https://research-methodology.net Necessary knowledge to conduct a business research Sat, 17 Feb 2024 10:29:16 +0000 en-US hourly 1 https://rm-15da4.kxcdn.com/wp-content/uploads/2020/08/cropped-logoBRM-32x32.jpg https://research-methodology.net 32 32 https://research-methodology.net/byd-organizational-structure-overview/ Sat, 17 Feb 2024 10:29:16 +0000 https://research-methodology.net/?p=77512 BYD organizational structure has the following characteristics: – Matrix Structure. BYD corporate structure is matrix, combining functional departments (e.g., R&D, Sales) with product-based divisions (e.g., Dynasty, Ocean, Commercial Vehicles). This fosters collaboration and flexibility while maintaining focus on specific product lines. The matrix structure enables quick decision-making and adjustments to market dynamics – Independent Brands. Recent moves towards independent operations for brands like Dynasty and Ocean indicate a strategy to cater to distinct market segments with tailored brand identities and marketing efforts. In other words, independent brands allow for targeted approaches. – Emphasis in R&D. BYD prioritizes internal R&D, with dedicated institutes for each brand and separate units for core technologies like DM-i hybrids and intelligent driving. This fosters innovation and control over key components. – Vertical Integration. The EV behemoth vertically integrates key aspects of its supply chain, including battery production and some vehicle components. Such an approach enhances cost control and quality assurance. Vertical integration expands BYD organizational structure. – Regional Variations. The electric automaker’s structure adjusts to regional needs, with separate sales divisions and local leadership teams managing specific markets. Regular variations approach ensures responsiveness to diverse customer preferences and regulations. The Figure below illustrates BYD corporate structure at the senior level. BYD Company Limited Organizational Chart BYD Company Limited Report contains the above analysis of BYD organizational structure. The report illustrates the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Porter’s Five Forces, Value Chain analysis, Ansoff Matrix and McKinsey 7S Model on BYD. Moreover, the report contains analyses of BYD leadership, business strategy and organizational culture. The report also comprises discussions of BYD marketing strategy, ecosystem and addresses issues of corporate social responsibility.]]> https://research-methodology.net/marriott-organizational-structure-overview/ Sun, 22 Oct 2023 10:38:58 +0000 https://research-methodology.net/?p=75918 Marriott organizational structure had to change significantly with new executive appointments early in 2023. Following the departure of company’s president Stephanie Linnartz to become president and CEO of Baltimore-based sports equipment company Under Armour, Anthony Capuano became Marriott’s President and CEO[1]. Marriott International has a hybrid organizational structure that combines elements of both a matrix and functional structure. The company’s matrix structure is evident in the combination of functional and divisional configurations. Marriott has functional divisions such as marketing, sales, and operations, but it also has divisional units organized by geographic region. This allows the largest hotel chain in the world to achieve both global uniformity and local diversification and responsiveness. Marriott Organizational Structure   The matrix structure works in conjunction with a regional structure, with each region having its own functional divisions. For example, the Greater China region has its own marketing, sales, and operations divisions. This allows Marriott to tailor its operations to the specific needs of each region. Marriott’s organizational structure is also characterized by a high degree of centralization. The company’s CEO and executive team have a significant amount of authority over decision-making. This centralization allows Marriott to maintain a consistent brand image and service quality across all of its properties. Marriott International’s hybrid organizational structure has several advantages. The matrix structure allows the company to achieve both global uniformity and local diversification and responsiveness. The regional structure allows the hotel chain to tailor its operations to the specific needs of each region. The centralization of authority allows the company to maintain a consistent brand image and service quality across all of its properties. However, there are also some potential disadvantages to Marriott organizational structure. The matrix structure can be complex and time-consuming, and it can lead to conflict between functional and divisional units. The centralization…]]> https://research-methodology.net/netflix-organizational-structure-an-overview/ Mon, 18 Sep 2023 04:58:17 +0000 https://research-methodology.net/?p=75419 Netflix organizational structure can be classified as relatively flat. This is an unconventional for a multinational giant that employs more than 12500 people in offices in over 25 countries[1]. Fewer management layers increases the span of control for each manager. Corporate structure of Netflix can also be described as unitary or u-form. In companies with unitary structure the business is managed as a single unit and it has functional lines such as sales, marketing, engineering etc. Flat and unitary aspects of corporate culture of Netflix offers a range of advantages for the the entertainment services provider. Specifically, less hierarchy ensures faster and better communication among employees at all levels, thus increasing the speed and quality of decision making. This is critically important taking into account increasingly dynamic nature of the external marketplace and the need for the company to adapt quickly. Netflix organizational structure had to change early in 2023 when co-founder Reed Hastings stepped down from the role of CEO. Nevertheless, the flat and unitary nature of the organizational structure has remained. Moreover, even though Reed Hastings is no longer CEO of the on-demand media provider, he remains as the ultimate decision maker on the strategic issues. This arrangement may prove to be practically helpful whenever there is a disagreement between current co-CEOs Ted Sarandos and Greg Peters.   Netflix Organizational Structure Netflix Inc. Report contains the above analysis of Netflix organizational structure. The report illustrates the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Porter’s Five Forces, Value Chain analysis, Ansoff Matrix and McKinsey 7S Model on Netflix. Moreover, the report contains analyses of Netflix leadership, business strategy and organizational culture. The report also comprises discussions of Netflix marketing strategy, ecosystem and addresses issues of corporate social responsibility. [1] ESG Report (2022)…]]> https://research-methodology.net/apple-organizational-structure-a-hierarchical-structure-that-may-change-in-near-future/ Mon, 03 Jul 2023 00:04:00 +0000 http://research-methodology.net/?p=9912 Apple organizational structure can be described as hierarchical and functional. Such a structure has been developed by its founder and former CEO late Steve Jobs in order to ensure focused realization of his innovative ideas and clear vision for the business. When Steve Jobs returned to turnaround failing Apple in 1997 the company had a typical organizational structure with many business units with their own profit and loss (P&L) responsibilities. In order to increase the coherence and fuel innovation, Jobs fired general managers of all business units (within one day) and put in place one P&L for the entire business. Apple organizational structure has been subjected to certain modifications since the leadership role was assumed by Tim Cook on August 2011. Specifically, Mr. Cook embraced the decentralization of decision making to a certain extent in order to encourage innovation and creativity at various levels. Also, Cook divided hardware function into hardware engineering and hardware technologies. As the most recent change to the corporate structure Cook added artificial intelligence (AI) and machine learning as separate function areas due the increasing importance of AI and machine learning. Currently, Apple organizational structure has the format illustrated in figure below: Apple Organizational Structure Generally, Apple corporate structure has the following characteristics: 1. Hierarchical organizational structure. Although Tim Cook introduced considerable changes to Apple corporate structure since assuming the top job in 2011, the structure still remains to be highly hierarchical with many layers of management. Massive size of the company that comprises 164,000 full-time equivalent employees globally necessitates the adherence to the hierarchical organisational structure. Advantages of Apple hierarchical organizational structure include tight control possessed by senior management over all aspects of the business. Moreover, promotion opportunities motivate employees to perform well and there are clear levels of authority and responsibility. On the negative…]]> https://research-methodology.net/nvidia-organizational-structure-functional-and-hybrid/ Sat, 17 Jun 2023 13:28:16 +0000 https://research-methodology.net/?p=74369 Nvidia is 7th largest company in the world with a market cap of USD 1 trillion. Due to the size and scope of its operations, it is difficult to categorise Nvidia organizational structure within a certain group. However, it is evident that the tech company uses certain elements of functional and hybrid organizational structure.  The multinational technology company divides its business practices into various functions such as engineering and product development, supply chain and operations, human resources, finance and accounting and legal and compliance. Functional organizational structure provides a range of advantages for Nvidia. Specifically, employees are assigned into groups on the basis of their competencies and expertise. This allows the groups to achieve their goals with high level of efficiency. Furthermore, functional organizational structure is associated with clear reporting lines and this can enhance the speed and quality of decision making at Nvidia. Nvidia also has certain components of matrix organizational structure in place. Temporary product or project groups are often formed within the multinational technology company and group members report to both, group leader, as well as their direct superiors within the organizational structure. The figure below illustrates the corporate structure of Nvidia: Nvidia Organizational Structure Nvidia Corporation Report contains the above analysis of Nvidia organizational structure. The report illustrates the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Porter’s Five Forces, Value Chain analysis, Ansoff Matrix and McKinsey 7S Model on Nvidia. Moreover, the report contains analyses of Nvidia leadership, business strategy and organizational culture. The report also comprises discussions of Nvidia marketing strategy, ecosystem and addresses issues of corporate social responsibility.]]