Cox's Container Company (CCC)
In the modern constant changes business environment, company needs to change constantly to remain competitive in the market. If not, the company will be facing survival risk. There are no mercy and exception for Cox’s Container Company (‘CCC’). CCC faced increasing competitions over the past 5 years and profits are in declining trends due to reduce in margins. Harold Cox was clueless on how to rectify the problems. He has delegated the task to Erica Wilson to review CCC’s operations and oversee organization changes. Under her control and management, new central administration department was formed to implement budgeting system and company-wide information system. First time in the history of CCC, Wilson recruited external appointees to hold managerial post in the new central administration department. However, no one seemed very keen on the new system and encountered strong resistance from Abdul Aziz, manager of production department who incharged 2/3 of CCC’s total staffs.
After so many years since CCC was established, Harold Cox had done not much changes to CCC’s structure and culture. CCC still practicing simple structure with flat hierarchy and decision-making is highly centralized in the hand of the Cox family. This allows Cox to run the operations flexibly, direct communication to avoid message being misinterpreted and wrongly manipulated, wide span of control as all managers reporting to him and expedites the decision-making process without going through layers of people.
However, simple structure is more suitable for start-up or small firms for flexibility, control early growth and developments whereas centralization discourage innovation and no creativity. As CCC grows larger in size, it also more difficult for Cox to control and coordinate them effectively. According to General Sir Iain Hamilton once said ‘No one brain cans effectively control more than 6 or 7 other brains’. Moreover, when information and data are overloaded, he may
After so many years since CCC was established, Harold Cox had done not much changes to CCC’s structure and culture. CCC still practicing simple structure with flat hierarchy and decision-making is highly centralized in the hand of the Cox family. This allows Cox to run the operations flexibly, direct communication to avoid message being misinterpreted and wrongly manipulated, wide span of control as all managers reporting to him and expedites the decision-making process without going through layers of people.
However, simple structure is more suitable for start-up or small firms for flexibility, control early growth and developments whereas centralization discourage innovation and no creativity. As CCC grows larger in size, it also more difficult for Cox to control and coordinate them effectively. According to General Sir Iain Hamilton once said ‘No one brain cans effectively control more than 6 or 7 other brains’. Moreover, when information and data are overloaded, he may
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