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Author Question: What is a functional organization and what are its advantages and disadvantages? What will be an ... (Read 102 times)

jenna1

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on: Jul 26, 2018
What is a functional organization and what are its advantages and disadvantages?
 
  What will be an ideal response?

Question 2

You are a senior operations manager for a construction company and are developing a plan to establish a branch office in Utah. Your company currently has no operations in that state. What factors would you consider in developing your plan? Under what conditions would you consider withdrawing from the state?
 
  What will be an ideal response?


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14vl19

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Reply #1 on: Jul 26, 2018
Answer to Question 1

A function organization uses an organization breakdown by function or process. The advantages of the structure are: promotes skill specialization, efficient utilization of human resources, enhances specialized career development, and facilitates vertical communication and centralized decision making. Disadvantages are: fosters parochial perspectives, inhibits cross-functional communication, obscures accountability, and enhances the potential for functional conflicts.

Answer to Question 2

The factors to be considered in developing a plan are:

 Who would be our potential customers?
 What criteria do our potential customers use in selecting a construction company?
 What is the rate of purchase of construction services of our potential customers?
 Who would be our primary competitors?
 What is the availability of suppliers and subcontractors?
 What is the estimated cost of establishing a branch office?
 What people are available within the company who would transfer to Utah?
 What would be the impact of the transfer of selected individuals on other company operations?
 What would be the cost for delivering construction services in Utah? Will the company have any competitive advantage?

The following conditions may necessitate withdrawal from the state:

 Inability to secure profitable work within a reasonable time period, such as two years
 Decline in service purchase by prospective customers


jenna1

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Reply 2 on: Jul 26, 2018
Thanks for the timely response, appreciate it

komodo7

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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