Essay on Deluxe Tool Case Study

780 Words Jul 26th, 2012 4 Pages
Delux Tool Case Study

Currently the companies, Delux Machine Tools, Safe Buy Insurance Co., and MicroAge Software are all operating more or less separately, but all under the management of I.M. Tycoon. The assumption is that in order for the three entities to properly function under this corporate umbrella, they must be restructured in such a way to allow for efficient and effective operation. At the end of the day, an organizational structure will determine how the various roles, with their powers and responsibilities, are delegated, controlled, and coordinated, as well as how information flows between the levels in the structure. I.M. Tycoon’s primary goal is to make sure that the companies of his siblings stay financially fit for at
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Safe Buy Insurance is more decentralized, using a market control structure. Each agency in the group decides on how they are best to approach their market based on a variety of market indicators. This is best because they are spread out across different areas, which undoubtedly have requirements and needs that differ from each other.
The last business unit, MicroAge Software is using a clan control structure. Each person does things the way they believe is best, but they are all highly motivated and achieve their objectives without many unsolvable issues because they believe in the company’s mission and vision. It may be tough to run a company in such a way in the long term as it’s not very structured, but as long as it remains small and the right type of people are hired it would remain successful.
Coming back to my recommendations, I.M. Tycoon would be best to leave each unit running as they already are. If he were to try to restructure everything based on Delux Machine Tool’s structure, he may risk disrupting the success the businesses already have. In essence, a new and simple bureaucratic structure should be created at the top, where each company is considered a unit of this structure. At the top would be the CEO, I.M. Tycoon and then under him would be business heads of the three

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