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Details emerge on TI Yacht Club’s latest sale

The Treasure Island Yacht and Tennis Club has sold for the second time in less than five months since St. Petersburg business mogul Bill Edwards abruptly closed its doors in August 2023.

Andrew Tavakoli, CEO of West Hollywood, California-based Tavaco Companies, now controls the 7.76-acre waterfront club and marina at 400 Treasure Island Causeway. He acquired the property from TIY & TC LLC , an entity connected to Bank OZK executives Michael Atkins and Rhonda Clark.

John Burpee, CEO of Seminole-based John Burpee & Associates , represented Bank OZK in the latest transaction. The firm also managed the property after the bank took control.

While Burpee could not disclose the purchase price, he said Tavaco closed on the property Dec. 29. “They were an all-cash, fast-close buyer that could close in the bank’s timeframe,” he told the Catalyst .

“The property was previously under contract with a local developer,” Burpee said. “And then that developer defaulted on the contract. There’s still ongoing litigation on that issue.”

TIY & TC purchased the club from Edwards for $15.1 million in August. Bank OZK created the special assets entity to hold the property title.

Burpee’s firm has managed the marina since August. The Yacht Club has remained closed.

Tavakoli could immediately be reached for comment.

John Burpee, CEO of John Burpee & Associates, called the Club at Treasure Island a 37,000-square-foot albatross due to building restrictions. Image: Facebook.

According to Tavaco Companies’ website , Tavakoli began investing, renovating, managing and leasing apartment buildings in 1987. The company boasts extensive experience in nonperforming loans, value-added investments and repositioning projects, with over $2 billion in transactional volume.

The 36,966-square-foot club features a wraparound pool and sundeck, a tiki bar, a full-service restaurant, a 47-slip marina, six tennis courts, a fitness center and a venue for weddings and private events. While the facility was initially for members only, management opened it to the public in recent years.

Burpee is unsure of Tovaco’s plans for the club. However, he explained that the property is undevelopable.

“The property is maxed out on density because it was developed with the two condos next door,” Burpee said. “You can’t go in there and build 100 condo units … we’ve explored all that.”

While he noted that a developer could build eight single-family homes on the property, Burpee said the “economics don’t work for that.” He believes Tavaco will assess the facility’s value and explore future uses before deciding on the club’s future.

Edwards purchased the club in 2009 after securing a $15 million mortgage loan. It was amended to $24 million in March 2020.

The loan matured in late 2022, and Edwards filed a lawsuit against the City of Treasure Island that November due to an ongoing zoning dispute. He filed for Chapter 11 bankruptcy protection the next month.

In December 2022, Edwards told the Catalyst it “was the right business decision” after “coming out of the pandemic and facing challenges with local government.” Real estate and debt solutions provider Mission Capital announced it sold Edwards’ $15 million loan in early 2023.

However, the club’s social media channels showed crowds of young people frolicking around The Club at Treasure Island’s expansive pool deck throughout the spring and summer of 2023. It would abruptly close its doors on a Monday morning in August.

“There was some bad zoning that happened in 1981 that made it really difficult to get the most out of the property,” Edwards said in an August 2023 interview. “We tried to make it work, but the zoning error was too much to overcome, and we decided to move on.

“It was a wonderful place while it lasted. We had a lot of fun and built a great community – but ultimately, it was at my expense.”

Burpee called the facility a great asset. He also noted that Florida statutes prevent local governments from increasing density on barrier islands.

Burpee said the nearly eight-acre parcel, the largest on Treasure Island, is “sitting useless.” While he said the marina is at capacity and has a waiting list, Burpee called the club a “37,000-square-foot albatross that you have to find a use for.”

“Yacht clubs are kind of a dying breed in today’s market, depending on where they are located,” he added. “The marina is not the problem. The problem is the uplands and not being able to do anything with the land.”

May 8, 2024at11:54 am

This didn’t start as a zoning issue. The root cause is mismanagement. This club was very successful (and packed) in the 90s and early 2000s. New owners made poor business and financial decisions that chased off members and caused financial ruin. They also made the mistake of removing tennis courts right before a time of enormous growth in racquet sports and the St. Pete population. This club should have been able to weather the downturn and should now be in an upswing with young families, competitive tennis, and new pickle ball courts.

russell breed

January 27, 2024at4:59 am

This article was incorrectly posted to the Treasure Island Yacht Club (San Francisco) Facebook page.

Gwen Swinburne

January 9, 2024at7:48 pm

Exclusive boutique hotel. Great location,near beach, restaurants, and shopping.

Smart architect can redesign 37,000 Sq ft into small plate breakfast and lunch Cafe and rest into many hotel rooms.

January 9, 2024at7:23 pm

Why not turn it into a boutique exclusive hotel.The setting is great, close to the beach,and restaurants. A pool is already in place and a restaurant that could be resized to a much smaller venue offering small plate breakfast and lunch.

With resizing you should be able to maybe have 30 rooms. A smart architect maybe could figure even more.

With a little redo of 37,000 Sq ft. You could end up with small hotel rooms,

John Hendricks

January 9, 2024at5:27 pm

The City of Treasure Island should have used some common sense and bought the property for a city hall. The building is turnkey with only needing partitions put up for individual offices. It would have given the city a community pool, tennis courts, marina and room underneath for a police/fire department. There is also plenty of parking. The City has spent $14,000,000 on a building right on the Gulf of Mexico that is susceptible to storms. The “Club” property would have moved administration, police, fire department and public works out of harm’s way in the event of a major storm. The old City Hall property could have been converted into parking the would have generated revenue which is desperately needed in Treasure Island. One thing the City of Treasure Island needs is some common sense on it’s Commission and in it’s administration.

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• United States
• Treasure Island Hotel & Casino

Las Vegas Yacht Club

• Good for business meals
• Good for groups

Make a reservation

Additional information.

• Dining style Casual Dining
• Price $31 to $50
• Cuisines Seafood, American, Fish
• Hours of operation Happy Hour Wed–Sun 4:00 pm–6:00 pm Dinner Wed–Sun 5:00 pm–10:00 pm
• Phone number (866) 286-3809
• Website https://treasureisland.com/restaurants/las-vegas-yacht-club
• Payment options AMEX, Carte Blanche, Diners Club, Discover, JCB, Mastercard, Visa
• Dress code Business Casual
• Location 3300 Las Vegas Blvd South, Las Vegas, NV 89109
• Neighborhood Treasure Island Hotel & Casino
• Cross street Spring Mountain
• Parking details Complimentary valet or self-park garage
• Public transit Las Vegas Strip Deuce Bus
• Entertainment Video poker bar with multiple flat screen TVs
• Additional Bar Dining, Bar/Lounge, Beer, Full Bar, Gluten-free Options, Happy Hour, Non-Smoking, Wheelchair Access, Wine

Popular dishes

Crispy calamari.

lemon aioli and tomato basil sauce

Fried Calamari

Dusted and fried to perfection sprinkled with hot peppers and served with tomato basil sauce

Seafood Risotto

clams shrimp black mussels bay scallops frutti de marie

What 58 people are saying

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• 4.5 Service
• 4.2 Ambience

Noise • Moderate

Dined on July 29, 2024

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How is Las Vegas Yacht Club restaurant rated?

Las Vegas Yacht Club is rated 4.2 stars by 58 OpenTable diners.

Is Las Vegas Yacht Club currently accepting reservations?

Yes, you can generally book this restaurant by choosing the date, time and party size on OpenTable.

3300 Las Vegas Blvd South, Las Vegas, NV 89109

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Las Vegas Yacht Club now open at Treasure Island Hotel & Casino

LAS VEGAS (KTNV) — Treasure Island has officially opened their doors to a new restaurant.

Earlier this month, the Las Vegas Yacht Club welcomed its first customers and replaced the Seafood Shack and the Mojito Bar.

"To answer to the changing preference of our guests, we've rolled out a brand-new menu that invites diners to explore a revitalized culinary take on fresh seafood," said Craig Taylor, executive chef at Treasure Island. "We are thrilled to welcome both Las Vegas locals and international visitors for an exceptional dining experience."

The menu features dishes like the Seven Seas, which includes lobster meat, clams, shrimp, mussels, scallops, fish, calamari, and rice in a lobster tomato brother for $49 or the Seafood Risotto with clams, shrimp, black mussels, bay scallops and frutti de mare for $40.

The restaurant is open Wednesday through Sunday from 5 p.m. to 10 p.m. and the bar is open from 4 p.m. to 11 p.m. You can learn more here .

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• Treasure Island Yacht and Tennis Club, Florida, United States

United States

Treasure Island

Sailing / Yacht Club

Treasure Island Yacht and Tennis Club

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Nestled alongside the sparkling blue waters and sun-kissed coast of historic Treasure Island, Fl, The Club at Treasure Island delivers its members a dazzling array of world-class amenities, exclusive events and a lifestyle of warmth, substance and heartfelt hospitality. From our iconic, Mediterranean-themed architecture to the most exquisite culinary experience anywhere in West Central Florida, The Club at Treasure Island serves as the cultural nerve-center for Tampa Bay's trendsetters and community leaders - the ultimate crossroads of lavish luxury and social responsibility.

400 Treasure Island Causeway

727-367-4511

[email protected]

http://www.theclubti.com/

Treasure Island Yacht Club

Location & Hours

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1 Ave Of The Palms

San Francisco, CA 94130

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We visited the newly relocated Treasurer Island Yacht Club. No longer in a fishing shack, they are located in the bottom corner of a building, 300 Clipper Cove Way, 94130. Very basic but the bathroom is a real step.up! It was suppose to be A Night in Spain, but they moved it without notice so the fare was the regular cruise-in dinner of burgers,handmade both regular & turkey. Lots of sides, salads & desserts, but not anything special. Our visiting yacht club was a bit disappointed, but sailors are sailors so a good time was had by all. We were just Not expecting the doors to close @8 pm. Yachtclubs are known for their long hours w/long drinks. Not here. One word of info, yachts clubs are only open to members of other yacht clubs recognized by PICYA. It is called reciprocity. They are not open to the public. Just a word of warning. You sign in & are checked, but since there are 108 YC's in the Bay Area I am positive there are a lot of yachting yelpers out there. I would wait for the dust to settle at TIYC for awhile. Go over to Alameda YC in the interim.

We stayed on site for a GMC RV rally during fleet week 2014 did not use the harbor. The yacht club did host a pig roast... Very good and the members were super friendly. Grounds were clean but had a lot of foot traffic from photographers capturing the bay bridge and the new span. Views from the harbor are awesome

The TI Yacht Club used to be very swanky but, now-it has this totally disasterous appearance and it's looking pretty ghetto: Gentrification, please???

First SELCA/Self-Portrait in a L-O-N-G time: It's so windy here at Treasure Island at 6:37 PM, July 1, 2014! Cheers to all!

Matson Steamship Line-My Dad~Alberto worked for this Shipping Company for a few tours-I'd visit the Merchant Union getting jobs.

