The Board of Directors is to consider changes to the organisational structure of SWF needed during a period of business growth. Recommend changes to the organisational structure of SWF. Justify the changes you recommend.

Mark scheme

Marking points from the official mark scheme (May/June 2019). The mark or mark type is shown in brackets.

1. Organisational structure shows the lines of authority/chain of command in an organisation – also spans of control/levels of hierarchy/formal communication channels
2. Knowledge of different organisational structures e.g. matrix, geographic
3. Delayering - e.g. from tall to flat
4. Centralisation/Decentralisation
5. Current structure appears to be traditional hierarchy based on functional departments. This hasn't evolved with the growth of the business and could lead to potential inefficiencies linked to:
6. SWF has farms throughout country Q and regional differences.
7. SWF produces a range of products – milk, ice cream, cheese – that may require different ways of managing e.g. marketing. Could this be better achieved through a product based structure
8. SWF sells internationally – may require different approach to selling goods.
9. Expansion plans include further extending the product portfolio
10. Other options include: Geographical structure e.g. farms throughout country Q, sales in country P
11. Business unit structure e.g. ice cream, milk and option 2
12. Matrix structure for new projects such as option 1 or 2
13. Remain hierarchical but adopt a flatter structure
14. Analysis of why the current structure is not suited to SWF
15. Analysis of why the structure is not suited to growth of the business or increasing competition which might need more flexible/adaptable structure
16. Geographical structure allows for regional/country differences and quicker local decision making – less control from SWF head office though?
17. SWF has farms throughout country Q. Regional differences may require managers to respond to local conditions. A centralised, tall structure may prevent SWF responding appropriately. A more decentralised structure might be more appropriate.
18. Business unit structure allows specialist managers to focus on different needs of different divisions – might lead to rivalry though?
19. Matrix structure improves communication between departments allowing better decisions to be made. This could be linked to change required by strategic options.
20. Analysis of benefits of a centralised structure currently used
21. Consistency of management
22. Analysis of benefits of change to decentralised structure.
23. Judgement as to which structure is best suited to SWF with justification
24. Recognition of possible limitations on change e.g. impact of delayering on motivation, role of unions etc.
25. Judgement as to which is most important factor guiding the change e.g. need for more effective coordination.