Functional is where an organization operates a stand

Functional Structure

Functional organizations are subdivided into key functional departments whereby each department encompasses all the activities related to it. For example, an organization may be divided into three segments such as the finance, production, and marketing departments. Sales promotion and advertisements would fall in the marketing department. This structure is normally adopted by organizations with limited product scope. The CEO of the organization coordinates all the functions of the departments (Malamud & Rotenberg, 2010).

Nudlez Corporation

Nudlez is a fast-food service industry in Washington that majorly deals in Asian meals.

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The company operates in Seattle as its headquarters and has various facilities and personnel that enable it supply food across the CBD. It operates franchises and also has mobile cooking units that make it flexible to prepare fast-food individual meals. It has several food stores across Washington as well as street vending systems.

The vending units are mobile and are built to accommodate its cooking processes (Khera Communications, 2010). The company has been departmentalized to into the product preparation and production, purchasing, marketing and sales departments with each department having distinct roles under one CEO, Bill Cook who manages the business processes as well as the human resource in the organization. Nudlez adopted the functional structure since it wanted to achieve efficient specialization in preparation of its meals as well as in its other business processes as such there was need to make employees be able to better understand their roles and responsibilities as well as the required job skills.

The corporation wanted to avoid duplication of work in its business processes. Organizations with clearly defined roles for each sub department and departments are able to avoid such problems. The organization chose the structure as it needed to eliminate redundancy by grouping resources by function and therefore focus on quality, healthy as well as competitively priced meals. Grouping an organization’s resources enables the organization to achieve economies of scale. This has enabled the company achieve a strong brand with emphasis on achieving fund brand culture. The company also wanted to adopt a structure that would enable it standardize its policies, practices as well as procedures that could be applied in every part of the organization. The company wanted to implement a business structure that would reduce management risks.

Functional structure enables Nudlez to develop the skills of its employees to make them more efficient in their departments and therefore achieve high gross margins from its meal products.

Product Structure

Product structure is where an organization operates a stand alone business under the larger organization. An organization that applies product structure segments the organization into several semiautonomous divisions as well as profit centers by considering the activities of the organization. In carrying out segmentation, the organization may consider the products, customers or even geographical locations. In this case, each unit functions as a separate business. Each product unit is again subdivided into sub units for particular products (Malamud & Rotenberg, 2010).

Eastman Chemical Company

Eastman Chemical Company is a chemical company that has its headquarters in Kingsport, Tennessee and deals in chemicals, fibers as well as plastics. It operates in many countries including Mexico, USA, UK, Netherlands, Malaysia and China. The company has five major sectors. These include fibers, polymers as well as speciality plastics. It also has coatings and adhesives as well as performance chemicals. Each division has various products that it deals in and the products are segmented as either industrial or consumer goods (Eastman, 2011).

Since the organization wanted a structure that would enable it focus its resources and attention towards customers, it chose the structure to facilitate its single products to the targeted customers. Eastman Chemical Company chose the structure as it needed a business structure that would facilitate its expansion. The structure allows an organization to add new business units to focus on new profit opportunities without making significant changes to the existing systems (Malamud & Rotenberg, 2010).

Eastman Chemical Company also wanted to attain high levels of accountability in its business performances since divisional units can be easily evaluated. It needed a system where decision making in one area of production does not affect the whole company. Product structure allows managers to employ specific expertise in making decisions which can drive the particular product production and performance in the market to greater levels (Malamud & Rotenberg 2010). The company chose the structure so as to allow each product unit to fully manage its profit as well as loss responsibility.

Area Structure

Area structure is normally adopted by organizations that want to concentrate on geographically specific strategies and therefore focus their decisions on meeting local needs. The organization may therefore be divided into regional structures. The manager for each regional structure operates an almost autonomous business with each regional structure focusing on meeting the local needs of those regions. Each region again has substantial local authority and is responsible for its profits and losses (Malamud, & Rotenberg, 2010).

Whirlpool Corporation

Whirlpool Corporation is a company that operates globally and deals in appliances of various categories. It operates in North America, Latin America, Europe and Asia with each region managed by its own CEO.

Its products are tailored to meet the needs of the local conditions and the people in its region of operation. It focuses on cost productivity, innovation, product value as well as consumer value. Whirlpool is flexible to produce brands that meet the consumers’ demands in its regions of operations (Whirlpool, 2011). The company’s choice of business structure was influenced by its quest to meet the needs of all its local stakeholders.

The company has the capacity to sense and understand local conditions and therefore be able to formulate strategies for meeting the needs of local stakeholders. The company optimizes its product mix as well as product design to meet local conditions and needs. This has enabled the company to beet competition from its rival companies.

Customer/Market Structure

It allows companies to organize their operations in such a way as to fulfill the needs of their customers. They are therefore segmented to meet the needs of their various markets. It becomes important therefore to ensure that the human resource department remains proficient in terms of fulfilling the diverse needs of the customers (Malamud, & Rotenberg, 2010).

Barclays Bank

Barclays bank is one such corporation that offers various customer services. It is a global company and operates in most countries in the world with its headquarters being in the UK.