> https://research-methodology.net/wework-organizational-structure-overview/ Sun, 19 Feb 2023 01:44:36 +0000 https://research-methodology.net/?p=72587 Under the leadership of co-founder and former CEO Adam Neumann WeWork organizational structure was complex. Figure 1 below is a ‘simplified’ version of WeWork organizational structure the company submitted for IPO Prospectus on August 2019. The structure fails to clearly illustrate the organization of the business from the viewpoint of who reports to whom. It also fails to clearly indicate the flow of information, an essential component of a good organizational structure. Figure 1 We Work organizational structure under Adam Neumann   If this is a ‘simplified’ version, it would be safe to assume that the original version would be much more difficult to comprehend. Ineffective organizational structure is one of the main reasons why global flexible workspace provider faced near bankruptcy in 2019. After the departure of Adam Neumann, the new CEO Sandeep Mathrani restructured the business simplifying the organizational structure to a great extend with a clear pattern for information flow. Figure 2 Current pattern of WeWork organizational structure   Organizational structure of WeWork can be classified as hierarchical. Such a structure offers advantages to the co-working giant such as creating a landscape for Sandeep Mathrani to turn around the business to make it suitable for long-term. Hierarchical structure offers clear delegation of authority and encourages specialization among employees at all levels. On the negative side, hierarchy can cause rivalries between various departments. It can also slow down the implementation of proposed changes through loss or misinterpretation of information along the hierarchy. The current organizational structure of WeWork may change in the foreseeable future because the structural changes by Mathrani are far from complete. Mathrani has predicted flexi-working revolution at a global scale[1] and he is striving WeWork to lead such a revolution. WeWork Inc. Report contains the above analysis of WeWork organizational structure. The report illustrates the…]]> https://research-methodology.net/organizational-structure/ Fri, 16 Dec 2022 01:08:17 +0000 https://research-methodology.net/?p=71472 Organizational structure can be defined as a system for outlining management roles and responsibilities to achieve organizational goals. Organizational structure also determines the pattern of information flow within the organization. For instance, in highly hierarchical structures decisions are communicated from top to down, whereas in flat structures the power for decision making is distributed among various levels. Organizational structure aims to provide efficiency and focus to operations. Appropriate structure should illustrate how the roles and responsibilities of each employee fit within the overall system. Organizational structure has the following four main elements: Chain of command. Illustrating who reports to whom via an organizational chart. Defining departments. Clustering tasks, roles and responsibilities into groups and defining connections between various groups. Extend of control. Categorizing each and every task into departments to avoid a situation where two or more people do the same task. Centralization. Identifying the levels where decisions are made. There are four main types of organizational structures – functional, divisional, flat and matrix. Functional Structure Functional structure is based on specialization of employees and it is the most common organizational structure. It is also referred to as bureaucratic structure and divides company into various departments such as procurement, operations, marketing , finance etc. Divisional Structure Divisional structure is also popular and it divides to company into various divisions on the basis of products, projects or subsidiaries. Flat Structure Flat structure, also referred to as horizontal structure aims to minimize the chain of command providing employees with autonomy in decision making.  This pattern is popular among startups. Matrix Organizational Structure Matrix structure is the most complex and accordingly, the least popular. Matrix structure assigns employees across various divisions and supervisors. Employees in such a structure may belong to more than one divisions and report to several superiors. In this portal…]]> https://research-methodology.net/starbucks-organizational-structure-a-tall-and-divisional/ Tue, 04 Oct 2022 00:05:59 +0000 http://research-methodology.net/?p=10224 Starbucks corporate structure sustains international scope of its business operations that encompasses more than 34000 stores in 84 markets. Starbucks organizational structure is hybrid and integrates geographic, brand-based and functional hierarchy structures. Organizational structure of Starbucks can be divided into the following divisions: 1. Geographic divisions. Starbucks operations are divided into the following geographic divisions or segments:     a) North America division. This division consists of USA and Canada     b) International division consisting of China, Japan, Asia Pacific, Europe, Middle East, Africa, Latin America and Caribbean 2. Brand-based divisions. Each brand within Starbucks Corporation portfolio represents a separate division led by the head of division. The world’s