Question

Answer the following questions on company "Vitamin Shoppe".

(Note: Do not attempt to solve if you cannot answer all.)

1) What is the current organizational structure? How would you label or describe it?

2) What are the strengths and weaknesses of this type of structure?

3) How do the strengths and weaknesses of this structure align with the new strategy or strategies?

4) Does the current organizational structure serve the new strategy? If so, how could it be improved to align even better?

5) Does the current organizational structure not serve the new strategy? If so, how could/should it be changed?

Answer 1

As per policy only first 4 questions will be answered

1. The current org. structure of the company is functional org. structure. the company has heads of various functions who report directly to the ceo

2. Advantages: The top levels of management is involved in all the decision making which ensures complete control of the upper management. Employees also view a clear career trajectory. SInce everyone uses similar processses, a functional structure provides stability and efficiency and allows large businesses to take advantage of economies of scale.

Disadvantages: This type of structure may lead to poor communication across departments and increases chances of inter-departmental conflicts

3. The new strategy of Vitamin shoppe includes cost optimisation, new product launch and customer focus.

While the fuctional organisation has advantage in cost optimisation, new product launch and customer centricity requires close co-ordination among all the functions and hence, a functional organisation might be disadvantageous for these aspects

4. The current organisation doesn't serve the new strategy. Focus cross functional teams should be formed which will act as medium of communication across the functions. this will enable better alignment of all functions wjtb the strategy