Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

according to the Kent Chemical Industry case, how would you challenge this positioning statement(below) what are the other strategies to solve the problem MAIN ISSUE

according to the Kent Chemical Industry case, how would you challenge this positioning statement(below) what are the other strategies to solve the problem MAIN ISSUE TO ADDRESS: KCI must eliminate communication missteps and improve coordination between international and domestic operations. Done MAIN SOLUTION: Kent Chemical International shouldadopt a transnational organizational structure due to the different geographic locations, operations, and products at their disposal. Although the consultants provided the possibility of using a matrix structure, a transnational structure would allow the subunits to take advantage of their market, specialize in their activities and allow for interdependent relationships to exist within the organization. REASONING: Because KCI has 3 product divisions - each with their respective needs - the transnational structure allows for more efficient and profitable operations at all levels. With the transnational network structure, they will be locally responsive while also taking advantage of economies of scale with standardized products and strategies. Geared to adapt their products to local preferences and regulations, KCI will focus on decentralized subsidiaries using their specific knowledge. The transnational structure also grants KCI high levels of local responsiveness, which is imperative given the ever-growing list of competitors in every market. After "2 bad strikes", the implementation and acceptance of a new structural organization are more difficult for the subsidiaries, as the company is currently experiencing less trust and communication between domestic and regional teams. Additionally, top management has the external pressure of the 2008 economic crisis, meaning Morales must carefully decide on an organizational structure that will yield positive results. Subsidiaries are likely to favor the transnational network structure, as it does away with micromanagement, replacing it with worker autonomy. No longer would a regional manager interfere with the expertise of local country managers, as would be the case with the matrix strategy. The transnational organizational structure allows the company to take advantage of the different strengths of the subsidiaries and become more profitable. Transnational network structure aids in solving KCI's hierarchical issues. One of the reasons the Global Business Directors approach failed was because GBDs had no clarity on their roles and the regional directors didn't know how to work with them. After implementation of the world boards, VPs- not fully appreciative of GBDs- could not agree with each other on how to solve their upstream & downstream activity issues. By implementing a transnational structure, they will have more flexibility when linking foreign operations to headquarters.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Management Process

Authors: Lee Long

4th Edition

978-0201822939,0201822938

More Books

Students also viewed these General Management questions