largest coffeehouse chain has brand-based divisions as illustrated in table  below: Brand Founded Products Starbucks 1971 Coffee, non-alcoholic beverages, food Teavana® 1997 Variety of teas La Boulange® 1999 French pastries and breads Evolution Fresh™ 1992 Nourishment juices and foods Seattle’s Best Coffee 1991 Coffee, non-alcoholic beverages, food Tazo Tea 1994 Teas, herbs, roots and spices Brand-based divisions within Starbucks organizational structure   Starbucks corporate structure is functional hierarchy and accordingly, groups are formed according to business functions on Executive Vice President (EVP) and Senior Vice President (SVP) levels. Specifically, as illustrated in figure below organizational structure of Starbucks includes 11 Executive Vice Presidents each leading a separate function below: Chief Financial Officer Chief Marketing Officer Chief Strategy & Transformation Officer Global Coffee, Tea and Cocoa Global Supply Chain Chief Technology Officer Public Affairs Chief Partner Officer Global Channel Development Starbucks North America General Counsel Starbucks Organizational Structure   Similarly, there are 24 functions headed by 26 executives at Senior Vice Presidents level: Store Development Ethics and Compliance officer Chief Procurement Officer, Global Sourcing Product Experience Global Chief Inclusion and Diversity Officer Starbucks Canada Americas Finance Latin America & Caribbean Partner…]]> https://research-methodology.net/ikea-organizational-structure-expecting-benefits-major-restructuring/ Mon, 15 Aug 2022 00:15:47 +0000 http://research-methodology.net/?p=11383 IKEA has a unique organizational structure. Specifically, “around the globe, a large number of companies operate under the IKEA trademarks. All IKEA franchisees are independent of Inter IKEA Group. A large group of franchisees are owned and operated by INGKA Group. Inter IKEA Group and INGKA Group have the same founder, and a common history and heritage, but have operated under different owners and management since the 1980s”[1] Figure 1 below illustrates the essence of IKEA organizational structure: Figure 1 IKEA organizational structure Inter IKEA Group integrates of a group of companies. The group sets strategic direction for the whole business and connects all IKEA franchisee. The group is formed of three core businesses as illustrated in Figure 1 above: 1. Inter IKEA Systems B.V. is the furniture retailer’s franchisor worldwide. This unit also deals with franchise agreements with 11 franchisees that operate in more than 500 locations.[2] 2. IKEA Range & Supply develops and supplies products for the home improvement and furnishing chain. 3. IKEA Industry produces home furnishing products and it manufactures about 10-12% of the total range. The present organizational structure of IKEA illustrated in Figure 1 above is the outcome of a major restructuring initiative that was introduced in 2016. To improve the franchise system and clarify roles, IKEA range, supply and production activities were transferred to the new Inter IKEA Group headed by Inter IKEA Holding B.V.  Currently, Jon Abrahamsson Ring is the CEO of Inter IKEA Holding B.V. The Figure 2 below illustrates the overview of the franchise system. Figure 2 Overview of the IKEA franchise system[3] Specifically, IKEA Group sold key subsidiaries for EUR 5.2 billion to increase the flexibility of the business to be able to adapt to changes in the external global marketplace. IKEA management considers this change to be much…]]> https://research-methodology.net/mcdonalds-organizational-structure/ Mon, 20 Jun 2022 02:02:30 +0000 https://research-methodology.net/?p=66772 McDonald’s organizational structure can be classified as divisional. McDonald’s business operations are divided into the following four divisions according to their geographical location: United States Europe Asia/Pacific, Middle East and Africa (“APMEA”) Other countries Each division above possesses its own departments such as IT, finance, marketing and others. Massive changes in McDonald’s organizational structure introduced in 2015 increased the emphasis on the international markets clarifying the roles of executives responsible for growth in international markets. Specifically, as it is illustrated in Figure 1 below, the responsibility for overseeing international operations is distributed among three senior executives at President level. Figure 1 McDonald’s leadership structure in international markets[1]   Presidents are provided autonomy in decision making to a great extent to increase sales in their respective markets.  The autonomy refers to adjusting the content and delivery McDonald’s marketing message to their respective markets taking into account cross-cultural differences. Moreover, Presidents are free to introduce new items in menu reflecting tastes and preferences of local markets. Furthermore, from administrative point of view McDonald’s organizational structure involves nine senior level managers reporting to President and CEO Chris Kempczinski. These managers include Vice President and Executive Vice Presidents and each manager is responsible for a specific strategic aspect of the business.   