Your kids aren't safe at the high school regatta this weekend. Only one rescue boat that wasn't available to pull sailors out of the water after 15 min. Don't trust that they can save your kid. The responsibility to save our kids is on the yacht club and they failed

I didn't go here cause i own a yacht I can't afford a yacht... i know i know... i'm poor... whatever.... so why did i spent 2 days here? why am i here? what the F*ck am i doing here? ok... i''m here for the KAiSer PeRmaNenTe Dragon Boat Festival... ( http://www.sfdragonboat.com/) yeah i'm such a nerd doing dragon boat....but f*ck it! i enjoy the sport you bastard!!! It was spraying a bit when we where here the good thing is that its not as cold so my balls aren't freezing so bad... What i like about this place is that you got the view of the whole SF city and its such a quiet place... i did a couple of laps around the island on both days before racing... what i noticed is that some of the facilities are pretty beaten down and needs some renovation... and the roads are like an obstacle course... i'll be hopping from one puddle of water to another... Basically one part of the parking lot was converted to a place where we set up our tents and some food stores too and other booths showcasing their products... some selling Outrigger canoes, some promoting som charity... you can see tons of shiz in there.... Lets talk about the condition the water... it was choppy as fuck!!! seriously!!! i'm so used to naples island where the water is so calm... but in this place small but shit loads of waves! no big wakes but with the boats that we are using its almost half the weight of what we are used to and it feels so tippy... every end of the race i'm soaking wet!!! and when the afternoon comes with a strong head wind all of our time slowed down for at least 5-10 secs.....and on my last race i can't see anything! i can't see our stroker.. all i can see is the person infront of me... so i relied to his timing and the feel of the boat... after all those grueling conditions we survived and managed to be on the finals but didn't get any medal for that but we got one for visitors ( http://static.px.yelp.com/photo/zlNMtXyUTCpKlngQ-J5GVw/l) it was a nice experience and will be back this year!

This is a really nice club! It is located in Clipper Cove adjacent to Treasure Isle Marina. The members are friendly and accommodating. Between the beautiful location, the professionally run marina and the hospitality of the Treasure Island Yacht Club, you will have a great visit.

Okay, until this afternoon, I'd been pretty pleased with this place. You can't beat the view, and it's nice, chill place to hang out. Mostly I've stuck with the sandwiches which are cheap and good, if a bit generic. Today I thought I'd branch out and have the Caesar's salad with chicken. The salad portion was fine, but they threw yesterdays chopped burrito chicken on there. Dry, brown, and then some. I'm not picky, I was tired and hungry, and I don't like to waste food, so I ate it. I'm not generally shy, and on another day, I'd call them out on it. The waitress gave me a weird look as I left. Probably wondering why I didn't complain. That's the last time I order that. Or, from now on, I'll ask what's fresh. I really hate it when a place I like pulls up lame. On this meal, two stars, but in deference to previous encounters, I gave it three. I'm not calling for gentrification, as someone did, though it is getting a bit grayed around the edges.

Our Yacht club spent a wonderful weekend in Clipper Cove with the hospitality of the TIYC crew. The low key atmosphere was well suited for our group and enhanced by a power outage allowing an unobstructed candle lit view of the city skyline and bridges. I know we stressed the bar and "kitchen" yet there were smiling satisfied boaters all weekend. The host team was so accommodating and grateful - the feelings were mutual. A wonderful place to sit on a sunny weekend afternoon ad take in the vistas.

Treasure Island Yacht Club is a small Gem on the water. It is nestled in a very calm cove, with spectacular views of the new span of the bay bridge on one side, and spectacular views of the city of San Francisco. When you are done with a day of racing/sailing on the bay, perhaps this is the perfect place to pull over and do a barbecue :) The Yacht club itself is a small operation with a nice bar, and very friendly group :) We had great fun staying there for the weekend with a group from our yacht club. The Secret surprise had to be the 5 star meals!! We were not expecting much, but as it turned out, it was the best Steak and Salmon, and grilled portobello that any of us had had this year!! Delicious. Kudos to the chef, and the rest of the volunteer staff that have made Treasure Island Yacht club my new go-to destination !!

TIYC has reciprocal rights with other Bay Area yacht clubs and is staffed by superbly friendly volunteer TI members. They cooked meals for a large group of us who cruised in from SF: perfectly cooked steak and chicken. TIYC is at Clipper Cove, adjacent to Treasure Isle Marina: Roger, the Harbor Master, runs a professional and helpful crew at the marina, who helped our boaters dock, gave advice on things to do on TI and even had ice available for boaters. Clipper Cove is sheltered from the weather, docking is easy and you have one of the best views of the San Francisco skyline from anywhere in the Bay Area. Highly recommend a visit. We'll be back.

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case study about organizational structure

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14.1 Organizational Structure: The Case of Toyota

Figure 14.1

Mike Mozart – Toyota – CC BY 2.0.

Toyota Motor Corporation (TYO: 7203) has often been referred to as the gold standard of the automotive industry. In the first quarter of 2007, Toyota (NYSE: TM) overtook General Motors Corporation in sales for the first time as the top automotive manufacturer in the world. Toyota reached success in part because of its exceptional reputation for quality and customer care. Despite the global recession and the tough economic times that American auto companies such as General Motors and Chrysler faced in 2009, Toyota enjoyed profits of $16.7 billion and sales growth of 6% that year. However, late 2009 and early 2010 witnessed Toyota’s recall of 8 million vehicles due to unintended acceleration. How could this happen to a company known for quality and structured to solve problems as soon as they arise? To examine this further, one has to understand about the Toyota Production System (TPS).

TPS is built on the principles of “just-in-time” production. In other words, raw materials and supplies are delivered to the assembly line exactly at the time they are to be used. This system has little room for slack resources, emphasizes the importance of efficiency on the part of employees, and minimizes wasted resources. TPS gives power to the employees on the front lines. Assembly line workers are empowered to pull a cord and stop the manufacturing line when they see a problem.

However, during the 1990s, Toyota began to experience rapid growth and expansion. With this success, the organization became more defensive and protective of information. Expansion strained resources across the organization and slowed response time. Toyota’s CEO, Akio Toyoda, the grandson of its founder, has conceded, “Quite frankly, I fear the pace at which we have grown may have been too quick.”

Vehicle recalls are not new to Toyota; after defects were found in the company’s Lexus model in 1989, Toyota created teams to solve the issues quickly, and in some cases the company went to customers’ homes to collect the cars. The question on many people’s minds is, how could a company whose success was built on its reputation for quality have had such failures? What is all the more puzzling is that brake problems in vehicles became apparent in 2009, but only after being confronted by United States transportation secretary Ray LaHood did Toyota begin issuing recalls in the United States. And during the early months of the crisis, Toyota’s top leaders were all but missing from public sight.

The organizational structure of Toyota may give us some insight into the handling of this crisis and ideas for the most effective way for Toyota to move forward. A conflict such as this has the ability to paralyze productivity but if dealt with constructively and effectively, can present opportunities for learning and improvement. Companies such as Toyota that have a rigid corporate culture and a hierarchy of seniority are at risk of reacting to external threats slowly. It is not uncommon that individuals feel reluctant to pass bad news up the chain within a family company such as Toyota. Toyota’s board of directors is composed of 29 Japanese men, all of whom are Toyota insiders. As a result of its centralized power structure, authority is not generally delegated within the company; all U.S. executives are assigned a Japanese boss to mentor them, and no Toyota executive in the United States is authorized to issue a recall. Most information flow is one-way, back to Japan where decisions are made.

Will Toyota turn its recall into an opportunity for increased participation for its international manufacturers? Will decentralization and increased transparency occur? Only time will tell.

Based on information from Accelerating into trouble. (2010, February 11). Economist . Retrieved March 8, 2010, from http://www.economist.com/opinion/displaystory.cfm?story_id=15498249 ; Dickson, D. (2010, February 10). Toyota’s bumps began with race for growth. Washington Times , p. 1; Maynard, M., Tabuchi, H., Bradsher, K., & Parris, M. (2010, February 7). Toyota has a pattern of slow response on safety issues. New York Times , p. 1; Simon, B. (2010, February 24). LaHood voices concerns over Toyota culture. Financial Times . Retrieved March 10, 2010, from http://www.ft.com/cms/s/0/11708d7c-20d7-11df-b920-00144feab49a.html ; Werhane, P., & Moriarty, B. (2009). Moral imagination and management decision making. Business Roundtable Institute for Corporate Ethics . Retrieved April 30, 2010, from http://www.corporate-ethics.org/pdf/moral_imagination.pdf ; Atlman, A. (2010, February 24). Congress puts Toyota (and Toyoda) in the hot seat. Time . Retrieved March 11, 2010, from http://www.time.com/time/nation/article/0,8599,1967654,00.html .

Discussion Questions

• Do you think Toyota’s organizational structure and norms are explicitly formalized in rules, or do the norms seem to be more inherent in the culture of the organization?
• What are the pros and cons of Toyota’s structure?
• What elements of business would you suggest remain the same and what elements might need revising?
• What are the most important elements of Toyota’s organizational structure?

Organizational Behavior Copyright © 2017 by University of Minnesota is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License , except where otherwise noted.

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Home » Management Case Studies » Case Study: Organizational Structure and Culture of Virgin Group

Case Study: Organizational Structure and Culture of Virgin Group

The Virgin Group is one of the most successful business empires today. This organization has established itself in diverse industries including mobile telephony, retail, music, financial services, travel, and many more. Virgin has ruled the British market and has expanded worldwide into other regions like North America, Asia, Africa and Australia. Starting out as a simple mail-order record retailer in 1970, Virgin has grown into one of the most successful business empires in the world. The Virgin Group has established more than 300 companies, employing around 50000 people in 30 countries. Its global revenues in 2009 exceeded US$18 billion. The majority of the Virgin Group’s success has been credited to the founder and CEO of Virgin, Richard Branson . Branson’s beliefs and philosophies are deeply rooted in the corporate culture of the Virgin Group. This has helped the Virgin Group to flourish in today’s competitive business world.

History and Development of Virgin Group

The organizational structure of virgin group.

Many assume the Virgin Group to be a multinational, but such is not the case. Each of the 300 odd companies of the Virgin Group operates separately and Branson serves as shareholder, chairman, and public relations supremo. Most of them are operating companies that own assets, employ people, and offer goods and services. These operating companies are owned and controlled by about 20 holding companies. The Virgin Group has a very complex structure. It has been termed both as a brand franchising operation as well as a keiretsu . However, based on its structure, the Virgin Group can be safely termed as an organization with a keiretsu structure. A keiretsu is a group of organizations, each of which owns shares in the other organizations in the group, and all of which work together to further the group’s interests. Furthermore, such a large organization with a complex structure needs to be organic in order to be able to adapt to changes in its environment. An organic structure promotes flexibility, so people initiate change and can adapt quickly to changing conditions.

Considering each of the individual companies as a department providing a unique product or service, it is evident that they exhibit product departmentalization. Product departmentalization is the division of the departments of an organization based on the type of product or service offered. For example, Virgin Mobile offers cellular services while Virgin Records is a music label. However, the structure of the Virgin Group is so complex that it is necessary for it to not just have one type of departmentalization. For instance, Virgin Mobile has operations in many different countries like the UK, India and Australia. As such, the type of service varies in each of these countries. This shows that Virgin Mobile also exhibits geographic departmentalization. Geographic departmentalization is the division of an organization based on the geographic location. In addition, type of service and products also varies depending on the customer base hence exhibiting customer departmentalization. Customer departmentalization is the division of an organization based on the kind of customers it serves. Since the Virgin Group of companies exhibit so many types of departmentalization, the organization as a whole is said to have a hybrid structure, which is a mixture of two or more kinds of departmentalization. This multi-divisional approach helps the Virgin Group to easily adapt to the cultural, technological and other forces in the region it expands to.

Since the Virgin Group comprises of so many companies, along with a decentralized structure, it should show some signs of organizational bureaucracy . However, Branson has ensured since the beginning to minimize bureaucracy as much as possible since he strives to flatten the hierarchy. Bureaucracy is a structure in which people are held accountable for their actions because they are required to act in accordance with rules and standard operating procedures. The efficiency of the employees is enhanced under Branson’s leadership who emphasizes a wide span of control and self management. Branson’s skepticism of organizational hierarchy and a formal structure has contributed to organizational cohesiveness to a great extent. His adoption of this unorthodox strategy rather than traditional business practices and non-traditional structuring of the organization may be the reason for the Virgin Group’s success.

