This document will discuss the "Leadership in Action" simulation. The simulation is based on a company called Smith & Falmouth(S&F), which requires assistance in providing the company with conceptual information about its organizational structure and providing specific recommendations for success over the next three years. This article will describe the formal culture of the organization and how this structure compares to other organizational structures. We will also address how the informal culture of the company influences their effectiveness and formal structure. The role of power and politics will be examined, as well as what leadership style would be most effective for the Chief Operating Officer (COO) for the structure and culture of S&F. Organizational structure is defined by McShane-Von Gilnow as the division of labor as well as the patterns of coordination, communication, workflow, and formal power that direct organizational activities. (http://www.stu.uophx.edu/secure/resource/resource.asp Chapter 17 p 506) The current structure of S&F resembles a functional structure. This type of structure organizes employees around specific knowledge or resources. (Chapter 17 p 516) This can be seen by how S&F is currently divided into the following workforce product divisions: a web development team, a logistics team, and a marketing team. S&F's project manager is currently responsible for managing the six-member web operations team. This team is responsible for maintaining online sales, including the website, and managing online payments. The project manager is also responsible for working closely with the logistics manager who has three members in his logistics team. The logistics team is responsible for managing or… middle of paper… must set challenging goals, continuously seek improvement, and demonstrate a high level of confidence that employees will take responsibility and achieve these goals. (Chapter 17 p 424) By empowering S&F employees, a change in organizational culture will naturally occur, thus allowing the organizational culture to be strengthened through the actions of the founders and leaders. References Walumbwa, Fred Ochieng, Power and Politics in Organizations: Implications for OD Professional Practice. Retrieved online April 19, 2004 http://www.proquest.comUniversity of Phoenix. (And.). (2002). Organizational Behavior [University of Phoenix Custom Edition electronic text]. The McGraw-Hill Companies. Retrieved April 12, 2002, from University of Phoenix, Resource ORG/502- Organizational Retrieved online April 20, 2004: https://ecampus.phoenix.edu./secure/resource/resource.asp