Structure

Question 1

Define organisatonal strucutre

Answer 1

Organisational structure defines how the various functions of an organisation are arranged

Question 2

Define a successful strategy

Answer 2

A successful strategy required the organisation of people and decision making

Question 3

State the 7 types of structures

Answer 3

Entrepreneurial
Function
Divisionalised (product/ brand/ division based
Divisionalised (geographical)
Matrix
Flexible

Question 4

Explain Entrepreneurial structure

Answer 4

Structure is built around the owner. All key decisions made centrally by the owner

Ads -
fast decsion making
more responsive to markets
good control
close working relations

Dis -
Lack of career structure
to centralised lack ideas
can not cope with diversifciation/ growth (will need to change)

Question 5

Explain Functional structure

Answer 5

Organisation structure is based on each function of the business

Ads - economies of scale
standardisation
specialised

Empire building (decision made in the best interest of the dept not the business
Slow to adapt to change
Conflicts between functions
Can not cope with diversification

Question 6

Explain Divisionalised structure

Answer 6

Organisation strucutred in accordance with product line/ brands or divisions

Divisions are likely to be profit centres

Ads -
enables product growth
clear responsibilty and accountability of products
training of general managers

Dis -
Loss of control each manager is given the responsibility

Lack of goal conguence

Duplication of effort eg finance team