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
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