Question

Honest Tea: Organizational Structure

Honest Tea (U.S.) is a bottled organic tea company based in Bethesda, Maryland. It was founded in 1998 by Seth Goldman and Barry Nalebuff. The company is a wholly owned subsidiary of the Coca-Cola Company. Coca-Cola invested 40% in 2008 and bought the rest of the company in 2011. Honest Tea is known for its organic and fair trade products and is one of the fastest growing private companies.

Honest Tea started off with a handful of employees bringing out five products, three of which are still in the market. As Honest Tea began to grow, it became necessary to have workers specialized in different tasks so that they ultimately function as a single unit. Today the company has over 35 package varieties of not only tea but other beverages as well.

Honest Tea caters to a group of customers that prefer organic or low calorie beverages over other types of beverages. The advantage here is that Honest Tea is able to use skilled specialists to deal with this unique customer base. Honest Tea came into this category of customers as a challenger. The whole process of sourcing material, production, marketing, and sales was different since it catered to a different group of customer.

Honest Tea finds that it must continually adapt to changing circumstances and environments. Initially organic or low calorie tea was the only product, but the firm has expanded to various other beverages. Bringing out new and innovative beverages is something that Honest Tea continues to do. Honest Tea follows a very transparent work culture which has helped them to avoid some of the problems that typical growing organizations face. Honest Tea believes that growth is continuous; the firm should never consider that they have finished achieving what they set out to accomplish.

1. Describe the role of division of labor and hierarchy ay Honest Tea.

2. In what ways has business strategy and organizational size impacted Honest Tea. How might this change in the future?

3. Does Honest Tea have more of an organic or mechanistic structure? How can you tell?

Answer 1

1. The job of the division of labor and hierarchy at Honest Tea can be viewed as the more prominent specialization of the activity can be guaranteed according to the activity titles. The representatives take a great deal of motivation and inspiration in the results of the organization and the association additionally ensures that all the workers are being used to their best capacities and not allowing them to dampen

2. With regards to the working environment, the organization did a ton to make the picture of a straightforward association and this truly helped a great deal to the association to make nature of the work environment increasingly favorable for the representatives by having the open entryway strategy. Be that as it may, in the event that we take a gander at the pace by which the organization is developing, it will be hard to keep up it similarly as with the expanding number of workers with the size of the firm, legitimate administration of the representatives will turn out to be very troublesome

3. In the event that we look carefully, at that point it is protected to express that the association is functioning as a mechanistic structure as a division of labor empowers the specialization of the representatives in a specific territory and simultaneously, a more elevated level of oversight doesn't give the chance to enhance and imaginative reasoning.

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