Restructuring a franchising company in Malta : a case study

Abstract

Purpose: All organisations operate, to a varying degree of complexity, under some form of organisational structure. The structure implemented will dictate the level of operations the company will be able to achieve. Thus, choosing the right structure is a fundamental decision. The purpose of this study is to highlight the importance of an adequate corporate structure through demonstrating how it can lead to enhanced company operations. Design: The objectives of this study were achieved by holding semistructured interviews with the senior management of the master franchise company, as well as with key personnel amongst the franchisees currently affiliated with the master franchise. Findings: A thorough understanding of the current operations of the master franchise was achieved. The findings indicated a number of departmental inefficiencies that are currently burdening the operations of the organisation. Conclusions: A company's level of operations depends on the effectiveness of its organisational structure. Even though SMEs can be restricted by limited resources, the restructuring proposals are within the capabilities of the firm. However, before any form of restructuring is implemented, backing by senior management is essential. Value: Due to the significance of operating using an optimised organisational structure, this study highlights the importance of constantly monitoring its activities, to verify that the structure currently in use is sufficient to support its operations.