John is operating a business in the Caribbean in the manufacturing sector. Over the years the business has grown and become profitable and as a result the structure of the organization must reflect the changing business needs. He started off with just an accountant and general administrative department. Due to the growth of the organization, there is now a need for a marketing and sales department, IT department, production department, risk department, operations department,humanresource department, finance department, research and development department and health and safety department. John is considering implementing a functional structure. This way specialist departments are able to focus on their tasks and meet their objectives. John is also concerned about his value chain and would like further insight on this grey area in his business function. Since the business is doing well locally, John is considering expanding to parts of the United Kingdom, Canada and Asia. As such, he is considering the development of a global strategy. John understands that to shape the organization’s overall strategy there are various strategic drivers both internal and external which must be considered and wants expert advice on these drivers relevant to his business. Though the market is competitive John’s company is known to be innovative. He has also demonstrated a care for the environment which has added value to his organization and his success. 1. What functional structure type John is considering? What are the benefits and drawbacks of this type of structure? Also, what other type of structure could John consider if he wants to organize employees around core processes? Discuss the benefits and drawbacks of this structure. Based on the departments mentioned in the scenario what would this structure look like graphically?
Business Strategy & Policy
Scenario:
John is operating a business in the Caribbean in the manufacturing sector. Over the years the business has grown and become profitable and as a result the structure of the organization must reflect the changing business needs. He started off with just an accountant and general administrative department. Due to the growth of the organization, there is now a need for a marketing and sales department, IT department, production department, risk department, operations department,humanresource department, finance department, research and
development department and health and safety department. John is considering implementing a functional structure. This way specialist departments are able to focus on their tasks and meet their objectives. John is also concerned about his value chain and would like further insight on this grey area in his business function. Since the business is doing well locally, John is considering expanding to parts of the United Kingdom, Canada and Asia. As such, he is considering the development of a global strategy. John understands that to shape the organization’s overall strategy there are various strategic drivers both internal and external which must be considered and wants expert advice on these drivers relevant to his business. Though the market is competitive John’s company is known to be innovative. He has also demonstrated a care for the environment which has added value to his organization and his success.
1. What functional structure type John is considering? What are the benefits
and drawbacks of this type of structure? Also, what other type of structure could John
consider if he wants to organize employees around core processes? Discuss the benefits
and drawbacks of this structure. Based on the departments mentioned in the scenario
what would this structure look like graphically?
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