Appex Business Case
1) Based on the case, we can easily identify strengths and weaknesses of each structural form for Appex Corporation. Specifically we denote 7 phases: start-up, circular, horizontal, functional, product teams, business teams, divisions.
The start-up (informal) stage took place between 1986 and 1987 when the company could count less than 30 employees. The company structure was characterized by fluidity and simplicity, strongly relying on informal relationships. The positive side of this stage includes: rapid market response, quick idea generation, and innovation among committed workforce. On the other hand, the mentioned phase limited the company’s expectations in terms of planning structure, product reporting & accountability, lacking of an educated customer service. In mid-1988 Appex evolved its structure to a circular form, focused on non-hierarchical processes and cyclical operations from executives to customers. The stage was characterized by positive aspects such as the free flow of information, and a customer-sensible structure. However, relationships among employees, hierarchical decision processes, and strategic planning were still low inside the company. In late 1988, the new horizontal structure caused negative effects such as the complete inability in responding from employees.
However, the consequent functional evolution of the company in 1989 led to the separation of the employees into functional/hierarchical teams, increasing positively the company’s attention to planning operations and accounting measures. On the other side, the company started facing complex problems such as poor management skills, polarization of teams, and reduced cooperation among employees.
In mid-89 the company added product teams, allowing the organization to improve its planning capabilities through differentiation of key products lacking however to prioritize its most relevant portfolio’s products and demonstrate strong authority. As a matter of fact, the consequent
The start-up (informal) stage took place between 1986 and 1987 when the company could count less than 30 employees. The company structure was characterized by fluidity and simplicity, strongly relying on informal relationships. The positive side of this stage includes: rapid market response, quick idea generation, and innovation among committed workforce. On the other hand, the mentioned phase limited the company’s expectations in terms of planning structure, product reporting & accountability, lacking of an educated customer service. In mid-1988 Appex evolved its structure to a circular form, focused on non-hierarchical processes and cyclical operations from executives to customers. The stage was characterized by positive aspects such as the free flow of information, and a customer-sensible structure. However, relationships among employees, hierarchical decision processes, and strategic planning were still low inside the company. In late 1988, the new horizontal structure caused negative effects such as the complete inability in responding from employees.
However, the consequent functional evolution of the company in 1989 led to the separation of the employees into functional/hierarchical teams, increasing positively the company’s attention to planning operations and accounting measures. On the other side, the company started facing complex problems such as poor management skills, polarization of teams, and reduced cooperation among employees.
In mid-89 the company added product teams, allowing the organization to improve its planning capabilities through differentiation of key products lacking however to prioritize its most relevant portfolio’s products and demonstrate strong authority. As a matter of fact, the consequent
References: http://www.walmart.com/ http://walmartstores.com/ http://news.walmart.com/organizational-change-memo-from-bill-simon-2010