In: Economics
An organizational structure provides the framework within which
an enterprise functions. Flexible structure will assist in dealing
with challenges and creating opportunities for growth. A sound
organizational structure facilitates the growth of the organization
by increasing its capacity to handle complex operations.
Identify any 2 (Two) distinct organizations from your community
that have adopted different organizational structures. Critically
discuss the effectiveness, merits, and demerits of the
organizational structures adopted by these entities. Provide
recommendations on other structures that may be adopted by the
identified organizations to achieve operational efficiency.
Question 2
Information technology is at the center of the information
revolution. However, the role and impact of information technology
in business can be complex and confusing.
Using practical examples from any one of the organizations selected
in the question above, critically evaluate the usage and benefits
of technological systems throughout the value chain to enhance
operational excellence and competitive advantage of the
business.
Question 1
For the consideration of the given analysis, let us take two major organisations from different sectors of the economy that provides different services to the economy. The primary organisation under consideration is the Amazon firm which offers delivery services of almost all the commodities in the markwt. Considering the organisational structure of Amazon, it can be seen that the firm has a flexible structure with minimal godowns and staff so that the operational management is not being affected. The staff management is also done with an economic calculated instinct thereby making use of only the required number of staffs for efficient working of tge firm. The package and delivery is being done in an efficient manner so that the customer satisfavtion os always maintained. Since it doesnot require many establishments for sale, it can thus reduce the input cost in those areas and thus improve the profit making mechanism. The major benefits of such a scheme is that the staffs would be satisfied with their jobs which wpuld improve the efficiency of working and the flexible nature also would contribute to it. The major changes that have to be made in the firm or thw major area that has to be focused is the delivery mechanism wherein the modes of delivery should be apparently modified so as to increase the profits for the firm.
Now, consider the Apple firn. This is a major giant in electronics and mobile delivery mechanism thtt has a focus on the elite customers who are ready to avail some quality products. The organisational management of Apple focus on quality as the prime factor and the products on offer are expensive which could help in raising the profit margin of the firm. Since the quality is assured in each and every product, tge consumers would be always having an attraction towards each and every product that reaches the market. It also provides an onlije store of products nnd hence makes sure that the consumers would get the details regarding the product online and thus could make decisions based on the same.
Thus, on analysis we can see that both the firms have different organisational management and aproch yet both have certain focus which suits the organisational structure of the firm.