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Strength, weakness, opportunity and threats of organization structure
Organizational structure
Organizational structure
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OBJECTIVE : To evaluate present organizational structure and management control system of Birch Paper Company particularly on the decentralized operations of its divisions with respect to its overall performance.
PROBLEM : What effective management control system or systems should the Company adopt to attain maximum profitability not only of its divisions’ respective operations but that of the Company as a whole?
AREAS OF CONSIDERATION
1. Company Background
Birch Paper Company is a medium-sized, vertically integrated paper company, producing white and kraft papers and paperboard. It has four producing divisions and a timberland division which supplied part of the company’s pulp requirement; each division is operating independently headed by its respective division managers.
Birch’s division managers normally were free to buy materials or inputs from whichever supplier they wished, and even on sales within the company; so divisions were expected to meet the going market price if they wanted the business.
Early in the year, its Northern Division designed a special retail display box in conjunction with the Thompson Division, which was equipped to make the box. Thompson, as one of Birch’s four producing divisions converted paperboard output into corrugated boxes. It also printed and colored the outside surface of the boxes. Birch’s Southern Division will supply the lineboard and corrugating medium to Thompson Division in the event the latter got the order from Northern.
2. Decentralization Policy
The Company observes the practice of decentralization where the responsibility and authority in all decision-making for the divisions’ operations lie in its respective division managers, except those relating to overall company policy.
For several years, top management felt that the decentralization concept had been successfully applied and that the company’s profits and competitive position had definitely improved.
3. Performance Evaluation
Each division’s performance had been judged on the basis of its profit and return on investment for several years. The said practice creates competition among the company’s divisions because each makes sure that it is more profitable than the others. As such was the case, there was high possibility that one division was enjoying profit at the expense of the other(s).
4. Cost Structure
There was no defined cost structure set by top management for each division. For Northern’s retail display box project in conjunction with Thompson, the two had only an informal agreement that the former had to reimburse the latter of the out-of-pocket cost of its design and development work.
The primary problem would be the structure of the organization. This due to the fact that there are thirteen departments in total: finance and accounting, human resource management, marketing, men’s clothes, women’s clothes, shoes, hardware and automotive, music including audio and video equipment, toys, home and garden, small and large appliances, sports equipment, and furniture.
In particular, promotions should target consumer who use paper-products and foams. Leveraging the company's highly trained sales personnel, relative benefits and long-term cost savings afforded by superior bubble product should be stressed. Additional promotional efforts should include direct mailings to potential clients in the US and Europe. Importantly, all promotional efforts must target packaging engineers.
Butler Lumber Company is looking for more cash due to a fast-paced lumber market and a shortage of funding. Their regular bank, Suburban National Bank, is not willing to expand their exiting loan to an amount greater than $250,000 without securing the loan with real property. Another loan is being offered by a second bank, Northrup National Bank, for $465,000, with the understanding that the previous loan would be rolled into the second. The interest on the new loan would be prime + 2%.
Black and Decker (B&D) is one of the leading brands across the globe in terms of producing high-quality portable power tools, yet it still cannot take the lead from other brands such as Makita and Milwaukee. While gaining 35% and 37% of market shares of B&D products from the consumer and the industrial segments respectively, the number to stare at is the market shares gained from the tradesmen segment, valuing at only 28%. Considering its other competition, B&D only garnered 9% market shares from tradesmen. Consistently, the irony raises much concern to R&D, since it already has a good reputation of producing high-quality power tools, as well as gaining global recognition as one of the most popular brands. B&D cannot seem to gain a good market share from the tradesmen segment, and thus, bringing down the B&D name with it.
DESCRIBE THE STRATEGIC CONTEXT IN WHICH QUINTANA SHOULD JUDGE MUSIMUNDO’S PERFORMANCE. WHAT ARE THE CHARACTERISTICS OF THE ENVIRONMENT THAT MUSIMUNDO COMPETES IN? WHAT ARE PEGASUS’ STRATEGIC OBJECTIVES FOR MUSIMUNDO? HOW DO THESE FACTORS AFFECT THE BUDGETING PROCESS?
