In this assignment, we’ll return to Sun City Boards and the management challenges they face. With your advice, Tom Wilson (the owner) has continued to make strategic planning progress, but you and Tom realize that a new organizational structure is needed for the company to grow as you envision.

QUESTION

This assignment aligns with Learning Outcomes 1, 2, and 3.

Preparation
In this assignment, we’ll return to Sun City Boards and the management challenges they face. With your advice, Tom Wilson (the owner) has continued to make strategic planning progress, but you and Tom realize that a new organizational structure is needed for the company to grow as you envision. Plans include expanding beyond a single store/manufacturing shop and reaching new markets via an Internet presence and e-commerce. The following is a summary of the current staff and loose descriptions of job functions:

Owner/CEO—Tom Wilson (Designs the boards, sets their selling price, and establishes sales channels with local surf shops)

Bookkeeper—Sarah Balanced (Sarah also doubles as order-taking clerk, cash register attendant, and customer complaint listener)

Board Maker—Jack Ovalltrades (If Tom invents it, Jack can make it!)

Board Making Assistants—Jill, Jane, & Judy (Assignments change almost daily as Jack decides what needs to be done next)

Sales Associate—Kelly Dude (Named after famed surfer Kelly Slater and a business icon for Sun City Boards; visits surf shops and occasionally closes a sale)

Part-time Associates—Hired as needed for inventory management (cleanup), promotional events, etc.

Module 5 Organizational Structure and Processes Learning Unit provides examples of organizational structures. As Tom’s advisor, your assignment now is to select one of the organizational structures presented in the Learning Unit, describe how it works, chart the future structure for Sun City, and explain why you prescribe it. The following steps will help you prepare for your written assignment:

Thoroughly read Module 5 Organizational Structure and Processes Learning Unit.

Carefully consider the various organizational structures, their key structural components, and organizational timing relevant for Sun City. Consider the internal and external environmental factors, as well as current trends.

Your Task
Select one of the Organizational Structures from your reading for Sun City.

Create a Future State Organizational Chart for Sun City. You may use a presentation tool of your choice. There are numerous organizational chart format inserts available in popular software. Microsoft Word and PowerPoint have Hierarchy charts found on the Insert tab under SmartArt. Your organization chart should contain the title of the job function, even if no Sun City employee currently fills that role. You may also recommend a reporting structure for the existing employees within the new structure.

Write at least two paragraphs describing your chosen structure and why you selected it. Your written explanation must include three properly referenced and defined terms from the module reading. For example, if you select a functional structure, explain each relevant function.

In addition to the text, you are encouraged to research your organizational structure using reliable and properly cited Internet resources. You may also draw from your personal work experience with appropriate examples to support your references.

ANSWER

 Future Organizational Structure for Sun City Boards: A Path to Growth and Expansion

Introduction

As Sun City Boards prepares to expand its operations beyond a single store and embrace e-commerce, a new organizational structure is essential to support the company’s growth and navigate the challenges ahead. In this essay, we will explore the chosen organizational structure for Sun City and provide an explanation of its key components and rationale behind its selection.

Selected Organizational Structure: Divisional Structure

The divisional structure is the recommended organizational structure for Sun City Boards. This structure divides the company into autonomous divisions based on specific product lines or geographic regions. Each division operates as a separate entity with its own functional departments, including design, production, sales, and marketing. This structure allows for focused decision-making, efficient coordination, and effective resource allocation within each division.

Key Components of the Divisional Structure

Product Division: Sun City Boards can create separate divisions for different product lines such as surfboards, skateboards, and accessories. Each division will have its own set of functional departments tailored to the specific needs of the product line.

 Geographic Division: As Sun City expands into new markets, geographic divisions can be established to address the unique requirements and preferences of different regions. Each geographic division will have its own sales, marketing, and customer service teams to cater to the specific needs of the local market.

Centralized Support Functions: Certain functions, such as finance, human resources, and IT, can be centralized to provide support and guidance to all divisions. This ensures consistency in policies, procedures, and resource allocation while allowing divisions to focus on their core activities.

Rationale for Choosing the Divisional Structure

Flexibility and Adaptability: The divisional structure allows Sun City to be nimble and responsive to market demands. Each division can independently tailor its strategies, product offerings, and marketing approaches to cater to specific customer segments, resulting in enhanced customer satisfaction and increased market share.

Streamlined Decision-Making: By delegating decision-making authority to divisional managers, the divisional structure enables faster and more effective decision-making. This empowers managers to respond quickly to market changes, customer needs, and competitive pressures within their respective divisions.

Clear Accountability: The divisional structure enhances accountability and performance measurement. Each division is responsible for its own performance, including sales targets, profitability, and customer satisfaction. This fosters a sense of ownership and encourages divisions to strive for excellence in their specific areas of operation.

Defined Terms from the Module Reading

Divisional Structure: A type of organizational structure that divides a company into autonomous divisions based on specific product lines or geographic regions, each with its own set of functional departments.

 Centralization: The concentration of decision-making authority and control in a limited number of individuals or departments, typically at the top of the organizational hierarchy.

 Decentralization: The delegation of decision-making authority to lower-level managers or divisions, allowing for greater autonomy and responsiveness.

Conclusion

The divisional structure offers Sun City Boards the organizational framework necessary to support its growth and expansion plans. By creating autonomous divisions, each focused on specific products or geographic regions, Sun City can adapt quickly to market demands, streamline decision-making, and foster accountability. Through the implementation of the chosen structure, Sun City Boards can position itself for success in the evolving market landscape and achieve its goals of reaching new markets and establishing a strong online presence.