In this paper, I would argue that the best strategy for MEPD is new product development and innovation based on the current market environments and its unique technical capabilities. To support my argument, I would use Congruence Model to analyze the problems and advice solutions. Crucial Performance
SMA has a strong technological capability in the invention and had been running at an average of 10% growth over the previous 10 years. As one of eight line division in SMA, MEPD developed unique technical advantages and entered new markets quickly until 2000. However, as the general economy is going through a tough period and tge business environment becomes very competitive, MEPD fails to keep its uniqueness and struggles with the organization effectiveness. A lack of business strategy accelerates the problem and damages their ability to develop new products. To better serve the market and regain competitive advantage, MEPD needs to focus on providing great responsiveness to individual customer specification. However, the current status of the organization doesn’t fit with the product development strategy in terms of culture, people and formal organization Organizational Congruence
The major problem is there is no a corporate strategy within MEPD and each department only focuses on its own objective, resulting in a lack of coordination and conflicts among departments. The second problem is alignment of formal organization. Product development strategy encourages innovative and flexible organizational structure. However, Jacob Amman, the former vice president, brought in a political and manipulative culture and there is almost no decision making function by the top team, resulting in no cohesiveness in the group. On the other hand, Guido Spichty, the successor, isn’t involved enough in the problems that arise from differences in the goals of functional departments, leaving the conflict open and unresolved. Additionally, the decentralization of product lines...
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