MSCI311 Tut2

MSCI311 Tut2 - Tutorial Two Organizational Goals...

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Unformatted text preview: Tutorial Two Organizational Goals & Organizational Structure Case Study Case 1 National Lumber Company Large, successful organization In business for 75 years Manufactured and sold wide range of lumber products Plants and wholesale points throughout the US Fabricated Components Division Manufacturing and selling Pre fabricated components(walls, floors, roofs) Manager: Mr. Jensen Supervise the construction of the plant Head the operations after completion of the plant First Year Diverse operations, Staffing the office force, Establishing a market, Production and control difficulties Investment: $250,000 Sales: $400,000; Profit: $12,000 Second Year Changes in product and organization, more advertising expenditure, severe competition from traditional market Additional Investment: $300,000 Sales: $350,000; Profit: $4,000 Third Year Several new products, plant expansion, more advertising expenditure, more workforce Sales: $ 1 Million, Profit: $ 63,000 Fourth Year High turnover ratio, lost money on big governmental orders Profit: $127,000 Fifth Year Pressure from higher management, Frequent visits to the plant Suggestions provided Questions What are NLC managements goals for FCD? Are they appropriate? What are Frank Jensens goals for FCD? Are they appropriate? Based on the goal approach should FCD be considered effective? NCL Goals for the division: Official experiment to learn about the market Operative Goal profitability Time factor 5 years NLC managers are incapable of providing help New market and growth rate Large modern facility added cost Frank Jensens Goals: Official: become profitable in the long run (more than 5 years) Operative: Established effective operation/structure the new division Concerned with day to day operations and problems Developed as individual goal to keep Avery off his back Wanted to gain share of new market Effectiveness based on goal...
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MSCI311 Tut2 - Tutorial Two Organizational Goals...

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