Time Context

August 1995
Viewpoint
Miss Perla Adina, Owner of Perlie Sales.
Statement of the Problem
How to set an organization structure that will match her expansion plans in
Lingayen and San Carlos City?
Statement of Objectives
Long Term: To establish a market nationwide with an effective organizational
structure.
Short Term: To put up branch in Dagupan and nearby towns.
Areas of Consideration
-

Perlie Sales is an exclusive dealer of meat products of a canning factory in

Metro Manila.
5% profit margin is attached to the cost of sales of the items.
Increasing volumes of sales that reach an average of P1 Million peso per
month on a P3 million net worth.
The store was attended by 8 salesladies plus the sales assistant and teenage
help.
Sales is limited only by her ability to serve more customers.
Miss Adina performs multiple functions in the store.

Alternative Courses of Action

1. Determine and hire the functional managers and workers needed.
2. Examine the current organizational structure of the main branch.
3. Hire a professional consultant to review and decide as to what type of
organizational structure should be used
Analysis of Alternatives
Determine and hire the functional managers and workers needed
Advantages:

Efficient work for Miss Perlie and its employees

Decision making would be easier from the reports of functional manager
Clear line of command

Disadvantages:

Hiring would mean more cost from the companys salaries expense
Conflict between the employee because of seniority
Difficulty in interdepartmental coordination

Examine the current organizational structure of the main branch.

Advantage:

Adaptation and basis for its effective organizational structure

Able to know existing problems within the organization
Comparison of standards and performance

Disadvantage:

Inefficiency
Time consuming
Results may be unfavorable

Hire a professional consultant to review and decide as to what type of organizational

structure should be used
Advantages:

Accurate and reliable source of decision.

Consultant have wide range of ideas and connection that can be useful in
making better decision
Established good relationship.

Disadvantages:

Additional expense will be incurred

Security of confidential information including strategies maybe leak out to
the competitors
Results maybe unfavorable.
Time consuming

Decision Statement
After careful deliberation and discussion the group decided to choose ACA #2
which is the most favorable to the side of Perlie, owner and for its expansion plans.
The main reason why the group did not chose ACA #1 Determine and hire the
functional managers and workers needed because its too costly for a starting
business to hire additional managers for its new branches. As for ACA #3
Management Lessons Learned
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