Evaluating the Organizational Structure of Red Bull and its Effectiveness

1602 words (6 pages) Essay in Business

5/12/16 Business Reference this

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This structure is not just only tell who is in charge in the business or a company, it is dictates the financial liability of those who run or own the business and the organizational structure of business dictates the tax rules that the business will be subject to how much or what the paperwork will be required to comply with the government regulations, and businesses avenues for raising the money and how the owner’s personal liability will be. It is also provides the guidelines for the system of the reporting that drives in an organization, and dividing into departments or areas that are responsible for the certain aspects in the organization’s purpose. This organizational structure shows also the relationships between with the individuals and areas needed to achieve more of efficient operations while attaining the goals in the organization. In the organizational structure there are have two types, tall and flat. The flat organizations are usually suitable into technology oriented companies and tall or let’s say pyramid type of an organizational structures, it is suitable into the companies which is labor oriented. Since it is most modern organizations are technology based with the capital and highly educated employees they are tend to have of an organizational structure where the number of employees in the operating level is relatively few. To view this, the human resources management is not only challenging but it is significant function in modern organizational structure.



Red Bull is the world’s energy drink leading and more than billion cans every year are sold in 100countries. It is hold 70% share of the world market for the energy drinks, the category was a largely responsible for building and its dominant position in the fastest-growing segment in the soft drink market by a number of countries has drawn a number of the imitators. Red Bull has become a case of the study in successful guerilla marketing in the United Kingdom and United States. The marketing is aimed at young people with active lifestyle and the formula began a popular tonic for blue collar workers in Thailand. This energy drink was made for moment increased mental and physical stress, it is also to improve endurance, concentration, and the reaction of speed. It vitalizes our mind and body, and it is appreciated by many of the world’s popular driver and athletes. This is for hard-working people with the active lifestyles.

Red Bull also doing a lot of events like, skiing, motocross, skate boarding and etc. For me the event I would like to manage is MOTOCROSS, because it is fun and a lot of difficult and different tricks to see and people will be excited about dat. Actually motocross is usually have in to two different formats known as the Big Air and Freestyle Motocross. In Freestyle Motocross event, all contestants are given the freestyle course which is the combination of jumps and they must compete over the sequence of routines which is last anywhere from minute and a half to the quarter of an hour. The Big Air event are allowed all the contestants to attempts three of the same jump with the riders score being allocated based on their best trick or stunt out in the three attempts. Mostly jumps are usually performed over length of 100 feet and all contestants must focus on executing in a single maneuver to become perfection, because this event is very dangerous and all contestants are professional. This event and freestyle motocross have similarity, because freestyle is an older cousin of big air motocross, but the differences is big air are a more dangerous than freestyle, that’s why many people are willing to watch this event. Mostly they doing this event in Spain and a lot of contestant joining, they are from other country like USA, Australia, Canada, and etc.

This is some example picture tricks of their event:



Organizational Structure is the way in which the business organizes departments, employees and senior management. The large organization might have one or more structures, which is various operating units, and there are four types common of organizational structure which is usually using in a large business, and each of this structure also can use in a small business.

This is the four types of Organizational structure: Functional Structure, Divisional Structure, Entrepreneurial Structure, and Matrix Structure.

Functional Structure

This structure consist of departmental groups and it is identified by specialty, such as marketing, development, finance, engineering or human resources that are controlled by the head of management. This differs from the product or divisional structure, which typically distinguishes on its units by geographical region or product type and it is allow the leaders within each unit to be more control. The functional structure designed by the concept which is high specialization and high control yields. This is the example chart for Functional Structure in a business:



Manager Manager Manager Manager

Functional Functional Functional Functional

1&2 1&2 1&2 1&2

Divisional Structure

Actually this structure can be seen as on type of functional structure, or as a separate organizational structure. Which are often broken down into three types, the 1.Market Divisional Structure is organized according to various markets that operates in business/corporate sales division. 2. Product Divisional Structure is grouped in such a way that the employees who are involved making a specific product are grouped together into a one division and it will divide the company into product A, B, C etc, and each of division will have the own hierarchy. 3. Geographic Divisional Structure is grouped in such a way that the employees located into one geographic locations which are grouped together to make one division.

This is the example chart for Divisional Structure in a company:



[Manager] [Manager] [Manager] [Manager]

Specialist Specialist Specialist Specialist

Specialist Specialist Specialist Specialist

Entrepreneurial Structure

This structure was often mirror in the attitudes and vies of their senior managers, while the approach is one of the identifying business opportunities and being willing to take the risks. The creativity will be a key element and it will be encouraged, however, the approach may be more evident in a new business, particularly where there is an owner manager. Element decision-making will be relatively swift and will usually involve relatively of few people. Although this approach is often spectacularly successful, sometimes cannot be maintained as the business grows larger. Perhaps, closest approach could be the input or output analysis of the productive system, therefore it does not take into account of typology or the characteristics of the enterprises which make up of each production sector.

This is the structure example of entrepreneurial explosion:

High cost to First Product

Innovation Limited to a Few Regions

Long time to First product



High Startup Failure Rate

Limited number of venture capitalist

Slow Customer Adoption Rate

Matrix Structure

In this structure it is an organizational design that groups employees by the both product and function. Each of functional workers usually reports to the functional heads, but does not normally work directly under of their supervision. However, instead the worker is controlled by the membership of certain project and each of functional workers was usually work under supervision of a project manager, and each of workers has two superiors, who jointly ensure the progress of project. The functional head may be more interested in developing the most exciting technologies or products, where the project manager may more concerned with keeping deadlines and controlling product costs. Therefore, when the work is accomplished, the project of the team may get dissolve and workers from the different functional areas may get reassigned to the other tasks and projects.

This is the example of matrix structure chart in a business:


To become an effective organizational structure in a business, need to facilitate working relationship between the various entities in the organization and to improve the working efficiency within the organizational units, and shall retain the set of order and control to enable monitoring the processes. In this organization shall support for coping mix of orders and change the conditions of organization while performing work, which is allow for application of individuals skill to enable the high flexibility and to apply the creativity. Because when the business expands, the chain command will lengthen and the spans of control will be wider, therefore organizational structures shall be altered from time to time to enable the recovery. However, if such alternation is prevented internally, final escape is to turn down the organization to prepare for the re-launch in an entirely new set up. This is how to make an effective organizational structure.



Organizational structure……………………


Red Bull Company……………………


Functional Structure…………..…….

Divisional Structure………………….….

Entrepreneurial Structure…………………….

Matrix Structure………………………………….



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