Saturday, November 7, 2009

Organizational Structure of Hershey

http://www.theofficialboard.com/org-chart/hershey

The organizational structure of Hershey consists of only a few layers according to this site as they only show the upper levels of hierarchy. However there are other layers that are not shown that are part of the middle and bottom. At the top of the level of hierarchy is the CEO of the company, David West. He is at the top of the chain of command along with the Chairman of the Board and a number of directors where West passes down orders. These people have a high level of authority and responsibility in the business. However, only West has subordinates and a span of control. He has a wide span of control showing that he is the authoritative power of these different departments of the business. Therefore, he holds a large amount of responsibility on the firm in making decisions. This shows the centralization of the business since the majority of decision making is done by a small number of people and in this case it is David West, Kenneth Wolf and the other directors. Although, only West is directly in charge of his subordinates.

With a large number of subordinates working under the CEO, this suggests a wide span of control which means that the company has a flat organizational structure. It has only a few layers. Many departments operate in the same level which means that responsibilities have been delegated to them and West holds them accountable for certain aspects of the business. However since he makes the decisions as the CEO, he is still held accountable for the success or failure of them. Having a wide span of control and a flat organizational structure, Hershey can benefit from improved communication and a sense of unification between workers.

Saturday, September 19, 2009

At Amazon, Marketing Is for Dummies

Instead of lavish ads, it invests in technology and distribution—and the results are startlingly effective

http://www.businessweek.com/magazine/content/09_39/b4148053513145.htm

This article talks about how the company Amazon, does not spend hundreds of millions of dollars to advertise and promote their brand. Instead, they have avoided the uses of conventional tactics of marketing and use their money into the technology of their website like distribution capability and good deals on shipping. As a result, customers are satisfied with a smooth shopping experience. With a jump of 13 spots to a No. 43 in the ranking of the Best Global Brands, Amazon has been successful during the recession earning a reported 16% revenue growth.

Unit 4.1 – The Role of Marketing, Unit 4.3 – Product (Branding, Brand development and brand loyalty)

This article basically argues that a company does not need to spend millions of dollars to promote themselves and one such example is the thriving company of Amazon. Amazon has taken a big risk to spend their money on technology rather than advertising but they predicted that in time, this would be useful to them. This is due to the account of its brand and high market share. Amazon has been known for its low prices, wide selection of products and quality service that has increased its customer base and customer loyalty. They have developed their brand through this where customers are very satisfied with the results of their shopping experiences. Although the company did not focus on promoting their brand, their investment into the technology of their website proved very advantageous in the long term because the company thought of the user experience to please their customers.