Provides the reader with a basic understanding of organization structure. The first section provides a brief history of the main ideas pertaining to organization structure. The second section outlines some of the concepts and factors that must be taken into account while designing organization structure. Some of the prototypical forms of organization structure and their strengths and weaknesses are described in the third section. Finally, some emerging trends in how organizations are structured are discussed in the last section.
The case highlights an Internet retailer that has grown rapidly, but faces significant issues, including scope of product offerings, supply chain costs, customer service costs, and scalability. The teaching objective of the case is to examine these issues, and the considerations that the company must make in choosing a way forward.
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