Chapter 15,16,17 Essay

3241 Words Mar 3rd, 2013 13 Pages
Exercise 5

5.1
The given Learning from Experience Case talks about how Carl Buchan took his hardware store in North Carolina and transformed it into Lowe's, a multi-billion dollar company now. Lowe's has more than 228,000 employees distributed in 20 departments which stock more than 40,000 products with annual income of more than $48 billion. Lowe's organization design has been created to handle an increasing number of customers and their desires for product diversity. To provide quality service to more than 14 million customers per week that visit its 1,650 superstores nationwide, Lowe's emphasizes on installation processes in more than 40 categories. They have also formed departments who focus on female demographic to lure in new
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It forbids smoking in the restaurants, restrooms are always clean, and noise is controlled as adults and kids sections are separated. Su also urged the menu of the restaurants to be socially applicable and free from any discriminations.

Though the KFC's organizational design has many strengths, it has some weaknesses. From the very beginning, the commencement of the whole restaurant has been through careful manipulation of government officials. Su used informal methods to educate the officials present there about Franchising. But if there happens to be any change in the governing body in the future, all the efforts will go to waste and depending on the new system, Su may even lose his license to operate. Even a slight mistake that hampers their relationship with Government officials can hugely affect the restaurant.

5.3
Vertical Organizational design has the President or the CEO who gives out all the orders and sets the predetermined organizational goal. This organizational design then has many levels of management with a long chain of command running from the top to the bottom of the organization. Each person is responsible for a specific area and employees report to the person directly above them in the organizational structure. Horizontal Organizational design, on the other hand, has a less-defined chain of command. Instead of having clearly defined duties, employees may work in groups where everyone has equal input. Employees may

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