Hi, need to submit a 1500 words essay on the topic Seeking Competitive Advantage in Organizations: Efficacy of Organizational Structures.Download file to see previous pages... The researcher states th

Hi, need to submit a 1500 words essay on the topic Seeking Competitive Advantage in Organizations: Efficacy of Organizational Structures.

The researcher states that the firm (organization) is an entity that exists primarily to make profits through the provision of commodities (both goods and services) to the market (consumers). The existence of the firm is born out of specialization in production and the pertinent risk of incomplete contracts in delivery of goods and services that are required by the market. Therefore, organizational structures refer to the arrangement of employees within an organization and the jobs therein in a manner that helps the overall organization to realize set targets and objectives. It concerns who does what, where, and to whom does s/he report to within the organization? The main objectives and purpose of formation of organizations (involved in any form of trade activities) is making profits. As such, the ability and the extent to which these two parameters are met is highly pegged on the organization’s ability to stay ahead of other competitors within the same market segment. This concept is referred to as a competitive advantage. It is a complex function of the resources of the organization and the prevailing conditions in the market. Although, it should be noted that competitive advantage may exist even in the presence of market failures. Market failures are generally externalities that hinder the allocation of resources efficiently to high end users (also referred to as arbitrage). and may arise due to asymmetric information and adverse selection. (Boyes). Sources of competitive advantage to an organization include: Efficiency of markets - Where an allocation mechanism is used to match the prices of all traded items at demanded quantities with the quantities supplied of the same items. Another mechanism for ensuring market efficacy is the voluntary participation in the market especially by buyers (consumers) and suppliers (producers). Arbitrage – This is the action of searching for profit in the market by organizations. Competition decides which firms survive in the market in the long-term and which shut down operations within any given market segment by allocating resources efficiently to high value users. Barriers of entry - This can be achieved through legislation as seen in legislative monopolies and protection of local markets from cheaper imports. establishing market dominance. control over vital resources for the production process (seen through the use of trademarks and copyright laws) and high capital requirement for start-up. Governance over markets - A governance system that supports and preserves private property rights is an efficient system (Boyes). The proper functioning of markets is enhanced by appropriate rule and regulations: they enable the realization of gains from trade, safeguards against resource waste and guarantees that property privately owned will not be damaged or confiscated. This paper attempts to analyze whether an organization’s structure can amount to competitive advantage for the organization. If so, how effective is the structure in either expanding or sustaining competitive advantage and profitability by examining the various types of organizational structures, their impact on the organization and ways of improving it where necessary. Discussion As mentioned earlier, organizations structures help to develop a formal structure to an organization from the manner with, which interactions as between the employees, the management, and the outside world, i.e., consumers and creditors. There are several types of such organizational structures including: Flat organizational structure This is an organizational arrangement characterized by high delegation of both power and responsibilities. There are many employees reporting to fewer superiors. Employees are given the latitude to make decisions for themselves but are equally required to account for them.