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The number of the span of control affects both the group effectiveness and overall organizational effectiveness. A wide span of management results in a flat organization, which is an organization with relatively few management levels. On the other hand, a narrow span adds more layers of management and therefore leads to a tall organization. In general, flat organizations are characterized by greater communication between the lower and higher management. As a result, such organizations have a considerable capability to respond to environmental changes and enhance lower managerial costs. Despite it being preferred, the wide span of control leads to unsatisfactory supervision and control, which in turn results in decreased productivity and increased costs of training high caliber managers. Nevertheless, it still outweighs the tall organization structure.
A flat organization with high caliber employees is the most conducive environment for an organization’s objectives contribution. This span of control favors the employees whose tasks are similar and standardized. Additionally, since the highly skilled and knowledgeable employees prefer low supervision, this form of organization suits them. This is because the span of control has a direct effect on communication.
Formalization refers to the extent to which organization’s policies, procedures, and rules are documented and their manner of implementation. Therefore, organization with numerous rules and regulations depict a formal structure. These regulation guides employees regarding their behavior in the organization and have an insignificant influence on the routine duties. Some of the advantages of this structure include predictable employees’ behavior, reduced ambiguity in the organization and it gives direction to employees. In this regard, when problems emanate from within the organization, employees refer to the set guidelines and rules. As a result, consistency in problem response is achieved since all problems are handled in a similar manner.
Although a formalized structure streamlines the manner of handling problems, it results in reduced innovativeness and creativity. This implies that the middle-level and low-level organization problems will be resolved amicably while the critical strategic problems will significantly hamper the organization’s performance. Similarly, this form of structure leads to boredom and monotony within the organization resulting in reduced motivation and general job satisfaction due to stringent rules and guidelines. As a result, the process of decision-making slows down while compromising the nature of the decisions made.
The divisional structures of organizations’ management refer to the form of segmenting the market through products, services, customers, and geographical locations. This implies that each service offered by an organization will have its own unique department with its own management. In this regard, the functions within departments like marketing, finance, human resource and other roles will be replicated in all departments. With this type of organization structure, employees are independent and perform their duties as generalists other than specialists. An individual working in the human resource department conducting recruitment, appraisal, compensations, and the organization of contracts termination can exemplify this fact. This form of structure is suitable in the sport industry since there are numerous forms of sports that demand independent control and supervision. These sports include games like football, basketball, rugby, hockey and other sports.
Divisional structures are advantageous when there are numerous products lines that require unique demands and market conditions. This implies that effectiveness will be guaranteed when handling the customer demands and planning for future markets. Additionally, divisional structures are more suitable in the management of the unstable environments that organizations may exhibit. On the other hand, divisional structures are inappropriate for the organizations with few product lines that demand a significant amount of attention. Moreover, in stable environments, this form of structure is non-beneficial since there are minimal changes.
Strategy entails more than just setting goals and objectives. It refers to the process directed by the top management to determine the fundamental aims of an organization that ensures a range of decisions for the achievement of aims in the long-term while providing adoptive responses in the short-term. This whole process entails the definition of the organization mission and continuous refinement to facilitate the realization of objectives during their implementation. In this regard, the organization strategizes on the means of consolidating its functions, market penetration, market development, service leadership, price leadership, service differentiation, and niche strategy. These strategies enhance the general health and survival of a business through increased growth and prosperity.
Strategic alliance refers to a partnership between two or more commercial enterprises consolidated by a set of agreed objectives that boost their performance while remaining independent. Most partners provide strategic alliance with the aim of synergy in the distribution channels, manufacturing capabilities, project funding, or intellectual property. This implies that organizations can benefit from manufacturing or product development services through the consolidation of expertise with desired knowledge and skills. Compared to the basic form of partnership, organizations that form collaborations remain independent while gaining from the mutual relationship with other organizations. On the other hand, normal partnership leads to the formation of a single legal entity with consolidated membership. Strategic alliance is most preferable for organizations that admire independence and the lack of influence.
Since Gatorade experiences stiff competition from PowerAde by Coca-Cola in the supply of its sports drinks, it should adopt strategies that will ensure its profitability and survival in business. The most essential strategy that Gatorade should adopt now or in the future is the marketing strategy. This strategy will promote the organization’s markets needs and provide the means to counter its competitors. The market strategy will entail the market analysis through the market mix in order to improve and sustain its competitive advantage. However, it is essential to consider some of the essential elements of the product like assimilation of both the active and athletic needs, ensuring fast rehydration both on and off the field and health consciousness.
The marketing blend will consist of price, product, promotion, and place of the products. The company needs to formulate price strategies that will ensure its profitability in the market while addressing the need for a large market share. The pricing also aims at generating emotional response in customers towards the products. This plays significant role in the psychological pricing. Through such initiatives, the company will gain a competitive advantage over its existing rivals or new entrance.
The products should be design to exhibit unique ingredients that comply with health requirements. Additionally, the products should have unique and attractive packaging and labeling. After distributing the products to the market, it is essential to formulate slogans that will create interest among consumers.
The company needs to promote the accessibility of its products by various consumers. The organization can achieve this through its collaboration with the institutions that are the potential consumers of its products. Nevertheless, the company should distribute its products over a large market to ensure the availability and visibility of the products.
Promotion is one of the critical elements of the product to manage sustainability and growth in the market. Some of the most essential promotional strategies that should be adopted include advertising, sales promotion, public relations, sponsorship and celebrity endorsements, and product placements. These initiatives will promote the demand for the products by various consumers and thus increasing the sales.
Australian sport organizations exhibit machine bureaucracy, professional bureaucracy and divisional form design types. At the helm of the organization, a simple structure design has been adopted to enhance direct supervision since the organization has a range of departments within it. Machine bureaucracy is essential since it standardizes the work process through the decentralization of decisions. This structure uses technology to boost its operation while enhancing efficiency. Professional bureaucracy is employed in the operating core of an organization. With the availability of standardized skills, autonomy has been realized within the operating core. These design types have enhanced innovation and the reduction of response times. Additionally, these structures promote cost-efficiency and relevance when handling the consolidated functions of each department. The three forms of organization structure are outstanding in the organization realization of its objectives.