Figure 2 McDonald’s organizational structure   Since becoming President and CEO in 2019 Mr. Chris Kempczinski did not introduce any massive changes in McDonald’s corporate structure. However, he may restructure the business to a certain extent to reflect changes in the external environment. Specifically, COVID 19 pandemic revealed the importance of delivery and McDonald’s may change its corporate structure to ensure greater focus on making deliveries to homes and offices. McDonald’s Corporation Report contains the above analysis of McDonald’s organizational structure. The report illustrates the application of the major analytical strategic frameworks…]]> https://research-methodology.net/mcdonalds-leadership/ Mon, 20 Jun 2022 00:34:35 +0000 http://research-methodology.net/?p=7274 McDonald’s leadership team is headed by the President and CEO, who is aided by nine senior managers, each overseeing a specific aspect of the business. [1] The previous President and CEO Mr. Steve Easterbrook took the helm in 2015 and he was widely considered as an effective leader until he was fired for having consent sexual relationships with subordinate employees. During his leadership tenure Mr. Easterbrook was credited with turning around the company and reviving its falling stock price. Most prominent changes introduced by Easterbrook include reducing costs, introducing touch-screen ordering and establishing all-day breakfast. The new President and CEO Chris Kempczinski has also proved to be effective business leader. Under the new leadership McDonald’s has emerged as a clear winner during the pandemic. Mr. Kempczinski has channelled his energy and focus on digital, drive thru and delivery to adjust the business model to the pandemic environment. McDonald’s leadership is currently faced with a serious challenge. In recent years the fast food chain has faced many lawsuits and claims involving sexual harassment and racial discrimination. The former President and CEO Mr. Easterbrook being found violating company code of conduct is the evidence of severity of the issue. One of the important tasks for the new leader Mr. Kempczinski is to create a corporate culture where sexual harassment and racial discrimination is not tolerated in practice. McDonald’s Corporation Report contains the above analysis of McDonald’s leadership. The report illustrates the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Porter’s Five Forces, Value Chain analysis, Ansoff Matrix and McKinsey 7S Model on McDonald’s. Moreover, the report contains analyses of McDonald’s business strategy, organizational structure and organizational culture. The report also comprises discussions of McDonald’s marketing strategy, ecosystem and addresses issues of corporate social responsibility. [1] Annual Report…]]> https://research-methodology.net/amazon-organizational-structure-2-2/ Tue, 22 Mar 2022 00:55:31 +0000 https://research-methodology.net/?p=11218 Amazon organizational structure can be classified as hierarchical. Senior management team include three CEOs and three senior vice presidents responsible for various vital aspects of the business reporting directly to CEO Andy Jassy. Amazon organizational structure has the following four key features: 1. Hierarchical corporate structure. Hierarchical structure at Amazon has developed due to the immense size of the business. The largest internet retailer in the world by revenue employs more than 1,3 million people worldwide.[1] 2. Hybrid project groups. Amazon corporate structure integrates hybrid project groups when developing new products and services. Specialists from various departments are attracted according to their skills and competencies required for the project. These employees can be attracted part-time reporting to both, the head of their departments and project leaders, or they can engage in the project full-time reporting to project manager only for the duration of the project. 3. Flexibility of the business. It is important to note that despite its large size, unlike many other companies with hierarchical organizational structure, Amazon remains highly flexible to adapt to frequent changes in the external marketplace. Moreover, the online retail giant leads changes in external business environment; it has caused disruptive innovation in e-commerce and currently it is about to cause a disruptive innovation in global logistics industry. Successful organization of hybrid project groups plays an instrumental role in maintaining flexibility of the business. Amazon organizational structure integrates many small teams that deal with various aspects of the business. Amazon founder and former CEO Jeff Bezos is credited with the introduction of ‘two pizza rule”. According to this rule, meetings should be held in teams small enough that could be all fed with only two pizzas. “Two pizza rule” continues to this day under the new CEO Andy Jassy. 4. Stability in the top management.…]]> https://research-methodology.net/square-organizational-structure-a-brief-overview/ Sun, 26 Sep 2021 05:23:36 +0000 https://research-methodology.net/?p=57904 Square Inc. organizational structure can be classified as relatively flat, taking into account ever-growing size of the business. Co-founder and CEO Jack Dorsey attempts to maintain a start-up environment and culture and reduce bureaucracy in order to keep the business flexible to be able to respond to changes in the external environment. Therefore, it can be argued that Square organizational structure is designed to increase the speed of decision-making. Leads of units operate as a CEOs and they report only to Jack Dorsey. Leads oversee project leaders and project teams at Square are small groups comprising maximum 12 people of diverse backgrounds. As illustrated in figure below, Square’s cryptocurrency business unit TDB is a division separate from both, seller and cash units. One