ET 2

Shantanu Gaikwad

MBA07131 C 29/1/2022

DWO

Prof. Santosh
Rangnekar

Declaration:
1. I have submitted faculty feedback 30 minutes prior to appearing in the End-Term Exam.
2. I have not copied the answer/matter in this answer booklet from my classmate, internet and any other
sources.

Signature of the Student

Answer 1.
Both are distinct organizations with distinct cultures; let us examine some of the most significant contrasts
below:

Efficiencies are the goal of each organization.

1.Objective - Achieving efficiency, primarily business objectives, through planning and execution.

2.Nature - In these organisations, things move quickly. Failures and complacency are not tolerated. People are
hired/fired based on their productivity and resource utilization.

3.Measurement of Performance - In these organisations, the general factors for measuring success are time and
resources. How many resources are used vs. how long it takes to complete a set of activities successfully.

Learning organisations are on the move.

1.Objective - To improve employees' and the organization's intellectual abilities through study and learning.

2.Nature - Employees work in groups to achieve a common purpose; life is frenetic, but it is also more flexible
than in organisations that strive for efficiency. Failures are viewed as a means of achieving objectives.

3.Measurement of Success - The organization's transformation is measured solely by the growth and innovation
of its employees.

In terms of adjusting to changes, I believe that companies built for efficient performance will have an advantage
over organisations built for learning. The explanation is simple: in effective businesses, no one can sit back; they
are constantly on edge, and life is fast-paced, giving them the leverage to better handle change. Because their
ways of functioning are different, learning things in a huge capacity can take some time. Learning companies may
or may not wish to resort to the adjustments in a fully flowing manner.
Answer 2.

Step 1
Differentiation strategy: It allows a business to stand out from the crowd with its products or services when
compared to others in the industry.

Step 2
Leadership strategy at a low cost: By lowering the price in comparison to competitors, it boosts demand for the
product.

Step 3
Strategy for miles and snow: It has a relationship with the outside world. Prospector, defender, analyzer, and
reactor are the four strategies established.

Step 4
Similarities
Both differentiation strategy and prospector strategy are parallels between Porter strategy and Miles and Snow
typology. It provides employees with opportunities to learn, is adaptable, and requires employees to innovate in
order to survive and profit.

Step 5
The horizontal and decentralised communication structure is followed by the differentiation and prospector
strategies. The defender strategy is similar to the low-cost leadership strategy in that it emphasizes efficiency.
Cost control is aided by both low-cost and analyzer strategies.

Step 6
Differences
Customer loyalty and satisfaction are important factors in Porter's differentiation strategy. Customer loyalty isn't
a big deal in Miles and Snow's strategy.

The reactor strategy of Miles and Snow lacks a coherent organisational approach, whereas Porter's model does.
Answer 3.
The difference between functional and divisional structure is readily identifiable on the following grounds:
• A functional structure is an organisational structure in which individuals are classified based on their areas
of expertise. The divisional structure is a type of organisational structure that is separated into semi-
autonomous divisions depending on product, service, market, and other factors.
• The functional structure's specialisation is based on functions. Product lines, on the other hand, dictate
divisional organisation.
• In a functional structure, assigning responsibility is tough. For example, if a product does not do well in
the market, determining which department (manufacturing, sales, finance, etc.) of the organisation is
failing is difficult. A divisional organisation, on the other hand, makes it easier to allocate responsibilities
because each product of the company has its own department.
• In functional organisations, managerial development is challenging due to a lack of decision autonomy,
as top management makes all decisions. A divisional organisation, on the other hand, has decision-making
autonomy. As a result, the development of managers is simpler.
• The cost of a functional organisational structure is cheap because the functions are not duplicated. The
divisional organisational structure, on the other hand, necessitates resource repetition, which is costly.
• Small and basic organisations benefit the most from the functional structure. In contrast to the divisional
structure, which is appropriate for large, dynamic companies.

When a company becomes large enough to require an ordered organisational structure, it is usually separated into
departments based on the work function. This setup makes it simple for people with comparable jobs to
communicate and share resources. A divisional structure, on the other hand, brings together employees to work
toward a common purpose, such as a certain product or service, a specific consumer type, or a specific geographic
location. Both are vertical, with a middle- and upper-management hierarchy layered on top of a foundation of
employees and characteristics such as a rigidity bias. Between the two architectures, there are also substantial
differences.

Employees and executives support decision-making in a horizontal organisational structure. Only those
initiatives that improve staff morale are successful.
The following are the reasons why employees are valued in this structure:

• Openness among workers from different departments, as well as cross-functional departments, aids
coordination in an organisation.
• Employees are allowed the freedom to choose their own daily responsibilities, as long as they are in
keeping with the organization's objectives. It improves overall productivity.

• Because the strategy is centered on the employee, it ensures that people are happy with their jobs and will
perform to their full potential.

There are also several highlighted duties that managers must do in this type of organisation. They are as follows:

• Managers must devise new and innovative ways to keep employees motivated while preserving
coordination.
 • Superiors and subordinates must communicate well, and the management must be aware of and respect
the employees' personal lives.
• Management must keep a regular timetable for their employees to follow, and if something goes wrong,
the managers must correct it as soon as feasible.

Answer 4.

A.
I believe that a large corporation like this, which owns a number of other food companies, should be bought. It is
critical to delegate authority to separate departments so that they can perform effectively without constant
interference from the central team. Because frequent inference reduces accuracy, the center may not have a better
understanding of the ground reality. As a result, I believe that decentralization should be preferred. However, this
cannot always be the case; there must be some concrete efforts made in conjunction with decentralization. That
is, a proper written boundary of roles and responsibilities must be established. So that disagreements are kept to
a minimum.

B.
According to their market base and target client, each division has a different strategy. The best element of
decentralisation in this scenario is having a separate CEO for each department. That is, each department must be
accountable enough to provide a progress report. The incentive strategy, on the other hand, aims to foster healthy
competition within the department. This will also foster an environment in which other departments will be
willing to assist one another, as the failure of one department will have an impact on all.

C.
Curtice-Burns, Inc. requires the ability to construct an accounting department for any central investment. It is
necessary to centralise the money department, just as we have done with the government. It will enable the
corporation to spend in research and development projects, which will be beneficial in the long run.
Answer 5.
A.
Mark Hurd made significant strategic changes to the company's operations, including reorganizing employees in
HP's PC, printing, and corporate technology areas so that salespeople could learn the products they were selling.
He also moved employees to different divisional units and disbanded corporate sales organizations. He shrunk
the corporation by eliminating hundreds of ineffective staff. He also eliminated three managerial levels in order
to gain a better understanding of the products. He made many adjustments to accountability by delegating higher
and more direct budget preparation authority to the administration. The restructure also included a shift in the
compensation scheme for salespeople.

B.
• HP will be able to reach closer to both customers and partners as a result of the restructuring and
investment measures.
• Partners will notice a more unified go-to-market strategy and channel programmed around the world.
They'll notice how we're enhancing our tools. So, as we grow more efficient, our channel partners should
see that they can work with us more efficiently as well.
• Because the number of levels has been decreased and unneeded salesforce has been fired, customers will
no longer be confused among the various sales channels.

C.
• Instead of terminating the salespeople, they should be placed on variable pay, with their salaries based on
sales commissions. As a result, we will be able to grow sales and our employees will be able to earn their
bread and butter. As a result, it may eventually lead to a positive market reputation.
• To provide a better experience for corporate clients, separate salesforce and care-service should be
designed. This could lead to better business relationships and increased revenue.