ORGANIZATION THEORY AND DESIGN

Case for Analysis: Sunflower Incorporated

In any organization, a periodic structural remodeling has always been done as a way of improving the performance of the enterprise. Sunflower Incorporated has an extensive distribution base that covers a staff exceeding five thousand individuals. This company is involved in distributing snack foods and liquor throughout America. With one central head office, it has twenty-two regional offices that cater for the needs of locals countrywide (Daft, 2009). The managerial systems adopt an independent approach of each regional office. This helps the company to accommodate and deliver local tastes and practices specific to the different clients. The implementation of the financial reporting system that evaluated and contrasted sales, cost, and profits across the twenty-two regions was of much benefit to the company.

This revealed how widely the profits varied from one region to the other. The management decided on a change of plan after realizing that some regions were using substandard goods to increase profit margins. This practice would have adverse repercussions on the image of the company; therefore, there was a need to restructure the pricing system. These lead to the president of Sunflower Incorporated creating a new position to monitor pricing and purchasing within all the twenty-two regions. This was in a bid to implement effective ways in which the company may change its structural form to realize better and effective performance. Pricing and purchasing changed and created an impression that there was something happening that triggered the employees to improve their efforts to match the trend.

In learning from the past, the company was able to come up with better and more efficient methods of pricing and purchasing management. By having a standard pricing system, the company was able to monitor the profits’ margin and avoid extreme practices in pursuit of high profit margins. This policy ensured that all the regions upheld a standard pricing system to avoid the unfair pricing competition. With the new policy in place, the company’s image is secure. In addition, the use of second hand merchandise is impossible following the new standard platform. This was the decision that the administration gave a go ahead as a structural change to effect better performance (Daft, 2009). The creation of the new position was to allow specialization in the pricing and purchases’ department to give special attention to the circumstances surrounding the department. This helped in assigning a narrow workload to the pricing and purchase department, hence improving the performance. This was important to rescue the company from a predicted danger in its survival in the business.

Before the implementation of the pricing policy, the company was considered   bureaucratic and was not in a position to respond to market shifts adequately; hence, the need for a restructure. The top management decision to standardize pricing and purchases was not without the challenge of how to go about the task (Daft, 2009). The organization theory was useful in determining the fact that there was need to make critical changes to counter the effect of continued malpractices. Structural configuration to current technology should be reviewed from time to time. Using outdated technology gives the companies’ competitors an upper hand in the market to have an added advantage over them.

In the Sunflower Incorporated case, we appreciate that for a company to realize organizational goals and strategies, there has to be a periodic review on the current developments and changes in the practice. Competitive techniques are what set one company apart from the rest in the market in a similar industry. The goals are the ultimate intentions of a person towards a particular course and are mostly put in a statement. Strategizing is creating an environment that would see the goal statement come to be. Strategies are of paramount importance and should be clearly spelled out to the employees. These are the determinants of the level of operations and the task of the company in the industry.

References

Daft, R. L. (2009). Organization Theory and Designing. Clifton Park, NY: Cengage Learning.

 

 

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