I want some assistance in getting this started. Need to choose a organizational structure and also things like global aspects, culture, customer needs.
Organizational Environment:
Fantasia has been a conceptual artist for the past 15 years. She operates her small business under the name "Fantasia's Phantastic Fancies" out of a workshop in the SoHo area of Manhattan and makes custom pieces that appeal to an "artsy" market. Although her customers are mostly young, they are affluent and willing to spend money for unique, high-quality items, so "FPF" (as it's commonly referred to) products command a premium price.
Currently, Fantasia's art objects are produced in one workshop in SoHo and sold in only three locations in the U.S.: New York City; Chicago, Illinois; and to a limited market in Berkeley, California (Fantasia is a UC Berkeley graduate). Production is approximately 1,000 pieces per year, with prices ranging from $550 - $9,500 (and sometimes more) per item. The items are produced in quantities ranging from single, made-to-order, one-of-a-kind designs to limited-availability items of no more than 50.
After Fantasia appeared on a popular cable television reality show, "Battle of the Avant Gardeists," her designs gained instant national recognition. Even though she was one of the earlier contestants to be "fired" from the show, the publicity resulted in many fans for FPF designs. Now, people across the country want to have FPF pieces in their homes.
Fantasia has been approached by a big design industry investment firm that is willing to fund her expansion. They have told her that, despite the bad economic conditions, they believe now is the time for her to expand to take advantage of the television boost to her popularity. In addition, they believe that there is now demand for her pieces in markets outside of the U.S. Since design trends are often fleeting, the investors advise Fantasia that she should "go big now" and try to capture as large a market share as possible. Of course, she would have to produce items in larger quantities and sell them at lower prices to do so. Fantasia is used to running a small business, but all of this production up-scaling talk is new to her. She knows the company will have to invest in more trained staff and production equipment to meet the increased demand.
Fantasia has hired you to give her advice about how she should proceed.
Answer the following questions about FPF. Be sure to state clearly any assumptions you make about the organization as part of the description of factors to consider and state the reasons for including each factor. Use organizational structure language and theory in your response.
• In deciding whether or not to produce larger quantities, what factors should Fantasia consider?
• What specific recommendations do you have for Fantasia?