Management and Organizational Structure
Given the business situation for Spectrum Brand p. 251, explain how the firm might organize using a Matrix structure for the organization.
Spectrum Brands Corporation, after several years of producing and marketing only batteries has diversified by adding pet products, personal grooming items, and lawn and garden care products. To organize the Spectrum Brand, formerly known as Rayovac Corporation, using a matrix structure would involve setting up teams in different departments where lines of authority may intersect. This form of organizational structure is also called a project management structure.(Ferrell, Hirt, and Ferrell, 2009). If Spectrum where to develop a pet product that may be battery operated, this may require employees from the pet products division and battery division to work with a project manager and their respective division managers to be successful in the development of this product. This organizational structure would be beneficial in this instance.
Explain how the firm could operate using Multidivisional structure.
The multidivisional structure or M-form of organizational structure organizes departments into larger groups called divisions. These divisions could be focused on either a product, region, or customer. There is delegation of decision making authority in a multidivisional structure (Ferrell, Hirt, and Ferrell, 2009).With Spectrum’s diversified marketing, the firm could operate using a multidivisional structure by establishing divisions for each of its products.
Discuss which structure would be more effective. Explain.
I believe a multidivisional structure would be more effective and beneficial to the Spectrum Brand Corporation as it “helps firms successfully manage the many demands of diversification” (Organizational Structure and Controls p. 347). Since diversification is where Spectrum appears to be headed, the multidivisional structure will allow the company to “(1)...
References: O.C. Ferrell, (2009 Custom Edition). Business: A Changing World, Seventh Edition. McGraw-Hill.
Organizational Structure and Controls. Retrieved May 2010 from http://asso.nordnet.fr/adreg/hitt%20et%20al%20chapitre%2011%20structure%20et%20controle.pdf
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