of the reasons for this separation may relate to regulatory reasons. Specifically, maintaining crypto separate from other units decreases the chances of regulatory interferences. Square organizational structure The company is increasing the range of products and services extensively. This strategy can increase complexity of the business with direct implications on Square organisational structure, despite CEOs attempts to maintain it simple. Accordingly, the senior management of the financial services platform has a challenging task of maintaining flexibility of the business amidst its exponential growth. Moreover, there are opinions among industry analysts that CEO Jack Dorsey’s ultimate plan is to make Square a holding company for autonomous fintech businesses[1]. A Tweet by Dorsey on July 2021 claiming that the payments company will create a new business line to help developers build financial services products focused on Bitcoin can be seen as a signal to support such as viewpoint. Square Inc. Report contains the above analysis of Square organizational structure. The report illustrates the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Porter’s Five…]]> https://research-methodology.net/uber-organizational-structure-3/ Sat, 17 Jul 2021 00:16:08 +0000 https://research-methodology.net/?p=13431 Uber organizational structure has been traditionally highly hierarchical with co-founder and former CEO Travis Kalanick yielding tremendous power and micromanaging the ride-hailing giant. Lack of Kalanick’s leadership skills resulted in a series of scandals involving bullying, discrimination at workplace, sexual harassment etc. Kalanick had to resign as a result of these scandals.  After Dara Khosrowshahi became new CEO in 2017, Uber organizational structure has been subjected to certain changes.[1] Figure  below illustrates Uber organizational structure: Uber Organizational Structure It can be argued that the current pattern of Uber’s organizational structure illustrated in Figure 1 above can be subjected to more changes by new CEO Dara Khosrowshahi in the medium-term perspective.  Demoralized workforce and poor organizational culture belong to the list of major issues for the global transportation technology company. Dara Khosrowshahi is credited for creating collaborative work culture at Expedia where employees are encouraged to propose their ideas to management. Mr. Khosrowshahi is attempting to fix Uber organizational culture as part of his grand plans to turnaround the business. Accordingly, improvement in organizational culture may necessitate changes in organizational structure. Specifically, de-layering of organizational structure may be introduced, removing certain levels of management in order to make the business more flexible to respond to the changes in external marketplace. Moreover, advantages of flat organizational structure include faster speed of communication between the top management and floor-level employees. Senior leadership reorganization initiated by CEO Dara Khosrowshahi due to failed IPO in 2019 the roles of chief operating officer (COO) and chief marketing officer (CMO) were eliminated. Specifically, COO role was replaced by two executives who manage biggest businesses – ride-haling and food delivery. These two executives directly report to Khosrowshahi. Uber marketing operations, on the other hand, were combined with communications and policy departments. The rationale behind this specific change was…]]> https://research-methodology.net/tesla-organizational-structure-divisional-and-flexible/ Fri, 23 Apr 2021 00:22:06 +0000 https://research-methodology.net/?p=25387 Tesla is a unique company in many ways and this uniqueness also extends to its organizational culture. Tesla organizational structure integrates the following: 1. Unique organizational structure. “Tesla, unlike most companies its size, doesn’t have any known management structure. There’s no organizational chart or public list of senior leaders.”[1] Nevertheless, Tesla organizational structure can be characterized as divisional. 2. Tesla CEO Elon Musk has issues with delegation. Workaholic and micromanagement nature of Elon Musk, as well as his sleep deprivation work habits have become well-known. Famous author and businesswoman Arianna Huffington even wrote an open letter to Musk urging him to get more sleep and learn to delegate. Musk’s issues with delegation has implications on Tesla corporate structure in a way that he has more people directly reporting to him than any other CEO in auto industry. 3. Divisional and flexible structure. Although it is difficult to list Tesla organizational structure under a specific rigid category due to its unique nature, the structure can be characterised as divisional and flexible. As it is illustrated in figure below, Tesla organizational structure comprises a number of divisions such as energy, engineering and production, HR and communications, legal and finance, sales and software. Each division is led by several vice presidents, except software division, which is led by one vice president and Director of Artificial Intelligence. Tesla Organizational Structure Tesla benefits from divisional organizational structure through less bureaucracy compared to many other companies of similar sizes.  