Question

You are a manager of a soft drinks company that is planning to go head to head with Coca-Cola to increase market share. Your strategy is to increase your product ranges that you plan to offer to Mass Market. Along with the extension of the products and product lines, you want to be responsive to the different geographic regions you plan to serve. So, your main focus is to balance the extended product categories along with the responsiveness to the geographic regions to serve. Currently you have a functional structure which may not be suitable for maintaining Products along with Geographic Responsiveness. So, you are required to IDENTIFY which Organizational Structure (For Example: PRODUCT BASED DIVISION, REGION BASED DEVISIONS, MATRIX STRUCTURE, etc.) would be best suitable if your strategy intends to: a. Lowering cost b. Increasing responsiveness c. or both Provide Rationale for each of the Structural Choices for the aforementioned three strategic intentions.

Answer 1

The Orgnisational Structure that is best suited for the strategy highlighte above is the Martrix Organisational Structure.

Step-by-step explanation:

The Matrix Organisational Structure is a cross between the Functional Organisational Structure and the Divisional organisational structure. In this type of environment, it is not uncommon to have an employee reporting to two line managers. For example, it is possible under this structure for the Sales Manage to report to the Regional Sales Manager and the Human Resources Manager.

The benefits of this type of structure is that is lowers human capital cost as key people in the organisation are shared, it optimizes the balance between the cost and time taken to complete projects.

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