Symphony Seeds Case Study
When discuss the environment, the factors which outsider the organization will always be considered. Rhea dimensions of environments are focused on stability, complexity, market diversity, hostility and richness (Miniature, 1983). When the dimensions of environments change, they will affect the level of uncertainty increase or decrease.
In this case, SIR distributed is relatively stable, complex and rich environment. ASS measured stable, simple and rich. The full details will explain in next section. When organized a company, the normal question is which organization level specified the decision making.
There are two organization structures which are centralization and decentralization.
Centralization is that the decision making on the top of the organization and they will not consider what the employees thinks. The advantages of centralization are “easier co-ordination and management control”, “providing a consistent strategy across the organization”, “improved economies of scale” and ‘improved decision making which might be slower and a result of compromise because of diffused authority’ (Mullion, 2010). Miniature (1983) explained that “to the extent that the power is dispersed among many people, we shall call the structure centralized”.
The advantages of decentralization are “allows the organization to respond quickly to local conditions” (Miniature, 1983), support services are more likely to be effective, the flexibility of making decision, and stimulus the motivation Mullion, 2010). In fact, there is no organization treated as a completely centralized or decentralized, it “rather as two ends of a continuum” (Miniature, 1983). Another two basic types of organization structure are mechanisms and organic structure which Nas identified by Burns and Stalker (Mullion, 2010).
Mechanism structure is a more ‘rigid structure” and more likely stable. This system is similar of bureaucracy Mullion, 2010), thus the decision making is centralized, and the integrating get simple and work is standardized. Organic structure is a more flexibility system. It appears when there are new problems and unforeseen circumstances (Mullion, 2010). This means people under organic system can adapt the changing conditions ‘err quickly, and they can make decision by themselves.
Therefore, it is decentralization and information flows freely, integrating is complex and relies on mutual adjustment.
The second part of the essay will discuss the role and purpose of he Land Development Corporation (OLD) and why ASS and SIR cannot be a unified organization. The last part will discuss the problem of evaluating the performance of the two Symphony Companies from Condom’s perspective and comment on the problem of inter-company trading. The details of the questions will be explained in the tolling part Firstly, analyze the environment and structure of ASS. As mentioned in the beginning of the essay, environment is one of the contingency factors and the others are age, size, technical system and power.
The case indicates that “in the early asses some disinvestment took place.
.. This illustrate that ASS has been operated well before that period time. This could be the variable of “age” of ASS. Next one is consider about the size. There are ’30 plus fulfillment salesman and large back-up staff’, personally think it is a medium size division.
The technical system is focus on “the knowledge base of the organization”. It should be considered simple in ASS, because it Just “produces mass quantities of seed” and trading. There is external control to the ASS.
From the content of the case known that Symphony Seeds is a wholly owned subsidiary of OLD, a OLD is a wholly owned subsidiary of Condom Holdings, and ASS just a arm of the AS Ltd. Decisions are made by the board of OLD. Miniature (1983) suggested that “the greater the external control of the organization, the more centralized and formalized its structure”.
ASS has stable and simple environment. In this environment could contribute to centralize, bureaucratic structures, and “the classic organization type relies on standardization of skills”(Minimize,1983). From the end of the case, it highlighted that “Symphony is a mature company… N the 4-10-year picture”, this means the dynamism is stable.
ASS purchases seed from SIR which evolves new seeds and initial basic seed. Thus ASS has the available resources to support. Therefore, it is rich. ASS is a simple structure. Minimize (1983) explained that simple is affected largely by direct supervision, the important decision tend to be centralized. Secondly, analyze the environment and structure of SIR.
It is the same aged as the ASS that they are both arms of the AS Ltd, and “in the early asses some disinvestment took place… “(from case) . Next one is consider about the size.
It should the large size because it said that “it is the largest I-J seed breeder”.
SIR is a division Inch do research and development, this need higher knowledge to do. Thus it is complex. There is external control to the SIR. From the content of the case known that Symphony Seeds is a wholly owned subsidiary of OLD, a OLD is a wholly owned subsidiary of Condom Holdings, and SIR Just a arm of the AS Ltd. Decisions are made by the board of OLD.
SIR has stable and complex environment, it cause a decentralized and bureaucratic structures, and “reliant for coordination on the standardization of skills” (Minimize, 1983).
From the end of the case, it highlighted that “Symphony is a mature company… N the 4-10-year picture”, this means the dynamism is stable.
SIR develops new seeds and initial basic seed, therefore, it is rich and complex. When the decision making is decentralized, staff specialists and operated well. It also should be a organic structure. In this part, it will discuss the role of OLD and why ASS and SIR cannot be a unified organization. OLD is a wholly owned subsidiary of Condom Holdings Pl, which manages the agricultural interests through OLD. AS is a wholly owned subsidiary of OLD.
After Condom Holdings bought the AS, the previous culture and management Tyler was initially maintained. Condom Holdings Ltd acts as a banker, and holds the ultimate controlling shareholder in AS. For SIR and ASS, OLD as the active buffer ¶teen the deterrent styles to management and deterrent perspectives. ASS buy s from SIR, and SIR has 95% of income royalties from ASS. They also have an inter- company trading, and exists the problem of transfer pricing. Moreover, they have different environment with different structure, management culture.
So they are fundamentally operating different business.