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Compare And Contrast Business Model Vs Organic Model

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Business model
What are the differences in the design models? Compare and contrast the standard airline organizational functional structure model with the hybrid structure based on independent business units. Does the hybrid structure provide too much differentiation? How would support structures be the same or different? To what extent are either models mechanistic vs. organic? Why?

Airline companies have used the diversification strategy to enhance their profits when compared with their competitors. However, it is important to select the most appropriate business model. Functional structure model compels the heads of departments to obtain permission of the CEO before taking important decisions, thereby affecting the profitability of the …show more content…

At the same time, they are also likely to waste resources by replicating the tasks. The hybrid model can be improved by differentiating between the independent business units and the central organization. Another method to achieve this objective is to establish links between the business units (Heynold & Rosander, 2006, p. 4)This method allows an independent business unit to cooperate with other business units, thereby leading to coordination between various business organizations. This improvement is essential to ensure better coordination between the different business units of a hybrid organization.
Functional and hybrid organizations have various advantages and disadvantages with reference to coordination. Functional organizations are able to achieve considerable coordination because of their control by a central unit. However, they are not able to translate the coordination into profitability due to lack of an appropriate strategy and flexibility. Hybrid organizations, on the other hand, lack appropriate coordination due to the lack of control by a central corporate unit. However, they are able to comprehend their weakness and introduce appropriate measure to mitigate the

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