Hector Fuego had just been hired by the board of directors to become the new CEO of You Build, Inc. You Build is a 50-year-old building supply company that operates in the southwestern United States. The company has a very successful history and has seen expansion to 50 stores in 23 cities. However, in the past three years, operations have been much less successful because the largest retailer in the industry, Home Warehouse, began to expand into the areas served by You Build.
1. What are the advantages and disadvantages of the change in organizational structure Hector Fuego is planning?
2. How do you believe You Build's managers will feel about the change? How do you believe the employees will feel?
3. What steps do you recommend that Mr. Fuego follow to prepare managers for the change? What should he do to prepare employees for their new role in the organization?