Final answer:
Kolt Inc. should consider adopting organizational structures that balance efficient operations, consumer cost savings, and a competitive marketplace, such as a flat organizational structure.
Step-by-step explanation:
When Kolt Inc., a large and successful retail chain on the West Coast, decides to expand its operations across the U.S., they need to consider which organizational structures to use. In the context of marketplace dynamics, it's essential to examine different organizational structures in relation to how they affect competition, efficiency, and cost savings to consumers.
Starting with the Kinder Morgan / El Paso Corporation merger as a reference point, it's important to note that the government and the Federal Trade Commission (FTC) play a pivotal role in monitoring and regulating such expansions to prevent the formation of oligopolies and ensure fair competition. This is applicable to Kolt Inc. as they expand their operations nationally. The FTC's decision to allow the Kinder Morgan merger, under the condition of divestiture to avoid market power concentration, demonstrates the delicate balance that must be maintained in the marketplace.
In recent years, a shift towards flat organizational structures has become more prevalent, as it promotes teamwork and a non-hierarchical approach to management. This could be beneficial for Kolt Inc., allowing for more open communication and feedback from all levels of employees. Such a structure can contribute to a competitive and innovative marketplace.
Ultimately, Kolt Inc. should consider a blend of organizational structures that promotes efficient operations, cost savings for consumers, and a competitive marketplace. This could mean adopting a flat structure internally while ensuring they do not develop excessive market power that could lead to reduced competition.