Case Study 6

Al-Oyoun Trading Company Al-Oyoun Trading Company retrieves three different groups of goods for the purpose of selling them in the Eastern Province through direct sales through its three showrooms in the cities of Dammam, Jubail and Hofuf

if the three groups of goods include electrical appliances that it imports from Japan and furniture. The shoes you import from Turkey and the shoes you import from China. Given the distinct nature of each of the three geographical regions, the Board of Directors believes that separating their respective operations into the following purchasing areas includes three main activities:

planning, communication, follow-up, and warehousing.

Finance includes activities related to budgets, revenues, and audit expenses.

Marketing includes the distribution of pricing and promotional activities.

As for personnel affairs, legal affairs, and planning and research activity, the Board of Directors saw that it is better to focus these activities to serve the commodity group for everyone, from the companys main center.

Required:

1- What is your perception of the organizational chart that this company can rely on?

2- How can coordination principles be applied to ensure the success of the companys operations?