please help!!! (video transcription needed for questions) >> No, definitely. If we had -- if when we started if we had many employees that were full-time, we definitely would not be the same today, or even possibly here. Name is Ryan Grey Smith, founder of Modern-Shed. I mean, kind of imagine, if you need to do a business organization and you want to bring it all in-house, you have to have the accounting position, you have to have the organizing position, the person that's going to answer the phones or the people that are going to make the things, and you have to have all of these positions, and you just can't do that when you start a company. It just absolutely doesn't make sense. We get busy one month. The next month, we weren't as busy, and this is the way business goes. It'll come and go like that. So really, the most logical way to start anything is to just find the people that can help you out and work out an arrangement. And so we have -- within the organization right now, we have 5, 6, 7 -- there's about 12 to 14 people, between, kind of manufacturing and the office and sales here in Seattle. Outside of Seattle we have 12 sales reps and 35 dealers across the states. >> One of the key things that attracted me about Modern-Shed was that I was coming from the real estate industry, which has absolutely been decimated throughout the country. The company that I used to be with in fact, did sales and marketing for multi, multi-million dollar projects. That industry is going to be asleep now for about 3 to 5 years. Modern-Shed has positioned itself so that we're essentially insulated from what's going on in the general marketplace. I'm Scott, and I handle Sales Marketing with Modern-Shed. It's very interesting, that window-wall, window-wall, window-wall. We kind of changed the siding. But you heard that conversation about the corrugated? >> Yes, yeah. >> Eric Johnson is our fabricator, and he's actually sent up to support not only Modern-Shed, but other companies that may have a panelization component. He actually comes from the panelizing world for home builders. Well, because that industry has really fallen off because of the economy, we become a solution for Eric, because interestingly enough, Modern-Shed has not been affected by the downturn. In fact, if anything our sales are increasing. So it works out really well with the fabrication being something that's third party, offsite, and we have no financial interest in it. The dealer network is really set up to take advantage of markets that we think we've got an initial logical fit with, and so the dealers are essentially folks that also represent other products. They just aren't directly competitive to Modern-Shed, so they're complementary. Now on a monthly basis we'll actually have conference calls with the reps and the dealers about either new product, new promotions, changes in pricing, new opportunities for them in terms of their marketing. So again, it's very, very lean and unstructured because all those folks are independent contractors.

1) Scott, the sales and marketing manager, says that Modern-Shed is insulated from what is going on in the general marketplace. This is partly due to Modern-Sheds structure. By using a (functional, virtual, team organization, matrix) structure, Modern-Shed is able to:

a) Create dual lines of authority throughout the organization that respond to marketplace changes

b) Easily expand and contract the company without assuming increased financial risk

c) Bring positions in-house so that work can be more closely monitored and controlled

d) Manufacture standardized products that can be sold at lower prices

2) Under what conditions is the current organizational structure of Modern-Shed most likely to be effective? Check all that apply.

-When following a low-cost leadership strategy for the business

-When the economic environment is turbulent and uncertain

-When following a differentiation strategy for the business

-In times of crisis, when everyone needs to follow a single leader

3) The organizational design chosen by Modern-Shed is most suited for an environment that has which of the following characteristics?

- The environment is well defined.

- The environment is rapidly changing.

- The environment is stable.

- The environment is composed of an unchanging client base.