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successfully in the domestic market for several years. Due to increased market. However, as the company its market share, the company decided to enter the
successfully in the domestic market for several years. Due to increased market. However, as the company its market share, the company decided to enter the international market. How existing organizational expands globally, it faces several challenges that are not fully aligned with structure.
Current Organizational Structure: The company has a traditional functional organizational structure with separate departments for Design, Production, Marketing, Sales, and Finance. Decisionmaking is centralized at the headquarters, and communication primarily flows through a topdown approach.
Challenges:
Cultural Adaptation: The company is struggling to adapt its product offerings to suit the diverse cultural preferences and fashion trends in international markets. The current structure is hindering effective collaboration between design teams and local marketing teams.
Supply Chain Complexity: Operating in different countries has introduced complexities in the supply chain, including variations in regulations, logistics challenges, and sourcing issues. The current structure does not effectively address these complexities, leading to delays and inefficiencies.
Legal and Regulatory Compliance: The company is encountering legal and regulatory challenges in different countries, ranging from trade restrictions to labeling requirements. The existing structure lacks a dedicated legal team or compliance department, making it difficult to navigate these issues.
Ecommerce Challenges: The company is facing difficulties in adapting its ecommerce strategies to diverse online markets. Different consumer behaviors, payment preferences, and technological infrastructures require a more flexible approach, which the current structure is not accommodating.
What to do:
Choose one of the challenges listed above.
Each group to brainstorm and identify specific elements within their assigned challenge that are no aligned with the current organizational structure of XYZ Global Apparel Company.
Students to think about how restructuring or adapting the organizational structure could better didress these challenges.
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