Making new structures for a company

X Company currently experiences product delays and sweets melting in transit as a result of its centralized organizational structure. The business aspires to become global in scope I contend that the problem of candy melting in transit at the moment can be resolved. Company X must adopt a decentralized organizational structure with divisional offices in order to handle the problem of goods melting in transport.

Discussion

A centralized structure’s drawback is that it loses effectiveness the further it goes from the center. It takes more time and effort to supply goods and services the further away the market is. This paradigm of operation, which is centered at a single point with radiating distribution lines and is unsuitable for perishable goods that require reaching the market on time. The recommended approach for this company is the decentralized approach in which there is a head office with divisional offices in various locations that are independent in terms of policy making and product distribution. These divisions can be placed strategically to maintain closeness to the relevant markets. When a market near division A requires to restock the candy, it can be dispatched by the division closest to it without having to go back to the main decision. As a matter of fact, this model does not only solve the structure but also allows for expansion into the global markets. One head office without divisions is virtually impossible in conducting of international business, thus a decentralized structure with several divisional offices is the desired striker in this case.