Essay on Kongstrup case

1128 Words Oct 31st, 2014 5 Pages
Kongstrup Machine Factory Case

Ramon Merbis 1665825
Krijn Roodenburg 1656002
MPEN-IB04

Content
Page 3 The challenges facing Kongstrup after the collapse of the alliance with MB
Page 4 Advantages and disadvantages of an open approach to decision-making
Page 4 Environmental uncertainty for Kongstrup
Page 5 New organizational structure Kongstrup

Question 1: The challenges facing Kongstrup after the collapse of the alliance with MB

Kongstrup Machine Factory was established in 1894. The company’s activities are the development, production and sales of agricultural machinery. In 1986 they merger with a company calls Multos Biancos . Multos Biancos went to China at the end of 2008 and had
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Kongstrup went for an increasingly comprehensive product range. They could not handle this product with their structure. A better option is to focus the company at one product or they should change their organizational structure to a divisional structure. One of the strengths of a divisional structure that it is suited to fast change in unstable environment, where the company now is after the cancellation of the cooperation agreement.
The fact that the company did not have much experience in handling crises was a serious problem for Kongstrup. This is not really their fault. The management of Kongstrup could have learn something about a termination of a merger. They were better prepared and the ruin after the cancellation was very less.
¹ (R. L.Daft, J. Murphy, H. Willmott, Organization theory and design, 2nd edition)
² (R. Duncan, Organizational dynamics (1979), W. Alan Randolf, Gregory G.Dess , Academy of Management Review (1984)

Question 2: Advantages and disadvantages of an open approach to decision-making

An open approach to decision-making
Advantages
Disadvantages
An advantage of an open approach to decision-making is that nobody has all the power to make a decision. Everyone can give their opinion. There is more knowledge available
Less efficient. Decision-making takes a long time, the management must know of every employee what their opinion is. You need to negotiate with your employee by almost every decision

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