Organisational Structures

As businesses grow, organisational structures can be used, and businesses can choose different types of organisational structure:

Functional structure

A functional structure exists when a business structures itself by the four main business functions of human resources, finance, marketing, and operations.

Product structure

A product structure exists when a business structures itself around the products or services it produces, so there will be staff from each function working in a team assigned to each business product.

Matrix structure

A matrix structure exists when a business structures itself around a matrix where each employee may report to two or more supervisors, for example where one supervisor has knowledge of a product or project and another supervisor has knowledge of a business function.

Regional structure

A regional structure exists when a business structures itself around a region, so there will be staff from each function working in a team assigned to each region.

Choosing organisational structure

When choosing the most appropriate organisational structure, a business must consider a range of different influences including the industry, the actions of competitors and the market conditions in which the business operates.
- For example, a fashion brand may have functional directors working in their accessories team and functional directors working in their outdoor clothing team which is an example of a product structure.

Network Analysis

When implementing a new strategy, managers and leaders can use network analysis to manage and plan the different stages and elements of a project.

Network analysis

Network analysis is the use of a network analysis diagram to visually display the different elements of a project to identify the quickest way of completing all activities.

Network analysis diagram

In a network analysis diagram, circles, known as nodes, are used to show the start and end of an individual activity.
In a network analysis diagram, nodes have three numbers In a node, the left number is the node reference, used for information.
In a node, the upper-right number is the earliest start time (EST) the next activity can begin based on the previous activity finishing.
In a node, the lower-right number is the latest finish time (LFT) of the previous activity to not delay the overall project.
In a network analysis diagram, straight arrows are used to show each individual activity within the overall project.

Understanding timings

Using network analysis allows managers and leaders to identify activities which can overrun without impacting the finish date of the whole project. This extra time is known as float time and is the difference between the latest finish time of the previous activity and the earliest start time of the next activity with the activity duration deducted.

Advantages of network analysis

Network analysis allows businesses to calculate float time and identify activities which can be delayed or overrun without affecting the overall project, which allows managers and leaders to move resources if they need to.
Network analysis allows businesses to calculate the critical path which is the list of activities which have no float time and cannot be delayed without delaying the overall project, which allows managers to prioritise.
Network analysis allows managers and leaders to identify whether different tasks can be done at the same time to minimise the overall duration of project implementation.

Disadvantages of network analysis

Network analysis uses forecasted activity durations and these forecasts may be inaccurate.
Network analysis does not guarantee successful strategy implementation as the business still needs adequate resources and managerial experience to implement the strategy successfully.

1What is Business?

