Podcast
Questions and Answers
What should Tina establish first to guide her in structuring her company?
What should Tina establish first to guide her in structuring her company?
a strategy
Which of the following statements is accurate about Tony's Tacos?
Which of the following statements is accurate about Tony's Tacos?
- Tony's has minimal specialization and decentralization.
- Tony's has no levels of supervision.
- Tony's has a high degree of specialization, formalization, and centralization. (correct)
- Tony's operates with a flat hierarchy.
How can Sunset Foods improve its ability to collaborate without sacrificing the benefits of its current structure?
How can Sunset Foods improve its ability to collaborate without sacrificing the benefits of its current structure?
by establishing cross-functional teams
Why does Waterfall Apparel's culture, exemplified by the 'True to You' campaign, fail to support a competitive advantage?
Why does Waterfall Apparel's culture, exemplified by the 'True to You' campaign, fail to support a competitive advantage?
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Study Notes
Company Structure and Strategy
- Tina, an inventor of a fitness tracking device, should first establish a strategy to guide her company’s structure after securing investment funding.
Tony's Tacos Organizational Model
- Tony's Tacos operates as a nationwide fast-food chain with decision-making concentrated at the top.
- Each job role is meticulously detailed, indicating high levels of specialization and formalization.
- The company employs a tall hierarchy, featuring multiple levels of supervision including vice presidents and regional managers.
- Franchisees receive comprehensive instructions to ensure uniform quality and service across all locations.
Sunset Foods Collaboration Challenges
- Sunset Foods uses a centralized functional structure to maintain product quality and reduce costs through innovation.
- This compartmentalization hinders effective information and idea transfer between departments.
- To enhance collaboration while retaining structure benefits, establishing cross-functional teams is recommended.
Waterfall Apparel's Customer Service Commitment
- Waterfall Apparel emphasizes unbeatable customer service as a core value, supported by the "True to You" campaign.
- Key features include a no-questions-asked returns policy and free stitching of customer initials, unique in the market.
- Despite a 10% profit decline, the company continues to uphold its founding vision to enhance customer experiences and foster employee purpose.
- The company's culture, while commendable, fails to create competitive advantage as it does not contribute to economic value creation.
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