Case Study #3
Step 1: The Problem
The Problem is for Ludwig Fullfeder because he created an organizational structure that lead to production breakdowns, decreased sales and personal stress problems. Therefore, his company is not operating at top-level efficiency.
Step 2: Relevant Information
Before Fullfeder Pen Company merged with Macro Pen Industries; Ludwig Fullfeder ran his small company by himself on an informal basis. When the two companies merged, Ludwig continued to try and manage the larger company in the same way. Macro Pen suggested he set up an organizational structure to help the business flourish. Ludwig, without really wanting to or with much planning, set up a loose structure that soon proved too dysfunctional to continue implementing. Such dysfunctions resulted in company losses as well as personal health issues for Ludwig from taking on too much strain.
Step 3: Alternative Solutions
Ludwig could hire someone to advise him on the best interests of the business or could hire someone to create an organizational structure for his company based on the given situation and environment of his business. Ludwig could take educational classes on how to run a company and therefore be better educated to run his company single handedly. Ludwig could listen more to the people at Macro Pen and head their suggestions in the future. And finally, Ludwig could have company meetings and discuss problems thereby educating the department heads on the decisions he would like to see followed.
Step 4: Evaluating Alternative Solutions
If Ludwig hires someone to advise him on the best interests of the company then he could implement their solutions and try to operate his company as such. However, it will be unknown the education or effectiveness of such a person hired.
If Ludwig hires someone to create the structure for him, he would have to follow it and get everyone else to follow it also or it will not work productively. Also, he may run into the problem of having a good structure created, but not a good one for his particular company.
If Ludwig returns to school and educates himself with business classes then he would learn more effective ways of operating a business. However, this solution would not solve anything in the short run, leaving the company to continue to operate in peril.
If Ludwig would head Macro Pens advise more he might not have to pay for school or spend money hiring outside people and training them about his business, however they might not have a successful organizational structure either.
If Ludwig holds company meetings in order to teach his employees on what decisions he wants them to make, then he may solve some personal stress issues but this does not solve the issue of a poor organizational structure.
Step 5: The Preferred Solution
The best solution is often a combination of some of the alternatives. In this case study, Ludwig should create a better organizational structure either with the help of Marco Pen or someone he hires from the outside. In addition, Ludwig should head Macro Pens advice more and not work to run his company by himself. Lastly, Ludwig should further his education in the field of business in order to fundamentally understand his company and what he needs to do to secure its future.