To secure a competitive advantage is of increasing significance in the competitive environment of modern business. The Austrian pharmaceutical company Pille AG is recognizing the limited life-span of its main product and is facing the urgent need to reinvent the top selling product “Vitamin All” or to launch a new product into the market within the next two years.

The report is structured along the following lines.
Firstly, it will give an elucidation of the two HR terms “product mix” and “product line”. Subsequently, the author will give an explanation of two brand types as described in Ebert/Griffin. Finally, the report attempts to develop a product strategy for Pille AG.

In order to develop a recommendation for the plans of Pille AG, it is necessary to understand the related theoretical fundament. This includes a proper understanding of the terms “product mix” and “product line”. Product mix is the number of different products offered in each product line. Product line is a collection of products, offered by a firm, that satisfy similar needs for different target audiences. Thus all products within a product line are related, but may vary in terms of size, color, quality etc.

According to Ebert/Griffin, the concept of branding can be defined as follows, it is the usage of symbols to communicate the qualities of a product made by a particular producer. In general one differs between product-based and philosophy brands. Product-based brands have to cope with the product life cycle, which makes it hard for them to reinvent themselves, and to be successful with new products. They might simply fall out of fashion, or be copied. In contrast to this, philosophy brands are defined as those brands which are not that much associated with those products they give their names, but they are in general regarded as some kind of attitude, or life-style, these brands convey a message. They try to create an emotional bond with their customers. Thus it is easier to brand to remain up-to-date, as they can re-interpret themselves more easily.

Now this theoretical knowledge must be put into the proper professional context. In the following, the report will turn to potential solutions for the problem at hand. In the particular case of this report, the author shall strive to illustrate the impacts on Pille AG by making a brand extension of “Vitamin All” into influenca-shots, through which the existing strong brand name can be used as a vehicle for new or modified products. As the range of product has grown, so has concern about containing their advertising costs.
Pille AG could best use the strong image of the existing product and optimize synergies in marketing, advertising and distribution.

Admittedly, the solution presented above includes certain drawbacks. All things considered, though, it still appears to be the most suitable course of action.

A coherent structure is absolutely necessary to successfully lead an organization. Modern day experts emphasize the importance of establishing a decision-making hierarchy.
This report will present useful concepts and steps that help the management on implementing a clear structure. It will consider these issues in the following order. First, the author will highlight the importance of authority in an organization. When doing so, he takes a closer look at three common forms, namely line authority, staff authority and committee and team authority. In the following, he will focus on the divisional organizational structure. Finally, the author presents a strategy for how to restructure the organization in order to achieve a higher level of efficiency within twelve months.

In order to ensure clear structures, every company must decide who will have authority over whom. It is important to distinguish between line authority, staff authority and committee and team authority. The most common form of authority is line authority. In this structure, authority flows in a direct chain of command from the top of the company to the bottom. In contrast, the form of staff authority is based on special expertise. Companies implementing this form of authority hire specialists, who advise the management in decision-making. Examples for such staff members would be law specialists or human resource managers. It should be stressed that they don’t have the authority to make final decisions. The latest form of authority is committee and team authority. As the name implies, authority is granted to committees or teams that play central roles in the firm’s daily operations.

Generally, an organization can structure itself in various different ways. Nevertheless, the divisional structure is a very common form that is easy to handle. It relies on product departmentalization. That means that the organization is divided according to products or services. For example, Henkel has the divisions “cosmetics” and “cleaning compound”. In theory, each product-based division can be managed as a separate enterprise and can have its own identity.

This leads to the question of how Bundnetz AG could restructure its organization. The situation of the company is the following. The formerly state-owned Austrian telecommunications provider is currently overstaffed. Furthermore there are no identifiable hierarchical structures. The author would recommend for Bundnetz AG to develop an organizational structure in order to achieve a higher level of efficiency. To put this idea into operation, the following points must be considered. First, the management must determine which jobs need to be done and who will perform them. This process is called specialization. The next step, called departmentalization, considers determining how people performing certain tasks can best be grouped together. This is followed by the establishment of a decision-making hierarchy. As mentioned earlier, deciding who will have authority is an essential point. Last but not least, the author suggests for Bundnetz AG to prepare an organization chart through which to clarify the structure.

To conclude, the author would recommend for Bundnetz AG to develop an organizational structure through which to achieve a higher level of efficiency. A clear structure shows the employees where they fit into a firm’s operations and provides the basis for successful business operations.