Essay on business administration

Satisfactory Essays
Business Administration
MPEN-BA-13 2013-2014

Class : IB01

Teacher : Menno de Lind van Wijngaarden

Case Study : 2, Kongstrup Machine Factory

Date : 09-24-2013


1: Michiel Witting

2: Frederic Küpers

3: Cas Schoonderwoerd

1. List the challenges facing Kongstrup after the collapse of the alliance with MB. How could they have prepared better for the break-up?
All distribution and sales activities were in complete ruins after the cancellation.
They should be involved whit the distribution and sales activities while they had a contract with MB and not let MB do all the work. Then it wasn't all ruined because they know what to do with the distribution and sales activities. The functional
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And they had to make one clear organizational structure and not a few different structures.
2.It is unusual in many organizations for top management to allow employees significant input into their strategy, as Kongstrup did. What are the advantages and disadvantages of an open approach to decision-making?
Advantages: There is a more than one opinion about whether a decision would be successful or not. If an organization gets stuck like the Kongstrup Machine’s management did, the only way to go is the path to continuous development of the organization and then you are lucky to have employees that dare to look at the company in new, innovative ways. The best way to let employees share their opinion about the company would be a DSS, a decision support system.
As far as advantages go I would say, that an open approach to decision making could result in higher productivity and less conflicts between departments. Disadvantages: When all employees are involved by the decision-making then there are many different thoughts about it. The people can get in trouble with each other as you see at Kongstrup’s the people don’t like Palme because he always has other opinions. Also it will take a lot of time before they made a decision. There has to be a meeting with all employees and that takes a lot of time and it’s pretty difficult.
So I think it's better to use an open approach in this case, because the employees can come up with new ideas to help
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