Group Assurance of Learning Exercise 4
October 5, 2014
Juan Valdez Lopez
Ex. 7C (1 business)
Southwest Airlines chart
Southwest Airlines is a company using the divisional structure by units based on their role; there are four shortcomings for this type of structure that affect Southwest Airlines.
* Lack of Teamwork: Southwest Airlines areas may have difficulties working with other functional areas. There is often a perception that they are competing with other functional areas for resources and a lack of understanding of what other areas do for the company.
* ...view middle of the document...
217). Using this structure, Hershey Foods encounters four shortcomings:
* Not the appropriate structure: The geographic areas for candy consumption are pretty the same worldwide. As mentioned, this type of structure is good if the company needs to tailor particular needs of customers. Consumption patterns for candy are quite similar everywhere so the needs don’t have to be tailored. Instead, Hershey should focus on product structure because the company produces, and sells three types of products worldwide: (1) chocolate, (2) no chocolate, and (3) grocery.
* Limited resource allocation: Every president in each particular area has limited vision tightly to his/her geographic area. Therefore, the broaden resource allocation can not be achieved. This may include research study, technology adoption, and product development.
* Managing Conflict: Managing conflict can happen when different presidents in different areas have contradicting opinions about products and consumption patterns. It may cause limitation in improving current products or developing new products because they cant reconcile their opinions. Besides, competition between areas may become so intense that it is dysfunctional and leads to limited sharing of ideas and resources for the common good of the company.
* Costly structure: This type of structure can be costly for Hershey. For instance, functional specialists are needed centrally to coordinate divisional activities. Managers for each area must be well qualified and therefore, require higher salary. Sending qualified managers from the U.S to different regions in the world can be costly for the company as well, not to mention the company has to compensate for them and their families to live comfortably in different countries where they have to work.
Microsoft is using divisional structure by product. This structure is most effective for implementing strategies when specific products or services need special emphasis (David & David, 2015, p.217). There are few shortcomings for this type of structure.
* Cost: Like other divisional organizational structures, divisional structure by product can be costly because it requires a more skilled management force specializing in each product or service. Besides, the resource allocation may be time consuming and costly due to high demand of each product department with equal priority.
* Avoidance: Every divisional product department has its own policy and managerial style. If the company ever decides to change or implement different policies or strategies, it will encounter some conflicts between divisions. Each division will tend to ignore the problem and wait until other divisions solve it, or not willing to change and take longer time to implement new policies.
Ex. 7D: Belief, Metaphor, Language, and Values
Belief is defined as “An understanding of a particular phenomenon” (David & David, 2015, p. 95). In simpler terms,...