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Ebay Organisational Structure

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Organizational structure is a crucial element in a business since it determines how decisions are made and how things are done in the workplace. Being a large and complex company such as eBay implies the necessity for tasks and assignments to be fulfilled in the best and most possible coherent way. eBay’s organizational structure could be defined as a business-type multidivisional structure.
This meaning that the company is split in divisions that are related to the various types of the company’s e-commerce business operations. One of these divisions has to deal with online operations related to the marketplace website. Alongside business-type divisions, the company has also geographical divisions and functional units. However, these two …show more content…

This structural attribute enables the company to maintain integrity and therefore to strengthen the whole business against competitors such as Amazon, Alibaba and Walmart Marketplace. For example, thanks to functional units eBay deals with some strategic challenges, such as the technological trends affecting the retail industry, by enhancing technology in subsidiaries. Currently, the company has the following functional units: Technology, Legal Affairs, Global Operations, Strategy, Product, Finance, Communications, Human Resources.

Since eBay’s organizational structure combines functional and divisional units, it might be appropriate to say that the company adopts a matrix model. The overall structure turns out to be really complex (see figure1), however for such a big firm this kind of layout could be an efficient and strategic choice in order to overcome operational differences. Business-type divisions, for example, enable eBay to overcome the differences among the company’s businesses, such as the marketplace business and classifieds business. At the same time, functional units contribute to optimise all global e-commerce operations by maximising cohesion among the entire …show more content…

However, when evaluating eBay’s organisational structure some negative aspects must be taken into account as well. First of all, it might be difficult to balance and coordinate business-type divisions and functional units, since strong functional units are likely to limit business-type divisions. Furthermore, geographical divisions are relatively weak, due to the fact that they broadly represent the interests of the various trading websites and markets where the company operates. Hence, Asia, America and Europe divisions may not take into account market disparities within each geographical area. In order to improve its position in the long term, eBay could therefore create more units by dividing existing ones, so that it will end up being more successful in addressing consumers’ preferences across different markets. One further recommendation might be to increase the autonomy of business-type divisions in order to create a more effective management of marketplace and other

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