Case study 1: Strategic Design at Dynacorp
As being the industry leader in the 70's things weren't the same way for Dynacorp by the end of the century. Competitors were closing gaps in both technology and market share. Dynacorp was the first in the market as an innovative company with high-quality products and never expecting other companies getting close so fast.
Dynacorp, as a functional organization was dealing with a lot of trouble in its strategic structure. The internal organization structure did not meet with what the external market was looking for. All three divisions of Engineering, manufacturing and marketing didn't get along really well to make an integrated company, but instead they were trying to point finger at other departments for the fault. The fact that manufacturing was in a different location than the engineering department, made collaboration between these two divisions so hard. Not acting fast on outsourcing production lines in order to lower the cost and speeding up the process was another main reason for Dunacorp losing market share.
If the manufacturing is not in the same location as the engineering department, then what is the use of keeping the manufacturing in the US instead of other country?
In the marketing division, it was getting more difficult to cultivate the close personal relationship with customers; as the company targeted selling its products to technical specialists.
Obviously there is not a single solution to solve all the problems, but the company definitely needed some changes in its structure for sure. Everyone would agree that the company should have based its goal on its products. Product division structure would change the existing functional division into a multifunctional product...