Case 1 Wk 3 Homework_Final - Management 3050 Case Study 1...

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Management 3050 Case Study 1: The External Environment Case for Analysis ~ The Paradoxical Twins: Acme and Omega
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Management 3050 Case Study 1: The External Environment 1 The Acme and Omega Companies present an interesting case for analysis. As mentioned in the textbook, they were two electronic companies that often went after the same contracts. In July 1992, an opportunity to secure a subcontractor position with a major photocopier company that had committed to building a new experimental copier presented itself. The contract to assemble the digital memory units for the copiers would mean an estimated annual income of $7 to $9 million dollars (Daft, 2010, p.168). It was very important to obtain the contract because it could ultimately prevent each company from going under. Due to technology changes, they were both in trouble as a result of declining demand for their complex circuit boards. After submitting their proposals, they were given a very aggressive two week deadline to build 100 prototypes. The photocopier manufacturer had made promises to have the new copiers available by Christmas. The award of the final order would be based on the results of the prototype design (Daft, 2010, p.168). On the exterior, the Acme and Omega Companies shared a common goal. Since 1986, both companies had been in competition for the manufacturers of circuit boards. In this case, they both wanted to get the contract with the photocopier company. Internally, the two companies had different goals. Acme’s president, John Tyler, wanted to maintain the highly efficient and high volume manufacturing company structure put in place by its predecessor, Technological Products. This type of structure, with clearly defined roles and responsibilities, leads to high company profits, giving little thought to associate satisfaction. Omega’s president, Jim Rawls, wants to run a looser organization with limited structure. His goal is to achieve a high level of associate satisfaction by making them feel that they are part of the organization. As one employee stated “the first months on the job were hectic, but at least I got a feel for what makes Omega stick” (Daft, 2010, p.169).
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Management 3050 Case Study 1: The External Environment 2 As previously mentioned, the strategy that each company is using to achieve their common goal is different. Acme uses a mechanistic structure and Omega uses an organic structure. According to the text book, a mechanistic structure is “characterized by standard rules, procedures, and a clear hierarchy of authority” (Daft, 2010, p.153). An organic structure is “much looser, free-flowing, and adaptive” (Daft, 2010, p.135).
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