Reference no: EM131933183

Question:

Narrow down a strategic direction and identified possible alternative strategies and then narrowed those alternatives down to ONE specific strategy to implement for either Southwest or Subway.

Using that specific strategy, identify what type of organizational design would best support that strategy.

Provide a high level overview of the organizational design - be sure to fully explain the design and why it was selected to support the strategic direction and, more importantly, the specific strategy to be implemented.

Agree or Disagree:

Subway (Opoku)

Based on the definition from this week's reading l believe the Simple structure will be best for Subway. This kind of structure does not rely on formal systems of division of labor. Employees do not require special know how in a particular area to work for the company. They work as a team across board. Individuals know what to do at all levels and contribute to task as needed. (Mastering Strategic Management, 2014) Therefore employees will be trained on how to handle customers, work as a team and know the importance of hygiene.

Though this type of structure tends to be highly centralized, employees will still have a fair amount of flexibility to make decisions based on the situation. (Mastering Strategic Management, 2014)

This type of structure will be good for subway because employees will be accountable to an overall head, so that they don't go over their head, each trying to do what they think best. Nevertheless, because of the informality, employees will be empowered to make decisions when necessary. For instance if a customer wants to customize his/her food which is not on the regular menu, the employee has to make a quick decision, ensuring customer if it is okay or not, assuming supervisor is not around.

I believe this structure may align well with the vertical linkages, however, l think the horizontal linkage will be best for Subway because of the close coordination needed among employees. In addition to the supervisor, they all work as a team to satisfy customers need. The informal linkage will also not be a good fit because employees may take matters into their own hands and make decisions which does not align with company vision or policy.