Organisational Structure (DP IB Business Management: HL)

FitLife Gyms is a chain of mid-sized fitness centres operating across Europe. The company currently uses a tall organisational structure, with multiple layers of management overseeing operations in each gym. Managers at each location report to regional directors, who then report to senior executives at headquarters. This hierarchy ensures consistency in branding and service quality across all branches.

However, some gym managers have complained that decision-making is slow, as every major request must go through multiple layers of approval. For example, when a branch proposed introducing new equipment tailored to local preferences, it took weeks to receive the necessary approvals. Senior management is now considering a flatter organisational structure to address these issues, but there are concerns about whether gym managers would handle increased responsibilities effectively.

FitLife Gyms is a chain of mid-sized fitness centres operating across Europe. The company currently uses a tall organisational structure, with multiple layers of management overseeing operations in each gym. Managers at each location report to regional directors, who then report to senior executives at headquarters. This hierarchy ensures consistency in branding and service quality across all branches.

However, some gym managers have complained that decision-making is slow, as every major request must go through multiple layers of approval. For example, when a branch proposed introducing new equipment tailored to local preferences, it took weeks to receive the necessary approvals. Senior management is now considering a flatter organisational structure to address these issues, but there are concerns about whether gym managers would handle increased responsibilities effectively.

GlobalGrocer is an international supermarket chain that operates in over 50 countries. The company uses a decentralised organisational structure, with regional managers making decisions based on local market conditions. This structure allows GlobalGrocer to adapt its product offerings to suit customer preferences in different regions, such as stocking local produce or offering culturally specific products.

Recently, GlobalGrocer has faced challenges in maintaining consistency across its operations. Some regional managers have implemented policies that conflict with the company’s global brand image. For example, promotional campaigns in certain regions were criticised for not aligning with the company’s sustainability goals. Senior management is now considering shifting to a more centralised structure to ensure greater control and consistency but is concerned this could stifle innovation and responsiveness in local markets.

GlobalGrocer is an international supermarket chain that operates in over 50 countries. The company uses a decentralised organisational structure, with regional managers making decisions based on local market conditions. This structure allows GlobalGrocer to adapt its product offerings to suit customer preferences in different regions, such as stocking local produce or offering culturally specific products.

Recently, GlobalGrocer has faced challenges in maintaining consistency across its operations. Some regional managers have implemented policies that conflict with the company’s global brand image. For example, promotional campaigns in certain regions were criticised for not aligning with the company’s sustainability goals. Senior management is now considering shifting to a more centralised structure to ensure greater control and consistency but is concerned this could stifle innovation and responsiveness in local markets.

BrightSpark Electronics is a global company that manufactures and sells consumer electronics, including smartphones and home appliances. The company recently restructured its operations to use a matrix organisational structure. Employees now report to both functional managers, such as the heads of marketing or finance, and project managers overseeing specific product lines.

While this structure has improved collaboration across departments and allowed BrightSpark to launch innovative products faster, it has also created challenges. Employees sometimes receive conflicting instructions from their two managers, leading to confusion and delays. Additionally, the need for constant communication and coordination has increased workloads, putting pressure on employees and middle management.

BrightSpark is also facing external challenges, including increased competition in the global market and rapid technological advancements. To remain competitive, the company needs to ensure its matrix structure enhances flexibility and efficiency without reducing employee morale.

BrightSpark Electronics is a global company that manufactures and sells consumer electronics, including smartphones and home appliances. The company recently restructured its operations to use a matrix organisational structure. Employees now report to both functional managers, such as the heads of marketing or finance, and project managers overseeing specific product lines.

While this structure has improved collaboration across departments and allowed BrightSpark to launch innovative products faster, it has also created challenges. Employees sometimes receive conflicting instructions from their two managers, leading to confusion and delays. Additionally, the need for constant communication and coordination has increased workloads, putting pressure on employees and middle management.

BrightSpark is also facing external challenges, including increased competition in the global market and rapid technological advancements. To remain competitive, the company needs to ensure its matrix structure enhances flexibility and efficiency without reducing employee morale.