Organisational Structures

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

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

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.

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.

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.

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 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.

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.

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.

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.

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.