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

Answer 1

Step-by-step explanation:

Organizational structure is what is best for

1. lowering cost:

what would be most suitable here is the product based division structure. this is because the main goal is the launching of new product lines and also getting ranges that are in existence to be bigger. the divisions are smaller here, which is given to each single product line which may have their own R&D and response divisions. Efficiency is increased, product development cycle is reduced and so also is cost lowered.

2. increasing responsiveness:

what is best here is region/geographic based structure. this is as divisions that are smaller are given to distinct areas. this increases region specificness as well as the fact that it takes care of any grievances. the team here have good knowledge of the needs of the specific region and their socio cultural background.

3. both

the matrix structure is best when their is a goal to lower cost and at the same time increase responsiveness. the divisions are of two dimensions, primary and secondary. this therefore increases sharing of resources and also cost reduction. it uses both if these goals to enhance efficiency.