Page 216 - Introduction to Business

190 PART 2 Managing Business Behavior

11. Why is delegating authority so hard for managers Shaquille O’Neal, the Clippers have a very low total
to do? annual player payroll of about $34 million. Donald
12. A matrix organizational structure is most Sterling’s low-budget approach also involves hiring
appropriate in what kinds of situations? as few coaches as possible and trading players
13. A newspaper currently operates at the three sigma (such as Ron Harper and Derek Anderson) if they
level with respect to errors in its printed stories, do well and start demanding higher pay rates. Why
but wants to move to the six sigma level. What do you think Donald Sterling has adopted this kind
does this mean? What are three specific of business strategy? Do you agree with his
suggestions you might make to the newspaper’s business strategy? (Hint: The Clippers post an
management regarding how it might best make annual operating profit of $16 million, twice the
this change? NBA average, and Sterling’s initial investment in
14. It is true that probably more than an average the team is now worth well over $200 million.)
number of CEOs were formerly marketing
managers. Why do you think this is the case?
15. What are some of the kinds of international skills Web Assignments
managers will find most useful in today’s world
business environment? What are some ways 1. Go to the website of the Goldman Sachs Group
students can best gain these skills? investment bank, www.gs.com, and find the
section on careers. Within the careers section, go
to the business divisions section and then find the
Interpreting Business News section that lists Goldman Sachs’s 14 business
principles. What are Goldman Sachs’s key business
1. The U.S. military is increasingly developing a principles? Write a one- to two-page paper
network organizational structure, with significant analyzing the comments made by the company’s
military functions being contracted out to private CEO, Henry M. Paulson, in the introductory
companies. You may never have heard about vignette of the chapter in the context of these
companies like DynCorp, Cubic, PCI, and MPRI, company business principles. Specifically discuss
but they do billions of dollars a year in business the extent to which Mr. Paulson’s comments jibe
with the federal government, providing services to with the company’s stated principles.
the military ranging from KP duty and laundry 2. The Kraft Foods Corporation,
detail to enlisted personnel recruiting. The idea is www.kraft.com, formerly had a very unusual
that the U.S. military should focus on its core top management structure, one held by less
competency and leave doing laundry, slicing than 1 percent of public companies in the
potatoes for dinner, and so on, to the private United States. Go to the Kraft website’s 2003
nonmilitary sector. Recent efforts by the U.S. Army prior news release section and to its December 16,
with regard to contracting out recruiting functions 2003 news release discussing management
to companies with human resources management changes. What was so unique
expertise have enabled it to transfer back to the about Kraft’s former management structure?
field hundreds of soldiers who had been working Write a one-page analysis of why you think this
at various army recruiting stations. Do you agree management structure failed. Also, discuss the
with the U.S. military’s increased emphasis on types of organizations or situations where you
contracting out? What are some arguments against think such a management structure might
such contracting out with respect to recruiting and operate more successfully.
some other functions? 3. The Coca-Cola Company is one of the world’s most
2. You have probably never heard of Donald Sterling. well-known companies, with arguably the world’s
He is the very low-key owner of the Los Angeles most famous brand. Look up the company’s
Clippers basketball team. Sterling bought the team website, www.coca-cola.com. Look for
in 1981, when it was based in San Diego, for the company’s beliefs and then the Coca-Cola
$12.5 million. In 1984 he moved the team to Los promise, which is the company’s mission
Angeles. Over the past two decades or so, the statement stating why it exists. Write a one-page
Clippers have had one of the very worst paper setting forth Coca-Cola Company’s mission
performance records in the National Basketball statement and analyzing (drawing on the plethora
Association. While the other professional of other information on this website) whether
basketball team in Los Angeles, the Los Angeles you think the company is currently fulfilling its
Lakers, lavishes huge salaries on players like mission.

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