Kongstrup Machine Factory Case Essay Sample

Question 1: The challenges confronting Kongstrup after the prostration of the confederation with MB

Kongstrup Machine Factory was established in 1894. The company’s activities are the development. production and gross revenues of agricultural machinery. In 1986 they amalgamation with a company calls Multos Biancos. Multos Biancos went to China at the terminal of 2008 and had considerable involvements in the excavation industry. This small trip had immense effects for the amalgamation between Multos Biancos and Kongstrup. During the fall of 2008 the cooperation would be terminated with immediate consequence. All the distribution and gross revenues were ruined after the cancellation of the cooperation understanding. Because of the fact that Kongstrup was covering with the development and the production of combines. Multos Biancos did the distribution and gross revenues.

During the cooperation with Multos Biancos. Kongstrup had to work besides by distribution and gross revenues and non merely by the production. When Kongstrup took a portion of distribution and gross revenues. they had a batch of experience in this section and after a prostration this section was non ruined. In a functional construction. activities are grouped together by common map from the underside to the top of the organization¹ . Employees are exposed to a scope of functional activities within their ain department² . One of the failings of a traditional construction is the slow response clip to environmental alterations.

Kongstrup should hold noticed the altering environment of Multos Biancos. when they went to China and invest in the excavation industry. How earlier they knew. how better they could response to the alteration. One of the strengths of a traditional construction is that you can merely utilize it good with lone one or a few merchandises. Kongstrup went for an progressively comprehensive merchandise scope. They could non manage this merchandise with their construction. A better option is to concentrate the company at one merchandise or they should alter their organisational construction to a divisional construction.

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One of the strengths of a divisional construction that it is suited to fast alteration in unstable environment. where the company now is after the cancellation of the cooperation understanding. The fact that the company did non hold much experience in managing crises was a serious job for Kongstrup. This is non truly their mistake. The direction of Kongstrup could hold learn something about a expiration of a amalgamation. They were better prepared and the ruin after the cancellation was really less. ¹ ( R. L. Daft. J. Murphy. H. Willmott. Organization theory and design. 2nd edition ) ² ( R. Duncan. Organizational kineticss ( 1979 ) . W. Alan Randolf. Gregory G. Dess. Academy of Management Review ( 1984 )

Question 2: Advantages and disadvantages of an unfastened attack to decision-making

An unfastened attack to decision-making
An advantage of an unfastened attack to decision-making is that cipher has all the power to do a determination. Everyone can give their sentiment. There is more cognition available Less efficient. Decision-making takes a long clip. the direction must cognize of every employee what their sentiment is. You need to negociate with your employee by about every determination to pick the best 1. Less dissatisfaction among the employees. Everyone can state what they want and all the employees could happen an understanding with eachother. When all employees wants an unfastened attack to decision-making. they do non hold trust in direction. This could be an disadvantage because by every determination of the direction. the employees have uncertainties and they do non stand behind the determination and the employees can non work decently

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More creativeness to decision-making

Question 3: Environmental uncertainness for Kongstrup
Environmental uncertainness is the inquiry of how hard it for an entity is to foretell the ( external ) events which influence the entity. When it’s easy to foretell. the environment is stable and simple. therefor it’s easy for the entity to be effectual. By an unstable and complex environment it’s hard to be effectual and the entity needs uninterrupted alterations in their construction and scheme. So environmental uncertainness is that the top direction hasn’t adequate information to predict and respond to external alterations. The more uncertainness the more opportunity of failure. ¹

One of Kongstrup environmental uncertainnesss was their distribution and gross revenues activities. One of the biggest advantages for the cooperation with Multos Biancos ( MB ) was that MB had a good international repute and a market located in Western Europe where their gross revenues organisation was well-structured. When the cooperation ceased to be Kongstrup lost the strong gross revenues and distribution portion and needed to make it by themselves. When Kongstrup and MB agreed to organize a cooperation. They divided the undertakings: Kongstrup was the maker and MB’s duty was gross revenues and distribution. Because of this Kongstrup was non experienced in selling its merchandises and ne’er considered which scheme it should utilize sing its client relationship. Because the customer’s demands are ever altering and important for any entity is it indispensable for Kongstrup to hold a well-structured selling division which precisely understand those alterations. That why non cognizing which scheme you are traveling to utilize for your client relationship is an environmental uncertainness.

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Interacting with and commanding of your external environment can be done by be aftering and anticipating. By be aftering and anticipating you can foretell environmental alterations and respond rapidly to them. Reacting to these alterations can be done by reorganising your organisational construction or redesign your scheme. Kongstrup biggest job is their scheme and construction. They need to implement a whole new scheme and construction. By foretelling the approaching alterations and by cognizing them Kongstrup can reorganise their organisational construction. By reorganising they can better their gross revenues and distribution and should be interacting and commanding the external environment better.

¹ ( R. L. Daft. J. Murphy. H. Willmott. Organization theory and design. 2nd edition ) Question 4: New organisational construction Kongstrup

Kongstrup’s strengths are their teamwork. distribution ( 25 kilometer between client and service Centre ) . invention and development. Their chief ends are spread outing their market and bring forthing low-priced productions. For deriving market entree in other states the export scheme is first-class: production is usually done in one state but per state a little administration unit makes merchandises and services state specific. A disadvantage of this scheme is that development will non easy be exchanged between states. Therefor a geographical construction with full-time planimeters will assist absolutely.

Integrator will interchange information with each other and inform the top direction about possible additions between different states. Because of the competitory market Kongstrup must go on to distinguish their services by puting up a elaborate local web in the new states. Even in the new states the maximal distance between a client and a service Centre should be 25 kilometer.