Kongstrup case
Kongstrup Machine Factory Case
Ramon Merbis 1665825
Krijn Roodenburg 1656002
MPEN-IB04
Content
Page 3 The challenges facing Kongstrup after the collapse of the alliance with MB
Page 4 Advantages and disadvantages of an open approach to decision-making
Page 4 Environmental uncertainty for Kongstrup
Page 5 New organizational structure Kongstrup
Question 1: The challenges facing Kongstrup after the collapse of the alliance with MB
Kongstrup Machine Factory was established in 1894. The company’s activities are the development, production and sales of agricultural machinery. In 1986 they merger with a company calls Multos Biancos . Multos Biancos went to China at the end of 2008 and had considerable interests in the mining industry. This little trip had huge consequences for the merger between Multos Biancos and Kongstrup. During the autumn of 2008 the cooperation would be terminated with immediate effect.
All the distribution and sales were ruined after the cancellation of the cooperation agreement. Because of the fact that Kongstrup was dealing with the development and the production of combines. Multos Biancos did the distribution and sales. During the cooperation with Multos Biancos, Kongstrup had to work also by distribution and sales and not only by the production. When Kongstrup took a part of distribution and sales, they had a lot of experience in this department and after a collapse this department was not ruined.
In a functional structure, activities are grouped together by common function from the bottom to the top of the organization¹. Employees are exposed to a range of functional activities within their own department². One of the weaknesses of a traditional structure is the slow response time to environmental changes. Kongstrup should have noticed the changing environment of Multos Biancos, when they went to China and invest in the mining industry. How earlier they knew, how better they could
Ramon Merbis 1665825
Krijn Roodenburg 1656002
MPEN-IB04
Content
Page 3 The challenges facing Kongstrup after the collapse of the alliance with MB
Page 4 Advantages and disadvantages of an open approach to decision-making
Page 4 Environmental uncertainty for Kongstrup
Page 5 New organizational structure Kongstrup
Question 1: The challenges facing Kongstrup after the collapse of the alliance with MB
Kongstrup Machine Factory was established in 1894. The company’s activities are the development, production and sales of agricultural machinery. In 1986 they merger with a company calls Multos Biancos . Multos Biancos went to China at the end of 2008 and had considerable interests in the mining industry. This little trip had huge consequences for the merger between Multos Biancos and Kongstrup. During the autumn of 2008 the cooperation would be terminated with immediate effect.
All the distribution and sales were ruined after the cancellation of the cooperation agreement. Because of the fact that Kongstrup was dealing with the development and the production of combines. Multos Biancos did the distribution and sales. During the cooperation with Multos Biancos, Kongstrup had to work also by distribution and sales and not only by the production. When Kongstrup took a part of distribution and sales, they had a lot of experience in this department and after a collapse this department was not ruined.
In a functional structure, activities are grouped together by common function from the bottom to the top of the organization¹. Employees are exposed to a range of functional activities within their own department². One of the weaknesses of a traditional structure is the slow response time to environmental changes. Kongstrup should have noticed the changing environment of Multos Biancos, when they went to China and invest in the mining industry. How earlier they knew, how better they could