Учебно-методическое пособие для студентов минск 2010 ббк утверждено на заседании

Speaking

Read the case critique and answer the following questions.

1. 
   What is the name of the reporting system that the chief executive officer of the Thomas National Group originally set up for the organization? What were some of its shortcomings?
   
2. 
   What was the form of departmentalization originally chosen? What were some of its limitations?
   
3. 
   What new form of departmentalization was added to the old structure?
   
4. 
   Is the new organization structure more centralized or less centralized than before? What are its advantages and disadvantages?
   

When Tom Barrea, chief executive officer, set up an organization structure for his company, he did it all by the book. The Thomas National Group would provide data processing services to other companies for a fee. The company would be relatively small, with about 100 employees. As chairperson, Tom had three vice presidents reporting to him. Each was in charge of a separate function – marketing, programming, and data processing. In turn, each of these vice presidents had a number of specialized managers reporting to them. Under this system, when someone down the line had a problem, the employee would bring it to his or her manager for an answer. If it couldn’t be resolved at that point, the problem would be relayed up the line to the next level for solution. Work had been delegated so that each person knew the limits of responsibility and authority and who his or her boss was.

Problems began, however, when this vertical system kept the company’s relatively small staff of people from communicating with one another across functions. If a programmer got an idea, for example, it would have to pass up the line to the president before getting the benefit of the thinking in, say, the data processing department. The company was also adding new services to be offered to its customers. Under the original organization system, there would have to be a specialist for the new service in each department. Gradually, communications in the company broke down. Problems took forever to be solved. Management was increasingly indecisive.

Finally, Barrea changed the company’s organization structure. Instead of a narrow, vertical pattern, he created a broader, horizontal one. Now Barrea has only the three functional vice presidents reporting to him, he also has an executive vice president to coordinate administrative affairs and three vice presidents who head up the new special services. Each vice president has been given greater authority to deal with problems in his or her area. Barrea is in constant touch with all seven vice presidents. He encourages communications between departments. And even the lowest-ranking person in the organization has only a level or two to get to the top.

Writing

Faredeal Travel Agency was founded by its owners, Claudia and Manuel Ortega. It is now one of the largest travel agencies in the City, the financial centre of London. Although the firm is doing well, the Ortegas know that it could be more profitable if it was better organized. They have done a study of the agency and found out that the most complaints are connected with the management structure.

Findings of the study

1. 
   Alan Robinson has too much responsibility and feels very stressed. He complains also of having no contact with Manuel Ortega.
   
2. 
   Christos Vasiliki wants better communication with Manuel Ortega. Manuel is often away on business trips, so Christos is not able to get his approval for important decisions like discounts for important customers.
   
3. 
   Daria Bressan reports to Manuel Ortega. However, most of her work is with Claudia Ortega, whose speciality is marketing.
   
4. 
   The Accounts Department wants more cooperation with the Date Processing Department. On the other hand, Sonia Hunt says that Peter Martin is always ‘interfering’ in their office.
   

Management structure

The General Manager, Alan Robinson, has invited members of staff to send him a short, informal report on how to reorganize the company's management structure. As a member of staff, write the report (see Writing File pp. 220-222).

Unit 5. Business Strategy

Introduction

Read the following case study and then answer the questions below.

Richard Thomas, a brilliant electronics engineer, decided to set up his own business. He felt there was a gap in the market for low-priced computer components. The start-up capital for the firm, Computex, was provided by the bank (an overdraft facility of £25,000) and Richard's savings of £15,000.

He began by hiring another person to help him develop the components. Six months later they built up a good supply of components and tried to sell them. But many potential customers were suspicious of the low prices.

It was over a year before Richard got his first order. By that time, he had an overdraft of £40,000. He was spending all his time advertising the products, running round to meet customers and trying to persuade them to buy.

Three months later, three things happened. First, a few large orders were received, but Richard had to wait three months or so before being paid. Second, the bank decided to call in the overdraft within a month. Third, Richard received offers from two venture capital companies. The first was prepared to invest £200,000 in return for an 80% share of Richard's business; the second was willing to put up £250,000 for a 90% share.

This was the situation facing Richard Thomas fifteen months after he had set up his high-technology enterprise.

1. 
   Could Richard have avoided the situation he now finds himself in? If so, how?
   
2. 
   What should he do now?
   
3. 
   What advice would you give him about how to run the company in the future?
   
4. 
   What problems can arise when someone starts up a high-technology enterprise?
   

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