand Jeans X, Company Y Jeans and Pants Z. XYZ has
production facilities in three countries namely China, Thailand, and the Philippines. China, XYZ's
largest production facility, accounts for 50% of the total production output. Most of the orders
produced in China are for USA and European market. Thailand facility, on the other hand,
produces 35% of the annual output and caters mainly for the USA market. XYZ's very first
overseas factory, established in the Philippines, is the smallest among the factories contributing
about 15% of annual output. Orders from this facility are for the European market.
XYZ's President/CEO is in charge of total management. Under him are the Vice President for
Operations, who is responsible for the overall operations of the corporation, the Vice President for
Finance who implements continuous financial audit and control systems to monitor the
performance of the firm and its flow of funds, and the Vice President for Administration,
responsible for the effective HR and administrative infrastructure of XYZ. In addition, each
production facility has a General Manager who directs the Production, Engineering, and Marketing
& Sales department.
a. Given the information above, construct XYZ's current organizational structure.
b. What type of departmentation does XYZ employ? Briefly explain your answer.
Transcribed Image Text:IV. Organizational Structure: XYZ INTERNATIONAL XYZ International is recognized in the trade as the leading original equipment manufacturer of jeans. The business includes in-house brand Jeans X, Company Y Jeans and Pants Z. XYZ has production facilities in three countries namely China, Thailand, and the Philippines. China, XYZ's largest production facility, accounts for 50% of the total production output. Most of the orders produced in China are for USA and European market. Thailand facility, on the other hand, produces 35% of the annual output and caters mainly for the USA market. XYZ's very first overseas factory, established in the Philippines, is the smallest among the factories contributing about 15% of annual output. Orders from this facility are for the European market. XYZ's President/CEO is in charge of total management. Under him are the Vice President for Operations, who is responsible for the overall operations of the corporation, the Vice President for Finance who implements continuous financial audit and control systems to monitor the performance of the firm and its flow of funds, and the Vice President for Administration, responsible for the effective HR and administrative infrastructure of XYZ. In addition, each production facility has a General Manager who directs the Production, Engineering, and Marketing & Sales department. a. Given the information above, construct XYZ's current organizational structure. b. What type of departmentation does XYZ employ? Briefly explain your answer.
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