1.1Understanding the Nature of Business

1.1.1Why Businesses Exist

1.1.2Business Aims & Objectives

1.1.3Revenue & Costs

1.1.4A-A* (AO3/4) - Cost Leadership

1.1.5Profit

1.1.6End of Topic Test - The Nature of Business

1.2Understanding Different Business Forms

1.2.1Sole Traders

1.2.2Limited Liability

1.2.3Non-Profit

1.2.4Franchising

1.2.5A-A* (AO3/4) - Franchising at Blockbuster

1.2.6Key Business Terms

1.2.7Shareholders

1.2.8End of Topic Test - Different Businesses

1.3External Environments

1.3.1External Environments

2Managers, Leadership & Decision Making

2.1Understanding Management

2.1.1Managers

2.1.2(2024 EXAMS ONLY) Blake Mouton

2.1.3Management Theories

2.1.4End of Topic Test - Management

2.2Understanding Management Decision Making

2.2.1Scientific Decision Making

2.2.2Intuition Decision Making

2.2.3Influences on Decision Making

2.2.4A-A* (AO3/4) - Taylorism & Jack Welch

2.2.5End of Topic Test - Management Decisions

2.3Understanding Stakeholders

2.3.1Stakeholders

3Decision Making to Improve Marketing Performance

3.1Decision Making to Improve Marketing Performance

3.1.1Setting Marketing Objectives

3.2Understanding Markets & Customers

3.2.1Market Calculations

3.2.2Market Research

3.2.3Market Mapping

3.2.4Methods of Market Research

3.2.5Interpreting PED & YED

3.3Market Segmentation, Targeting & Positioning

3.3.1Segmentation

3.3.2Niche & Mass Markets

3.4Marketing Mix

3.4.1Marketing Mix

3.4.2Product Decisions

3.4.3Pricing Decisions & Price Skimming

3.4.4Pricing Decisions & Price Penetration

3.4.5A-A* (AO3/4) - Pricing & Competition

3.4.6Promotional Decisions

3.4.7Promotional Decisions 2

3.4.8Promotional Decisions 3

3.4.9Distribution Decisions

3.4.10Distribution Decisions 2

3.4.11Digital Marketing

3.4.12Evaluating Digital Marketing

3.4.13A-A* (AO3/4) - The Marketing Mix & Promotion

4Decision Making to Improve Operational Performance

4.1Setting Operational Objectives

4.1.1Setting Operational Objectives

4.2Analysing Operational Performance

4.2.1Operations Data

4.2.2A-A* (AO3/4) - The Problem with Operations Data

4.3Increasing Efficiency & Productivity

4.3.1Capacity

4.3.2Productivity & Efficiency

4.3.3Technology & Efficiency

4.4Improving Quality

4.4.1Importance of Quality

4.4.2Measuring & Identifying Quality

4.4.3Total Quality Management

4.4.4Evaluating Total Quality Management

4.4.5A-A* (AO3/4) - Toyota Production System

4.5Managing Inventory & Supply Chains

4.5.1Improving the Supply Chain

4.5.2Inventory

4.5.3Outsourcing

5Decision Making to Improve Financial Performance

5.1Financial Objectives

5.1.1Setting Financial Objectives

5.1.2Influences on Financial Objectives

5.2Analysing Financial Performance

5.2.1Cash-Flow & Budgets

5.2.2Break-Even & Profitability Analysis

5.3Sources of Finance

5.3.1Internal Sources of Finance

5.3.2External Sources of Finance

5.3.3Factors for Financing

5.3.4A/A* (AO3/4) - Debt

5.4Improving Cash Flow & Profit

5.4.1Improving Cash Flow & Profits

6Improving Human Resource Performance

6.1Human Resource Objectives

6.1.1Setting Human Resource Objectives

6.1.2Human Resource Management

6.2Analysing Human Resource Performance

6.2.1Analysing Human Resource Performance

6.2.2Analysing Human Resource Performance 2

6.2.3Analysing Human Resource Performance 3

6.3Improving Organisational Design

6.3.1Job Design

6.3.2(2024 EXAMS ONLY) Hackman & Oldham's Model

6.3.3Organisational Design

6.3.4Human Resource Flow

6.3.5A-A* (AO3/4) - Amazon & Netflix Org Design

6.4Improving Motivation & Engagement

6.4.1Motivating & Engaging Employees

6.4.2Taylor's Theory

6.4.3Maslow's Theory

6.4.4Herzberg's Theory

6.4.5Different Incentives

6.4.6Evaluating Incentives

6.5Improving Employer-Employee Relations

6.5.1Improving Employer-Employee Relations

6.5.2A-A* (AO3/4) - The Winter of Discontent

7Analysing the Strategic Position of a Business

7.1Mission, Corporate Objectives, Strategy

7.1.1Business Mission & Corporate Objective

7.1.2Mission, Corporate Objectives & Strategy

7.1.3SWOT Analysis

7.1.4A-A* (AO3/4) - SWOT Analysis

7.2Financial Ratio Analysis

7.2.1Financial Ratios

7.3Overall Performance

7.3.1Non-Financial Data

7.3.2Core Competences

7.3.3(2024 EXAMS ONLY) Kaplan and Norton's Balanced Sco

7.3.4Assessing Business Performance

7.3.5A-A* (AO3/4) - Assessing Financial Performance

7.4Political & Legal Change

7.4.1Political & Legal Change

7.5Economic Change

7.5.1Economic Environment

7.5.2Business Considerations from Globalisation

7.5.3A-A* (AO3/4) - Interest Rates in the UK

7.6Social & Technological Environment

7.6.1Social & Technological Environment

7.6.2Lifestyle & Technological Environment

7.6.3Corporate Social Responsibility

7.7Competitive Environment

7.7.1Porter's Five Forces

7.7.2A-A* (AO3/4) - The 5 Forces

7.8Investment Appraisal

7.8.1Investment Appraisal

8Choosing Strategic Direction

8.1Choosing Areas of Competition

8.1.1Choosing Areas of Competition

8.1.2A-A* (AO3/4) - Diversification

8.2Choosing How to Compete

8.2.1Choosing How to Compete

8.2.2(2024 EXAMS ONLY) Bowman's Strategic Clock

9How to Pursue Strategies

9.1Change in Scale

9.1.1Growth & Retrenchment

9.1.2Challenges of Growth

9.1.3(2024 EXAMS ONLY) Growth Models

9.1.4A-A* (AO3/4) - Diseconomies of Scale

9.2Assessing Innovation

9.2.1Assessing Innovation

9.3Assessing Internationalisation

9.3.1Internationalisation

9.3.2Sourcing Resources & Entering Markets

9.3.3A-A* (AO3/4) - Internationalisation in Guatemala

9.3.4Managing Internationalisation

9.3.5(2024 EXAMS ONLY) Bartlett & Ghosal's Model

9.3.6Impact of Internationalisation

9.4Digital Technology

9.4.1Assessing Use of Digital Technology

9.4.2Impact of Digital Technology

10Managing Strategic Change

10.1Managing Change

10.1.1Managing Change

10.2Managing Organisational Culture

10.2.1Managing Organisational Culture

10.2.2(2024 EXAMS ONLY) Hofstede's Model

10.2.3Organisational Structures

10.3Managing Strategic Implementation

10.3.1Managing Strategic Implementation

10.4Problems with Strategy

10.4.1Problems with Strategy

10.4.2A-A* (AO3/4) - Divorce of Ownership from Control

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