The Dream Continues: LPV Blooms

Original Organizational Chart

SCENARIO 1: LPV ADDS A NEW PRODUCT OR SERVICE LINE

At this point, La Passion Voûtée (LPV) has been in business for almost two years. Customers love the services that the company provides which include closet organization, special occasions, travel styling, and photo shoot. Questions start pouring in asking us where and how I, the Head Style Consultant obtains my custom-made African attire that I showcase on the blog once a week. Traditionally, LPV had linked to similar traditional African pieces from other retailers where LPV gets a commission for any sales made through these websites. Customers want access to exactly what I am wearing in my posts.

After many hours of contemplating the venture, we decide to start an online store providing pre-made African pieces as seen on me. We receive a high order rate and our small team has a hard time meeting demand. With the addition of this new product to our portfolio comes the need to expand our team to accommodate this change. So, LPV decides to add a clothing line/manufacturing department to take care of those needs. With this new addition, our organizational chart will look like this:

 

SCENARIO 2: LPV GOES INTERNATIONAL

Our pre-made clothing grows so big and orders are coming in from all over the world. In essence, LPV becomes a household name and the most sort after African traditional clothing. We go back to the drawing board to ascertain what changes are needed in order to keep up with needs of our customers. We decide to take a big leap and open our first brick and mortar shop in London while maintaining our online presence and expanding shipping to many more countries. With this expansion, LPV’s organizational structure will look like this:

The new structure will have a general manager that everyone on the production side reports to. Both the general manager and the website manager will report to me.

SCENARIO 3: LPV BOUGHT AND MERGED WITH ANOTHER ORGANIZATION

We get approached by Boriah Inc., a leather goods company that provides high-end, luxury products to its customers. The company executives see this potential merger as a huge advantage. For Boriah Inc., the organization will be able to carter to a new segment of individuals by the introduction of affordable leather goods within the price range of LPV’s customer segment. The benefit for LPV is to offer higher priced African pieces to meet the social status of Boriah’s customer base. This merger will increase profits significantly. We think long and hard about this proposal. In the end, we decide to come on board. The organizational structure will look like this:

With a more diverse portfolio, we need a dedicated human resources department and one marketing manager to coordinate the new business’s marketing activities.