The idea behind this consultant report is to suggest methods wherein the company can be made profitable to meet the challenges posed by the current downturn. The recommendations that we as consultants have given can be divided into the following categories as outlined in the subsequent sections.
First, the idea is to structure the company along product lines instead of the current structure where each of the verticals would have a separate department instead of along functional lines. The current division is based on functional lines wherein the sales department is separate and the insurance department is separate. The current structure lends itself to unnecessary redundancy and according to the theory (Miles, 1978); division along product lines is any day better than division along functional lines. If the company adopts this method, the divisions would be along verticals instead of the horizontal division currently in place.
This movement towards product lines is appropriate because the people in one product line would be motivated more to perform and function rather than people in different functions working separately. This makes eminent business sense as the people in different departments that are current existing can get together and plan for their sales and marketing strategies as a means of achieving their targets. The appropriate theories of leadership that can be applied here are the Theory X and the Theory Y which state that a leader can apply these two competing visions of leadership to get the work done .(Mullins, 2008)
As part of the division of the company along vertical product lines, it is necessary to structure the company in such a way that the board members are also structured along the product line strategy and that they operate within the structures prescribed in this management report. This division of the company along product lines makes for eminent business sense and hence they can work for the betterment of the company.