Case study Widen & Kennedy Exemplifies the Concept
First of all, before the direct considering of the question of how Nine’s decision to retain an in-house arm of ad agency Widen ; Kennedy exemplifies the concept of organizational design, the mentioned concept should be considered. According to the definition provided by Cliffs Notes, “organizational design is the creation or change of an organization’s structure. The organizational design of a company reflects its efforts to respond to changes, integrate new elements, ensure collaboration, and low flexibility’ (“Organizational Design Defined”).
It is noteworthy that the Nine’s management team decided to retain this ad agency in order to improve the company’s image.
Thus, the main aim of the mentioned agency’s activity is to create and perpetuate the Nine’s image. That is why It can be considered as an example of the concept of organizational design, since the company changed its organizational structure to respond to changes of market conditions. 2. It is noteworthy that the Nikkei applies offspring in order to decrease the company’s operating costs.
It means that the company works with many contractors that produce the company’s products using its technology.
However, two-thirds of Nine’s factories do not follow the company’s own standards for contract manufacturers. The company’s was quite criticized for lack control over the labor conditions In Its contractors. Thus, the company’s contractors should be run with mechanistic rather than organic design. It means that the part of the company’s contractors should be changed, as well as approaches to control over their labor conditions.
The company cannot refuse Its offspring strategy, but the list of the company’s contractors should be Improved In order to maintain the Nine’s Image as a leader of sports footwear and apparel market. Thus, the organic design Indicates the changes In the company’s organizational structure, but It should not be changed.
Rather the company’s control over contractors’ labor conditions and standards to contract them should be Improved.