Appex Corporation Case Analysis Essay

1862 Words Mar 28th, 2011 8 Pages
APPEX CORPORATION

Background
Appex Corporation's business is supplying management information systems and intercarrier network services to various cellular phone companies. In 1986, Appex entered this fast-growing market as a very small organization. Between 1986 and 1990, revenues grew 1600%. Similar growth was also seen inside the company as the number of employees rose from 26 to 180 between 1988 and 1990. Due to the relative youth of both cellular phone technology and Appex, the company faced major difficulties in transitioning to the larger landscape. As it became clear that the current internal structure needed change, newly hired COO Shikhar Ghosh brought several ideas to the company in an effort to improve the
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Each contributed to the collapse of the fluid, informal structure that had worked when the company was small. Ghosh entered and tried to introduce a circular structure. The circular structure was intended to create free-flowing information between employees, but it created a multitude of other problems. Next, Ghosh tried to implement a horizontal structure, but results were mixed and unfavorable. Once again, he failed to get his employees to respond to a new structure. He admitted that his ideas of innovative, nontraditional structure was not effective, and he began to look at other options. In an effort to promote hierarchy, Appex began to use a functional structure overlaid with the use of product and business teams. After complications arose as a result, Ghosh implemented a divisional structure. This strategy presented advantages and opportunities, but, in the end, the problems and complications overwhelmed the company and a new structure needed to be instilled. As Ghosh prepared to implement yet another new structure, Appex was bought by Electronic Data Systems (EDS). While his responsibilites changed, Ghosh still had to choose a structure by which to strategize around. Appex now must work out a structure that will work within the boundaries of EDS. At this point, Ghosh had a few options to choose from: * Do not change the structure permanently. Ghosh could continue to change the organizational structure of Appex every six

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