The Organizational Culture of Virgin Group

Much of the Virgin Group’s culture is influenced by its founder Richard Branson’s personal philosophies. Just as his employees are important to him, so are the customers the Virgin Group serves. The ability of the Virgin Group to operate effectively with almost a non-formal structure is because of its unique organizational culture . The culture of the Virgin Group reflects Branson’s casual nature, his disrespect for hierarchy and formal authority, commitment to employees and consumers and his belief in hard work and responsibility. This influences all of the companies in the Virgin Group and its organizational culture. This in turn, enables the Virgin Group to provide an environment in which talented, ambitious people are motivated to do their best and strive for a higher level of performance. However, even in an informal environment, a high level of commitment, acceptance of personal responsibility and long hours of work when needed is expected. Performance incentives at Virgin for most employees are diffident but Virgin provides benefits like social activities, company sponsored weekend getaways and impromptu parties. Such an environment promotes better relations among the employer and the employees.

One of the many strong points in Virgin’s favor is the fact that it is non-traditional; revolutionary even; in the manner it does business. Virgin believes in grasping opportunities. Contrary to what many people may think, Virgin’s constantly expanding and eclectic empire is neither random nor reckless. Each successive venture demonstrates their devotion to picking the right market and the right opportunity. This has proved beneficial to the organization and is one of the many reasons for its success.

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Org Strategy , People & Culture

Microsoft’s Organizational Structure and Culture: A Case Study of a Technology Leader

Microsoft is one of the world’s leading technology companies, with a diverse portfolio of products and services that include Windows, Office, Azure, Xbox, LinkedIn, and more. The company operates in a highly competitive and dynamic market, where innovation, customer satisfaction, and strategic alignmen t are crucial for success. How does Microsoft organize its structure to achieve its goals and mission? In this article, we will explore the main features, advantages, and challenges of Microsoft’s organizational structure.

What is Microsoft’s Organizational Structure?

Microsoft has a product-type divisional organizational structure based on functional business groups and engineering groups. This means that the company is divided into several divisions that focus on specific product lines or services, such as Cloud and AI, Experiences and Devices, Gaming, etc. Each division has its own research and development, sales and marketing, and customer support functions.   The divisions are led by executive vice presidents who report directly to the CEO, Satya Nadella.

In addition to the product divisions, Microsoft also has functional divisions that provide support and guidance to the entire organization. These include Business Development, Finance, Human Resources, Legal and Corporate Affairs, Marketing, etc.   These divisions are also headed by executive vice presidents or senior vice presidents who report to the CEO.

Microsoft also has two geographic divisions: United States and International. These divisions are responsible for managing the regional operations and customer relationships of the company.   They are led by corporate vice presidents who report to the executive vice president of Global Sales, Marketing and Operations.

What is Microsoft’s Organizational Culture?

Microsoft’s organizational culture is defined by its core values and principles that guide its employees’ behavior and decision-making.   The company describes its culture as a culture of accountability, quality and innovation, responsiveness to customers, growth mindset, diversity and inclusion.

Accountability means that Microsoft employees take ownership of their actions and outcomes, and strive to deliver value to the customers and stakeholders. Quality and innovation means that Microsoft employees pursue excellence in their products and services, and constantly seek new ways to improve them. Responsiveness to customers means that Microsoft employees listen to the needs and feedback of the customers, and aim to exceed their expectations. Growth mindset means that Microsoft employees embrace learning and development as a continuous process, and welcome challenges and changes as opportunities.   Diversity and inclusion means that Microsoft employees respect and value the differences among people, and foster a culture of belonging and collaboration.

How Does Microsoft’s Organizational Structure Support Its Culture?

Microsoft’s organizational structure supports its culture by enabling the following benefits:

• Streamlined innovation : By having product-based divisions with dedicated R&D functions, Microsoft can foster a culture of innovation within each division. The divisions can focus on their core competencies and leverage their expertise to create new products and services that meet the customer needs. The divisions can also collaborate with each other to share best practices and synergize their efforts.
• Minimization of internal conflict : By having clear boundaries and responsibilities among the divisions, Microsoft can reduce the potential for conflict over resources or priorities. The divisions can operate autonomously within their scope of authority, without interfering with other divisions’ activities. The divisions can also align their goals with the overall strategy of the company, as communicated by the senior management.
• Flexibility and responsiveness : By having a divisional structure with a flat hierarchy, Microsoft can increase its agility and adaptability to the changing market conditions. The divisions can respond quickly to customer demands and feedback, without waiting for approval from higher levels of management. The divisions can also adjust their strategies and operations as needed, without affecting other divisions’ performance.

What are the Challenges of Microsoft’s Organizational Structure?

Despite its advantages, Microsoft’s organizational structure also faces some challenges that need to be addressed:

• Coordination and integration : By having multiple divisions with different functions and objectives, Microsoft may face difficulties in coordinating and integrating its activities across the organization. The divisions may have conflicting interests or agendas that hinder their cooperation. The divisions may also have inconsistent standards or processes that create inefficiencies or errors.
• Communication and information sharing : By having a large number of employees spread across different locations and time zones, Microsoft may face challenges in communicating and sharing information effectively within the organization. The employees may have limited access or awareness of the information or resources available in other divisions or regions. The employees may also have different communication styles or preferences that cause misunderstandings or delays.
• Culture maintenance and alignment : By having a diverse workforce with different backgrounds and perspectives, Microsoft may face challenges in maintaining and aligning its culture across the organization. The employees may have different interpretations or expectations of the company’s values and principles. The employees may also have different levels of engagement or commitment to the company’s mission and vision.

How Does Microsoft Address These Challenges?

To overcome these challenges, Microsoft employs various strategies and practices, such as:

• Establishing a clear vision and strategy : Microsoft has a clear and compelling vision of empowering every person and every organization on the planet to achieve more 5 .   The company also has a well-defined strategy of being a productivity and platform company for the mobile-first and cloud-first world 6 . These statements provide a common direction and purpose for the entire organization, and help align the divisions’ goals and actions.
• Creating a culture of collaboration and feedback : Microsoft encourages its employees to collaborate and communicate across the divisions and regions, using various tools and platforms, such as Teams, Yammer, SharePoint, etc. The company also promotes a culture of feedback and learning, where employees can give and receive constructive feedback, and seek or offer mentorship and coaching.
• Providing training and development opportunities : Microsoft invests in its employees’ training and development, by providing various programs and resources, such as Microsoft Learn, LinkedIn Learning, Microsoft Certifications, etc. The company also supports its employees’ career growth and mobility, by offering internal job postings, transfers, rotations, etc.

Microsoft’s organizational structure is a product of its history, strategy, and culture. The company has evolved its structure over time to adapt to the changing market and customer needs. The company has also maintained its culture of accountability, quality and innovation, responsiveness to customers, growth mindset, diversity and inclusion. The company’s structure and culture support each other in creating value for the customers and stakeholders. However, the company also faces some challenges in coordinating, communicating, and aligning its activities across the organization. The company addresses these challenges by establishing a clear vision and strategy, creating a culture of collaboration and feedback, and providing training and development opportunities for its employees.

Header image credit:  " Microsoft Store sign" p hoto by Turag Photography licensed under Unsplash License

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The Leading Source of Insights On Business Model Strategy & Tech Business Models

Organizational Structure: The Complete Guide To Organizational Structures

An organizational structure allows companies to shape their business model according to several criteria (like products, segments, geography, and so on) that would enable information to flow through the organizational layers for better decision-making, cultural development, and goal alignment across employees, managers, and executives.

Table of Contents

Introduction to organizational design.

Understanding the organizational structure of a company allows an understanding of how decisions are made. It is also a powerful tool for executives to shape their organization toward desired goals and long-term objectives.

For that sake, designing a proper organizational structure also allows the execution of a company’s business model . Based on the organizational structure the company will also have a different shape.

For instance, some organizations are typically hierarchic, which implies a top-down approach of information flow and definition of roles.

Theoretically, the organizational structure is critical for several reasons. Some of them might be:

• Definition of roles within the organization, so that each employee knows its place and where she belongs.
• Goals alignment that makes groups of people work in coordination to achieve common business objectives.
• Culture development based on the shape of the organization.
• Productivity via a system meant to use the people part of the organization in the best possible way.
• Efficiency in the use and allocation of resources within the organization.
• Better decision-making process by allowing the flow of information within and across several departments.

Lacking an organizational structure might make it difficult for the organization to grow efficiently.

It might make it difficult for employees to understand their place in the organization. It might make it difficult for managers and executives to have a big picture of the company.

It might make it difficult for owners and shareholders to understand who’s accountable for what.

Traditionally, one of the critical differentiators of an organizational structure is centralized vs. decentralized. Wherein a centralized organization the information flows from the top to the bottom of the organization linearly.

In a decentralized organization, companies try to remain more agile and flexible via nonlinear information flows, where multiple touchpoints allow information to travel across several parts of the organization.

Typically organizational structure can be categorized based on several parameters and priorities.

Based on the parameters and preferences the organization will take into account, it will also get shaped by these. More specifically an organizational structure can be organized in:

Functional organizational structure

It is a type of organization where people are grouped according to their area of professional competence and specialization.

Typically this kind of organization is very bureaucratic and has a top-down approach.

This implies that each department will have his manager or director.

This kind of organization allows employees to specialize at best in specific functions. However, it will also limit their flexibility.

While most traditional companies run this kind of organizational structure, many startups that need to make sure its small teams remain flexible and adaptable might opt for a different structure, where people are incentivized to form cross-functional teams.

Divisional organizational structure

It is a type of organization where groups are organized according to the projects, or products the company focuses on.

This structure is more flexible to the hierarchical organization, as each division will run almost as an independent business, that has independent control over resources and money spent.  

Each division working as an independent organization can be grouped by product line but also geography.

Matrix organizational structure

It is a type of organization that blends elements of a functional and divisional structure. While it sounds appealing in theory, it might be hard to implement.

As it might make people report to several bosses within the same organization and the communication flow might become too challenging as this might also generate confusion in the executive and management.

Read Also:  Matrix Organizational Structure In A Nutshell .

Flatarchy organizational structure

It is a type of organization born from the startup way of acknowledging more independence and autonomy to employees, where they are closer to the chain of command, and the decision-making process .

This type of organization still benefits from hierarchies, but it flattens them by generating an adaptable model for organizations.

While this kind of approach might work well with small and medium-sized organizations, it might be difficult to implement for quite large organizations.

Read Also:  Flat Organizational Structure In A Nutshell .

Other types of organizational structures

Other types of organizational structure might also be based on several factors. For instance, in between the hierarchical and flatarchy, there might be several levels of organizations based on how loose are those hierarchies.

Also how far employees are from top management and how freely the information flows. Besides whether employees are involved in the decision-making process .

Choosing the kind of structure of your organization is very important, as based on that your company will be able to achieve a long-term objective, create a culture that fits those goals and it makes employees happy and efficient.

• Flat Organization

• U vs. M Organization Structure

• Circular Organization

• Decentralized Organization

• Decentralized Autonomous Organization

• Mechanistic Organizational Structure

• Mintzberg Organizational Structure

Aligning organization and business model

Where the organizational structure and design are critical to building a culture congenial to the company’s long-term vision and mission .

A business model is a machine, the engine that will propel that organization toward its goal.

Indeed, any company which has a great organizational structure, but lacks the viability of its business model, won’t go far.

