Simon Adil founded the Vroom car-hire business six years ago. He started out as a sole trader with just three vehicles. His business now employs 33 people and it has a fleet of 2000 vehicles. Simon is chief executive. He has four fellow directors. They are in charge of finance, vehicle repairs, marketing and administration. The latter role includes dealing with all staffing matters. The finance director has three accounting assistants. The director in charge of vehicle repairs has two supervisors who report to him-one for the day and one for the night shift.

They each have six mechanics working under them. The marketing department contains four people - one sales manager and three junior sales assistants. Administration has six office staff who take all the bookings and are responsible to an office supervisor who is under the direct control of the director.

This type of structure has served the business well, but Simon is concerned about the impact of further expansion on the organization. In particular, he is planning two developments - one would involve renting trucks to other businesses and the other would be setting up a new office in another country.

Questions:

1. Sketch the current organizational structure of Vroom Cars Ltd. Include all staff on your chart.

2. Do you think the current structure is appropriate for the business? Give reasons for your answer. 

3. Explain how a matrix structure of project teams could be used by this business for its new developments. 

4. Evaluate Vroom's decision to use project teams to manage the new developments.

Answer rating: 100% (QA)

Ans 2 The current structure is a functional type organization which is appropriate for this many types of services because it has the optimal combination of personnel and their authority and responsib... View the full answer