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Organizational Design of the Aviation Fuel Company

Student: Pshennikova Irina

Supervisor: Alla Sterligova

Faculty: Graduate School of Business

Educational Programme: Business Strategies: Management and Consulting (Master)

Year of Graduation: 2021

In the world economy, one-tenth of the total is occupied by the fuel and energy complex (hereinafter referred to as the fuel and energy complex), which accounts for 11% of the global GDP. In our country, the fuel and energy sector produces a third of GDP. The severe restrictions imposed during the COVID-19 pandemic, such as movement between countries and cities within the country, have affected the fuel and energy sector, especially in the aviation sector. Due to the reduced temporary demand for air travel, there were downtime of a large amount of fuel both at production facilities, and near airports, in fuel filling complexes. To solve the problem, many aviation fuel companies were forced to adjust their strategy in the given economic conditions in order to survive and stay in the market. A company can be considered successful if it can quickly respond to changes in market conditions and, in addition, not only maintain, but also increase the value of its company. Today, to achieve the expected results from a newly formed or adjusted strategy, companies change their organizational structure. Previously, it was sometimes enough for companies to make small and gradual adjustments to the organizational structure, but today, to maintain stability and market share, companies need a regular reboot. Therefore, the question of the organizational design of the company in an ever-changing economic environment remains open. The purpose of this work is to identify areas of improvement of the organizational structure of the company in the aviation fuel industry and to provide recommendations for its reorganization. Within the framework of the master's thesis, in order to achieve this goal, the tasks of determining the actual concept of organizational structure as the main element of organizational design for solving the problem under study were performed; theoretical justification of the choice of approach to organizational design when changing the strategy; determining the main characteristics of the company under study, including modeling and studying the company's operating system; description of the current organizational structure of the company under study and analysis of its compliance with the company's operating system, and providing recommendations for improving the company's organizational structure. In the first chapter, an approach to organizational design is defined, which was used to analyze the organizational structure of the company under study in the aviation and refueling industry. The second chapter presents the general characteristics of company N, provides a study of the activities of company N and considers its operating system. The third chapter describes the organizational structure of the company, analyzes the compliance of the organizational structure of the company with its operating system, and provides recommendations for improving the organizational structure of the company under study. The practical significance of the work is that the results can be used to form or reorganize the organizational structure of the company in the field of aviation fuel supply. The results can also be used to improve the theory and practice of developing the organizational structure of an aviation fuel company.

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