netrashetty

Netra Shetty
Organisational Structure of American Eagle Outfitters : American Eagle Outfitters (NYSE: AEO) is an American clothing and accessories retailer based in Pittsburgh, Pennsylvania. American Eagle Outfitters, Inc., through its subsidiaries, ("AEO, Inc.")offers high-quality, on-trend clothing, accessories and personal care products at affordable prices. The American Eagle Outfitters brand targets 15 to 25 year old girls and guys, with 900+ stores in the U.S. and Canada and online at www.ae.com. aerie by American Eagle offers apparel and intimates collections for the AE girl, with 150+ stand-alone stores in the U.S. and Canada and online at www.aerie.com. The latest brand, 77kids by American Eagle, is available online at www.77kids.com, as well as at nine stores across the nation. The 77kids brand offers small sizes and great big style for kids 0-14. AE.COM, the online home of the brands of AEO, Inc. ships to 76 countries worldwide.[3]
It was founded in 1977 by Mark and Jerry Silverman as a subsidiary of Retail Ventures, Inc., a company which also owned and operated Silverman's Menswear. The Silvermans sold their ownership interests in 1991.[4] On March 16, 2010, American Eagle Outfitters opened its first store in the Middle East at Mirdif City Centre in Dubai, United Arab Emirates.[5] Some of the best selling products of American Eagle Outfitters are low-rise jeans, polo shirts, graphic T-shirts (with the AE logo and year established), henleys, boxers and briefs, outerwear, and swimwear.[

Process re-engineering and concurrent engineering, as the terms suggest, are measures taken to turn a company’s engineering practices towards process analysis and concurrent engineering, combining both the design and manufacture into one division.
Adapting to Six Sigma demands company-wide process improvements and close scrutiny of those processes from one division to another.
Globalization is an intimidating and sometimes controversial issue that also tends to drive companies to change their Organizational Structures.
Business model reinvention — such as IBM changing from a product manufacturer into a services and consulting firm — is one of the more drastic examples of business reorganization; but even this sort of sweeping change must be an option for a truly flexible organization.
Of course, these examples represent evolving business trends that have come and gone over the years. Flexible organizations try to adapt to such trends as quickly and efficiently as possible to enhance business and achieve organizational goals.
Key Terms
Organizational Structure
In any discussion of Organizational Structure, it’s helpful to become acquainted with a few key terms that describe specific aspects of business organization practices. Very simply, Organizational Structure is the manner in which an organization arranges (or rearranges) itself. 5
The manner in which an organization aligns (or realigns) itself.
Once an organization investigates its options and decides upon how it’s going to structure itself, it’s common to draw up an Organizational Chart. Org Charts are not only quite interesting, they’re very handy tools.
Figure 4: An Organizational Chart
Organizational Structure:
A Critical Factor for Organizational Effectiveness and Employee Satisfaction 6
Some organizations consider their Organizational Charts as confidential, while other organizations — most of them, in fact, do not. Some companies go so far as to post their Organizational Charts on their publicly accessible websites.
Other key terms include Centralized and Decentralized Decision Making. Centralized decision making refers to a business model in which decisions are directed to the top of the organization. Decentralized decision making is a model in which the organization tends to push the decisions down to the lowest levels, which can be a good thing.
With decentralized decision making, the benefit is that the individuals who best know the company’s processes are those lower in the organization, those who roll up their sleeves and work with the processes every day. Theoretically, such individuals are in a better position to respond to external and internal drivers and make rapid decisions to control those drivers before they get out of hand and negatively affect the organization.
Decentralized decision making tends to be a trap, as it may dangerously undermine upper management in the organization. Nonetheless, decentralized decision making is increasingly accepted as a viable business model today.
Every company organizes itself differently, so there is no absolute right and no absolute wrong way to design an organization.
Yet another key term is one known as Formalization, the degree to which an organization tends to document its processes, rules, and regulations. 6
Centralized and Decentralized Decision Making and Formalization will vary from one organizational structure to another, depending
4
CEO
James O'Donnell
5
Chairman of the Board
Jay Schottenstein
4
Vice Chairman of the Board
Roger Markfield
4
Director
Cary McMillan
3
Director
Alan Kane
Director
J.Thomas Presby
3
Director
Janice Page
2
Director
Gerald Wedren
Director
Jon Diamond
2
Lead Independent Director
Michael Jesselson
Design
LeAnn Nealz
CFO
Joan Hilson
Human Resources
Thomas DiDonato
Real Estate & Supply Chain
Joseph Kerin
Stores & Store Operations
Dennis Parodi
Brand Marketing
Frederick Grover
International
Christopher Fiore
NY Design Center
Michael Rempell
 
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Disadvantages of Organisational Structure

1) Takes time to amend decision

2) Slow process

3) Difficult to control conflict

4) Rift between one department with other.
 
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