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you work for secretly fair as a private equity firm. SF has recenty acquired a distress conglomorate, dumpster fire industries ( DF ) which has
you work for secretly fair as a private equity firm. SF has recenty acquired a distress conglomorate, dumpster fire industries
DF
which has multiple poorly performing lines business. SF
s analysis suggests that organization structure failures are the cause of poor performance i
e
DF has not been meeting customer needs, and that reorganization can improve the financial performance by breaking up the lines of business into properly constructed independent companies that could then be sold or brought public in IPOs. Arms
and
a
leg
a
is the largerst business of DF and it is primarily a large defense contractor. Its projects are long in duration, with specifications laborously developed at the beginning by their expert staff, followed by a highly predictable, multi
year manufacturing period
which are frequently extended for many more years
A key organizational need is to be consistent across the company adhering to the many requirements of defense contracting dictated by their single customer, the US Government. Bombs AI
B
is a technology business of DF
focused on machine learning and artificial intelligence
AI
It started as a computer vision defense project to target weaponry but it turned out to work really well at creating analytical insights in sports that have a ball, perhaps because most of their top managers are rabid sports fans. In addition, with the current excitement around AI
they have business development ongoing in several potential new industries. They have two organizational needs. the overall busienss has a key organizational need to quickly adapt to the needs of their customer groups
e
g
defense sports
which are often quite different from each other. the research and development
R&D
department builds the underlying technology that is shared across B
and it needs to pull in experts from across B to work on projects. what is the best form of organization for Bs overall business? A simple because they are only one department B functional because R&D requires high expertise C Multidivisional because they have multiple projects that span functions D Matrix because they are responsible for both timebound projects and responsiveness to business units who commercialize their tech
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