Chapter 14 Organizational Structure and Change Learning Objectives After reading this chapter, you should be able to do the following:
One of the most widely used among larger organizations is a geographic organizational structure.
A form of top-down organizational structure, a single executive division may preside over manufacturing, sales and service divisions located all over the world. There is no single "best" organizational structure for business organizations, although there's almost certainly one or more structures that will work well for your business, as well as others that aren't a good fit.
Also, as communication has sped up, with the advent of digital communication, the structure that might have worked best 20 or 30 years ago, may no longer be the best structure for your organization today.
In response to these changes, some firms now have multi-layered structural organizations: What Is a Geographic Organizational Structure? Geographic organizational structures are often well-suited for very large entities, such as automobile manufacturers, that need to locate production facilities in which labor costs are favorable and supplies readily available, but they also need support organizations for dealerships that are located every where the company's autos are sold.
In some instances, however, even smaller organizations benefit from geographic organizational structuring: The Advantages of Geographic Organizational Structures In both of the above examples, a geographic organizational structure was necessary in order to meet each company's need for one or more manufacturing facilities, and also to service far-flung divisions, territories, regions or in the case of the surf shop surfing enthusiasts in different parts of the world.
With geographic organizational structures, it's usually not so much that the company has chosen this structure over other possible choices because of its inherent advantages.
Or more the case, that it's the only structure that fulfills the company's basic needs. Some disadvantages inherent in the structure may remain, and will have to be dealt with.
The Disadvantages of Geographic Organizational Structures Geographic organizational structures work best with strong leadership in a company, in which management and employees share a vision.
Daimler AG, for instance, has its headquarters in Stuttgart, Germany, and has manufacturing facilities in several European locations, and has sales divisions all over the world. Nevertheless, despite the enterprise being broadly distributed, the strength of the brand, which originates with Mercedes-Benz and its commitment to quality and luxury products, has enabled the company to operate these far-flung divisions, with relative consensus and a shared sense of mission.
If these qualities -- strong leadership, brand identification and a well-understood mission -- aren't predominant, a geographically organized company can suffer. When Chrysler and Fiat merged, for example, the problems with geographical structure became apparent.
The merged company has its headquarters in London for tax purposes; it has manufacturing in several countries; and, it has internal disagreement between Italian leadership and American sales divisions.
There is little sense of a shared mission. In several American cities, Fiat sales and Alpha Romeo sales have little connection with one another, physically or psychologically, and both are located blocks away from Dodge Jeep Chrysler sales. Although the formal organizational structure requires American middle-management to oversee all three divisions, long-time Dodge Jeep Chrysler employees, who are used to selling Dodge Ram trucks, macho-looking Jeeps and other larger vehicles, are generally uninterested in Fiats and Alphas.
As a result, although on paper it would seem that the Fiat e, a sassy little all-electric vehicle, is highly salable, sales have been dismal, and init's rumored to be discontinued.
The Alpha is sometimes paired with a Fiat dealership, but it is often offered as a choice in a luxury car dealership that has no organizational connection to Dodge Jeep Chrysler.
At times, as in Pasadena, California, the two organizations are competing for the same customer in the same geographic area.Ford Motor Company Organizational Structure departmentalization of an organizational structure of ford motor company an electric cars departmentalization Ford Motor Company BY HERB TAYLOR CMM Home.
A company’s organizational or corporate structure is the design and system that defines the patterns of interactions among the company’s components. In this business analysis case of Tesla, the organizational structure takes a traditional form, considering the company’s managerial focus and control, along with limited operational.
Ford Motor Company was established in by Henry Ford and 11 business associates. At that time, the US was home of 87 other car companies.
Before Ford, cars were luxury items, very expensive and only affordable by the wealthy. Ford’s genius was to recognize that with the right technology, cars can be made available to the public at an. Ford motor Company Ford Motor’s Financial Health Progress Report Ford Motor’s Financial Health Progress Report In the coming week, Learning Team B will discuss the financial health of Ford Motor The discussion will include an analysis of the current financial condition after calculating profitability ratios, liquidity ratios, activity ratios, and solvency ratios.
A Ford Edge. The features of Ford Motor Company’s organizational structure support the firm’s global operations. (Photo: Public Domain) Ford Motor Company’s organizational structure is based on business needs in varying market conditions around the world.