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Question: 2

Do you feel that choosing an organizational design is simple? If so, explain why firmswould change their supply management organization structure.

Answer:No in my opinion choosing an organization design is not so simple .Organizationaldesign refers to the process of assessing and selecting the structure and formal system of

communication, division of labor, coordination, control, authority, and responsibility required to

achieve organizational goals and objectives, including supply management objectives. Anddesigning all these processes is little bit complex these days

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In above mentioned chart there are three type of organizational levels firm can

choose anyone of them according to its requirement firm there are also three types

of organizational structures Centralized

Decentralized Hybrid

Choosing these structures is not easy because if you are fully centralized or fully

decentralized each has its pros and cons. And choosing Hybrid also depends on firm

requirements

Firms would change their supply management organization structure.because of

different reasons some reasons can be

The rapid changes innovations and evolution of new supply chain concepts (like verticalintegration to VAP, Mass customization)

To make their working more easy and flexible companies shifting from verticalorganization to horizontal organization and for this they have to change organization

structure

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Changing trends and business requirements