The bank offers various account services, loans, insurance, savings and investments, mortgages and investment advice services. It offers services to both individuals and corporate businesses and has expanded its innovativeness to offer online banking services (Barclays, 2011). Barclays Bank had to implement the customer structure to focus its attention and resources to meet and satisfy its customers through quality services. Commercial banking is a competitive sector and therefore gaining competitive edge over rival companies is always the main focus. Besides, the financial sector needs those who can effectively evaluate the business outcomes of every activity that one undertakes in his or her operations.

Therefore Barclays has to apply the structure to enable it develop and train its employees to be intelligent in their operations as they as maintain high standard customer service.

Reference List

Barclays. (2011). Barclays.

Retrieved January 26, 2011, from

uk/PremierBanking/P1242557952563 Eastman. (2011). Eastman Chemical Company. Retrieved January 26, 2011, from http://www. Khera Communications. (2010). Fast food restaurant business plan.

Retrieved January 26, 2011, from Malamud, V., & Rotenberg, Y.

(2010). International business for entrepreneurs: Organizational structure and human resource management. Retrieved January 26, 2011, from Whirlpool.

(2011). Whirlpool Corporation. Retrieved January 26, 2011, from

Introduction language which is used for teaching in


Company profile

The headquarters for Speedpac is at Northampton.

The company has a policy of providing better-quality services in the management and distribution of products in both the local and intercontinental market. Speedpac has successfully come up with innovative approaches which have increased international market penetration. The priority of the company is to satisfy clients by increasing flexibility and value by providing well-timed deliveries leading and increased productivity. Our employees are competent; furthermore, the required technical expertise is resourceful at work. This ensures that our clients receive superior and pleasing service (Speedpac, 2010). Speedpac’s chief responsibility is to aid in the storage and sharing of products from small and large entrepreneurship firms.

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The company stores goods for various companies in large warehouses dotting several cities in the world. It handles the distribution of products of hundreds of clients who sign annual contracts. The management has employed reliable members of staff who have the ability to spot new location opportunities through which it can expand (Speedpac, 2010). The company meets the individual needs of its customers by maintaining and recruiting fresh graduates from different qualification fields.

The employees employ their skills to ascertain that the products being distributed are genuine, spot new location opportunities and advise clients on where best their products can be distributed (Speedpac, 2010). Extensive knowledge in the distribution industry coupled with experience ensures work requirements and objectives are met. This ultimately makes Speedpac the ideal business partner when it comes to storage and distribution.

Future prospects of the company

The company is presently concerned with opening a branch in Thailand. An analysis of the area shows that a distribution company being set up in the region will improve our service delivery and create a network with Thai- based organizations. Extensive PEST analysis has been done in Thailand to determine the feasibility of expanding our international markets in the region (Thamvorapol, 2004). Thailand has been identified as an ideal location to continue with the internationalization of the company’s business.

The public domain resources provided the necessary information to determine whether Thailand is the ideal spot for expansion of our dominantly American-African based company.

Economic analysis of Thailand

Thailand, formally known as the kingdom of Thailand, has a population of around six million people with a 0.5% growth rate (Thamvorapol, 2004).

The country is endowed with natural resources such as fish, natural gas and timber. The economy experienced a rapid growth since the eighties before facing a recession in the late nineties. Policy reforms that opened the Thai market to international trade raised the economy growth in the eighties. Domestic investment and savings were boosted, therefore encouraging outside investment. The industry slowly expanded motivating the populace to shift from agriculture to the manufacturing industry. Despite the decline of agricultural growth, the manufacturing sector increased the growth of service sector activities.

The new millennium saw the economy grow tremendously, making the country one of the fastest growing developing economies. Confidence in the market has gradually increased, extending beyond the exchange rate to declining rates of interests. The urban middle class has been a dominant influence in promoting the economy even though the country still holds a larger number of poor people (Thamvorapol 2004).

Social analysis of Thailand

Thailand provides an exceptionally conducive social environment for business (Thamvorapol 2004). The religious freedom of citizens is respected as long as the faith is registered. The police are responsible for the well being of citizens even though there are some powerful individuals who cannot be controlled. Educational opportunities provided in the country are rated as the best in the Asian continent, and most job opportunities are available for the educated. The Thais respect both their culture and that of foreigners (Thamvorapol 2004).

They are truly welcoming to visitors and foreign investors in the country and tend to maintain excellent social relations. Almost 100% of the citizens speak their national language, Thai and share a common culture. It is the language which is used for teaching in schools. Most of the citizens who can afford housing live in the urban area while the poor look for alternative housing mainly out of town.

Technological analysis of Thailand

The government has promoted the use of internet technology in finalizing commerce transactions. This is aimed at supporting electronic transactions, which will eventually spur economic growth in the country. Airport, waterway and road transport are well developed in Thailand, even though remote areas do not enjoy such luxuries. Manufacture of fake products is also rampant in the region with the government doing little to stem the vice (Thamvorapol, 2004).

Political analysis of Thailand

Thailand was never colonized hence making it free to make its own political decisions without influence from other countries (Thamvorapol, 2004). The administrators have managed to solve political problems affecting the country. Unfortunately, like any other country, corruption is rampant in many organizations. The rich therefore get richer while the poor continue to languish in poverty.