Where culture matters to create valuable companies able to scale (remember, culture might work as the glue that keeps a large number of people working together), a business model is an enabler for that.

It is important to highlight that the more a company grows, the more culture and organizational design might matter compared to business model innovation.

In fact, a large organization has to keep its operations as efficient as possible to keep its operations make sense.

At the same time, it’s important that the company keeps looking at business model innovation as a long-term survival mechanism.

Create business innovation units not necessarily aligned with the core organization

Business model innovation is not an easy game.

Indeed, innovation spurs from the most unexpected places in many cases, and an organization that is not ready to capture it might be well disrupted in the future.

But how do you structure a large company for business model innovation? Where a small company can adapt more quickly to changing times. Large corporations might not survive and adapt fast enough.

In part, that’s because large corporations are extremely well aligned with their key customers.

And as highlighted in the book, The Innovator’s Dilemma, managers in those companies make sound decisions in not pursuing certain opportunities.

That’s because often, opportunities that don’t make sense in terms of the bottom line and key customers might also be those that, in the long run, will turn out to succeed.

That is why it’s important to have “innovation units” or small teams of people that operate independently and are not necessarily aligned with the overall organization’s goal and vision .

That bit of “messiness” might be well repaid when those small innovation units stumble upon a new business line, which will become the core business in the years to come.

For instance, large tech companies like Google have innovation units comprised of bets that seem completely unrelated to the company’s current business model. 

Google calls them moonshots .

Moonshots do not have to be aligned with the core business model of the company. 

Quite the opposite, those are ventures with a high rate of failure, yet high potential, which, if they turn out to work, might end up as whole new industries, opening up the way to build a whole new company on top. 

To create moonshots, you want to have a team organized around a few core principles: 

• Create exigency
• Context is king for the moonshot thinking
• Give up on incremental changes
• Embrace the 10X attitude
• It all starts by reasoning from first principles
• Target the impossible but make it actionable
• Fail most of the time
• Do the hardest thing first
• Take massive actions
• Forget T-shaped; it’s all about X-shaped people
• Why 10X thinking is cheaper than incremental thinking, in the long-run

Intrapreneurship

In some cases, organizations design their company to empower employees to take action as they are entrepreneurs.

While this sounds interesting in theory, for larger organizations – where most of the activities are focused on keeping and maintaining existing processes  – intrapreneurship might not be viable if applied to the whole organization.

Instead, the company will have a dedicated group of people that will be more independent or assigned to specific projects that are highly innovative.

Or the company, still in a scale-up stage, can assign part of the time of its employees to run projects they like.

For instance, Google’s 20% Project used to give its employees the freedom to pursue the products and projects they loved the most.

Centralization vs. Decentralization

The debate over centralization vs. decentralization is still open. Classic examples of extremely centralized organizations are represented by Government and bureaucracies in general.

Companies, especially at a large scale, use a hybrid approach, where one part of the business is highly centralized, and other parts are, instead, highly decentralized.

For instance, Coca-Cola uses what I defined as a franchained business model  where its corporate structure is centralized.

However, at the level of the bottler, once operations are established, Coca-Cola leaves them independent to run the business.

Another example is Amazon.

In general, a centralized company is mostly run in hierarchies.

To run some parts of its business, it uses a different approach.

In last-mile delivery , Amazon relies on an army of “independent drivers” or partners that are not directly tied to Amazon’s hierarchy but are kept, independent.

Flattening organizational structures

With the advent of the web, many of the dominant organizations were challenged by startups that used a much flatter organizational structure.

Those startups managed to build products much faster, with much less politicized, an iterative approach to growth , thus disrupting the incumbents.

Yet while flatter organizational structure proved quite effective in scaling things up. 

As things scale, many of those former startups, now becoming tech giants (Apple, Google, Amazon), became much more hierarchical organizations!

In short, after a certain threshold of the scale of a product into a company, which starts to hire thousands of employees, it seems there is no going back from hierarchy to flatarchy. 

We learned this in these three decades of development for the Internet, where we were lean startups taking over large and established players.

And yet, over time, while with a tweaked organizational structure, they also turned into more hierarchical organizations! 

Key Highlights:

• Organizational Structure’s Importance: An organizational structure allows companies to design their business model based on criteria such as products, segments, and geography. It enables information flow, decision-making, culture development, and goal alignment across employees, managers, and executives.
• Understanding Decision-Making: Organizational structure provides insights into how decisions are made within a company and aids executives in shaping their organization toward desired goals and long-term objectives.
• Impact on Business Model Execution: A proper organizational structure enables the execution of a company’s business model, leading to various organizational shapes.
• Benefits of Organizational Structure: Organizational structure is critical for defining roles, aligning goals, developing culture, optimizing productivity, efficient resource allocation, and facilitating information flow for better decision-making.
• Consequences of Lacking Structure: Absence of a proper organizational structure can hinder efficient growth , lead to employee confusion about roles, impede top-level understanding of the company, and create accountability issues.
• Centralized vs. Decentralized Structures: Organizations can be centralized or decentralized. Centralized structures involve top-down information flow, while decentralized structures aim for agility and flexibility through nonlinear information flow.
• Types of Organizational Structures: Different organizational structures include functional (bureaucratic), divisional (based on projects or products), matrix (blending functional and divisional), flatarchy (reduced middle management), and others that balance hierarchy and flexibility.
• Holacracy: Holacracy is a management strategy where decision-making power is distributed throughout an organization, emphasizing self-organization and collaborative work toward common goals.
• Flattening Structures: Flattening organizational structures, as seen in startups, can enhance communication and agility. However, as companies grow, they often transition back to more hierarchical structures to manage scale effectively.
• Business Model Alignment: Aligning organizational structure and business model is crucial for building a culture aligned with long-term goals and ensuring business model viability.
• Moonshot Thinking: Encouraging innovation through “moonshot thinking” involves pursuing ambitious, unconventional goals, even if they don’t align with the core business model. Small innovation units can explore these opportunities.
• Intrapreneurship: Intrapreneurship involves empowering employees to act as entrepreneurs within the organization, fostering innovation and creative solutions.
• Centralization vs. Decentralization Debate: Organizations often adopt a hybrid approach, centralizing certain aspects while decentralizing others to strike a balance between efficient operations and flexibility.

Organizational Structure Case Studies

Openai organizational structure.

Airbnb Organizational Structure

Amazon Organizational Structure

Apple Organizational Structure

Coca-Cola Organizational Structure

Costco Organizational Structure

Dell Organizational Structure

eBay Organizational Structure

Facebook Organizational Structure

Goldman Sachs’ Organizational Structure

Google Organizational Structure

IBM Organizational Structure

McDonald’s Organizational Structure

McKinsey Organizational Structure

Microsoft Organizational Structure

Nestlé Organizational Structure

Nike Organizational Structure

Patagonia Organizational Structure

Samsung Organizational Structure

Sony Organizational Structure

Starbucks Organizational Structure

Tesla Organizational Structure

Toyota Organizational Structure

Walmart Organizational Structure

What are the 4 types of organizational structures?

The four main types of organizational structures can be divided into functional, divisional, matrix, and flatarchy. Organizational structures can move from vertical and pyramidal structures, with a rigid structure, to more horizontal, flat systems, which are way more fluid, and with much less space between employees and management.

What is organizational structure example?

In the Internet era, organizations have been more horizontal and flat, thus reducing the space between employees and management. An example is Google’s early days, a flat organization with functional teams organized around projects. The startup culture has introduced flatter organization patterns. Yet, as some of these startups have scaled to a much bigger size, they have become more centralized and hierarchical.

Why is organizational structure important?

Organizational design is a critical puzzle for making a company successful. Indeed, suppose we identify a corporation or startup as comprised of three main layers (product, business model , and organizational design ). In that case, how these companies structure their organization will also determine their ability to execute their mission . Thus, in a sense, the organizational structure is critical for executing the overall business strategy .

What is the impact of organizational structure?

Organizational structure, product, and business model are critical to enabling a company to scale up. Indeed, when a company has established a viable business model, scaling up the employee base through organizational structure might enable the organization to operate at a much broader scale. Take the case of Google, which transformed from a startup to a massive organization with over a hundred thousand employees as Google established its operations worldwide.

How does Organisational structure lead to success?

The organizational structure becomes critical when trying to achieve a broader scale. Indeed, as startups become established organizations, they might need to become way more structured as they have to tackle much broader engineering, administrative, legal, marketing , and sales problems. From that perspective, organizational structure helps address a broader scaling level for companies.

What are other types of organizational structure?

Other types of organizational structures comprise:

What is the best organizational structure?

The organizational structure will highly depend on the strategy of the company and the scale needed to achieve that. Traditional organizations opt for a hierarchical structure, where people are organized in a pyramid-shaped structure, with top executives in charge of the strategic decision-making process. Startups, on the contrary, opt more for a flatter organizational structure. When startups scale, they also tend to opt for a more hierarchical structure, as it becomes harder to keep a flat organizational structure at a large scale.

Types of Organizational Structures

Siloed Organizational Structures

Open Organizational Structures

Other resources for your business:

• Types of Business Models You Need to Know
• Marketing Strategy
• Blitzscaling Business Model Innovation Canvas In A Nutshell
• How To Create A Business Model
• What Is Business Model Innovation

Connected Business Frameworks

Management Functions

Market Orientation

Portfolio Management

• Project Management

Product Management

Kotter’s 8-Step Change Model

Nadler-Tushman Congruence Model

McKinsey’s Seven Degrees of Freedom

Mintzberg’s 5Ps

COSO Framework

TOWS Matrix

Lewin’s Change Management

Porter’s Five Forces

Ansoff Matrix

Blitzscaling Canvas

Business Analysis Framework

Gap Analysis

Business Model Canvas

Lean Startup Canvas

Digital Marketing Circle

Blue Ocean Strategy

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Toyota’s Organizational Structure: An Analysis

Toyota Motor Corporation’s organizational structure reflects an organizational design that empowers multinational business operations and competitive advantages. As one of the world’s leading automobile manufacturers, Toyota employs its organizational structure to support business goals and strategic direction. This business structure is also linked to the traditional corporate structures used in Japanese businesses. Actual effectiveness in maintaining a strong global presence shows the business ability to use this company structure for optimal efficiency and capacity utilization, equating to the success of Toyota’s operations management . This organizational structure is a contributor to the automaker’s success in the global market.

Toyota’s structure defines the patterns or arrangements in the firm’s resources and processes. This corporate structure facilitates the business competencies and strengths noted in the SWOT analysis of Toyota . These competencies provide advantages over competitors, such as Tesla , Ford , General Motors , BMW , and Nissan.

Characteristics of Toyota’s Company Structure

Toyota has a divisional organizational structure. This business structure is a result of significant changes that started in 2013. These changes were seen as a response to the safety issues and corresponding product recalls that started in 2009. In the old company structure, Toyota had a strong centralized global hierarchy that was more like a spoke-and-wheel structure. The company’s headquarters in Japan made all the major decisions. Individual business units had limited communication with each other, and all communications had to go through the headquarters. However, this old corporate structure was widely criticized for slow response times to address safety issues. As a result of the reorganization that was implemented, Toyota’s organizational structure now has the following main characteristics:

• Global hierarchy
• Geographic divisions
• Product-based divisions

Global Hierarchy . Toyota still maintains its global hierarchy despite its reorganization. However, in the current organizational structure, the company has increased the decision-making power of regional heads and business unit heads. Decision-making processes have become less centralized. Nonetheless, all business unit heads report to the firm’s global headquarters in Japan. This hierarchy in the global corporate structure facilitates the dissemination of strategic decisions and objectives for realizing Toyota’s mission statement and vision statement .

