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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. SFs analysis suggests that organization structure failures are the cause of poor performance ie 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. Armsandaleg 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, multiyear 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 eg 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. QUESTION: What is the best form of organization for Bs overall business? A simple becuase their different customer group businesses could be largely independent and not need formal organization B functional because they have a shared underlying technology that is then shaped into products for different customer groups C multidivisional because they have multiple customer groups with different needs and need to react quickly to each D matrix because there is a difference between knowing the path and walking the path.
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