Applying Burke-Litwin Causal Model to Decker Outdoor Corporation
1315 Words5 Pages
The Burke-Litwin Causal Model is built around twelve variables, and these variables describe feedback loops. Understanding the links between the variables and the feedback loops that they create can help managers to understand how the organization works, allowing for better strategic decision-making (Falletta, 2008). Deckers Outdoor Corporation describes its business as being "a premier lifestyle marketer that builds niche brands into global market leaders by designing and marketing innovative, functional and fashion footwear" (Deckers 2011 Annual Report). The company's brands include Teva, Sanuk, UGG and others. This paper will analyze Deckers in light of the Burke-Litwin Causal Model to describe the company. Particular emphasis will be placed on the throughput variables.
The organizational structure of Deckers is built around product units primarily. The main products for the company are UGGs and Teva, and these are the two main product units. All of the other units are lumped into an "other " category. As three-quarters of the company's business derives from the domestic market, there is not much in the way of geographic breakdown. Different foreign markets are not given distinct reporting, and they are clearly subordinated to the product units in the company's organizational structure. With the company dominated by a couple of different product lines and one main market, the product-based organizational structure is logical. This promotes each