Organisational structure is the framework by which an organization communicates, creates objectives and coordinates between cross-functional teams. The standards of organisational structure vary with the adopted strategies and the methodologies an entity uses to accomplish its goals (Hill P.430).
Jaise humne pehle dekha. Blah blah bla!! The strategy for Neon Cosmetics Pty Ltd exporting to Chile is focused on localisation and will be shifting towards transnational once the market is formed. Considering the proximity we propose a decentralized vertical hierarchy of command with a geographically separate sales and marketing division. Which can be diagrammatically represented as under
Figure 1: Organisation Structure of Sales and Marketing Department Chile.
The Sales and Marketing Director, located in Chile will be responsible for all strategic decisions and operational controls in relation with the products performances, and will be coordinating and reporting to Headquater based in Australia.
Blah Blah Blah!!
Organisational Architecture gives an overview of the functional departments of the business, cross-functional integration within the organisation and their relation and guidelines how they must be organised. A better understanding of the organisational architecture will also provide more flexibility towards the change in market and strategy (Harmon P79).
Harmon, P 2007, Business Process Change, A Guide for Business Managers and BPM and Six Sigma Professionals, Second Edition, Morgan Kaufmann Publishers, MA, USA.
A proposed Organisational Architecture can be represented as under.
Figure 2 Overview of Organisational Architecture for Neon Cosmetics Pty Ltd
A significant errand of the organizations initiative is to control the different subunits of the firm, whether they are characterized on the premise of capacity, item division, or geographic zone, to guarantee their activities are predictable with the organizations strategic and budgetary goals (Hill P.463).
Neon Cosmetics to step into a multinational environment needs to focus on several control measures which can be summarised as under.
Personal Controls- Face to face communication, Informal methods, Motivation etc…
Bureaucratic Controls- Systems, Standardised rules, Methods, Verification process
Internal Controls- financial reporting, timely feedback on the achievement of operational or strategic goals, and compliance with laws and regulations.
Output controls- Profitability, productivity,…