OB-Problems Notes - Problems o Lack of Adaptability Despite...

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Problems o Lack of Adaptability Despite shifting markets and uncertain environment, hardly any changes in MEPD Management and organization very similar to other SMA divisions that operate in more certain and stable environments where SMA still has technological advantage All but one of MEPD’s key managers are from other divisions – lack of understanding of MEPD’s unique circumstances o Structural Deficiencies Increasing differentiation (separation of Marketing and Sales; Product Development Department) Large differences between functions in goals, time horizons, and performance indicators High levels of differentiation creates need for coordination across functions but there are no mechanisms other than the organization’s hierarchy (Spichty’s over-involvement), and new projects are failing because of lack of coordination Loss of existing integration mechanisms (relocation of Marketing department to division headquarters) Centralized
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