Holmes Institute: Organisational Structure and Effectiveness Report

This report analyzes the impact of organizational structure on management innovation and overall business performance, using Dan Murphy's as a case study. The report explores how the company's structure, including its governance principles of fairness, collaboration, and local sourcing, influences its operations and management. It examines the company's strategies, such as competitive pricing and customer support, and how these contribute to its market position and competitive advantage. The report also assesses the company's internal structure, emphasizing its purpose-led approach, employee development opportunities, and transparency. The analysis includes the impact of online retailing and the distribution system on business performance. The conclusion highlights the importance of organizational structure in fostering innovation, employee engagement, and customer satisfaction, ultimately driving business success.

Running head: ORGANIZATIONAL STRUCTURE AND EFFECTIVENESS
Organizational Structure and Effectiveness
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ORGANIZATIONAL STRUCTURE AND EFFECTIVENESS
Impact of the Company’s Structure on Management Innovation
The structure of a company plays a very important role in determining the operation and
management of the same. The framework are set in accordance with policies, programs and
purposes of the company. The threes simple ideas which constitutes the governance of the
company include fairness, collaboration and local sourcing. Dan Murphy has successfully
created a brand image with the help of its extensive range of offerings in the market along with
their retail outlets. It comes under the roof of Woolworth Limited which owns the super market
chain of liquor across Australia with over 226 stores. The company has made a recognizable
identity within the market by making liquor available in the market at the lowest prices. Dan
Murphy makes promise of beating competitors in the market and the price which they advertise
their products.
The strategies which are followed by the Woolworth’s group prioritizes the drivers of
growth and their stakeholders are esteemed highly. They aim at delivering high and positive
outcomes to the customers and stakeholders. The Board operates with the same principles of
increasing value by overall activity of the Company. The primary role of the board is to represent
the shareholders as well as uphold their interests. They also formulate strategy for the operation
which in turn enhance the performance and policy collectively. The board charter lays out the
responsibilities and function of the members of the board. This ensures that the authority is well
aligned with the management and overseeing the practices within the system (Gronum, Steen and
Verreynne 2016). The charter also look after the process and composition of the board. This, as a
result provides strong governance and the needed confidence to make investments in the market
in order.

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ORGANIZATIONAL STRUCTURE AND EFFECTIVENESS
However, the companies policies to cater to the market according to the demographic and
psychographic demands of the company. The pricing of the liquors are low whereas they offer
higher end and biggest bands. Competitors like IGA and BWS sell products at higher prices
whereas, Dan Murphy has competitive advantage in the market as they have always managed to
compete with these brands with lowest of prices in Australia.
Impact of the company’s structure on overall business performance
The goal of the company is to prioritize components such as Culture and Team,
convenience for the shoppers, Innovation and evolution in the beverage business, simpler and
better customer support at retail stores as well as support after purchases (Tidd and Bessant
2018). The company structure is diverse and is a purpose led organization. The purpose of the
company unites the initiatives which create enhanced experiences for the future. The company
has a solid foundation which adds edge to its performance. The aim is to promote and celebrate
family and friendly values which integrates stakeholders and the performance of the company.
This instills a feeling of belongingness among the employees and other stakeholders engaged
with the company.
There is enough opportunities for the employees to make progress and soar higher in the
hierarchy of the company. Most of the employees in the company start off by working at the
retail stores but eventually they often get opportunity to avail appraisals even all the way up to
the board committee. This enhances the performance of the company as they are willing to work
better as there is scope for growth and acknowledgement for the efforts the employees put in.
The company is led by the valued customers which makes experiences cherish worthy and better.
This is strengthened with the initiative to maintain transparency within the company and in all
their dealings (Kriz et al. 2016). This builds a sense of trust which is also extended to the

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suppliers as the company also believes in the idea of sourcing locally besides importing the
products of the best brands across the globe. Retailing the products online also helps in
maintaining the cost of warehouse, distribution too. They do not only sell the well-known brands
but also the niche brands of the local market. They provide opportunities to these companies
which are less known by collaborating them.
The distribution system is selective and is more limited in their availability. Since liquor
products require information and deliberation, the distribution is a bit more complicated. They
employ trained and equipped employees to cater to the needs of the customers. Storage and
Salesforce require selective process of distribution which leads to increase in prices and effort.
They provide exclusive discounts to the consumers which add to their strategy to advertising.
They also offer loyalty programs and trial offers to promote the brands they collaborate with.
However, Dan Murphy shocks the customers by making liquor products available at the lowest
of prices. These strategies and framework guarantee competitive advantage to the company.

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References
Gronum, S., Steen, J. and Verreynne, M.L., 2016. Business model design and innovation:
Unlocking the performance benefits of innovation. Australian Journal of Management, 41(3),
pp.585-605.
Kriz, A., Molloy, C., Kriz, A. and Sonntag, S., 2016. All australian regions are not born equal:
Understanding the regional innovation management sandpit. Technology Innovation
Management Review, 6(6), pp.11-23.
Tidd, J. and Bessant, J.R., 2018. Managing innovation: integrating technological, market and
organizational change. John Wiley & Sons.