Page 162 - CL How to Read a Case Study

Paragraph 2

For years, the company had been organized along functional

lines, with directors in charge of finance, marketing,

production, personnel, purchasing, engineering, and

research and development. In its growth, the company had

expanded its product lines beyond its original product of

network systems, Satellite Communications Systems, and

Network applications. It now employed in excess of 2,500

staff. However, concern had arisen that its organization

structure did not provide for profit responsibility below the

office of the CEO, did not appear to fit the product or

geographic dispersion of its businesses, and seemed rather

to accentuate the "walls", impeding effective communication

and coordination between the functional departments of

marketing, finance, production, personnel and Research &

Development; there seemed to be too many decisions that

could not be made at any level lower than the CEO.