Divisional organizational structure also helps the electric automaker to increase the speed of communication among different layers of management with positive implications on decision making and flexibility of the business. Tesla Inc. Report contains the above analysis of Tesla organizational structure. The report illustrates the application of the major analytical strategic frameworks in business studies such as…]]> https://research-methodology.net/w-w-grainger-organizational-structure-a-brief-overview/ Mon, 17 Aug 2020 00:37:33 +0000 https://research-methodology.net/?p=44081 W.W. Grainger organizational structure can be classified as hierarchical. The decision making power is concentrated on the hands of Chairman and CEO DG Macpherson. The global industrial supply company maintains hierarchical type of organizational structure due to the massive size of the company that comprises about 2500 employees working in 457 branches, 31 distribution centres and offices worldwide.[1] Grainger organizational structure was subjected to major changes in 2013 “to provide greater focus and a more consistent integrated approach to pursue growth opportunities”[2]. Specifically, the B2B distributor established Americas business to include Canada, the U.S., Mexico, Panama, Puerto Rico, Dominican Republic, Costa Rica, Colombia and Peru. The figure below illustrates the top layer of Grainger organizational structure. Grainger Organizational Structure Hierarchical nature of Grainger corporate structure provides the worldwide distributor of industrial products a set of advantages. Specifically, the current pattern of Grainger corporate structure has a clear line of leadership, authority and responsibility. Moreover, hierarchical organizational structure is associated with employees having a narrow field of focus and accordingly, there is a potential for employees to become highly qualified experts in their fields. At the same time, hierarchical organizational structure is also linked to certain shortcomings that can have detrimental effects on Industrial products distributor’s long-term growth prospects. In hierarchical companies there is a risk of rivalry between different departments with negative implications for the overall profitability of the business. Moreover, centralization of power and authority at the highest level in hierarchical organizational structures may leave little room for initiatives for floor-level and medium level employees to adopt a creative and innovative approach to deal with various business processes. W.W. Grainger Report contains the above analysis of W.W. Grainger organizational structure. The report illustrates the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Porter’s Five Forces, Value Chain analysis, Ansoff Matrix and…]]> https://research-methodology.net/air-organizational-structure-brief-overview/ Wed, 04 Sep 2019 00:42:47 +0000 https://research-methodology.net/?p=39261 Since its founding in 2008, Airbnb organizational structure has been subjected to changes a number of times to adapt to the growth of the business in at a rapid pace. Furthermore, diversification of the business beyond home rentals to include experiences, adventures and restaurant services necessitated massive changes in its organizational structure. One of the main features of an effective organizational structure is to ensure a rapid flow of information across the company. In order to achieve this, Airbnb CEO Brian Chesky turned to executives from Apple, Facebook, Google and Amazon for advice on how to better organize the company.[1] The latest corporate restructuring at the peer-to-peer lodging company gave more decision making powers to its new business development teams. Holacracy is another important feature of Airbnb organizational structure. Holacracy can be explained as a type of organizational structure where “power is distributed throughout the organization, giving individuals and teams more freedom to self-manage, while staying aligned to the organization’s purpose.”[2] Airbnb organizational structure can be also branded as inter-supportive matrix structure. Airbnb corporate structure integrates many small teams of up to 10 people. The global rental and experiences company promotes the principle of village ecosystem in relationships between its teams. Specifically, if team members need a capability or resource, they can ask other team that has it ask them to share or cooperate.  In other words, rather than operating as a separate identities, individual groups within the global lodging company cooperate and support each-other to a great extent and this feature can be specified as one of the main advantages of Airbnb corporate structure.   Airbnb Organizational Structure   Airbnb Inc. Report contains a full analysis of Airbnb organizational structure. The report illustrates the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Porter’s Five…]]> https://research-methodology.net/microsoft-organizational-structure-divisional-structure-with-focus-on-innovation/ Thu, 31 Jan 2019 00:30:56 +0000 http://research-methodology.net/?p=10525 Microsoft organizational structure can be classified as divisional.  In June 2015, the senior management announced a change in Microsoft organizational structure to align to its strategic direction as a productivity and platform company. This restructuring initiative resulted in elimination of approximately 7,400 positions in fiscal year 2016.