Quantitative Studies on the Organizational Structure of SME´s: A Case Study of the Pharmaceutical Industry in China

Organizational reformation is inevitable, during the pursuing of larger scales of small and medium enterprises (SMEs). In this work, a case study of the pharmaceutical industry in China is presented to show how process-based simulation can be applied to the quantitative studies on the organizational structure reformation. Through modeling core business processes and limited resources in the sales and marketing division of the enterprise, a simulation experiment is performed to analyze how the employees´ working hours distribute in daily work. It is found that salesmen only spend 40% working time on the effort of marketing expansion and sales increase. It takes more than half the working time for them to track the progress of logistics affairs. So, it may be concluded that the company in the case should improve the specialization of the organizational design, and especially should consider outsourcing the professional logistics service