Discussion Post: Managing a New Company
Chapter Twelve "Organizing and Planning for Effective Implementation"
Strategic fit is the issue of organizational fit; the fit between a business's competitive and marketing strategies which would involve the organizational structures, policies, processes, and plans.
Within a given business unit -- when it is a part of a larger corporation -- what organizational structures and coordination mechanisms are most appropriate? To answer this question, managers must look at following three factors: (i) level of technical competence of the various functional departments within the business, (ii) how resources are allocated across those functions, and (iii) how to coordinate and resolve conflicts among the departments.
Question I
Suppose you have been offered the job of developing and managing a new medical products unit for a major electronics manufacturer. The purpose of the new SBU will be to adapt technology from other parts of the company for medical applications (diagnostic equipment such as CAT scanners, surgical lasers, etc.) and to identify and build markets for the new products the unit develops. The new unit's performance over the next several years will be judged primarily on its success at developing a variety of new products and its rate of growth in sales volume and market share. Before accepting the job, what assurances would you seek from the company's CEO concerning the administrative relationships to be established between the new SBU and corporate headquarters? Why?
Question II
Now that you have accepted the job described in question I, you have been given a $50 million operating budget for the first year. Your first task is to staff the new unit and to allocate your bud- get across its various functional departments. Although you obviously want to hire good people for every position, which departments require the most competent and experienced personnel, and which departments should receive relatively large shares of the available budget? Why?
Question III
As general manager, what type of organizational design would you select for the new SBU de- scribed in question 1? Justify your choice in terms of its ability to help the SBU implement its strategy and accomplish its primary objectives. What potential disadvantages-if any-might be associated with your chosen organizational structure?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.