[1] The current divisional pattern of Microsoft organizational structure is the result of this restructuring initiative. As it is illustrated in figure below, Microsoft organizational structure is divided into divisions according to engineering groups and business functions. Specifically, on the basis of engineering groups, the company is divided into three divisions, whereas according to business functions it is divided into 9 divisions: Microsoft Organizational Structure The latest restructuring of Microsoft organizational structure and shift to divisional organizational structure offers the following advantages to the business: Firstly, under the new organizational structure, heads of engineering groups directly report to CEO Satya Nadella with positive implications on new product development initiatives and innovation potential. This is particularly important to be able to introduce new products and services to the marketplace in the short duration of time. Moreover, a clear distinction between engineering groups and business functions, as illustrated in figure above, is an indication of the technology giant ‘s focus on business directions under engineering groups such as cloud and artificial intelligence. Secondly, organizational restructuring eliminates bureaucracy in business processes and procedures to a great extent, increasing the flexibility of the business to adapt to changes in the external marketplace. Thirdly, the initiative resulted in the elimination of approximately 7,400 positions, thus saving considerable amount of financial resources that can be channelled for new product development and increasing the competiveness of the business in many other ways. Another important aspect of corporate culture at Microsoft refers to a high level of dynamism. Specifically, the CEO of…]]> https://research-methodology.net/xiaomi-organizational-structure-matrix-and-flat/ Wed, 23 May 2018 00:15:35 +0000 https://research-methodology.net/?p=22615 Xiaomi organizational structure can be classified as matrix. Specifically, Xiaomi organizational structure is decentralized, where different business units are managed independently. Despite the large size of the business involving presence in 70 countries with more than 18000 employees, the company has less layers of management compared to other businesses of similar sizes. Figure  below illustrates Xiaomi organizational structure: Xiaomi organizational structure Matrix organizational structure allows the mobile internet company to develop its new products and services in a short duration of time. This is due to absence of bureaucracy that is associated with hierarchical organizational structures. However, disadvantages of matrix organizational structure for the business may include lack of strict control by the top management over separate business units and lack of integration between the operations of individual business units. Nevertheless, it is important for Xiaomi to maintain its flat organizational structure in order to remain flexible, so that the mobile internet company can adapt to frequent changes in the global marketplace. Xiaomi Inc. Report contains a full analysis of Xiaomi organizational structure. The report illustrates the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Porter’s Five Forces, Value Chain analysis, Ansoff Matrix and McKinsey 7S Model on Xiaomi. Moreover, the report contains analyses of Xiaomi leadership, business strategy and organizational culture. The report also comprises discussions of Xiaomi marketing strategy, ecosystem and addresses issues of corporate social responsibility.]]> https://research-methodology.net/samsung-organizational-structure-divisional-according-product-types/ Mon, 20 Nov 2017 00:46:11 +0000 https://research-methodology.net/?p=11812 Samsung organizational structure is divisional and the company is divided into three key divisions: IT & Mobile Communications (IM), Consumer Electronics (CE), and Device Solutions (DS). The rationale behind the choice of divisional organizational structure relates to Samsung’s large product portfolio and differences between products and services the company offers to the market. Accordingly, Samsung’s each division is managed separately taking into account the characteristics of their products that have implications on new product development, marketing, selling and other aspects of the business. Moreover, Samsung Electronics has more than 200 subsidiaries around the world. Figure below illustrates Samsung organizational structure: Samsung organizational structure As it is illustrated in figure above, apart from three divisions, Samsung organizational structure also integrates corporate management office and Samsung Advanced Institute of Technology (SAIT). Corporate management office deals with overall management of the group and also has administrative responsibilities. SAIT is Samsung Group’s R&D hub, established as the incubator for the development of new products and services. The senior management completed its review of optimal organizational structure on April 2017 and decided not to convert to a holding company structure.[1] Following a series of recent scandals involving Samsung management that culminated in Jay Y. Lee, the former de facto head of the Samsung conglomerate being jailed for 5 years[2], it can be argued that Samsung organizational structure will change in the foreseeable future. Specifically, Samsung organizational structure may change to make governance and decision making practices more transparent to eliminate or at least to reduce the cases of future scandals. Samsung Group Report contains a full analysis of Samsung organizational structure. The report illustrates the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Porter’s Five Forces, Value Chain analysis and McKinsey 7S Model on Samsung. Moreover, the report contains analyses…]]>