Nicole Maloof, President of Quiver International Inc., looked around the room at her top management team. It was not so long ago, Nicole remembered, when Quiver International had been a small publishing house specializing in romantic historical novels. Over the years, Quiver International had developed quite a reputation in this literary genre, and had become a market share leader. That's when Nicole moved aggressively to branch out to romantic historical movies and the Quiver Channel. Not long after the initial success of its cable network, Quiver International began producing its own romantic historical movies. These movies were shown first in theaters, and then exclusively on the Quiver Channel. The second movie produced by Quiver Productions, "The Hounded Heart," was a phenomenal success and propelled Kelly Sedlak to stardom. This movie success lead Quiver International to plan and build Quiver World, a romantic historical theme park located in Savannah, Georgia. Quiver World had also been an enormous success, making Quiver International one of the most successful firms in the world.

All this success had placed enormous burdens on Nicole and her top management team. The team consisted of Kevin Hawkins, vice president of finance, Melissa White, vice president of accounting, Niki Kuckenberg, vice president of sales and marketing, and Jane Huggins, vice president of manufacturing and quality control. The purpose of this day's meeting was to try to improve the management situation so that Quiver International could continue its phenomenal growth and success.

Nicole began the meeting, "Well, team, I can see from your sweating foreheads and constant wringing, wringing, wringing of your hands that you have faced our constant growth and success with a mixture of fortitude and foreboding, the likes of which hasn't been seen for centuries."  (Unfortunately, Nicole tends to talk as if she is a character in one of her romantic historical novels!)

"Let me review," Nicole continued, "some of the management challenges we have faced—with our heads both bloodied and bowed. First in the early days, life was good—I could share my special private secret times with my paramour, Count Romer. However, when we began the Quiver Channel, demands on my time burgeoned. First it was eight hours, then it was ten, then twelve, and fifteen hours a day! More and more there were demands to solve your problems until my head was spinning, my focus confused, my breath shortened—and Count Romer wasn't even in the room! To retain my focus, and to center my life force, I began to concentrate on the long term for Quiver International—where would we be in five, ten, even fifteen years? My pulse quickened, my breath was caught short, my sight blinded by the responsibilities to you, my trusted and trustworthy management team However, recently, I sensed a tremor of resentment from some of you. I feel, but do not and cannot know, who these disloyal, untrustworthy curs are. But I will find out, and with my trusted and loyal friend, Melissa White, we will destroy the evil vermin that threaten the harmony and love that has so characterized Quiver International!"

Members of the top management team murmured among themselves. Is Nicole mad? Does she want us to work harder? What can we do to save Quiver International?

What strategy has Quiver International been implementing?

		Low cost leadership
		Product differentiation
		Focus
		Related Diversification
		Unrelated diversification
		Vertical integration

 

 

Question 2

 Is Quiver's organizational structure consistent with this strategy?

		Yes, it has been using a U-form or functional structure.
		No, it has been using a U-form or functional structure
		Yes, it has been using a H-form or holding company structure
		No, it has been using a H-form or holding company structure
		Yes, because it does not matter which structure is used.

 

 

Question 3

What changes if any should be made to this organizational structure?

		No changes are necessary.
		Change to product differentiation
		Change to a M-form or multidivisional structure
		Change to a H-form or holding company structure
		Schumpeterian competition

 

 

Question 4

Justify your analysis.

		It is manifesting symptoms of a sick u-form.
		Nicole is feeling romantic
		The change will empower Melissa White.
		Niki Kukenberg has too much power.
		It does not matter which structure is used as long as the employees feel good about it.