There were separate management structures maintained in the group with the CEO of NOL in Singapore and CEO in the United States reporting to the group CEO. This separation between owners and manager creates an agency relationship. This exist when one or more persons (the principal or principals) hire another person or persons) as decision making specialist to perform a service. In the modern corporation, managers must understand the links between
Nicholson’s position in the file and rasp market where it holds a 50% market share of a $50 million dollar market meets all three of Cooper’s objectives. Furthermore, Nicholson’s brand name within the hand saw and saw blade industry is strong and Nicholson holds a 9% market share in the $200 million dollar – their only major competitor was Sears and Diston who held a larger market share.
It is not hard to comprehend, for instance, that what is considered "client administration" in one nation might be completely wrong or even hostile in another. Along these lines, Wal-Mart 's German rivals merrily watched Wal-Mart outrage its new clients by stowing their buys. These contenders realized that thrifty German customers incline toward this undertaking not be finished by outsiders. While more well-to-do German customers may value this "administration", German rebate customers viewed this as an interruption into their security for which they were paying a concealed work cost. Wal-Mart 's blunder was intensified by its utilization of plastic packs in a general public exceedingly touchy to issues of manageability and matters of nature. Consequently, for reasons of both security and nature, Germans will take their own expansive packs to markets to sack and convey their own buys. This illustration is illustrative of Wal-Mart 's inability to value its clients. The organization 's utilization of greeters and its business of the "ten-foot guideline" whereby representatives would offer backing to customers were counter-beneficial decisions in a markdown market environment. Numerous customers were startled by these practices. Some even felt attacked. For instance, supermarket chain, Coop, which started in Germany, is a decent case of what
Organizational structure can be defined as the “formal arrangement of jobs within an organization” (Robbins & Coulter, 2009, p. 185). Having a defined and unified structure helps employees work more efficiently. Jacques Kemp, former CEO of ING Insurance Asia/Pacific, realized this need early on in his role. The company had been performing well and recently acquired another insurance company to become “one of the largest life insurance companies in Asia-Pacific” (Schotter, 2006, p. 4). However, Kemp’s proactive personality led him to seek out ways to achieve more efficient coordination between the regional office and business units (Robbins & Coulter, 2009). Kemp noticed that “most business unit managers did not even know the current corporate standards” and he began searching for a way to manage the managers (Schotter, 2006, p. 5). ING Insurance Asia/Pacific’s organizational structure was mechanistic and fairly well structured, but for a company that had recently been involved in a major acquisition and was divided across 12 geographically dispersed markets there was a great need to tweak this structure to unify the company (Schotter, 2006). If I had been in Kemp’s position as CEO, I would have made modifications to the organizational chain of command, formalized business processes, and used technology to stimulate collaboration amongst the region to help this company overcome organizational design challenges.
The major issues facing the company comprises of there being multiple businesses with different demands. There are separate levels of performance and success as well as growth chances for each of the sector and the firm needs to tackle with issues in each of these divisions (Dube, J.P., 2004).
In controlling, organization has lots of risk factors .Manager take some employee who is able to control and handling risk factors.
The report highlight’s the essential aspects of the control process. In terms of concurrent feedback as well as feed forward, that companies can use to implement so that they can have better outcomes in terms of efficiency of the business. Consequently the report underlines as well as emphasizes of the many contributing factors of these controls. The authors have contrasting views on the control models of an organization, they believe that in order to create an effective control process, and organization first needs to determine its strategic plans for instance in terms of what it is and where is it going.
Organizational structure within an organization is a critical component of the day to day operations of a business. An organization benefits from organizational structure as a result of all it encompasses. It is used to define how tasks are divided, grouped and coordinated. Six elements should be addressed during the design of the organization’s structure: work specialization, departmentalization, chain of command, spans of control, centralization and decentralization. These components are a direct reflection of the organization’s culture, power and politics.
Making an analysis of the profitability of the shareholder can be seen that although both companies have similar returns, the source of this return is different.
There will be a manger who is in charge of the stores’ profitability and the overall cooperation of all functions within the region like making sure every stores sells the same collection of clothing. By using matrix, managements not only organize their work more flexible with lower costs, but also improving communication and coordination across the countries. However, the matrix structure violates the unity of command principle as each employee reports to at least two or more managers. Next, high degree of centralization is exercised in H&M. Centralization is the concentration of authority for making most decisions at the top levels of the organization. In this instance, the head office in Sweden are in charge of establishing the code of ethics, internal policies, and manuals. Important decisions that are strongly related to the company’s profits are also made by the top management. Nonetheless, H&M has a decentralized system. For example, there are 32 production teams that handle