The advantages and disadvantages of matrix and functional organizational structures. Introduction: Matrix structure is a combination of the project and functional organization structures with number of reporting’s. This is very suitable for firms operating in a dynamic and challenging environment. Functional organization structure is where different functional departments are formed in an organization. This is very hierarchical structure. Given information; Case study on a company with different stores, managers and departments.

Question

Steve Osbourne is considering opening a business, but the major decision faced is how to organize the business. Steve anticipates generating a massive profit during the first year and that the following years should be relatively profitable. Although he has enough to start the business now as a partnership, he believes cash flow may be an issue as the company grows. Steve believes that the corporate form of operation will be his best option and have hired you as a consultant and seek your advice. Answer the following questions for Steve. Explain the corporate characteristic termed “no mutual agency” Explain the corporate characteristic termed limited liability. Explain the term outstanding stock. Is it true or false that corporations muse issue common stock, but may or may not decide to issue preferred stock? Is it true or false that all forms and classes of stock carry voting rights? Is it true of false that stock sold for amounts in excess of par value results in a gain reported on…

Answer 1

Question

Chapter 10, Problem 3CFCA

Summary Introduction

To determine:

The advantages and disadvantages of matrix and functional organizational structures.

Introduction:

Matrix structure is a combination of the project and functional organization structures with number of reporting’s. This is very suitable for firms operating in a dynamic and challenging environment.

Functional organization structure is where different functional departments are formed in an organization. This is very hierarchical structure.

Given information; Case study on a company with different stores, managers and departments.

Expert Solution & Answer

Trending nowThis is a popular solution!

See solution

Check out sample textbook solution

Students have asked these similar questions

Steve Osbourne is considering opening a business, but the major decision faced is how to organize the business. Steve anticipates generating a massive profit during the first year and that the following years should be relatively profitable. Although he has enough to start the business now as a partnership, he believes cash flow may be an issue as the company grows. Steve believes that the corporate form of operation will be his best option and have hired you as a consultant and seek your advice. Answer the following questions for Steve. Explain the corporate characteristic termed “no mutual agency” Explain the corporate characteristic termed limited liability. Explain the term outstanding stock. Is it true or false that corporations muse issue common stock, but may or may not decide to issue preferred stock? Is it true or false that all forms and classes of stock carry voting rights? Is it true of false that stock sold for amounts in excess of par value results in a gain reported on…

You and three of your close friends have discussed plans to open a pizza restaurant with a delivery service. You intend to attract to your business young professionals who live and work near the downtown area and who are healthy and fitness-minded. You and your co-owners agree that each will invest equally in terms of time and money. However, in addition to contributions and "sweat-equity" made by each of you, another $400,000 is essential for the restaurant to succeed. 1. What type of organization is best suited for this business activity? 2. What steps would you take to manage the restaurant during times that you and your co-owners are not present? 3. What liabilities do you and your co-owners face?

Mr. Moosa was a owner/Manager of Muscat Pharmacy, a small, single-location drugstore. The store was founded by Moosa’s father and it had operated in the same location for 30 years. All of the employees who worked in the store were family members. All were hard workers, and Moosa had the utmost trust in all of them.Although the store thrived in its early years, performance in the last few years had not been good. Sales and Profits were declining, and the problem was getting worse. The performance problems seemed to have begun approximately at the time when a large drugstore chain opened a branch two blocks away.a) What are the issues affect the management control system in Muscat Pharmacy?b) What are the problems they face? Write your own imagination.c) What are the remedies need the employees?2. You are working in the department manager at manufacturing industry. What is your responsibility to tight control? In what respects are used in loosely controlled?