I. Background of Acme and Omega
* They were both once owned by the same parent company, Technological Products of Erie, Pennsylvania.
* Both companies manufactured computer chips and printed circuit boards.
* Acme retained its original management and upgrades its general manager to president of the company.
* Omega hired a new president with a background in electronic research and he chooses to upgrade existing personnel.
* Both companies often competed for the same contracts.
* Acme regularly achieved greater net profits then Omega.
II. Current Concerns
The president of Acme faces certain challenges based on the companies' structure and external environment. Some immediate concerns are that they cannot meet all the demand for their product, and that the managers desire more latitude in their day to day operations. They have also parts dependency problem.
Omega is also directly effected by its external environment and its impact on the organization structure. This company dealt with a similar parts supply problem to that of Acme. Omega also has a lack of clear hierarchy of authority, with it being difficult for employees to find what exactly their job parameters are.
III. Causes of the Concerns
Acmes' organization is mechanistic. It has rules, procedures and a clear hierarchy of authority. This organization is very formalized with most decisions being made at the top. This would be a great structure for this organization to have when the external environment is stable. However, Acmes external environment is of high uncertainty and it must be able to be able to respond more rapidly to changing environments.
Omega on the other hand is able to respond to changing external environments not only in a rapid manner, but also one with an internal organization that is much looser, free flowing and adaptive. However this organic...