Organization Type and Organizational Structure
Company Overview
In this treatise, I would like to start a fashion company that deals with the manufacturing and sale of designer clothes. The choice of the company responds to the increasing orientation of modern society concerning the growing technology and the changing consumer tastes and preferences based on fashion. The youthful generation is increasing their choice to designer clothes and their need to access unique clothes that help them fit in the changing and increasingly demanding environment. My company would deal in the manufacturing of cloths with the utilization of low costs raw materials with the subsequent sale of items to the consumer market at more economical and affordable prices.
Target Market
The organization and its products will target youths. Based on the consideration that the company will venture in the manufacture and sale of designer clothes, which is also more evident among the contemporary youths, the primary market for the products will depend on the number of youths available in an area. The choice of the target market aligns to the fact that business positioning and increasing the buying behavior in the clothing industry must consider the changing consumer needs and preferences among consumers. As Singh (2016) asserts, the young generation choose and wear branded and designer clothes to look attractive and impress other people around them. Therefore, creating a company that will deal with designer clothes is a relevant business because it will cater to the clothing needs of the youths. The company will provide reliable access to and affordable clothing that will also supplement their desires to look attractive and have the ability to impress other people. Therefore, the formation of the company is necessitated by the increasing orientation towards branded clothes and the changing tastes of youths towards clothing. Moreover, apart from providing designer clothes to youths at lower prices, the organization will also offer services to its consumers that may in one way or the other relate to the business line.
Business Culture
The culture of the business will be fundamental in determining its success and relationships with the consumer market. At the same time, the culture in the organization will influence the interaction levels between employees and the management. As in most well-performing and successful businesses, the business culture is vital to success in the consumer environment. Ahmed and Saima (2014) submit that the effective management of an organization is vested in the ability of the managers to institute and promote a healthy culture that is oriented to organizational performance. With this view, the business culture is at the center of all corporate activities and future success in the highly competitive business environment. Thus, an organization culture tends to have a direct effect on organizational performance and efficiency.
In the clothing organization, the preferred business culture will be a clan culture. Teräväinen, Junnonen, and Ali-Löytty (2018) delineate culture as a dynamic living phenomenon that denotes the values and ideas of individuals and one that could influence a change of actions without explicitly being noticed. However, on clan culture, Teräväinen, Junnonen, and Ali-Löytty (2018) affirm that functional culture emphasizes human factors that underscore the sharing of values among people, valuing teamwork, and development of an interactive business environment. The main aim of a clan culture is to establish a long term individual relationships with increased motivation and cohesion among organization employees and the management as well as the connection with consumers (Mohelska & Sokolova, 2018). Since the startup organization will have individuals of different ranks, emphasis will be on the development of more interactive relationships among people of various levels and departments. For instance, managers will be seen as facilitators, team builders, and mentors to other members within the organization. At the same time, the employees will maintain closer links with the management and the consumer with the primary aim of ensuring that organizational objectives are met through the development of sound connection with the consumer markets and helping the administration in solving organizational problems and making decisions. Other values that will be stressed within the corporate culture will involve commitment, communication, and development. With these, the human resource department will be personally responsible for ensuring that all organizational parties uphold open communication with one another, assuring teamwork in the undertaking of duties and responsibilities, empower one another, and maintain a sensitive working environment that nurtures all these values. And most importantly, the organization will underscore the facets of quality of goods and services with an insistence of honesty and integrity to the consumer market. These strategies will help in the active development and maintenance of a sound culture that will be directly appropriate for navigating through the highly dynamic competitive fashion industry. The employees, the management, and the consumer market will express similar levels of trust with one another based on the ability of the organization to ensure that the clan culture operates effectively.