Geographic Divisions . Toyota’s current organizational structure has regional divisions, each of which has a managerial head that reports to the company’s headquarters. Through these regional divisions, the organizational structure enables the automaker to improve products and services according to regional market conditions. Also, Toyota’s marketing mix (4P) involves strategies and tactics based on car types, market demand, and customer preferences in local and regional markets. This geographic approach in the corporate structure allows the company to match its marketing strategies to the actual opportunities in automobile markets around the world. The following are the geographic divisions in Toyota’s structure:

• North America
• Asia, excluding China
• South and Central America, Oceania, Africa, and the Middle East

Product-based Divisions . Another feature of Toyota’s organizational structure is the set of product-based divisions. This characteristic of the company structure supports the development of automotive brands and product lines. Toyota’s competitive strategy and growth strategies are translated and applied through these divisions. Thus, this corporate structure facilitates business competitiveness and growth through product development and innovation. The following are the product-based divisions of Toyota’s structure:

• Lexus International
• Toyota division for operations in North America, Europe, and Japan
• Toyota division for operations in all other regions
• Unit Center for engine, transmission, and related operations

Implications of Toyota’s Structure & Organizational Design

Toyota’s organizational structure provides a greater degree of flexibility compared to the old centralized hierarchical company structure. With its current organizational design and business structure, the company is now more capable of responding to regional market conditions. This flexibility empowers Toyota to speedily respond to issues and to provide higher-quality automotive products. However, the increased decision-making power of regional heads has reduced headquarters’ control over the global organization. Still, this organizational structure facilitates business resilience and growth in the automotive industry.

• Toyota Motor Corporation – Executives .
• Toyota Motor Corporation – Form 20-F .
• Toyota Motor Corporation – Governance .
• U.S. Department of Commerce – International Trade Administration – Automotive Industry .
• Xia, Y., Li, X., & Wang, X. (2023). The Influence of organizational structure on the dynamic capability of enterprises: The regulating effect of technological innovation. Science, 11 (2), 57-66.
• Copyright by Panmore Institute - All rights reserved.
• This article may not be reproduced, distributed, or mirrored without written permission from Panmore Institute and its author/s.
• Educators, Researchers, and Students: You are permitted to quote or paraphrase parts of this article (not the entire article) for educational or research purposes, as long as the article is properly cited and referenced together with its URL/link.
• Case Studies

Case Study Basics

What is a case study *.

A case study is a snapshot of an organization or an industry wrestling with a dilemma, written to serve a set of pedagogical objectives. Whether raw or cooked , what distinguishes a pedagogical case study from other writing is that it centers on one or more dilemmas. Rather than take in information passively, a case study invites readers to engage the material in the case to solve the problems presented. Whatever the case structure, the best classroom cases all have these attributes: (1)The case discusses issues that allow for a number of different courses of action – the issues discussed are not “no-brainers,” (2) the case makes the management issues as compelling as possible by providing rich background and detail, and (3) the case invites the creative use of analytical management tools.

Case studies are immensely useful as teaching tools and sources of research ideas. They build a reservoir of subject knowledge and help students develop analytical skills. For the faculty, cases provide unparalleled insights into the continually evolving world of management and may inspire further theoretical inquiry.

There are many case formats. A traditional case study presents a management issue or issues calling for resolution and action. It generally breaks off at a decision point with the manager weighing a number of different options. It puts the student in the decision-maker’s shoes and allows the student to understand the stakes involved. In other instances, a case study is more of a forensic exercise. The operations and history of a company or an industry will be presented without reference to a specific dilemma. The instructor will then ask students to comment on how the organization operates, to look for the key success factors, critical relationships, and underlying sources of value. A written case will pre-package appropriate material for students, while an online case may provide a wider variety of topics in a less linear manner.

Choosing Participants for a Case Study

Many organizations cooperate in case studies out of a desire to contribute to management education. They understand the need for management school professors and students to keep current with practice.

Organizations also cooperate in order to gain exposure in management school classrooms. The increased visibility and knowledge about an organization’s operations and culture can lead to subsidiary benefits such as improved recruiting.

Finally, organizations participate because reading a case about their operations and decision making written by a neutral observer can generate useful insights. A case study preserves a moment in time and chronicles an otherwise hidden history. Managers who visit the classroom to view the case discussion generally find the experience invigorating.

The Final Product

Cases are usually written as narratives that take the reader through the events leading to the decision point, including relevant information on the historical, competitive, legal, technical, and political environment facing the organization. A written case study generally runs from 5,000 to 10,000 words of text supplemented with numerous pages of data exhibits. An online raw case may have less original text, but will require students to extract information from multiple original documents, videos of company leaders discussing the challenges, photographs, and links to articles and websites.

The first time a case is taught represents something of a test run. As students react to the material, plan to revise the case to include additional information or to delete data that does not appear useful. If the organization’s managers attend the class, their responses to student comments and questions may suggest some case revisions as well.

The sponsoring professor will generally write a “teaching note” to give other instructors advice on how to structure classroom discussion and useful bits of analysis that can be included to explicate the issues highlighted in the case study.

Finally, one case may inspire another. Either during the case writing process or after a case is done, a second “B” case might be useful to write that outlines what the organization did or that outlines new challenges faced by the organization after the timeframe of the initial case study.

* Portions of this note are adapted from E. Raymond Corey, “Writing Cases and Teaching Notes,” Harvard Business School case 399-077, with updates to reflect Yale School of Management practices for traditional and raw cases.

7 Organizational Structure Types (With Examples)

Updated: May 29, 2024, 5:39pm

What is an organizational structure, 4 common types of organizational structures, 3 alternative organizational structures, how to choose the best organizational structure, frequently asked questions (faqs).

Every company needs an organizational structure—whether they realize it or not. The organizational structure is how the company delegates roles, responsibilities, job functions, accountability and decision-making authority. The organizational structure often shows the “chain of command” and how information moves within the company. Having an organizational structure that aligns with your company’s goals and objectives is crucial. This article describes the various types of organizational structures, the benefits of creating one for your business and specific elements that should be included.

Employees want to understand their job responsibilities, whom they report to, what decisions they can and should make and how they interact with other people and teams within the company. An organizational structure creates this framework. Organizational structures can be centralized or decentralized, hierarchical or circular, flat or vertical.

Centralized vs. Decentralized

Many companies use the traditional model of a centralized organizational structure. With centralized leadership, there is a transparent chain of command and each role has well-defined responsibilities.

Conversely, with a decentralized organizational structure, teams have more autonomy to make decisions and there may be cross-collaboration between groups. Decentralized leadership can help companies remain agile and adapt to changing needs.

Hierarchical vs. Circular

A hierarchical organization structure is the pyramid-shaped organization chart many people are used to seeing. There is one role at the top of the pyramid and the chain of command moves down, with each level decreasing in responsibilities and authority.

On the other hand, a circular organization chart looks like concentric circles with company leadership in the center circle. Instead of information flowing down to the next “level,” information flows out to the next ring of management.

Vertical vs. Flat

A vertical organizational chart has a clear chain of command with a small group of leaders at the top—or in the center, in the case of a circular structure—and each subsequent tier has less authority and responsibility. As discussed below, functional, product-based, market-based and geographical organizational structures are vertical structures.

With a flat organization structure, a person may report to more than one person and there may be cross-department responsibilities and decision-making authority. The matrix organizational structure described below is an example of a flat structure.

Benefits of Creating an Organizational Structure

There are many benefits to creating an organizational structure that aligns with the company’s operations, goals and objectives. Clearly disseminating this information to employees:

• Provides accountability
• Clarifies expectations
• Documents criteria for promotion
• Designates decision-making authority
• Creates efficiency
• Fosters collaboration

Essential Elements of Clear Organizational Structure

Regardless of the special type of organizational structure you choose, it should have the following components:

• Chain of command
• Roles and responsibilities
• Scope of control
• Decision-making authority
• Departments or teams within the organization

Functional/Role-Based Structure

A functional—or role-based—structure is one of the most common organizational structures. This structure has centralized leadership and the vertical, hierarchical structure has clearly defined roles, job functions, chains of command and decision-making authority. A functional structure facilitates specialization, scalability and accountability. It also establishes clear expectations and has a well-defined chain of command. However, this structure runs the risk of being too confining and it can impede employee growth. It also has the potential for a lack of cross-department communication and collaboration.

Product- or Market-Based Structure

Along with the functional structure, the product- or market-based structure is hierarchical, vertical and centralized. However, instead of being structured around typical roles and job functions, it is structured around the company’s products or markets. This kind of structure can benefit companies that have several product lines or markets, but it can be challenging to scale. It can also foster inefficiency if product or market teams have similar functions, and without good communication across teams, companies run the risk of incompatibility among various product/market teams.

Geographical Structure

The geographical structure is a good option for companies with a broad geographic footprint in an industry where it is essential to be close to their customers and suppliers. The geographical structure enables the company to create bespoke organizational structures that align with the location’s culture, language and professional systems. From a broad perspective, it appears very similar to the product-based structure above.

Process-Based Structure

Similar to the functional structure, the process-based structure is structured in a way that follows a product’s or service’s life cycle. For instance, the structure can be broken down into R&D, product creation, order fulfillment, billing and customer services. This structure can foster efficiency, teamwork and specialization, but it can also create barriers between the teams if communication isn’t prioritized.

Matrix Structure

With a matrix organizational structure, there are multiple reporting obligations. For instance, a marketing specialist may have reporting obligations within the marketing and product teams. A matrix structure offers flexibility, enables shared resources and fosters collaboration within the company. However, the organizational structure can be complex, so it can cause confusion about accountability and communication, especially among new employees.

Circular Structure

Similar to the functional and product-based structure, a circular structure is also centralized and hierarchical, but instead of responsibility and decision-making authority flowing down vertically, responsibility and decision-making authority flow out from the center. A circular structure can promote communication and collaboration but can also be confusing, especially for new employees, because there is no clear chain of command.

Organic Structure

Unlike vertical structures, this structure facilitates communication between and among all staff. It is the most complex, but it can also be the most productive. Although it can be challenging to know who has ultimate decision-making authority, it can also foster a positive company culture because employees don’t feel like they have “superiors.” This structure can also be more cost-efficient because it reduces the need for middle managers.

There is no one “right” organizational structure. When deciding which structure will work best for your company, consider the following:

• Current roles and teams within the company. How are job functions currently organized? Does it foster communication and productivity? Does it impede or encourage employee growth?
• Your strategic plan. What are your company’s goals for the short-term and long-term?
• Feedback from employees, leadership and other stakeholders. What do those within your company say about how the company is structured? What feedback do you have from other stakeholders, such as customers and suppliers?
• Alignment. What structure will best support your strategic plans and address any feedback received?

What is the most common organizational structure?

A functional organizational structure is one of the most common organizational structures. If you are still determining what kind of structure to use, this organizational structure can be an excellent place to start.

What is the difference between an organizational structure and an organizational chart?

An organizational chart is a graphic that depicts the organizational structure. The chart may include job titles or it can be personalized to include names and photos.

What are the four types of organizational structures?

A functional—or role-based—structure is one of the most common organizational structures. The second type—the product- or market-based structure—is also hierarchical, vertical and centralized. Similar to these is the third structure—the process-based structure—which is structured in a way that follows a product’s or service’s life cycle. Lastly, the geographical structure is suitable for businesses with a broad geographic footprint.

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The Nestle Organizational Structure Case Study

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Executive summary

Nestle is a multinational company that is involved in manufacturing products, in the nutrition, health and wellness industry. Since its establishment in 1886, it has undergone through several changes which its CEO, Brabeck-Letmathe, says are steady and well calculated. A recent change is use of GLOBE, system Codification-Based Strategy, in information use and sharing.

It was meant to improve productivity, efficiency and increase the quality of customer care services. This system changed the way information is accessed, used and shared among employees in various departments all over the world. This system called for a change in the way employees related with management and vice versa which necessitated a change in the organizational structure of the company.

In this report I take a brief look at some of the changes that have occurred at Nestle over the years and the current change due to GLOBE system and the need for it. The structures of the organizational changes that occur at Nestle are discussed in detail.

This process presented challenges for the implementers and Nestle in general since it was met with resistance and delay. This was countered with intensified campaigns to create awareness and lobby for the changes. Finally, an action plan of the change management activities in Nestle is outlined detailed what will be done in each program, who will do it, for how long and the cost to the company.

The Nestle Change Management

Nestle is a multinational company that is involved in manufacturing products, in the nutrition, health and wellness sector. The buzzword in nestle is ‘good food, good life’ which summarizes its mission of providing their consumers with a broad range of food and beverage products for all events that are the best tasting and most nutritious.

Another buzz word for Nestle is ‘creating a shared value’ which Broeckx, (2007) explains means that the corporation creates and pursues long term sustainable value in actions, strategies and processes to all stakeholders be it consumers, communities, shareholders, employees and business partners.

Beside these, are the corporate, business principles where the company outlines its culture, which has been in use for more than 140 years, and are a manifestation of Nestlé’s thoughts on fairness, honesty and long-term thinking (Nestle, 2011).

The company was founded in 1866 by a Swiss national, Henry Nestle in Vevey, in Switzerland. During this time, marketing of products outside the country was through sales agents. This, however, changed in 1900s when the company started buying subsidiaries in foreign countries. In America, the company launched its products after the First World War in response to increased demand for dairy products.

This was done through acquisition of existing factories, and soon after the Second World War, many executives in the Vevey headquarters were transferred to the country. These moves were part of the changing strategies to increase efficiency and productivity for the company (Douglas & Craig, 2009).

The first major change came in 1974 when the company bought majority shares in the cosmetic giant L’Oreal. This was a well calculated move to increase the company’s growth and diversification. The company was criticized for investing in a company that was debt ridden, but soldiered ahead.

The second major change was in diversifying to the pharmaceutical industry by buying a U. S company, Alcon Laboratories, who were makers of pharmaceutical and ophthalmic products. Many other changes came in the 1980s and 1990s when financial improvement through strategic acquisitions and diversifications.

This necessitated the sale of non-strategic and nonperforming businesses while acquiring others such as the 1984 acquisition of Carnation (Nestle, 2011).

Today the company is continually restructuring its business with an annual budget of $3000 million set aside for this. Nestle CEO, Brabeck-Letmathe says that steady and well calculated change is what Nestle implements and does not do this as a fashion thing but as a well thought long term strategy.

He implemented a complete overhaul of the executive board and replaced them with 10 new executives so as to build on the company’s strength something that has guides the company’s organizational changes. Nestle managers’ commitment is what keeps the company steady with their “steeped in Nestle corporate culture” which orients them to focus on the long term goals of the company rather than short term profits.

This corporate culture also established the company’s major strengths such management of corporate growth and its relation to technology. The executive focuses on strengthening and upholding the company’s strength, as opposed to their completed overhaul (Broeckx, 2007).

The most recent change has been on using and sharing information which gave birth to the Codification-Based Strategy of which nestle chose GLOBE. This connects all Nestle departments around the world, and makes company information accessible to all its employees.

This makes information available to all employees and, therefore, no one is more important than the other due to the information he has that others do not have. Information is power, as it allows communication flow between people in the company. However, in order to access specific information or data, one fills request form.

This means employees should be taught how to access and use this information. This also requires a change in the way communication is carried out in the company since the current model could not support the change in information sharing (Nestle, 2010).

The nature of change

As we have seen above, in order for an employee to access specific information or data, one fills request form. This means employees need to be trained on how to access and use this information. Further, the old organizational structure has to go, which in this case was the top-down approach.

Top-down organizational structure used in Nestle had several limitations; professional development followed a vertical manner within a function which does not encourage networking, communication is done through the ranks which do not encourage contribution from employees, cooperation was shadowed by competition and the obedience orientation which discourages initiative (Broeckx, 2007).

This change in the organizational structure will need management strategies to allow employees to cope with change and contribute to the organization’s goals as they are now empowered.

The organizational structure changes that were implemented in Nestles the structurally changing processes approach that involved making substantial changes to the existing organizational structure. This meant that every employee will be oriented to focus on the changes introduced by GLOBE.

This is in line with the corporate ‘Untouchables’ or strong points of the company that focuses on strengthening its strengths and the role of technology in the company. The GLOBE system was meant to improve productivity, efficiency and increase the quality of customer care services, therefore, need to position the organizational structure to meet these needs (Chaudron, 2006).

The structural approach to managing change was implemented by forming steering committees of senior managers to appoint a multidisciplinary team that will design which actions to be taken in order to realize the goal of the company using this new change in information access.

The team assessed the culture of the company, the system used, and the conditions prevailing in the company and came up with recommendations for action which were reported to the committee of senior managers.

The recommendations focused on things such as self-directed work teams, pay for information and restructuring the company away from traditional roles to focus more on the products, customers and geographical point of reference (Management Decisions and Research Center, 2000).

The advantages with this structure as explained by Chaudron, (2006) are that major issues arising in the company are dealt with upfront as opposed to being postponed to the next meeting or such, some aspects of the company such as direct communication flow from marketers to production and finance department improved the productivity of the company and showing the employees that the company really wanted to change the way the company is run.

The disadvantage is that too much information was being revealed to employees and managers felt as if they were losing their bearing or that their power was being taken away from them (Durant, 2008).

Change structures

A traditional hierarchical, pyramidal organizational structure is what existed in Nestle before the GLOBE system was introduced. This system cannot function effectively and efficiently in such a structure. In order for nestle employees to match their goals with that of the company, share ideas with the management, act proactively and collaborate in making the goals of the company realistic, this structure had to change.

Furthermore, the new system of sharing information required highly skilled and informed employees who will no longer need to be supervised. An organizational structure named ‘Nestle for the future’ was implemented (Chaudron, 2010).

This structure focused on addressing four things that were identified as an impediment to organizational management; align employees’ goals with those of the company, utilizing employees’ insight and action, enhancing cooperation and encouraging employees to be proactive.

To divert the employees towards a performance way of life, a program with five parts was then formulated. These programs were implemented simultaneously (Cummings & Worley, 2008).

The flat and flexible structures

This involved dismantling the pyramidal structure and replacing it with a non-pyramidal structure that focused on networking between management and employees. This reviewed structures and retained fewer hierarchical levels worldwide that allowed flexibility and quickness in responding to issues while still sustaining its growth (Cummings & Worley, 2008).

Inspiring management

A review of how management related with its staff showed that action was needed to encourage contributions and cooperation from the staff. This had to start from the way management saw the staff and in regard to this two programs were developed; Nestle leadership program and the grow people program.

Nestle leadership program

The leadership program was done on four bases. These include change had to start with leadership at the top level managers needed to accept they can improve, outsourcing for the program providers and program to be based on feedback from those working close to the managers, colleagues, superiors and subordinates (Carley & Hill, 2009).

Grow people initiative

This involved changing how people were assessed. These new developments were on the basis of cooperation, promotion of personal development and sharing of the information. This changed the way managers assessed by people by just ‘judging’ them as if they are not involved themselves to making them committed developers of people.

A progress and development was introduced for this purpose. The traditional rating model, which focuses on the past rather than the future, was abandoned (Pries-Heje, 2005).

Long-term development

This was aimed at developing long-term careers not in the previous silo thinking model but in developing talents, and skill in a structure which is flexible and responsive to specific talents of skills. Previously careers moved in a vertical manner within one function which was not sensitive to talents and geographical integration.

This was made possible by the network structure, and a talent pool was established which has more than 2000 names from across the globe (Broeckx, 2007).

Dynamic compensation

The new career paths were important, to achieve this, the flattened organization was structured through creation of a new remuneration model. This model allows staff to raise their salaries without the need for promotion.

This involved laying down concrete measures for measuring pays and compensations which encompass not only past achievements but also long term incentives. In addition to this, a long-term incentive plan was introduced (Broeckx, 2007).

Lifelong learning program

This program involved ensuring continuous education and learning experiences for employees which is very important in the ‘Nestle for the future’ strategy. This is in line with nestles philosophy of continuous learning (Cummings & Worley, 2008).

Challenges in the Nestle Change Management

Resistance to change by some managers was a major challenge the ‘nestle for the future encountered where some managers had problems with various aspects of the program. The elimination of the rating system for staff to be replaced by the progress and development guide was too much for them.

They argued that, rating employees drive performance, but Nestle is for long term growth not short tern profits. Those that were unable to cope with this quit, while others were given early retirement. It, however, slowed down implementation of the program in some regions. The program was eventually embraced wholly when it benefits were understood and working become more exciting (Broeckx, 2007).

Delay in program implementation was experienced. This was caused by the managers resisting the changes that were introduced. Though various aspects of this program were meant to run simultaneously, this was delayed for close to two years as the program was viewed with a lot of skepticism and others felt threatened by the changes.

The steering committee composed of the senior managers and the team of employees carried out a vast campaign which included visiting different regions and affiliates and giving presentations on the changes and the benefits to be accrued besides other forms of communication.

The Progress and Development Guide, which had brought a lot of issues was put on the website and operated there so as to aid its implementation (Cummings & Worley, 2008).

The unwillingness of the management to share their skills and gifts with other regions, functions and businesses was an impediment that was encountered in the process of implementing the process. In the flat and more flexible model, networking is the core word which means increased communication and sharing of information between the above.

This took three years to see anything substantial which delayed the long-term learning aspect of the program. Communication was intensified through various channels until people were comfortable with the program (Carley & Hill, 2009).

Action Plan

Reference List

Broeckx, P., 2007. Perspectives for Managers. In R. Hooijberg, J. Hunt, J. Antonakis, & K. Boal, Being There Even When You Are Not:Leading Through Strategy, Strctures and Systems (pp. 96-106). United States of America: IMD International.

Carley, K., & Hill, V., 2009. Structural Change and Learning Within Organisations. United States of America: Carnegie Mellon University.

Chaudron, D., 2010. Begin at the beginning in organizational change. Organized Change Consultancy. Web.

Chaudron, D., 2006. Organized Change: A Tale of Three Vilages: Approoaches to Implementing Organisational Change. The Business Forum , 43-48.

Cummings, T., & Worley, C., 2008. Institutionalizing Structural Change at Hewlett Packard. In T. Cummings, & C. Worley, Organisational Development and Change (pp. 208-216). United States of America: Cengage Learning.

Douglas, S., & Craig, S., 2009. International Brand Architecture: Development, Driver and Design. New York: New York University.

Durant, M., 2008. Managing Organisational Change. United States of America: CCE, CPA.

Kezar, A., 2001. Understanding and Facilitating Organizational Change in the 21 st Centuary: Recent Research and Conceptualizations. United States of America: john Wiley & Sons.

Management Decisions and Research Center., 2000. Organisational Change. Washington, DC: Department of Veteran Affairs.

Nestle ., 2010. Current Situation. Web.

Nestle., 2011. History . Web.

Pries-Heje, J., 2005. eGovernment and Structural Reform on Bornholm: A Case Study. Electronic Government: 4th International Conference (pp. 124-145). Coppenhagen: university of Coppenhagen.

