Question

Please answer the following question, thanks!

You are the Chief Executive Officer of a large fashion retail company divided into different types of stores, regions, an international wholesale operation, and an internet division. How do you want to structure the management of your company? Do you want to make all your decisions from your headquarters in Maxwell Hall on East 45^rd Street and why? Do you want to divide the company into its functional areas and delegate responsibility accordingly? Justify your answer. What is the downside if you choose one answer over the other?

Answer 1

I would rather divide the company into its functional areas and delegate the responsibilities. The reason structuring the company this way is that making all the decisions from the headquarters will become very difficult as they will not be able to see the broader image of the market in that functional area. If the headquarters manages all the functional area then the focus on every area wont be the same and they would lack in managing everything.

After dividing into its functional areas, a progress report will be sent to the headquarter to review it and act accordingly. This will help the company to work more efficiently and effectively. In this structure company will be able to focus on every area equally as they have divided the work.

This will help the company to manage every sector of the company easily.