netrashetty
Netra Shetty
Jones Soda Co. is a beverage company based in South Lake Union, Seattle, Washington.[1][2] It bottles and distributes soft drinks, non-carbonated beverages, energy drinks, and candy. Jones Soda is a carbonated soft drink that has many unusual flavors that are not offered by other soft drink makers.
CEO
William Meissner
Chairman of the Board
Richard Eiswirth
Director
Susan Schreter
Director
Matthew Kellogg
Director
Michael Fleming
Director
Mills Brown
CFO
Michael O’Brien
Sales
Thomas O'Neill
The structural needs of expansion and growth are satisfied by the functional structure but only up to a limit. There comes a time in the life of organizations when growth and increasing complexity in term of geographic expansion, market segmentation and diversification make the functional structure in adequate. Second most common type of structure can be organized by:
- Geographic area
- Product or service
- Customer
- Process
o Advantages
- Clear accountability
- Higher employee morale
- Creates career development opportunities for managers
- Allows local control of situations
- Leads to a competitive climate within an organization
- Allows new businesses and products to be added easily
o Disadvantages
- Can be costly to set up
- Each division requires functional specialists
- Duplication of staff services, facilities, and personnel
- Managers must be well qualified
- Requires an elaborate, headquarters-driven control system
- Competition between divisions may become so intense that it is dysfunctional
4. The Strategic Business Unit (SBU)
Any part of a business organization, which is treated separately for strategic management purposes. When organizations face difficulty in managing divisional operations due to an increasing diversity, size, and number of divisions, it becomes difficult for the top management to exercise strategic control. Here, the concept of an SBU is helpful in creating an SBU-organizational structure. In multidivisional organizations, an SBU structure can greatly facilitate strategy-implementation efforts.
Advantages of Strategic Business Unit (SBU)
º Establishes coordination between divisions having common strategic interests.
º Facilitates strategic management and control of large, diverse organizations.
º Fixes accountability at the level of distinct business units.
Disadvantages of Strategic Business Unit (SBU)
º There are too many different SBUs to handle effectively in a large, diverse organisation.
º Difficulty in assigning responsibility and defining autonomy for SBU heads.
º Addition of another layer of management between corporate and divisional management.
CEO
William Meissner
Chairman of the Board
Richard Eiswirth
Director
Susan Schreter
Director
Matthew Kellogg
Director
Michael Fleming
Director
Mills Brown
CFO
Michael O’Brien
Sales
Thomas O'Neill
The structural needs of expansion and growth are satisfied by the functional structure but only up to a limit. There comes a time in the life of organizations when growth and increasing complexity in term of geographic expansion, market segmentation and diversification make the functional structure in adequate. Second most common type of structure can be organized by:
- Geographic area
- Product or service
- Customer
- Process
o Advantages
- Clear accountability
- Higher employee morale
- Creates career development opportunities for managers
- Allows local control of situations
- Leads to a competitive climate within an organization
- Allows new businesses and products to be added easily
o Disadvantages
- Can be costly to set up
- Each division requires functional specialists
- Duplication of staff services, facilities, and personnel
- Managers must be well qualified
- Requires an elaborate, headquarters-driven control system
- Competition between divisions may become so intense that it is dysfunctional
4. The Strategic Business Unit (SBU)
Any part of a business organization, which is treated separately for strategic management purposes. When organizations face difficulty in managing divisional operations due to an increasing diversity, size, and number of divisions, it becomes difficult for the top management to exercise strategic control. Here, the concept of an SBU is helpful in creating an SBU-organizational structure. In multidivisional organizations, an SBU structure can greatly facilitate strategy-implementation efforts.
Advantages of Strategic Business Unit (SBU)
º Establishes coordination between divisions having common strategic interests.
º Facilitates strategic management and control of large, diverse organizations.
º Fixes accountability at the level of distinct business units.
Disadvantages of Strategic Business Unit (SBU)
º There are too many different SBUs to handle effectively in a large, diverse organisation.
º Difficulty in assigning responsibility and defining autonomy for SBU heads.
º Addition of another layer of management between corporate and divisional management.
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