Source: https://www.7-eleven.com.ph/wp-content/uploads/2020/06/PSC-Org-Chart.

jpg

3. The company utilizes a Functional (U-Form) Organization Design. Based on the organizational chart,
the organization is divided into functional areas which are as follows: Digital Team, Information
Technology, Planning, Finance, and Operations. Communication occurs exclusively within each
functional department and is conveyed to other departments by each department head.
Correspondingly, they apply functional departmentalization. As observed in the chart, the departments
are identified based on the functions they do for the company.

4. The elements of organizational design evident in 7-eleven Corporation are as follows: (1) Based on the
organizational chart, the company is divided into smaller groups by areas of specialty; (2) Upon
researching, I saw that the company provides Skills Training for specialist level such as Area Manager
Training Program Retailer Initiative which indicates that job specialization is present in the company; (3)
The company’s organizational chart displays a chain of command from the highest level of position in
the company (CEO) to the lowest in which (4) shows the delegation of tasks and decision power to the
subordinate to empower employees on the lower levels and enables the executives to spend their time
elsewhere doing important tasks like planning. (5) Interdependence is accomplished as there is unity of
action among the company’s departments, work groups, and employees to efficiently achieve their
objectives by carrying out designated tasks and endeavors.
5A. I believe that 7-eleven has a good Organization and Structure Design since it enabled the company
to thrive here in the Philippines for 94 years. This structure permit greater operational efficiency as it
maintains order from providing clearly-established procedures on how its system proceeds. This
arrangement allows for increased specialization on various areas that empowers their employees’
competence on their certain positions or departments. Moreover, I appreciate how the Internal Audit
Unit is directly below the President and the CEO. This means that the Internal Audit Unit will directly
report to the president to provide independent, objective, reasonable, and professional consultation.

5B. The success of a company centers on the nature of the organization structure it operates. This
establishes its efficiency level it will retain and defines the chain of command it uses, and these
measures are vital to uphold a successful company. Additionally, its tasks are grouped and divided but
are, most importantly, coordinated depending on the. The importance of organizational structure brings
the enhancing of communication, boosting productivity, and instigation of innovation to establish a
flexible and competent manner for growth, producing an environment in which people on their certain
positions can function efficiently.

5C. 7-Eleven is a magnanimous company and its functioning organizational structure is not ideal for
companies like theirs as it seems to overwhelm the CEO with the number of personnel that report
directly to him. Given the nature of their company having countless stores branching globally, I would
recommend reorganizing their current organizational structure to a geographical organizational
structure. This structure appears to be more ideal for a company such as theirs provided that it
guarantees that all their branches report to the CEO. These branches can be run by branch managers
with competent executive members to accommodate matters like data, sales, funds, and strategies. This
best fits the company for it will boost the speed of developments and innovations employed throughout
all the branches in the globe.