preview

Appear Corporation Case

Decent Essays

Appex Corporation Case Write Up

What were the challenges Shikhar Ghosh faced when he joined Appex?

Appex Corporation was a rapidly growing business, with increasing employee strength and added project work. It had initially begun as a startup and transformed into an organization which needed a proper well-defined organizational structure. Shikhar Ghosh was recruited by Appex’s investors to provide the crucially needed control and structure to the organization. Major early issues recognized by Ghosh were
• Ghosh realized that the atmosphere at Appex had changed from “entrepreneurial” to chaotic because of structural issues due to quick expansion of Appex.
• Long term goals were not addressed and there was lack of financial planning. Many tasks …show more content…

• It provided clarity of responsibilities & authority across different functions.
• The structure succeeded in focusing the company on completing tasks.
• It accounted for a greater degree of control • Confusion in defining the functions and assignment of new management roles
• Politics came into existence and teams started becoming polarized
• Heads of the teams started creating sub -functions within their team - Organizational chart grew vertically & horizontally & managerial roles kept on increasing within sub -functions.
• Standards were being set by individuals rather than the company policy. Further, source of authority was functional & not managerial expertise
Product Teams The structure was made more product centric with product team managers assigned with the role of writing business plans for the products & integrating the functions. • The product teams co-existed with functional teams & there was no need of having the knowledge of each other’s responsibilities.
• Functional teams were informed about the product happenings on a daily …show more content…

• Product teams didn’t know the limits of their authority - decisions related to sales price, allocation of resources & prioritization of activities
Business Teams Business teams included representatives from senior management & had the authority to make decisions including those related to resource allocation & products. • The conflict of authority & resource allocation was resolved.
• The burden of final decision making at the corporate management level reduced • A lot of people for planning & counting rather than for revenue-producing.
• Lot of managerial levels & the infrastructure, hiring & training costs increased considerably.
• Customer focus diminished & people became concerned regarding internal processes rather than company-wide financial goals.
Divisional Structure Appex’s product could be divided into one of these two businesses. A separate Operations division could service both the businesses with utility functions. • Accountability, budgeting & planning were improved across the businesses.
• Employees could relate themselves to the divisions & there was a sense of cooperation. They now focused on meeting the financial

Get Access