Cours 4

The need for a solid structure within all business entities is “absolutely fundamental”, according to Ms. Angela Tripoli, a lecturer in Business Administration at University College Dublin. “Organizational structure concerns who reports to whom in the company and how different elements are grouped together. A new company cannot go forward without this, and established companies must ensure their structure reflects their target markets, goals and available technology”. Depending on their size and needs there are several organizational structures companies can choose from. Increasingly though, in the constantly evolving business environment, “many firms are opting for a kind of hybrid of all of them”.

The most recognizable set up is called the functional structure where a fairly traditional chain of command (incorporating senior management, middle management and junior management) is put in place. The main benefit of this system is clear lines of communication from top to bottom but it is generally accepted that it can also be a bureaucratic set up which does not favour speedy decision-making.

More and more companies are organizing themselves along product lines where companies have separate divisions according to the product that is being worked on. “In this case the focus is always on the product and how it can be improved”.

The importance for multinational companies of a good geographic structure, said Ms. Tripoli, could be seen when one electrical products manufacturer produced an innovative rice cooker which made perfect rice - according to western standards. When they tried to sell it on the Asian market the product flopped because there were no country managers informing them of the changes that would need to be made in order to satisfy this more demanding market.

The matrix structure first evolved during a project developed by NASA when they needed to pool together different skills from a variety of functional areas. Essentially the matrix structure organizes a business into project teams, led by project leaders, to carry out certain objectives. Training is vitally important here in order to avoid conflict between the various members of the teams.

During the 1980s a wave of restructuring went through industry around the globe. This process, known as delayering, saw a change in the traditional hierarchical structures with layers of middle management being removed. This development was, driven by new technology and by the need to reduce costs. The overall result was organizations that were less bureaucratic. The delayering process has run its course now. Among the trends that currently influence how a company organizes itself is the move towards centralization and outsourcing. Restructuring has evolved along with a more “customercentric” approach that can be seen to good effect in the banks. They now categorize their customers and their complex borrowing needs into groups instead of along rigid product lines. Another development can be seen in larger companies, which are giving their employees more freedom to innovate in order to maintain a competitive edge.

 Ms. Julia MacLauchlan, Director of Microsoft’s European Product Development Centre in Dublin, said the leading software company had a very flat organizational structure. “There would not be more than around seven levels between the average software tester and Bill Gates”, she said.

Microsoft is a good example of a company that is structured along product lines. In Ireland, where 1,000 employees work on localization of the software for all Microsoft’s markets, the company is split up into seven business units. Each unit controls the localization of their specific products while working closely with the designers in Microsoft’s Seattle Headquarters. It works, said Ms. MacLauchlan, because everyone who works in the unit is “incredibly empowered”. “Without a huge bureaucratic infrastructure people can react a lot more quickly to any challenges and work towards the company’s objectives”.

Quiz 1: Ways of greeting

•       Q1 Great to see you again. I haven't seen you ....... ages.

(a) by (b) from (c) of (d) for

•       Q2 Welcome to our house. Come in and make yourself ........

(a) comfortable (b) easy (c) relaxing (d) comforting

•       Q3 How do you do? I don't think we've met ........

(a) after (b) since (c) then (d) before

•       Q4 Hi Mary. Where have you been ....... yourself all this time?

(a) discovering (b) hiding (c) finding (d) looking

•       Q5 Good morning, sir. I hope you will have an enjoyable ....... in our hotel.

(a) stay (b) halt (c) stop (d) sojourn

•       Q6 Good evening to you all. Let me find you a ....... near the window.

(a) corner (b) angle (c) table (d) part

•       Q7 How are you, David.? I must ....... you're looking very well.

(a) declare (b) recite (c) state (d) admit

•       Q8 Hello there. I just don't believe it. You haven't changed a ....... since we last met.

(a) bit (b) piece (c) little (d) section

•       Q9 Ah, you must be Mary's husband. Do come in and ....... everyone.

(a) see (b) look (c) find (d) meet

•       Q10 Here you are at last! I hope your ....... here wasn't too horrible.

(a) travel (b) journey (c) trip (d) voyage

Quiz 2: The Business Plan

•       Q1 The initial responsibility of a business plan is to help to develop a ....... business strategy.

(a) strict (b) hidden (c) regional (d) solid

•       Q2 First, you should describe your products and services and discuss the market that you are ........

(a) goaling (b) aiming (c) targeting (d) goading

•       Q3 If you wish to interest investors, you need to emphasize the company's profit ........

(a) potential (b) chance (c) taking (d) deal

•       Q4 You should be particularly careful to adequately ....... the risks in the business.

(a) launch (b) bare (c) disclose (d) unleash

•       Q5 You should examine customer ....... and the benefits of your products and services.

(a) pockets (b) files (c) needs (d) returns

•       Q6 ....... the strong and weak points of any firms in competition with yours and look for marketplace opportunities.

(a) Equate (b) Evaluate (c) Erase (d) Eliminate

•       Q7 If you can find a particular market ....... to focus on, you should investigate this further.

(a) location (b) corner (c) industry (d) niche

•       Q8 It may also be possible for you to ....... your products differently in the marketplace to attract new customers.

(a) position (b) set (c) spread (d) situate

•       Q9 It is not a good idea to exaggerate sales projections, and it is just as poor an idea to ....... operating costs.

(a) overtake (b) undertake (c) overestimate (d) underestimate

•       Q10 If you forecast conservatively, you will be more likely to maintain an extra ....... of cash.

Quiz 1:

Quiz 2: