Functional Segmentation The current organization structure of Blue Sky Company, a manufacturer of small sailboats, is presented below.

Required:

a. What operational problems (inefficiency, errors, fraud, etc.) do you think Blue Sky could experience because of this structure?

b. Draw a new diagram reflecting an improved structure that solves the problems you identified.

If necessary, you may add up to two new positions.

Transcribed Image Text:

VP Production President VP Marketing Inventory Production Sales Financial Management Foreman Manager Manager Inventory Product Cash Assembly Warehouse Sales Receipts Cost Credit Accounts Purchasing Accounting Approval Receivable Inventory Customer Cash Timekeeping Control Billing Disbursements Payroll Processing Accounts Payable