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• What Is A Sales Organizational Structure?

Aug 14, 2024 | Organizational Design , Sales

A sales organizational structure is a clear framework that defines how a sales team is set up, how it functions, and how it meets its goals. No matter the industry you’re in, having a well-defined sales organizational structure helps team members know their roles and responsibilities and work towards increased sales performance.

In this article, we’ll explore what makes a strong sales organizational structure — such as the key elements, the different types, best practices, and more — to help you tailor a structure that best supports your team’s needs and drives your business objectives.

Key Components of a Sales Organizational Structure

Sales roles and responsibilities.

A well-structured sales team is made up of various roles, each with its specific functions and responsibilities. Here are the most common roles that make up an effective sales team:

• Sales Development Representatives (SDRs): SDRs are in charge of generating leads and qualifying prospects. They also reach out to potential clients to spark interest and identify those who are ready for further discussions.
• Account Managers: Account Managers are responsible for nurturing client relationships. They ensure customer satisfaction, handle renewals, and up-sell or cross-sell services and products to existing clients.
• Customer Success Managers: Customer Success Managers are concerned with the long-term success of the clients and customer retention. They help and guide clients through the product or service journey to ensure they receive the full benefits and support.
• Sales Managers: Sales Managers oversee the sales team’s daily operations. They’re in charge of setting goals, training, and monitoring team performance to meet sales targets.
• Sales Operations Manager: Sales Operations Managers support the sales team by managing tools, data, and operational logistics.
• Lead Generation Specialist: Lead Generation Specialists find leads through various channels, such as emails, social media, conferences, and more. They set the groundwork for SDRs and Account Managers.
• Sales Analyst: Sales Analysts handle data analysis and sales forecasting, providing insights and reports that help shape sales strategies and decisions.

Reporting Structure

In a sales organizational structure, having clear and direct lines of communication is needed to speed up decision-making processes and ensure the sales operation runs efficiently. It also helps align sales strategies across different levels of the company.

Here’s what a sales organizational structure’s hierarchy usually looks like:

• VP of Sales : Oversees the entire sales department and sets strategies and objectives
• Regional Directors : Manage sales efforts in specific geographic areas
• Sales Managers : Direct the day-to-day operations of sales teams, focusing on targets and team performance
• Account Managers and Sales Development Representatives (SDRs) : Handle individual customer accounts and prospect new clients respectively
• Support Roles (Sales Analysts, Lead Generation Specialists) : Provide essential back-end support that drives the strategic and operational decisions

Types of Sales Organizational Structures

Functional structure.

The functional structure organizes a sales team based on specific roles and functions. Having a well-defined division of labor helps team members focus on their specialized skills, interests, and other things. 

• More efficient task management
• Easier management and training, since team members have focused skill sets
• Streamlined communication
• Potential silos can create barriers between different sales functions
• Potential challenges in cross-functional collaboration, which can affect customer experience

 Geographic Structure

In a geographic structure, sales teams are organized based on the regions they serve. This setup allows teams to focus on the local market’s specific needs and characteristics.

For example:

• North America, EMEA (Europe, Middle East, Africa), APAC (Asia-Pacific) divisions
• U.S. divided into Northeast, Midwest, South, and West

When it’s best to use a geographic structure:

• When there are varied market characteristics across different regions
• When you have a large customer base spread over large areas
• When there’s a need for localized marketing strategies that reflect regional preferences

Product-Based Structure

A product-based structure organizes sales teams around specific products or product lines. This enables them to develop deeper expertise in the features, benefits, and customer applications of their respective products.

• Enhanced product knowledge
• More targeted marketing strategies
• Greater flexibility in product-specific adjustments
• Potential for duplicated resources
• Risk of isolated operations
• Potential challenges in unifying brand message

Factors Influencing the Choice of Sales Organizational Structure

Company size.

Consider the size of a company when choosing a sales org structure.

Smaller companies tend to benefit from flexible arrangements where roles overlap, and communication flows easily.

Meanwhile, larger organizations usually need more complex structures with clearly defined roles to manage larger-scale operations and ensure proper coordination across multiple teams and regions.

Different industries have different needs, so the industry a company operates in can dictate the most effective sales organizational structure.

For example, B2B companies need structures that support longer sales cycles and relationship management, while B2C companies are more likely to focus on volume and quick transactions.

Here’s another one: tech companies may usually turn towards product-based structures to better handle rapid innovation and product changes, while retail usually favors geographic or functional structures to penetrate local markets and operate efficiently.

Sales Strategy

A company’s sales strategy—whether it’s growth-focused, customer-centric, or stability-oriented—also plays a critical role in shaping its organizational structure.

There are different types of sales strategies: growth-focused, customer-centric, and stability-oriented.

• Growth-focused : In this strategy, the emphasis is on rapid expansion and increased market share. The sales structures are usually dynamic and scale quickly to adapt to new markets and opportunities.
• Customer-centric : This prioritizes delivering exceptional customer experiences and building long-term relationships. It’s usually segmented by customer type or need to ensure personalized engagement and high customer satisfaction.
• Stability-oriented : This strategy focuses on maintaining a steady flow of revenue and minimizing risks. Sales structures using this strategy are usually well-established, with clear procedures and roles.

Challenges in Implementing and Managing Sales Organizational Structures

Alignment issues.

Ensuring that sales strategies align with overall business goals can be tricky. Sales objectives should be synchronized with the broader company’s vision and objectives.

Different teams may have competing priorities, so managing conflicts between departments is another major hurdle. Interdepartmental issues should be addressed quickly and amicably, as prolonging it can lead to friction that can derail alignment efforts.

Communication Breakdowns

Having different organizational structures can often lead to communication gaps, which can prevent teams from sharing crucial information. This could have a significant impact on sales effectiveness.

To improve communication, you need to establish regular check-ins and leverage communication tools effectively. Creating clear communication protocols can help bridge any gaps.

Best Practices for Designing an Effective Sales Organizational Structure

Clear definition of roles and responsibilities.

Well-defined roles and responsibilities help avoid confusion and overlap. It also helps each team member know their specific duties and how they contribute to the team’s goals.

Well-crafted job descriptions can also help by establishing expectations and accountability. This makes it easier to manage performance and align efforts within the sales team.

Flexibility and Adaptability

As a company grows, the sales structure needs to adapt accordingly. This flexibility helps accommodate new roles, teams, and strategies without disrupting existing operations.

Being responsive to market changes is also important. A sales structure that can quickly adapt to new customer needs, competitive pressures, or market trends can help keep the company competitive and relevant.

Case Studies and Examples of a Sales Organizational Structure

Successful implementations.

One great example of a successful sales organization is Salesforce, which has been pivotal in its journey to becoming a CRM giant.

It uses a blend of geographic and product-based structures that allow it to stay flexible and responsive to regional market needs and specific product demands. This dual approach facilitates specialized expertise in its product suite while maintaining a local touch, which drives both growth and customer satisfaction.

Lessons Learned

Here are common pitfalls of a sales organizational structure and how to avoid them:

• Lack of alignment with business goals : Your sales structure should directly support the company’s overall objectives. Regularly review and adjust roles and responsibilities to stay aligned with company goals.
• Over-complication : An overly complex structure can confuse and demotivate your team. Simplify where possible by streamlining roles and reporting lines.
• Inadequate communication channels : Establish strong communication frameworks to prevent information silos and keep teams coordinated.
• Rigidity in structure : Stay flexible by allowing your structure to evolve. Regularly assess its effectiveness and make necessary adjustments in response to feedback and changing market conditions.
• Neglecting employee development : Provide training and clear career paths within your structure. This boosts morale and ensures your team’s skills evolve with your business needs.

Choosing the right sales organizational structure is important for any business that wants to compete and thrive in today’s market. When shaping a sales organizational structure for your business, consider factors like company size, industry, and sales strategy. It’s also important to keep an eye on future trends and evolving sales strategies to keep your sales structure effective and adaptable.

When setting up your sales organization, it’s important to visualize your company’s framework through an organizational chart. If you don’t have one or need to update an existing one, check out Organimi. Organimi is a powerful cloud-based org chart maker that offers extensive customization options, allowing you to perfectly tailor your org chart to meet your organization’s specific needs. Sign up for a free trial today.

Get tips & tricks on how to improve your org chart.

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How MSC’s private island experience is different for cruisers in suites

Do you enjoy large cruise ships but still want to feel like you're in the lap of luxury? Passengers booked in MSC Cruises' Yacht Club cabins and suites have access to high-end amenities – both on the ship and off.

Butlers, exclusive dining and a private pool delight guests on board, but perks also await on MSC 's private island, Ocean Cay Marine Reserve , in the Bahamas. You can expect dedicated trams, towel service and a chance to book the nicest cabanas on the island, among other extras.

Read on to find out how the MSC Yacht Club Ocean Cay experience differs from that of the average cruiser.

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MSC Ocean Cay Yacht Club beaches vs. regular beaches

MSC's Ocean Cay Marine Reserve private island is home to seven (soon to be eight) beaches, and all are public, except one — Ocean House Beach, which is the Yacht Club's exclusive swath of sand. Beyond its exclusivity, the beach has a few other differences from the island's regular beaches.

There, use of lounge chairs and umbrellas is free. Chairs at the other beaches are also free and available on a first-come, first-served basis; however, umbrellas come with an extra cost.

Passengers must sign out towels on board the ship before heading ashore to Ocean Cay's main beaches. Yacht Club passengers can skip that hassle and ask for towels at the towel tent found on Ocean House Beach.

Interestingly, I found that several of the public beaches were less crowded than Ocean House Beach. At the latter, chairs were positioned much more closely to one another. If you're willing to walk or hitch a ride on one of the island's trams, you'll find fewer crowds on the farther beaches than if you stick close to the ship.

MSC Ocean Cay Yacht Club food vs. regular dining

Free lunch is included for all cruisers who visit Ocean Cay. For Yacht Club travelers, the Ocean House Restaurant — an exclusive waiter-served dining venue where passengers enjoy their meals on a shaded porch — exudes upscale beach vibes.

During my visit, the menu included starters like crab ceviche, charred octopus and a salad with romaine, tomatoes, jicama, a poached egg and candied bacon in a citrus dressing. Mains featured locally sourced blackened mahi-mahi, lobster roll, carne asada, a grilled portobello mushroom sandwich and one of the best burgers I've ever tasted during a cruise — a blend of Angus chuck, short ribs and grilled brisket with red onion jam and Monterey Jack cheese. Desserts consisted of creme caramel, mango cheesecake and chocolate cake with coffee sauce.

The meals at Ocean House are definitely superior to the fare found at the Seakers buffet, which is where cruisers not staying in the Yacht Club can go for a beach barbecue that serves hot dogs, hamburgers, chicken, macaroni and cheese, red beans, roasted potatoes and a slew of salads, drinks and desserts.

The food is tasty, but lines can be long. An alternative is to head to one of several food trucks throughout the island. Some are free and dole out the same items offered on the buffet but with shorter lines. Others sell entirely different menu items — lobster grilled cheese, fried calamari, shrimp with watermelon, Caribbean ceviche and octopus salad — with the cost charged to cruisers' onboard accounts.

Additionally — and also for an extra fee — a stand near the ship offers specialty coffee and ice cream. (If you're a coffee lover, trust me when I say you won't want to miss the Coco-Nilla Latte.)

MSC Ocean Cay Yacht Club cabanas vs. regular cabanas

There are three types of cabanas on Ocean Cay: Ocean Cay Beach Cabanas, Ocean View Yacht Club Cabanas and Beachfront Yacht Club Cabanas. All three types are available on a first-come, first-served basis.

