Sun City Boards and the management challenges they face.
we’ll return to Sun City Boards and the management challenges they face. With your advice, Tom Wilson (the owner) has continued to make strategic planning progress, but you and Tom realize that a new organizational structure is needed for the company to grow as you envision. Plans include expanding beyond a single store/manufacturing shop and reaching new markets via an Internet presence and e-commerce. The following is a summary of the current staff and loose descriptions of job functions:
Owner/CEO—Tom Wilson (Designs the boards, sets their selling price, and establishes sales channels with local surf shops)
Bookkeeper—Sarah Balanced (Sarah also doubles as order-taking clerk, cash register attendant, and customer complaint listener)
Board Maker—Jack Ovalltrades (If Tom invents it, Jack can make it!)
Board Making Assistants—Jill, Jane, & Judy (Assignments change almost daily as Jack decides what needs to be done next)
Sales Associate—Kelly Dude (Named after famed surfer Kelly Slater and a business icon for Sun City Boards; visits surf shops and occasionally closes a sale)
Part-time Associates—Hired as needed for inventory management (cleanup), promotional events, etc.
Module 5 Organizational Structure and Processes Learning Unit provides examples of organizational structures. As Tom’s advisor, your assignment now is to select one of the organizational structures presented in the Learning Unit, describe how it works, chart the future structure for Sun City, and explain why you prescribe it. The following steps will help you prepare for your written assignment:
Thoroughly read Module 5 Organizational Structure and Processes Learning Unit.
Carefully consider the various organizational structures, their key structural components, and organizational timing relevant for Sun City. Consider the internal and external environmental factors, as well as current trends.
Your Task
Select one of the Organizational Structures from your reading for Sun City.
Create a Future State Organizational Chart for Sun City. You may use a presentation tool of your choice. There are numerous organizational chart format inserts available in popular software. Microsoft Word and PowerPoint have Hierarchy charts found on the Insert tab under SmartArt. Your organization chart should contain the title of the job function, even if no Sun City
Sample Solution
Organizational Structure for Sun City Boards
Introduction
Sun City Boards is a surfboard manufacturing company that is planning to expand its business to include e-commerce. The current organizational structure of the company is not well-suited for this expansion. As a result, Tom Wilson, the owner of the company, has asked me to advise him on selecting a new organizational structure.
Organizational Structures
There are a number of different organizational structures that Sun City Boards could consider. The most common organizational structures are:
- Functional structure: This structure groups employees based on their function, such as sales, marketing, and manufacturing.
- Divisional structure: This structure groups employees based on the product or service they offer, or the geographic region they serve.
- Matrix structure: This structure is a hybrid of the functional and divisional structures. Employees are assigned to both a functional department and a product or geographic team.
Recommended Organizational Structure for Sun City Boards
I recommend that Sun City Boards adopt a matrix structure. This structure will allow the company to maintain its focus on its core functions (sales, manufacturing, and marketing) while also allowing it to create teams to focus on specific products or geographic regions.
The following is a chart of a possible future state organizational chart for Sun City Boards:
Explanation of the Matrix Structure
In the matrix structure, employees are assigned to both a functional department and a product or geographic team. For example, a sales representative might be assigned to the sales department and the e-commerce team. This would allow the sales representative to specialize in selling surfboards online.
The matrix structure is a complex structure, but it can be very effective for companies that are growing and changing rapidly. It allows companies to be flexible and responsive to change.
Benefits of the Matrix Structure for Sun City Boards
The matrix structure offers a number of benefits for Sun City Boards, including:
- Flexibility: The matrix structure allows Sun City Boards to be flexible and responsive to change. For example, if the company decides to expand into a new geographic region, it can simply create a new team for that region.
- Improved communication: The matrix structure can improve communication between different departments and teams. This is because employees are assigned to both a functional department and a product or geographic team. This forces employees to communicate with each other across departmental lines.
- Increased innovation: The matrix structure can foster innovation. This is because employees are exposed to new ideas from different departments and teams. For example, a sales representative might learn about a new manufacturing process from a product team member.
Challenges of the Matrix Structure
The matrix structure also presents some challenges, including:
- Complexity: The matrix structure can be a complex structure to manage. This is because there are two chains of command: the functional chain of command and the product or geographic chain of command.
- Conflict: The matrix structure can lead to conflict between different departments and teams. This is because employees may have different priorities and goals.
- Power struggles: The matrix structure can lead to power struggles between the functional and product or geographic managers. This is because both types of managers have authority over the same employees.
Conclusion
I believe that the matrix structure is the best organizational structure for Sun City Boards as it expands its business to include e-commerce. The matrix structure is flexible, responsive to change, and can foster innovation. However, it is important to be aware of the challenges of the matrix structure and to take steps to mitigate them.
Additional Recommendations
In addition to adopting a matrix structure, I also recommend that Sun City Boards take the following steps to prepare for its expansion into e-commerce:
- Invest in e-commerce technology: Sun City Boards will need to invest in e-commerce technology, such as a website and a shopping cart.
- Hire experienced e-commerce staff: Sun City Boards will need to hire experienced e-commerce staff to manage its website, sales, and customer service.
- Develop a marketing strategy: Sun City Boards will need to develop a marketing strategy to attract customers to its website.
- Partner with other businesses: Sun City Boards could partner with other businesses, such as surf shops and travel websites, to promote its products.
By taking these steps, Sun City Boards will be well-positioned to succeed in the e-commerce market.
