Modern day challenges demand fast and efficient adjustment of companies to the new conditions. The establishment of adequate organizational culture is a very important segment of any organization. The major structural themes of this thesis are the specific issues and problems which occure during formation of organizational structure. The theoretical starting points are based on observing elements, connections and relations which constitute organizational structure as well as emphasize the importance of influence of external and internal factors on the work of the organization itself. Consequently the thesis is about parameters which favor the choice of organizational structure, analysis and planning of business activities as well as advantages and disadvantages of many factors in the surroundings and constitution of any company. As an example of a company affected by the aftermath of transition and changes in the form of business management, the thesis referres to business functions and organizational structure of the company Bauder d.o.o. in Vukovar. The purpose of this thesis is to present the structure and the adjustment of a small company effected daily by the changes in its surroundings. Technological changes as well as legislative policy of today demand constant keeping up with the business trends in order to meet the needs of modern customers. Company Bauder d.o.o aims to increase the quality of its products, employee evaluation and to meet the conditions demanded by the surroundings in which the company operates. This thesis emphasizes the importance of team work, the investment in professional development of employees as well as constant effort to raise the quality of customer interaction as one of the main services of the company Bauder d.o.o.