Imagine That You've Just Graduated And Have Been Hired

Imagine That Youve Just Graduated And Have Been Hired To Be a Manager

Imagine that you've just graduated and have been hired to be a manager for a small startup company called Gear Unlimited. The company supplies local sports teams with official jerseys and clothing. This clothing is worn by the players and sold to the fans by the teams. Gear Unlimited currently has 20 employees but is planning on expanding to three other cities within the next two years. The business is brand new and still in the process of making decisions about how to organize.

They've seen your educational background and have asked your opinion on the topic. Specifically, ownership wants you to pick an organizational structure that you suggest they use and present that choice to them. Make use of Microsoft PowerPoint and complete the following:

Components of the Presentation

A title slide.

At least 1 slide that summarizes your choice for the company, choosing from geographic, matrix, functional, or divisional organizational structure.

At least 1 slide that explains the advantages of this structure.

At least 1 slide that explains the disadvantages of this structure.

At least 1–2 slides that explain why you think this is the best choice and how that choice relates to Gear Unlimited's business.

Paper For Above instruction

Introduction

Organizational structure is fundamental for the effective functioning and growth of a company. For a startup like Gear Unlimited, which plans to expand into multiple cities, choosing the right organizational structure is crucial to facilitate communication, operational efficiency, and adaptability. Based on the company’s current size, expansion plans, and product offerings, I recommend adopting a divisional organizational structure. This structure aligns with Gear Unlimited's goals of regional expansion and product specialization while providing flexibility and focus at the regional and product levels.

Summary of the Chosen Structure

The divisional organizational structure divides the company into semi-autonomous units or divisions based on geographic regions or product lines. Each division operates as a separate entity with its own resources, management, and objectives, focusing on specific markets or product categories. For Gear Unlimited, this means creating regional divisions for the initial expansion cities, each responsible for sales, marketing, and operations within that region. Alternatively, divisions could be based on product lines, such as Jerseys, Teamwear, and Fan merchandise, but given the expansion plans, geographic divisions seem more appropriate initially.

Advantages of the Divisional Structure

• Focus on specific markets: Each division can tailor its strategies to local customer preferences, improving responsiveness and customer satisfaction.
• Flexibility and autonomy: Divisions operate independently, allowing faster decision-making and adaptations to local market conditions.
• Facilitates expansion: As Gear Unlimited grows into new cities, creating additional regional divisions becomes manageable without disrupting the entire organization.
• Clear accountability: Performance measurement is straightforward, as each division's results are distinct, encouraging accountability and performance focus.

Disadvantages of the Divisional Structure

• Potential duplication of resources: Each division may have its own sales teams, marketing, and administrative functions, leading to inefficient resource use.
• Possible competition among divisions: Divisions might compete for resources or recognition, which can create internal conflicts.
• Complex coordination: As the organization expands, maintaining consistent company culture and policies across divisions can be challenging.
• Higher costs: Operating semi-autonomous divisions can increase operational costs due to duplicated functions.

Why the Divisional Structure is the Best Fit for Gear Unlimited

Given Gear Unlimited's expansion plans, a divisional structure offers the flexibility and focus needed for regional growth. As a startup, the company requires agility to respond to local market dynamics, which the divisional structure provides through decentralization. This setup will allow each regional division to operate semi-independently, making targeted marketing and sales efforts more effective. Furthermore, as the company grows, the divisional approach simplifies adding new regions, maintaining operational clarity.

Additionally, a divisional structure supports product specialization, which can be advantageous for a company dealing with diverse product lines like jerseys and fan merchandise. Over time, divisions can be further customized based on product focus or regional needs, thus supporting the company's long-term strategy.

While there are some disadvantages, such as possible resource duplication and higher costs, these can be mitigated with strategic planning, centralized support functions, and effective communication channels. Overall, the benefits of responsiveness, local focus, and scalability outweigh the drawbacks in the context of Gear Unlimited’s ambitions and growth trajectory.

Conclusion

In conclusion, I recommend that Gear Unlimited adopt a divisional organizational structure. It aligns well with the company’s current stage and future expansion plans by providing regional focus, flexibility, and scalability. This structure will position Gear Unlimited to better serve local sports teams and their fans, ensuring effective growth and market penetration across multiple cities.

References

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