The CEO wants you to recommend a new structure which addresses and hopefully solves these problems, or at least mitigates them. You must incorporate your knowledge of how individuals behave and how they are motivated as well as how best to accomplish the goals of the organization. You cannot change the number of areas - unless you figure out a way to dramatically increase the scope of the teams to oversee the number of hotels in their area. Each team is now at its "maximum capacity". You can change the levels in the new structure. For example, SVP's in the current structure could be Director level in the new structure - however you can do this ONLY if their responsibilities are changed (reduced) as well. Finally, the new structure cannot have more people nor cost more than the current structure. You will need to develop your new structure with the same or less cost and the same or fewer people than the current structure