Page 14 - Ice Breaker Article

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2: New product introduction is not left in the hands of a division but rather centralised to achieve
strength in depth based on the whole being greater than the sum of the parts.
3: Marketing and pricing may be adapted to the local market but synergistically it is more logical
to centralise when the product offering is global. It also avoids destructive inter division price wars.
4: Plant expansion is likely to be a major, long-term financial commitment which cannot be taken
on a piecemeal division by division basis. It must be centralised in order to maximise economies of
scale, scope and synergy.
5. Changes in personnel policies are likely to be based upon the global or regional markets rather
on division by division basis thereby avoiding conflicts.

PARAGRAPH 5

The division directors were understandably unhappy when they saw some of their independence
taken away from them. They openly complained that the company was on a "yo-yo" course, first
decentralising and then centralising. Sweet worried about this problem, calls you in as a consultant to
advise him what to do.

Board 11 allows the development of a variety of answers to the questions posed in the case study.
These answers may then be developed further to draw out a more in-depth analysis as shown in board
12

Should there be more centralisation of common or corporate function?

In addition should the CEO further address the organisation structure? Currently the structure
is a divisional one but one that is still functional in nature. Perhaps a multi-divisional or matrix
structure would be more appropriate and effective?

DIAGRAMS AND BOARDS

DIAGRAM 3: CRITICAL EVENT ANALYSIS DIAGRAM 4: FORMULA

DIAGRAM 5: FORMULA SOLUTION BOARD 1: INSTRUCTIONS