Student

Name:

Assignment
: Exercise #3B – Organizational Choices

Course
Name: Quality Strategy and Value Creation

Date Due: Mar 26, 2023

 INTRODUCTION
The case study will provide insight into two distinct scenarios. First, a business produces plastic goods by
extracting oils from plants and animals. The Chain of Six Barbecue restaurants is the second option. This
case study will decide whether the syndicates operate effectively based on how they both operate.
These companies will either have horizontal or vertical management. However, in every situation, we
will talk about how to make business decisions, who will be in charge, what kinds of roles will be filled,
how many employees we will hire overall, and more. We will also discuss how employees collaborate,
share information, and work from different places.

Scenario 1: Small High-Tech Startup

In this case study, we will look at some of the most important aspects of plastic production. To
begin, if we go back ten decades, the plastic made was not decomposable, resulting in
catastrophic environmental concerns. However, firms are increasingly producing items entirely
made from natural resources that are not damaging to the environment. Plastics created from
natural plant and animal oil, for example, benefit future generations. The company is new and
will most likely be located in an area with the fewest people. The countryside, woodland
regions, and wooded areas would be good locations for manufacturers to establish themselves.
Since the business is fresh to the marketplace and must prove its identity and image among
people and the product offered, the corporation must operate horizontally. The explanation for
this could be the organization's flat structure. This implies that there would be few supervisors,
and lower-ranking employees would have more power. This approach empowers employees
because they can make critical decisions without the manager's permission. Employees in a
horizontal organization are encouraged and driven by corporate goals rather than a boss, which
can enhance productivity and morale. Once the company's earnings reach new heights, and it
has gained the trust of its clients, it will begin operating vertically and in a highly structured
manner. Although the company is product-driven, I will pick a Team-Based Organizational
System.
Employees in this system are organized into Skills-Based teams to focus on specialized tasks
while contributing toward a common goal within a Team-Based organizational structure. This is
often a flexible structure that permits employees to move from team to team when tasks are
finished. The emphasis of this structure is on issue resolution and employee cooperation, as
well as enhancing market performance by building product value. To disperse the burden, the
organization will be organized into four departments. Each team will be responsible for its own
tasks. There would be four teams, one for each area (research, production, marketing and
advertising, and finance). The Research group will investigate the various plastics sources which
can be found readily in the local region or marketplace. The team will consist of a Research
Supervisor and two product research specialists. The production team will consist of a
production Manager, a Process Supervisor, three employees on the manufacturing line, and
two packers. One Manager, supervisor, and three team members will compose the marketing
team, which will also undertake advertising activities. The Finance team will consist of a Head
Accountant, two Cashiers, and two individuals responsible for acquiring additional commodities
such as natural gas, crude oil, coal, and salt. The firm's owner will report to each of the four-
team managers, so there will be an overall of Twenty workers. The organization meets with the
owner every weekend to review the project's status. The firm will have a small number of
employees because it is new to the market and wants to save money on HR expenses while
simultaneously enabling core to focus on what it excels in by decreasing costs through
outsourcing.

Scenario 2: Chain of BBQ Restaurant

The food sector has been growing for a long time. Restaurants, cafeterias, and fast-food joints
must market their products in the most enticing way possible. Food selection is just as
important as a restaurant location. There are several well-known restaurant chains that we are
all acquainted with, like Tim Hortons, McDonald's, Taco Bell, KFC, and others. These restaurants
attract many clients and rely entirely on the range of culinary cuisines purchased by consumers.
The firm operates a network of six BBQ restaurants. Because the food chain enterprises are
expanding rapidly, it would take a short time for them to settle and readily assume their place
in the marketplace. As a result, it should begin operating vertically. The firm has a pyramidal
top-down structure in a vertical organization, with a CEO, president, or owner at the top, a
middle area of supervisors and managers, and the bottom part of normal employees. As a
company owner, you would make all significant choices on sales, marketing, and customer
service standards. Then transmit those decisions to your middle management. These managers
would subsequently inform your staff about the work practices to accomplish the required
results. The term "vertical" refers to the reality that the organization functions from the top
down, and employees are not obliged or expected to contribute to your decisions about how
the firm operates. As a result, every restaurant will have two teams: Team 1 and Team 2. Both
teams will have an equal amount of workers. Their positions will be allocated according to their
responsibilities. Incorporating extra employees into a team increases their interest in the job so
that they do not become bored and like their work. Owners are more prone to see their teams
when they have the backing of their employees working for them and are more prepared to
take measured risks that result in innovation. The managers of each restaurant chain's teams
will report to the owner on the week's complete information. This will involve organizational
objectives, consumer feedback, and experimenting with different cuisines under the VOC.
(Voice of Customer). Every branch will have twenty-two members when the two teams in each
branch are added together. So, there will be 132 members in all.
              Scenario 2 was more appropriate for me as it seemed more feasible to implement. So, it
is all about customer demand and presenting what they have asked for, which ultimately makes
them happy, and this is precisely what is happening with most food businesses. This is why the
food industry expands at a much quicker rate. Establishing a restaurant is not a task; it only
takes a little room to start a company, and if it is located in an area with little competition, the
restaurant or food chain will thrive in no time. Overall, it depends upon the Voice of the
Customer.
              If I have to pick one of the scenarios, I will go with scenario 2 (Chain of BBQ Restaurant)
since it has minimal capital and large output. Unlike other companies that involve time
management and need years to develop, food chain enterprises are considerably quicker to
deploy and will improve my understanding of consumer wants. It also relies on an individual's
sector of interest. I prefer to contact all sorts of individuals to learn about what is happening in
market trends.

References
 https://smallbusiness.chron.com/horizontal-organization-mean-4461.html
 https://smallbusiness.chron.com/difference-between-vertical-horizontalbusiness-
organizations-24915.html
 https://pos.toasttab.com/blog/on-the-line/what-is-a-chain-restaurant