The Thai and U.S government have maintained close relations, and have signed a number of business treaties which have promoted trade between the two countries.

Objectives in market expansion

The main objective of the company is to fill the void exposed in the Asian countries related to distribution and storage of products. Clear, practicable and quantifiable objectives have been set to ensure that the company achieves its goals and objectives.

The 4 Ps have been examined and efficient means of implementation set out. Our strategy focuses on the 4 Ps (product, price, promotion and place) (Cheverton 2004). A value has been placed on each of the 4 Ps ensuring that objectives are met.

The 4 P’s of marketing

The 4 Ps, which are commonly recognized as the marketing mix is a central constituent in modern marketing which is interlinked.

The most suitable marketing strategy can be achieved by providing a perfect mix of the four levels (Cheverton 2004). The company is considering dealing with the distribution of other products apart from food. Distribution of finished clothes and raw cloth materials are the other two possibilities that the management of the company has put to thought.


Charging appropriately for the services offered should be considered in marketing. Pricing can be carefully examined using 4 Cs: competitor’s prices, customer value, cost to the company, strategic and pricing objectives of the company.

Pricing objectives gives direction for the company during the process of pricing (Finley, Galloway & Rogers, 2001). There are several pricing objectives the company is focused on including increasing volumes of sales, maximizing short-run and long-run profit and gaining a cutthroat edge in the market. Pricing is the most important concern that concerns prospective customers. Clients compare prices between the available options, and while they may not necessarily go for the cheapest, it influences their decision on which storage and allotment company they will choose (Arduser & Brown, 2006).

How the organization prices its services is aligned to the costs to the organization and the willingness to pay of its customers (Finley, Galloway & Rogers, 2001). The recommended price for storage will be adjusted to 100$ per day while the distribution prices will depend on the distance that will be covered in exportation of the services.


Speedpac stores products in warehouses and offers effective distribution channels for its clients.

The company assures the proper packaging and guarantees secure transportation of products. Making our services look more attractive attracts more customers to the business (Ryans and Palidowa, 2008). The historical method of thought that a quality product will sell itself has been phased out due to the stiff competition that modern companies face presently. Secure storage and reliable distribution will ensure that the company maintains its regular clients while attracting newer clients.


The means of distribution are well laid out to ensure that our services satisfy a bulk of the population. Decisions on where to sell the company’s services when in Thailand target a variety of markets. The desire to provide our services at the right place and time has necessitated us to expand our market to Thailand.


Effective means of communicating and informing our prospective clients about our services are in place. The costs may be large in proportion than the price of the product and a break- even investigation was performed before making any decision in promotion. Promotional decisions include advertisement of the services offered, public relations and marketing through the media.

Middlemen will effectively aid the company in sales promotions.

Challenges in market expansion

Business expansion is one of those stages where a company faces a bulk of the challenges owing to the risks involved. Market expansion causes many changes which affect both the legal, managerial and financial aspects in a company (Ryans and Palidowa, 2008). There are several minute problems which will affect the company’s market expansion in Thailand. The main challenge will undoubtedly be the recruitment of new members of staff. New members who will be hired will look at the top management for guidance. The management therefore starts becoming less centralized which raises the chances of internal politics and disagreement over which objectives the company should pursue.

Market expansion will also result in growth which leads to the expansion of the market share, calling for the formulation of fresh strategies to deal with larger competitors.

Combating the challenges

Strategies structured to combat the two challenges that the company is likely to experience have been formulated. New members will have to undergo extensive training before getting into office.

Alternatively, some of the established managers can start running the company in Thailand while guiding the new recruits. The company must invest in effective management and planning policies which will ensure the monitoring of the stock-market and how the market is changing.


Expanding the company’s market to Thailand will create more business opportunities. There are some useful ways through which market expansion can be easily done.

Two efficient means the management can consider are through licensing its intellectual property to a third party or through public stock offerings (Ryans and Palidowa, 2008).


Arduser, L. & brown, D. (2006). The professional caterer’s handbook: how to open and operate a successful catering business with CD-ROM. Florida: Atlantic publishing company. Bureau of East Asian and pacific affairs (2010). Background mote: Thailand.

Retrieved June 4, 2010 from Cheverton, P. (2004). Key marketing skills: strategies, tools and techniques for marketing successes. London: Kogan page publishers.

Chrisholm-burns, M., Vaillancourt, A., shepherd, M.

(2010). Pharmacy management, leadership, marketing and finance (revised). London: Jones & Bartlett learning, 2010 Finley, D., Galloway, G.

& Rogers. (2001). Strategic planning in social service organizations: A practical guide.

Ontario: Canadian scholars’ press. Ryans, J. & Paliwoda, S.

(2008). International marketing: volume six of international library of critical writings in economics series. Massachusetts: Edward Elgar publishing. Speedpac (2010). Speedpac. Speedpac Retrieved June 4, 2010 from

uk/index2.htm Thamvorapol, S. (2004). Thailand: economic policy analysis. Mkeever Retrieved June 4, 2010 from


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