Cerjugo SA is a manufacturer and distributor of beer in Latin America that has recently expanded its product lines into juice. At the time of expansion into juice a new $550 million production facility was built, new positions were added to the organization’s structure including a new manager of juice manufacturing, and over 900 salespeople. The case focuses on Cerjugo’s two main divisions: the production division and the sales, marketing, and distribution division. Cerjugo management is concerned because forecasted sales and profit targets for the juice business have not been met for the second year in a row. Turnover in the sales force has increased dramatically and there has been a great deal of in-fighting between members of the executive team who have very different perspectives and opinions on how to improve the juice business.

Describe Cerjugo’s organizational structure in terms of the following organizational design concepts: span of control, centralization, specialization, and departmental grouping. Use facts from the case to defend your classifications.