Organization Structure
According to Dhillon and Gupta (2015), organizational structure determines a company’s capacity to achieve goals and objectives. The organization preferred in a company defines the company’s readiness to achieve goals and objectives. In this line, the organization structure preferred for this organization is the functional structure. From a general perspective, a functional organizational structure is a common type of organizational structure where an entity is divided into manageable units based on specialization such as marketing or finance. An organization can be arranged according to several functional units depending on the desired method of operation and performance in the long term. Concerning the functional structure, an organization, based on the desired ways of production and operation, is divided into several groups, commonly known as silos. The silos are entities that are vertical and disconnected from each other with the top management team comprising several functional heads (Johnson McPhail, 2016). Communication also occurs within each department and is transmitted across departments through the departmental heads. In the case of the current organization, at the top of the leadership structure will be the board members and the chief executive officer. The CEO together with the board members will be tasked in making important decisions in the organization. The decisions made in the organization must comply with the general and specific goals and objectives of the entity.
At the second level will be the two managers in charge of production and sales. On the one hand, the production manager will oversee all the activities involved in the access to raw materials required in the manufacturing of the clothes and the estimation of the cost and benefits included in the acquisition process and the intended prices in the market. The sales manager, on the other hand, will oversee all activities within the organization that align with the introduction and sale of the consumer products in the market. The manager will ensure that all marketing activities of the organization are active and results in higher profits. Apart from the two managers, other functional units in the organization will comprise the creative department, sales, and marketing department, accounts department, and the human resources management department. Each of the departments will have two managers that will ensure that all organizational activities within their various areas of jurisdiction are perfect and result in the attainment of corporate objectives. For instance, the creative department will be personally responsible for designing the clothes after intensive market research on the tastes and preferences of the consumers.
Moreover, the creative department will ensure that the products of the organization comply with the changing fashion industry, mainly based on the youths. Sales and marketing department will be responsible for informing the target population about the viability of various products as well as the description of the different unique qualities that each of the products offered has. The sales and meeting department, considering the recent development in advertising technology, incorporate social media marketing strategy to increase the number of consumers for the organization. At the same time, the sales and marketing department can ensure that all consumer complaints and reviews about the goods and services offered are attended to. The human resources department will oversee all employees’ activities and welfare within the organization. The HR department will be an essential unit within the organization because it monitors the wellbeing of the employees which form one of the main components of the success of most organizations. The HR department will respond to employees complains about work conditions and payment issues. The accounts department will control the costs and benefits of the organization and ensure that finances are utilized for the intended purposes. These units will form the primary operational components of the company based on their various integral roles in the performance of the organization.
References
Ahmed, M., & Saima, S. (2014). The impact of organizational culture on organizational performance: a case study of telecom sector. Double Blind Peer Reviewed International Research Journal, 14(3). https://globaljournals.org/GJMBR_Volume14/4-The-Impact-of-Organizational-Culture.pdf
Dhillon, I., & Gupta, S. (2015). Organizational restructuring and collaborative creativity: the case of Microsoft and Sony. IUP Journal of Business Strategy, 12(1), 53–65. Retrieved from http://eds.b.ebscohost.com/eds/pdfviewer/pdfviewer?vid=4&sid=ae96bbc4-73b5-4886-8608-de40da04ffed%40pdc-v-sessmgr02
Johnson McPhail, C. (2016). From tall to matrix: redefining organizational structures. Change, 48(4), 55–62. https://doi.org/10.1080/00091383.2016.1198189
Mohelska, H., & Sokolova, M. (2018). Management approaches for industry 4.0 – the organizational culture perspective. Technological & Economic Development of Economy, 24(6), 2225–2240. https://doi.org/10.3846/tede.2018.6397
Singh, N. (2016). A study of buying behavior of youth towards branded fashion apparels in Mawana city. International Journal of Hom e Science, 2(3), 33-37. http://www.homesciencejournal.com/archives/2016/vol2issue3/PartA/2-2-72.pdf
Teräväinen, V., Junnonen, J.M., & Ali-Löytty, S. (2018). Organizational culture: Case of the Finnish construction industry. Construction Economics and Building, 18(1), 48-69. DOI: 10.5130/AJCEB.v18i1.5770
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