Question

explain the Organzational structure and business operations in China as a foreigner selling health care products?

Answer 1

Meaning of organisational structure:

Organisational structure defines how activities like task allocation coordination and supervision directed towards achievement of organisational goals. Depending upon the strategy the suitable organisational structure will be implemented. Change in strategy leads to change in organisational structure. Structure dictates how objectives and policies to be established. Structure dictates resource allocation.

There are different forms of organisational structure. They are: centralised structure and decentralized structure. In centralised structure there are - simple organisational structure and functional structure. In decentralized structure there are - divisional structure, strategic business unit structure, matrix structure, network structure, hourglass structure.

Organisational structure and Business operations in China as a foreigner selling healthcare products:

It is said that matrix organisational structure would be suitable in case of healthcare products. A matrix organisational structure is a most complex structure because it is a combination of vertical and horizontal flows of authority and communication. In this structure employees have two superiors one is functional manager (vertical flow) and other is product or project manager(horizontal flow).

As we know that China is a very populated country, it is easier to use the huge personnel to sell the health care products across the country. Through the efficient use of specialised personnel, equipment and facilities any product can be sold in the market and can meet organisational goals. It also encourage new ideas because of the pooling of diverse talents. As there are several channels of communication employees can see the visible results of the work. High employee cost is a major disadvantage due to more management positions. There might occur complexity due to horizontal and vertical flows of authorities and communication. Sometimes it may lead to confusion due to dual lines of authorities and dual reporting channels. Sometimes there may be delay in decision making. Thus the business operations continue as specified above.