- 20 Marks
MGE – Nov 2014 – L2 – Q3 – Strategic Implementation
Choosing an organizational structure for effective strategic alignment and competitive positioning.
Question
Universal Food Processing Company Plc. is a company in Nigeria engaged in the production of food products and confectioneries. Some of the products are cocoa beverages, candy, food seasoning, and biscuits. Since inception, the company sources most of its raw materials locally and from a West African country. It currently produces 10 different products from different production facilities and is structured along functional lines.
As part of its corporate strategy to consolidate and improve its competitive position, the Board of Directors has resolved to integrate backwards. This decision stems from current challenges with cocoa suppliers, the company’s primary raw material. Due to the Ebola outbreak, supplies from other West African sources have become erratic.
The situation, coupled with competitor activities, has drastically reduced local cocoa supplies. To address this, the company decided to establish cocoa plantations and a cocoa processing plant in Western Nigeria.
To effectively implement this strategy, management has also decided to redesign its organizational structure to support the backward integration strategy and enhance organizational effectiveness.
Required:
a. Identify and explain the types of organizational structures that Universal Food Processing Company Plc. can adopt.
(10 Marks)
b. Advise the company on which of the organizational structures identified will best suit its new strategy, giving reasons for your advice.
(10 Marks)
Find Related Questions by Tags, levels, etc.
