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Smithson Company Keith Smithson is the CEO of the Smithson Company, a privately owned, medium-size computer services company. The company is 20 years old and,
Smithson Company Keith Smithson is the CEO of the Smithson Company, a privately owned, medium-size computer services company. The company is 20 years old and, until recently, had experienced rapid growth. Mr. Smithson believes that the company's recent problems are closely related to the depressed Asian economy. Brianna Smatters was hired as the director of corporate planning at Smithson six months ago. After reviewing the performance and nancial statements of Smithson for the last few years, Ms. Smatters has come to the conclusion that the economic conditions are not the real problem, but rather exacerbate the real problems. She believes that in this Internet era, Smithson Company's services are becoming obsolete but the department heads have not been able to cooperate effectively in reacting to information technology threats and opportunities. She believes that the strong functional organization impedes the kinds of action required to remedy the situation. Accordingly, she has recommended that Mr. Smithson create a new position, manager of special operations, to promote and use project management techniques. The new manager would handle several critical projects in the role of project manager. Mr. Smithson is cool to the idea. He believes that his functional departments are managed by capable professional people. Why can't these high-level managers work together more ef ciently? Perhaps a good approach would be for him to give the group some direction (what to do, when to do it, who should do it) and then put the functional manager most closely related to the problems in charge of the group. He assumes that the little push from him (Smithson) as just described would be enough to \"get the project rolling.\" Questions: After this explanation Ms. Smatters is more convinced than ever that a separate, nonfunctional project manager is required. Is she right? If you were Smatters, how would you sell Mr. Smithson on the idea? If a new position is created, what other changes should be made? International Microcircuits, Inc. Megan Bedding, vice-president of sales for International Microcircuits, Inc. (IM), was delighted when IM was one of the few rms invited to enter a bid to supply a large industrial customer with their major product in a small foreign country. However, her top salesperson for that region had just called and informed her of certain \"expectations\" of doing business in the country: 1. Local materials representing at least 50 percent of the product's value must be purchased in reciprocity. 2. The local politicians will expect continual signicant donations to their party. 3. Industrial customers normally receive a 40 percent \"rebate\" (kickback) when they purchase goods from suppliers such as IM. (IM's prot margin is only 20 percent.) With this new information, Megan was unsure about changing or proceeding with the bid. If it was withdrawn, a lot of effort would be wasted as well as a chance to get a foot- hold in the international market. But if she proceeded, how could these expectations be met in a legal and ethical way? Question: Devise a solution that addresses Megan's concerns
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