Question

An owner of XYZ Uniform has called you in as consultants. XYZ Uniform sells uniforms and provides embroidery services for high school, college, and recreational sports teams in the Los Angeles metropolitan area. The owner has managers in the following departments: High School Sales, Collegiate Sales, Recreational Sales, and Accounting. The High School and Collegiate Sales have one full-time sales associate and two part-time associates as well as a delivery person. The Recreational Sales department has one full-time and one part-time associate. The Accounting department has two full-time employees that report to the manager.

The problem this company is experiencing is that XYZ Uniform business grows too fast than the owner’s expectation. XYZ Uniform’s demand has been historically high from all sale departments, and the owner personally believes that this high demand will last at least 5 years. However, the demand is too high to meet without hiring new employees, so the owner wants to hire 100 employees to meet the demand. The owner wants you to suggest the new organizational structure with new blood (100 new employees) to meet the high demand and to ensure XYZ Uniform’s long-term success.

Question 1. Please list and explain three recommendations in which you can improve the way the current structure operates to meet the high demand and to ensure XYZ Uniform’s long-term success.

Question 2. Which type of organizational structures is the most appropriate to adapt your three recommendations from Question 1? Please draw an organizational chart, which reflects your recommendations, and explain your rationale.

Answer 1

Answer 1: Three recommendations as follows:

1. Hire a Marketing team: which will include A New Marketing Manager along with five Assistant Marketing Managers and a Research Manager to build marketing strategies along with five Assistant Research Managers. A Client Manager and five Assistant Managers for managing clients and related interactions. Two Business Development Manager to create new leads and new clients for the business. The main purpose of these hiring is to build new marketing strategies, new products, managing client relationships, and generating new leads for bringing new customers to the company.

2. A Sales team: in which we will segregate the three sales departments: High School Sales, Collegiate Sales, and Recreational Sales. Each department has a Reporting Manager, Two Supervisors, and Twenty Sales Executives at the ground level. Providing cross-training to the Sales Executives for the three above mentioned sales department. The entire sales team is responsible for handling the sales and their clients directly.

3. In the Accounting team, An Accounts Manager and two Assistant Managers will be hired. One to check all the invoices and Purchase Order and other to check statutory or tax compliances and audits. And, a Treasurer to cross-validate from the bank regarding payment receipt. An Accounting Analyst to analyze the data and forecast future sales for the company. And, above all an HR Manager and an Administration Manager to manage all the hired resources.

Answer 2:

Hierarchical Organization Structure is the most appropriate to adopt the above three mentioned recommendations.

The rationale behind opting for the Hierarchical Organization structure and the above three recommendations is that being a general trading business this company can be best structured for improved sales and a bright future in this structure only.

The Organizational chart is enclosed with the answer.

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