I am a new manager for a failing division in a company Assignment

I am a new manager for a failing division in a company - Assignment Example To optimize the utility of the human capital asset business organizations must have effective communication among its employees. An important goal of all business entities is to maximize shareholder’s wealth. Introduction Sometimes organizations have business divisions that struggle. These divisions fail because of operational problems that are inhibiting the division from becoming efficient. Some of the problems the organization faces are outdated product lines, loss of market share, adversarial interdepartmental communication, and fierce competition for corporate funding. This paper discusses the main problems the organization is facing. Organizational structures are discussed in order to select the optimum organizational structure for the company. Suggestions are provided to help the transitional process between the old and new organizational structure. 1. The consumer marketplace has become extremely competitive due to the globalization movement. Corporations must use inno vation to achieve success since it is imperative to differentiate your product to stand out from the competition. Outdated product lines are a problem that can devastate a company. For instance during the past two decades the American car industry was not able to compete with Japanese manufacturers because the car models the Big Three were offering were outdated based on the consumer needs. The higher fuel prices increased the demand for fuel efficient vehicles. Outdated product lines are not attractive items. The sales of the corporation will decrease as a consequence of outdated product lines. Adversarial communication is an undesirable organizational problem. The employees of a company must display good communication skills when dealing with internal and external stakeholders. Three important stakeholder groups are employees, investors, and lenders (Tutor2u, 2011). Tensions associated with communication can hurt employee morale and reduce productivity. The resources of an organiz ation should be shared among the different profit centers. Fierce competition for funding is a problem because it can increase the interest costs to obtain capital. Under those conditions many small businesses are denied access to credit. Battle over the resources of a firm can lead to conflict. 2. There are different types of organizational structures that companies can use to run a business. Five types of organizational structures are matrix, functional, product, customer, and geographic (Patricia, 2002). Matrix organizations utilize teamwork and group projects a lot. Functional organizations are the most often utilized business structure. The customer structure is used by small firms that have a short list of customers where each customer generates the company a lot of money. The company has to change its organizational structure and fix its internal problems. I think that due to the lack of innovation demonstrated by the firm the best option is to choose a matrix organizational structure. 3. The old company must perform a complete overhaul. All the old divisions are going to be dissolved. The old divisional managers will become project managers. A new breed of managers will be recruited to lead new team formations. An emphasis will be place on R&D projects to create new ideas for new products and services. The old communication hurdles and employee conflicts will not impact the firm as much since the matrix structure will give the firm new life. 4. The external

Make a report of the study case Essay Example | Topics and Well Written Essays - 2500 words

Make a report of the study case - Essay Example To evaluate and analyse this aspect of the company’s position, certain financial ratios have also been used in the report. The greatest internal risk faced by the company is the declining of profit over the last financial year, if this trends continue to take place, the company will be generating no more funds for investment and even there would be left nothing in the company to be transferred to the shareholders in the form of dividends or earnings per share. The company also confronts with the risk of losing all its business because of the costs incurred during the production and distribution of goods, and also the other operating expenses incurred during the year. According to Wells and Nieuwenhuis (2001), the automotive industry in UK has been highly saturated and the companies need to face great competition from other companies in the same industry. Hence, there is a high risk of increasing competition. Wells and Nieuwenhuis (2001) further specify that the competition is not the only risk a company has to confront with, there are certain other factors that increase the risk of doing business in UK automotive industry. These factors are globalisation, consolidation, and continuous innovations in the technology. Bordenave and Lung (1996) says that the most important risk a company faces in the automotive industry in UK is due to the increasing outsourcing activities on the part of the manufacturers. Therefore, a geographical risk arises in such a situation where supplier and manufacturer are from geographically distant and different places. Analysing the profitability of Buzzard Ltd lies in assessing the company’s profit with respect to various other items from income statement and balance sheet. This can be done with the help of the following ratios: The Gross Profit ratio analyses the company’s profit margin before accounting for various operating costs (Mcmenamin Jim,