REORGANIZING THE IRVING EMPIRE.
1. There are four basic organizational structures which are:
Functional Organizational Structure
Divisional Organizational Structure
Project Organizational Structure
International Organizational Structure.
In Irving Empire, the Divisional Organizational structure is evident.
Divisional Organizational Structure: Separates the organization into divisions operating as semi-autonomous units and profit centres. (Pearson, 2014)
Initially, Irving Empire was a Functional Organizational Structure from the days of the Founder (J.D. Irving, 1882) to K.C. Irving to his sons (Jim, Arthur and Jack) Irving. The Irving Brothers had five sons also working in the family business. The company’s tradition was passing on control to the next generation. In 2010, after the death of Jack Irving, the company started facing conflicts between the two active sons of the Irving Brothers that is Jim and Ken, they both wanted more control over the business. The Divisional Organizational Structure was then introduced when the tension of the family conflict was about to be made public which of course was what the brothers were avoiding. Therefore, to avoid a bitter family feud, they started talking about how to separate the company into their personal divisions in an amicable way. By doing that, they restructured the company by letting Jim take control of the Forestry Business and Ken took control of the Oil and Gas Business.
2. Corporate-Level Strategy identifies the various businesses that a company will be in, and how these businesses will relate to each other. There are various corporate-level strategies:
Concentration
Growth
Integration
Diversification
Investment Reduction
Irving Empire over the years was operating the Growth Corporate-Level Strategy. Irving Empire had several growth strategies available to them, including market penetration, geographical expansion and product development. These major three strategies helped in focusing on the internal activities
