FESTOOL: Analysis of Organizational Structure for Global Markets

This report analyzes the organizational structure of FESTOOL, a firm planning international expansion, particularly into the Asian market. The study recommends a divisional organizational structure for initial European market entry, emphasizing employee dedication and the role of office managers. It suggests a tall organizational structure with specific managerial designations for broader global market penetration. Furthermore, the report proposes a global functional division structure for future expansion in Asia, highlighting the importance of centralized control and strategic alignment with global objectives. The analysis includes references to relevant literature on organizational structure and leadership management.

Management in Global
Environment

 Primary motive of the
study has been to
correct organizational
structure for the
FESTOOL .
 The firm is going to
expand their business in
the international market
for adopting further
opportunities within the
limited time frame
Introduction

 In the study,
recommendations for
new organizational
structures of FESTOOL
have been given
 The suggestions for
exploring the
international market
specifically in the
Asian market has
been elaborated in
the study

 The FESTOOL first
tried to explore in
the European Market
 It can be observed
that within three
years of the
business the firm will
expand in the Asian
market after finding
the core
opportunities in the
European market
domain

 Divisional organizational
structure should be selected
by the small business
organization for expanding
in the international market
phenomenon
 It can be suggested that in
the first two years of the
expansion in the European
market, the employees of
the organization should be
dedicated towards the work
methodology
The type of the organizational
structure selected for the firm

 The employees should
also listen to the advices
of the office manager,
who has been selected
for the expansion of the
business enterprise
 In case of the Divisional
organizational structure,
the office manager
should segregate the
responsibilities of the
workers for performing
each role and functions
(Winnubst, 2017).

 On the other hand, in the
Divisional organizational
structure, the regional
heads of the FESTOOL
should also get selected for
monitoring the
performances of the
organization employees
 The activities will be
divided for each of the
departments and the
employees will be directed
for completing the work
within the given time frame

 Tall organizational structure
should be adopted by the
FESTOOL for expanding
their market in the global
market phenomenon
 In case of the Tall
organizational structure,
the organization should
select a number of
designations and managers
at the same point of time
(Ashkenas et al., 2015).
Recommendations for change in
the organizational structure

 Within the Tall organizational
structure, there should be
one chairman, Chief
Executive Officer, General
Manager in the organization
 Within the managerial
designations, the board of
directors should appoint
Operation Manager, Financial
Manager, accounting
manager, Marketing
manager IT manager and the
Human Resource Manager
within the structure of the
business

 Each of the managers
should manage their
own team and
department efficiently
 On the other hand,
they also should
contact with the other
members those will be
placed in the other
countries for
managing the business
entity (Van Wart &
Denhardt, 2019).

 In the case of expanding the
business organization in the
Asian market, the organization
should choose the global
functional division structure
for the future prospects
 It can be assessed that the
company after surviving in the
European market for three
years should expand the
business with the help of
global functional division
structure
Suggestion for the organizational
structure in the future

 Within the global functional
division structure of the
company, the functional
division of the structure should
be selected by the company
with the help of diverse existing
channels within the limited time
frame
 The global functional division
structure of the FESTOOL is
much alike to the tall
organizational structure;
however the tall structure
cannot be applicable for the
companies, which are
expanding globally or
internationally (Neubert, Hunter
& Tolentino, 2016).