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, human resource 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. As a Strategic Management Consultant:  Question: Discuss Goold and Campbell five tests based on good general design principles below. 1. The Specialised Cultures Test 2. The Difficult Links Test 3. The Redundant Hierarchy Test 4. The Accountability Test 5. The Flexibility Test:

Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
Publisher:William Nickels
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
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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, human resource 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.
As a Strategic Management Consultant: 

Question:

Discuss Goold and Campbell five tests based on good general design principles below.

1. The Specialised Cultures Test

2. The Difficult Links Test

3. The Redundant Hierarchy Test

4. The Accountability Test

5. The Flexibility Test:

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