What justifies a medium-sized company in making this move to a complex matrix structure? 2. Retail business is a local business, why does the company not use a geographical organization model? 3. The company argues that this structure allows employees to learn from each other. What, and how, do you think they might learn from each other, and why would this be advantageous?
Need self explained detailed solution for the following questions based on the below mini case.
1. What justifies a medium-sized company in making this move to a complex matrix structure?
2. Retail business is a local business, why does the company not use a geographical organization model?
3. The company argues that this structure allows employees to learn from each other. What, and how, do you think they might learn from each other, and why would this be advantageous?
Mini Case
Café Britt – a Costa Rican medium-sized company
The Costa Rican company Café Britt was founded in 1983 by US coffee broker, Steven Aronson in order to market fine roasted coffee through direct sales in Costa Rica. In 2001 it launched its first store in the international Airport in San Jose, aiming to reach the international traveler market, and it then added fine chocolates to its product offering. The company expanded internationally by opening stores in Peru (2005), followed by Dominican Republic, Columbia, Brazil, Equator, Uruguay, Australia and the USA. Overall the company employs around 1400 people in 130 stores over 12 countries, and generates revenues of around US$130 million. Café Britt shops have now expanded their product offering to include local handicrafts and jewelry. The company also operates on-line. Its production facilities are located in Costa Rica, Peru and Columbia. As far as its international structure is concerned, a case study report indicates that the company was originally a functional structure but ‘As the company grew and its international business became core, its organizational structure evolved; It moved to an hybrid organizational structure, a multi-country divisional/matrix where each person reported to a functional manager (Operations, Marketing, Logistics…) and a country manager. It was believed that such a structure allowed employees to learn from each other, to maximize communication and cooperation between countries and head office.’
1.
Planning for an all around arranged organization structure is significant for any firm, as it will straightforwardly influence the income and benefit of the company. Half breed organization structure is a mix of divisional and useful structure. Hence it has the best of both the world. It has favorable circumstances of both the structures. Half breed structure has the accompanying focal points which will help a medium-sized organization into a huge one.
Solidarity among the laborers: One of the central issues of this structure is cross-culture working, which makes the representative regard one another and join for a comparable objective. This is the integral explanation which helps the medium-sized company to turn out to be huge.
Best utilization of assets: Hybrid structure totally maintain a strategic distance from the wastage of time and assets, which causes the company to arrive at its objective. Hence this structure utilizes the best utilization of the assets.
Decentralization: Decentralization of dynamic assists with winning worker trust. As it makes the worker sufficiently important to settle on the right choices about the company.
Assignment of work: To designate the work in the perfect amount and at the perfect time, make the structure proficient.
2.
In the Geographical organization structure, the company parts into an alternate area and every area will have its own chief and different employees.
Consequently geographical structured can't be utilized in this circumstance cause:
- Autocracy frequently wins in the nearby business which regularly lead to the contention between the neighborhood supervisor and focal administrator. Along these lines no solidarity is found.
- The company needs to get adjusted by the various societies of an alternate area, which is difficult to do.
- In this sorts of structure, loads of copy work happen which is an exercise in futility and assets.
- Correspondence is trying as individuals convey more to the divisional level than in imparting at a global level.
Step by step
Solved in 3 steps
