Airchair Essay

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Overview Cabletronica U.S. is a mature successful cable and wireless company, which had just made an acquisition of WorldFurniture in New York. Through several researches, Cabletronica invested Cushy Armchair in Hong Kong, which strategically related to achieve expanding the scope of operation. Cushy Armchair is the well-known leader in global reclining chair business and has fully autonomous business group in 17 countries. Alison Sampson is the new leader of CA with abundant cable background financial knowledge, who announced new decisions to executives through e-mail after two weeks on the job. However, two months later, she found that no one responded her decisions. Problems: 1. Senior personnel change The suddenly senior…show more content…
3. Decision Sampson made several decisions, but there were some problems. At first, Sampson made decisions only after two weeks on the job. The efficiency of decisions was questionable, based on her limited experiences and understandings of manufacturing setting and CA’s internal operation. Because the differences across the world, the business groups in 17 countries have autonomy to satisfy the needs of different customers. Currently Sampson required all advertising campaigns should be co-ordinated through New York, which was doubt. It is difficult to evaluate the advertising made by New York experts will achieve customer satisfaction of different countries. However, the centralization is counter to the general decentralized model of CA. CA used the decentralized model was sensible and had paid off handsomely compared with inconsequential economies of scales while national market differences were substantial.CausesThere was a “lack of fit” between process and task. In this case, the process is the communication system. Because the different corporate cultures, the different communication systems influenced Sampson cannot achieve her task. In Cabletronica, using e-mail to communicate is a usual way. In instance, the senior personnel changing as an important decision, was also announced by the chief operating officer through e-mail. However, it is not useful in CA.

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