The BYC Petroleum Products, a subsidiary of ABC Company, Inc., is a successful refining company. Its six
Question:
The BYC Petroleum Products, a subsidiary of ABC Company, Inc., is a successful refining company. Its six refineries manufacture three main business products: fuels, petrochemicals, and lubricants. The products are sold to Denmark Industries (another ABC Subsidiary), chemical manufacturers, industrial plants, the auto industry, and a variety of other customers. The multi-billion company has a workforce of about 5400.
BYC Petroleum currently has a functional organization structure, with the following major positions reporting directly to the president: chief counsel; vice president for financial services; vice president for technology; director for planning and administration (to whom a general manager for planning and a general manager for human resources report), and vice president for operations (to whom a general manager for marketing and a general manager for manufacturing and supply distribution report).
Because of changing conditions in the markets for the company’s main products, BYC Petroleum is thinking about changing its organizational structure to a product structure design. In the process, the president is considering adding a senior vice president of resources and strategy to oversee the company’s strategic planning.
- What does the company’s current organizational structure look? Draw the organization structure and describe the type of departmentation.
- What would it look if the company adopts the departmentation by-product? Draw the organization structure.
Financial and Managerial Accounting the basis for business decisions
ISBN: 978-0078111044
16th edition
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello