Victoria Heavy Equipment Case Analysis.docx - BU601T GOLD 15 Case Analysis Memorandum Victoria Heavy Equipment Limited TO The Board of Directors FROM

Victoria Heavy Equipment Case Analysis.docx - BU601T GOLD...

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BU601T GOLD 15 Case Analysis Memorandum Victoria Heavy Equipment Limited
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TO: The Board of Directors FROM: CEO & Chairman RE: Victoria Heavy Equipment Organizational Reform There is a need for change to the organizational structure, employee engagement, and overall leadership in order to improve the long term growth and profitability of the company. The current decentralized structure of the company is resulting in poor coordination of problem solving, allocation of responsibility and communication between groups. Lack of cohesion between divisions is leading to the disintegration of employee relationships both within and between various groups, as the priorities of different business units are not integrated and synchronized with the overall company strategy. Leadership within the organization is spread across multiple levels and divisions causing conflicts and inefficiencies in executing the company goals. While the decentralized strategy has provided each division with considerable autonomy in their daily operations, lack of central control over spending has resulted in over expenditure of several profit centers. As part of our new corporate strategy we will realign the company hierarchy to form a matrix organization that will combine a divisional structure for our overall company functions and functional structure of our manufacturing locations and sales markets. This change will help improve conflict resolution and
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