What justifies a medium-sized company in making this move to a complex matrix structure? 2.      Retail business is a local business, why does the company not use a geographical organization model? 3.      The company argues that this structure allows employees to learn from each other. What, and how, do you think they might learn from each other, and why would this be advantageous?

Question

Need self explained detailed solution for the following questions based on the below mini case.

1.      What justifies a medium-sized company in making this move to a complex matrix structure?

2.      Retail business is a local business, why does the company not use a geographical organization model?

3.      The company argues that this structure allows employees to learn from each other. What, and how, do you think they might learn from each other, and why would this be advantageous?

Mini Case

Café Britt – a Costa Rican medium-sized company

The Costa Rican company Café Britt was founded in 1983 by US coffee broker, Steven Aronson in order to market fine roasted coffee through direct sales in Costa Rica. In 2001 it launched its first store in the international Airport in San Jose, aiming to reach the international traveler market, and it then added fine chocolates to its product offering. The company expanded internationally by opening stores in Peru (2005), followed by Dominican Republic, Columbia, Brazil, Equator, Uruguay, Australia and the USA. Overall the company employs around 1400 people in 130 stores over 12 countries, and generates revenues of around US$130 million. Café Britt shops have now expanded their product offering to include local handicrafts and jewelry. The company also operates on-line. Its production facilities are located in Costa Rica, Peru and Columbia. As far as its international structure is concerned, a case study report indicates that the company was originally a functional structure but ‘As the company grew and its international business became core, its organizational structure evolved; It moved to an hybrid organizational structure, a multi-country divisional/matrix where each person reported to a functional manager (Operations, Marketing, Logistics…) and a country manager. It was believed that such a structure allowed employees to learn from each other, to maximize communication and cooperation between countries and head office.’

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