It could never come out of the no-growth phase that started from the 1970s. Its market value and stock value kept declining. As a result, its board of directors and stock holders were not happy.
A meeting was recently…
The organization chart depicts this. Both local and overseas operations fall under one VP while separate Vice Presidents would be looking after the other four domains of the company. The current legal, human relations and procurement Vice Presidents will retire in a few months. Therefore, theses posts have been removed.
2) The revised organization chart shows physical presence of the sales and marketing department in Minnesota, Duluth. This is because the main plants were in Duluth. However the headquarters have been moved to Chicago. If the organization structure should focus on sales, then physical presence at Head Quarters and the main plant is important. This is because the largest numbers of sales take place in Chicago. It is the epi-center of all their revenue, hence major presence in Chicago will prove to be very lucrative for the team.
3) The figure shows a centralized structure in which everything is managed from home. The head quarters are in Minnesota and so are the plants in both Minnesota and Oregon. From here, all departments closely manage the affairs of CLPC’s presence in other States such as Chicago, Denver, Atlanta and NY. It is centralized structure because it now has one State operating as the main center and everything micro-managed from that center only. This means all personnel handling, inventory, fore-casting, and packaging will be centralized.
In a decentralized structure, there is no center. All major decisions are taken on the field. In the case of CLPC, all operating activities and decisions that fall under their domains will be taken care of them on the field only as shown in the figure. It is not being operated from a core center. Field work is dispersed according to the presence of the company and its operations country wide.
5) Irwin Buchanan could offer his services as a third-party logistics provider to CLPC. The firm’s logistics handling is scattered at the ...
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