Conway Manufacturing is a large organization that manufactures machine tools used by workers in various industries. In recent years, sales of the company’s products have begun to fall as a result of increasing competition. Customers have also begun to complain about the quality of Conway’s products. In response, Conway decided to design some new, high-quality products. The research and development department was asked to develop some new designs for several of Conway’s best-selling products. When the engineering department looked at the designs, they rejected them outright, saying that they were not very good. Engineering then revised the designs and sent them to the production department. However, the production department responded by sending them back to the engineering department, insisting that they would be impossible to produce. In the meantime, the marketing department had begun a campaign based on the material they had received from the research and development department. One year later, Conway was still no closer to producing new products. In the meantime, more customers were complaining and threatening to find new suppliers, and the competition continued to take more and more of Conway’s business.

1. Describe the structure of Conway Manufacturing. What are some of the problems that Conway is having? Is organizational structure a factor?

2. What would be the most effective structure to design new, high-quality products in a short period of time? What are some methods for improving coordination?