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Ms West has just purchased a designer clothing and manufacturing company - VCE - SSCE Business Management - Question 3 - 2010 - Paper 1
Question 3
Ms West has just purchased a designer clothing and manufacturing company. She would like to expand the company and start exporting. Compare and contrast two potenti... show full transcript
Worked Solution & Example Answer:Ms West has just purchased a designer clothing and manufacturing company - VCE - SSCE Business Management - Question 3 - 2010 - Paper 1
Step 1
Compare and contrast two potential management structures
Answer
The two management structures to compare and contrast are the Functional Structure and the Matrix Structure.
The Functional Structure organizes employees according to their specific functions or roles. For Ms. West's company, this means having dedicated departments such as Design, Marketing, Manufacturing, and Sales. Each team focuses on its area of expertise, leading to operational efficiency and specialized skills. However, this structure can create communication barriers between departments and slow decision-making processes.
On the other hand, the Matrix Structure combines aspects of both functional and divisional structures, allowing employees to work across departments on various projects. This can enhance flexibility and responsiveness to changes in the market, which is crucial for a company that plans to expand and export. Additionally, it fosters collaboration and innovation by facilitating communication among diverse teams. However, the complexity of reporting to multiple managers can lead to confusion and conflict in priorities.
To summarize:
- Functional Structure:
- Strengths: Specialization, efficiency.
- Weaknesses: Poor inter-department communication.
- Matrix Structure:
- Strengths: Flexibility, improved collaboration.
- Weaknesses: Potential confusion in management.
Step 2
Which management structure would you recommend to Ms West? Justify your choice.
Answer
I would recommend the Matrix Structure for Ms. West’s company. Given her intention to expand and enter new markets through exporting, the flexibility and cross-functional collaboration provided by a matrix structure seem most suitable.
The matrix structure allows for a more dynamic work environment where teams can quickly adapt to new challenges, such as consumer preferences in different geographic regions. It promotes teamwork across multiple departments, which is essential in the fashion industry, where trends and demands can shift rapidly.
Moreover, by leveraging the strengths of various functional departments, Ms. West can ensure that each product is designed, marketed, and produced in alignment with her overarching business goals. While it may introduce complexity in management, the benefits of increased communication and innovative problem-solving can significantly outweigh these concerns in a fast-paced market.