Case Analysis

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CASE FOR ANALYSIS

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CASE FOR ANALYSIS – Case 1 Kinko’s New Operating Structure Kinko’s Inc. was the largest retailer of copying stores, but it had to change its operating structure in response to competitive pressures from Quick Copy and OfficeMax. Kinko’s had an informal management process and difficulty managing growth. The founder, Orfalea, used franchising to launch growth, but this approach did not assist Kinko’s in controlling costs or improving customer service. Consultants recommended centralized control and a set of internal authority relationships. 1. What were the problems facing Kinko’s managers?

Kinko’s structure was too decentralized, making it difficult for top managers to implement changes rapidly. The structure was informal with decisions left up to Kinko’s franchisees, and no sharing of ideas on customer service. 2. What steps did managers take to solve these problems?

Kinko’s centralized operating systems such as purchasing and finance to reduce costs. Kinko’s developed a more formal organizational structure. It may take time for the store owners to relinquish control, but this structure should help Kinko’s to respond more quickly to competition and develop consistent procedures and services to meet customer needs. CASE FOR ANALYSIS – Case 2 Kinko’s New Operating Structure Kinko’s Inc. was the largest retailer of copying stores, but it had to change its operating structure in response to competitive pressures from Quick Copy and OfficeMax. Kinko’s had an informal management process and difficulty managing growth. The founder, Orfalea, used franchising to launch growth, but this approach did not assist Kinko’s in controlling costs or improving customer service. Consultants recommended centralized control and a set of internal authority relationships. 1. Why did the managers at the two organizations have different ethical stances towards their customers? (Hint go to J&J’s website and look at its Code of Ethics).

It is clear from

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