They can hold up to six people each and include cold water, beach towels and chairs, as well as floating mats for use in the water. As the prices increase, so does the number of inclusions. The last two types are only available for booking by Yacht Club passengers.

Ocean Cay Beach Cabanas, found on South Beach, North Beach and Bimini Beach, are the most affordable on the island at $250 for the day. They've got walls on three sides, and they're outfitted with cushioned couches. They include the basic amenities mentioned above, and anyone can rent them.

Next up are the Ocean View Yacht Club Cabanas, which cost $400 for the day and also entitle you to free lunch and drinks, as well as fresh fruit skewers, four sets of snorkel gear and four floating mats. They're found on the Yacht Club's private Ocean House Beach, so they're off-limits to non-Yacht Club guests.

The most expensive, however, are the Beachfront Yacht Club Cabanas, located in a different section of the Ocean House area. They carry a $450 price tag but offer all the same extras as Ocean View Yacht Club Cabanas.

The draw? They're closer to the water and, therefore, have better views. Although they aren't on the main part of Ocean House Beach, they are still in the exclusive area, near the restaurant, so you don't have to go far to grab food.

Ultimately, the only thing being in the Yacht Club affords you in this case is the option to book more expensive cabanas.

MSC Ocean Cay Yacht Club trams vs. regular trams

At 95 acres, Ocean Cay is sizable. If you're fit, you can walk from one end to the other in about 15 minutes, but if you don't have great mobility or if you're easily overheated, reaching some of the island's more remote beaches can be difficult on foot. That's why MSC offers tram shuttles.

Passengers in standard cabins will find tram stops with shaded waiting areas throughout the island. However, waits can be long, especially if many other people are also in need of a lift.

Yacht Club cruisers can take advantage of trams exclusively for the Yacht Club. They run between a special tent (with free cold water to sip while you wait) set up just inside the entrance to Ocean Cay and the Ocean House beach and restaurant area.

You can make special requests for stops, which the regular trams usually won't accommodate. For example, you might ask to go straight from the tent to South Beach for a volleyball game without stopping anywhere else first.

MSC Ocean Cay Yacht Club activities vs. regular activities

This is the one category where the island's public spaces beat the Ocean House area by a mile. If you're looking for something to do other than eating, drinking or lazing by the beach, you'll have to head back toward the ship because there's not much going on in the exclusive areas.

Everything from massages, lighthouse tours and water sports equipment rentals to beach parties, volleyball games and shore excursions takes place elsewhere. However, perhaps that's by design. The Yacht Club is generally quiet, even on board, and the line likely prefers to keep the raucousness to other locations.

Bottom line

The MSC Yacht Club experience is more exclusive than the standard one at Ocean Cay, with extras like butler service, dedicated trams, towel service, access to pricier cabanas and a private beach and restaurant with better food and shorter waits.

However, all of the action — shore excursions, pickup volleyball games, beach parties, the lighthouse show — happens in the areas that are accessible to everyone, which significantly levels the playing field.

Additionally, items like specialty coffee, ice cream and for-fee food truck orders cost extra for everyone — even Yacht Club passengers.

Overall, Ocean Cay offers a great day for anyone who enjoys the beach, regardless of cabin type.

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• Where to Shop in the The Hamptons, Bellport, and Beyond, According to 6 Local Tastemakers

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Occupation: Senior Editorial Director of Neiman Marcus

Home base: “I have a little cottage in Bellport Village on the south short of Long Island. I’ve been here for about twenty years and was introduced to the community by a colleague of mine from the magazine world. I had been spending a lot of time on the Cape and was happy to discover a place that had a bit of that charm and aesthetic – shingled and clapboard homes, privet hedges, hydrangeas, white picket fences – along with a bay-side locale and ocean beach access. And all just an hour and a half from NYC.”

Favorite shops:

Bellport General

“Bellport has an incredibly special history and has been a long-time home to many creative visionaries, artists, designers, and gallerists who have taken a great interest in the community and our charming street of shop fronts. The renowned set and events designer Stefan Beckman owns and runs a beautifully curated shop, Bellport General, in the mood of a nostalgic sundries shop stocked with a beautiful selection of beach-y sportswear and beauty products, vibrant home goods, fantastic specialized pantry staples, and a great coffee bar that is the start of many locals’ days here.” 

The Storefront

Copper Beech

“Copper Beech is a wonderful emporium of décor and culinary specialties curated by interior designer partners Thomas O’Brien and Dan Fink housed in a historic Vaudeville theater that they unearthed during a renovation. There’s a great selection of prepared foods perfect for a beach picnic, a great array of imported fare for the kitchen, and lovely pieces to brighten the home.”

View this post on Instagram A post shared by brucepask (@brucepask)

Aerin Lauder

Occupation: Founder and Creative Director of AERIN; Style and Design Director of Estée Lauder Re-Nutriv

Home base: “I grew up visiting East Hampton with my family, which is why I chose to live in the area; it has always felt like home to me. However, I enjoy visiting the many towns throughout the east end of Long Island. Each town, whether it is Southampton, Sag Harbor, East Hampton, etc. each has its own unique sensibility and I love exploring the different shops, both old and new.”

AERIN Southampton

“This was the first AERIN store that we opened and continues to be one of my favorites. We offer the best edit that rotates seasonally, featuring home décor, beauty, accessories, and fashion that is curated especially for the destination.”

“I love Doen’s sensibility. They have the most feminine, effortless pieces for every season. Their new shop in Sag Harbor is so well done, from the interior design details to the clothing.”

Loaves and Fishes

“I love casually entertaining at home, and Loaves and Fishes always has the most delicious prepared foods that everyone can enjoy.”

Bridgehampton Florist

“I always have fresh flowers in my home, no matter the season. The Bridgehampton Florist has the most beautiful selection of flowers that are local and in-season.”

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Malcolm Carfrae

Occupation: Founder of Carfrae Consulting

Home base: “I live in the Napeague area of Amagansett – a narrow strip of land between the ocean and the bay. The name ‘Napeague’ comes from the Montaukett language and means “land overflowed by the sea.” We had been in the Springs before and knew the area well. The proximity to the ocean was top of our list for living there. Leaving is the hardest thing.”

Lazy Point Variety

“This is an eclectic concept store, offering clothing, accessories, art, jewelry and home store run by the brilliant Claudja. It is quintessential Amagansett – full of interesting, curated items and no big, mass brands.”

“If I could only ever shop in one interiors store, this would be it. Elizabeth’s eye is discerning and extraordinary. Half of our tabletop is from here, including plates, cutlery, napkins and vases. My go-to for a beautiful house gift.”

Wölffer Estate

“They have a store and a wine stand that sell my favorite product of all time (wine), but also gifts and product collaborations. And you can do a wine tasting while you shop!”

Todd Snyder

“This is my go-to store for menswear. I seem to find everything I need for my wardrobe here, always with Todd’s understated, chic, masculine aesthetic.”

View this post on Instagram A post shared by Malcolm Carfrae (@mcarfrae)

Sarah Wetenhall

Occupation: President and Owner of The Colony Hotel

Home base: “Escaping the bustle of New York City and retreating to Long Island is something my family and I look forward to every summer . We have been coming to the East End for decades now, and each time we make the trip we are reminded of why we love it out here.  Specifically, Sag Harbor is the slice of paradise that we call home.

“I love Henry Lehr’s smart casualwear for any season. Their cotton blouses are a summer staple and every September I stock up on cashmere sweaters to prepare for fall.”

“My kids love BROdenim. Their sweatshirts with fun location-specific patches and the option to customize your own are a can’t-miss when in Sag Harbor. You feel like you’re wearing something trendy but also one of a kind.”

Sylvester & Co. Modern General

“I adore Sylvester & Co. Modern General for hostess gifts and other eclectic home accessories. They have everything you never knew you needed and then some! (and their ‘Dreamy’ iced coffee is amazing as well).”

“This antique store is a feast for the eyes and provides great inspiration for anyone who loves design and decor. Many of the items in my Sag Harbor home were sourced here – and they also have a location in Palm Beach which is great for those of us who fly south for the winter!”

View this post on Instagram A post shared by Sarah Wetenhall (@sarahjwetenhall)

Brendan Fallis

Occupation: Founder of Fallis Studios, Content Creator, and DJ

Home base: “ Amagansett NY. We purchased a house here seven years ago. It’s the perfect little vibe for us. Still smaller and understated in comparison to the surrounding towns and has some high-quality offerings that fall more in the IYKYK category.”

“Although they’re known for their roti, the burger is off the charts. Grab one and sit in the square.”

Il Buco Vita

“Located next door to the Il Buco a La Mare restaurant, it’s often overshadowed by its big sister but has a great selection of home goods and the best coffee in town.”

Stuart’s

“Tucked down a hidden driveway, this is the best local fish provider you can find with most of its offerings being freshly caught.”

Balsam Farms

“A new edition to town, but if your wallet needs a cleansing, walk right through that door and get to work. You look good on your way out.”

View this post on Instagram A post shared by Brendan Fallis (@brendanfallis)

Joey Wölffer

Occupation: Entrepreneur, Chief Brand Officer and Co-Owner of Wölffer Estate Vineyard

Home base: “I’m a native New Yorker, but my family relocated to the Hamptons in 1992. It’s where my parents raised my brother and me, and where I chose to raise my own family and continue our father’s legacy with Wölffer Estate Vineyard in Sagaponack.

Today, my family and I call Sag Harbor home. I feel incredibly fortunate to live and work in such an amazing place. Summers are hectic and fun, filled with parties, events, long beach days, kids’ activities, and the like, while the rest of the year offers a more relaxed, slower-paced lifestyle. We enjoy the best of all worlds—surrounded by nature, yet immersed in a vibrant community of inspiring people, exceptional art institutions, fantastic restaurants supported by best-in-class farms, and great shopping. It really is a dream!”

Amber Waves Farm

“This farm-meets-market-meets-café in Amagansett is one of my favorite spots to grab a coffee. While there, I love to stock up on fresh produce, beautiful flowers, and a bottle of wine for the weekend. What makes Amber Waves Farm truly special, beyond being a woman-owned and women-run farm, is its inspiring mission to provide educational opportunities in agriculture and nurture the next generation of growers, thoughtful cooks, and conscious eaters of all ages.”

Joey Wölffer in Sag Harbor

“ Clic’s dedicated home décor outpost in East Hampton is my go-to for stylish home accessories. The store’s color-coded displays elevate the shopping experience and always bring me joy!”

Sage and Madison

“This charming shop in Sag Harbor offers a thoughtfully curated selection of gifts and locally-made goods for all the special people in your life.”

Blooming Shells

“I find the most unique pieces at Blooming Shells in Sag Harbor, a store celebrated for its one-of-a-kind shell and shell-inspired goods. From artwork and books to jewelry and clothing, every visit feels like a little treasure hunt. It’s a place the whole family will enjoy!”

View this post on Instagram A post shared by Joey Wolffer (@joeywolffer)

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Sacrum Setlist at XO club, Moscow, Russia

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1 activity (last edit by Starbreaker , 27 Sep 2013, 20:25 Etc/UTC )

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Sacrum Gig Timeline

• Sep 25 2008 ND Ateneo Buenos Aires, Argentina Add time Add time
• May 06 2010 Marquee Buenos Aires, Argentina Add time Add time
• Oct 16 2010 XO club This Setlist Moscow, Russia Add time Add time
• Oct 17 2010 Zal Ozhidaniya Saint Petersburg, Russia Add time Add time
• Jun 11 2011 El Teatro Flores Buenos Aires, Argentina Add time Add time

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