Assurance of Learning Exercise 4 Essay

2989 Words Jun 15th, 2015 12 Pages
Group Assurance of Learning Exercise 4
October 5, 2014
Business 400_B06
Group Members:

Juan Valdez Lopez
Tram Trinh
Brandon Weadon
David Welborn
Micah Whitley
Heather Younger

Ex. 7C (1 business)
Southwest Airlines chart

Southwest Airlines is a company using the divisional structure by units based on their role; there are four shortcomings for this type of structure that affect Southwest Airlines. * Lack of Teamwork: Southwest Airlines areas may have difficulties working with other functional areas. There is often a perception that they are competing with other functional areas for resources and a lack of understanding of what other areas do for the company. * Difficult Management Control: As Southwest
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Using this structure, Hershey Foods encounters four shortcomings: * Not the appropriate structure: The geographic areas for candy consumption are pretty the same worldwide. As mentioned, this type of structure is good if the company needs to tailor particular needs of customers. Consumption patterns for candy are quite similar everywhere so the needs don’t have to be tailored. Instead, Hershey should focus on product structure because the company produces, and sells three types of products worldwide: (1) chocolate, (2) no chocolate, and (3) grocery. * Limited resource allocation: Every president in each particular area has limited vision tightly to his/her geographic area. Therefore, the broaden resource allocation can not be achieved. This may include research study, technology adoption, and product development. * Managing Conflict: Managing conflict can happen when different presidents in different areas have contradicting opinions about products and consumption patterns. It may cause limitation in improving current products or developing new products because they cant reconcile their opinions. Besides, competition between areas may become so intense that it is dysfunctional and leads to limited sharing of ideas and resources for the common good of the company.

* Costly structure: This type of structure can be costly for Hershey. For instance,

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