De La Salle University, Manila

Ramon V. Del Rosario College of Business

Term 2, AY 2014-2015

Report on Malard Manufacturing

Case Study 6

In partial fulfillment for

Management Principles and Dynamics
BUS500M

Submitted by:
Group I
Animoza, Wabel
Fernandez, Androlito
Medina, Clarice
Sandejas, Benedict
Yu, Edilyn Ruth

November 8, 2014

I.

Synopsis

Malard Manufacturing Company, a producer of electronic control valves, is having problems meeting
the deadline for the launch of its latest product, the CV305. The companys Executive Vice-President, Ms.
Crandell, received a memo stating that the CV305 must be launched in the market within 30 days to
compete with the products of their competitors. However, due to the companys corporate culture wherein
they are only focused on their respective roles and lack of unity exist among departments, this might
produce some setbacks in the development process of the product. Thus, Departments heads believe that
the future work for this product should be done simultaneously with the help of other departments.
II.

Statement of the Problem

What measures should Ms. Crandell undertake in order to ensure that the CV305 product will be
launched in the market in 30 days?
III.

Point of View

In this paper, we will be taking the point of view of Ms. Crandell, the Executive Vice President of
Malard Manufacturing.
IV.

Objectives

1.
2.

To launch the CV305 successfully within 30 days.

To come up with an effective strategy/ structure for all the departments concerned in the
development and production of the CV305 within the next 30 days.
To implement these structural changes that will promote efficiency and cohesiveness among
each department and in Malard Manufacturing as a whole, which can be applied in future rollouts.

3.

V.

Areas of Consideration

1.

Product Rollout Process and Timeline

Currently, the Product Rollout Process in Malard Manufacturing takes 1-2 years for the introduction of
a new product. This process has worked effectively in making Malard a price-competitive Control Valve
manufacturer; however, the new CV305 must be rolled out in 30 days for Malard to keep itself competitive
in the market.
Strengths

The existing rollout process is able to

keep the company competitive in its
market
Employees are familiar with the current
process and can follow it easily

Weaknesses

Existing rollout process is the root of

internal cross-departmental conflicts
and disagreements
Streamlining: Marketing Department is
unable to give inputs to Research &
Development Department, whereas

Production Department is unable to get

their inputs across and Engineering
Department wants to slow down the
process to ensure product effectivity
Opportunities

2.

Rollout
Process
may
be
done
simultaneously rather than sequentially, as
suggested by the Departmental Heads.
A structural change in the rollout process
may help Malard to be the first among its
competitors in introducing products to the
market.
A faster rollout process needs to create a
demand that will match the produced
supply. Malard may create a need for
faster Control Valve turnover among its
users, or create new markets for Control
Valve consumers.

Threats

The new product, CV305, may be

unsuccessful if not rolled out in the
market within 30 days. Loyal customers
have
now
placed
orders
with
competitors.

Departmental Roles and Organizaional Structure

The key departments involved in Malards Product Rollout Process are: Research and
Development, Engineering, Materials, Production and Marketing Departments. The electronic software for
control valves are currently outsourced.
Strengths

Each department is well-equipped with

necessary manpower to deliver their part of
the process.
Departments
and
their
roles
are
established.

Opportunities

Proper coaching of newly hired managers

will make good leaders out of the company
in due time. New hires may be easier to
teach (old employees may tend to be
complacent) and currently stand on neutral

Weaknesses

Internal conflicts exist as departmental

heads feel frustrated in their roles and
have been uncommunicative towards
each department.
A number of departmental managers are
new and inexperienced. It will take time
& hard work to get them seasoned.

Threats

If unresolved immediately, the internal

conflicts may blow up and lead to further
disruptions, prolonging the rollout
process and potentially producing
products that are not apt for the

ground.
3.

consumer.

Approval Process

All departmental heads consult with Ms Crandell, the Executive Vice President (EVP) of Malard
Manufacturing, for each decision. However, for the project CV305, Crandell is unable to keep track of
each detail due to the projects large coverage. She must now launch the product within 30 days.
Strengths

Weaknesses

There is a point-person who is in-charge with all

the details and decisions in the Product Rollout
Process.

Opportunities

Threats

Distribute decision-making process evenly by

streamlining procedures and information to the
departmental heads in the company.

The company crumbles in the absence of

its EVP who is the only backbone of the
product rollout process.

VI.

The setup is only effective when the

organization is small. With the CV305s
large coverage, Crandell is unable to keep
track of all details.
No secondary point-person nor a group of
leaders who may oversee the whole
process in case Crandell is not available,
exists.

Discussion of Framework

In every organization it is vital to have a structure so that it can be well managed. Having this
structure provides ease in decision-making process, dictates who reports to whom and who makes the
final decision. This also helps the organization in checking the process, in the case of Malard, their
product development process.
In the case of Malard, the organization is using a vertical structure since it is a big company with 1,400
employees as stated in the case. According to Allbusiness.com, Vertically structured or tall companies
have a chain of management, usually with a CEO at the top making decisions and then delegating
authority to lower level managers. In the case of Malard, they have the Executive Vice President (EVP),
Ms. Crandell who is part of the top decision makers and Department Managers of different divisions to
supervise the product development of the company.
On the other hand, horizontal structure also called flat, companies have almost no middle managers-meaning that high-level managers handle day-to-day tasks and usually interact with customers and frontline employees personally. In this case, Malard is also utilizing this structure since Ms. Crandell is very
tight with the control over the organization and handles the interaction with the Department Managers.

Companies with a tall organizational structure are better at designating tasks to employees or
departments within the company, have well-defined responsibilities for employees, and are generally
easier to manage, according to Practical Management. In addition, they are dependent on a strong leader
at the top. Weak upper management means that each successive hierarchical structure will get frustrated
by poor decision making by the superior.
In this case, we used the M-form, U-form and Matrix form to identify which structure best suits Malard to
develop a more viable development process and structure to prevent losing customer leading to profit
loss. It is evident that Malard is already using the U-form or the Unitary form. According to Qin Xiao
(2004), the U-form structure was widely used before the emergence of the large modern enterprises
(p.34). The earliest vertically integrated large enterprise usually adopted the U-form structure, an
organizational structure in which general managers directly manage the operation of the company through
various functional departments. M-form on the other hand or multidimensional form divide the company
into several business units and allow them to operate autonomously. In the case of Malard, they have
several departments (i.e. Research and Development, Materials etc.). The innovation of the M-form
structure lies in the establishment of better coordination by the company. In the case of Matrix Form which
is the one that best suits the company of Malard, attempts to use the advantages of both u-form and mform design by having each organizational unit answerable to different organizational leaders for different
aspects of the work performed by the unit. The use of Matrix Form in a sequential manner will allow the
company to have standard procedures while getting inputs from different department managers and
having a final decision from the top decision maker.
Contingency Theory which deals primarily with conflict was also used in this case. In previous cases, we
know that conflict in an organization should be taken out of the scenario and avoided at all costs. Conflict
is unavoidable, but according to Contingency Theory it is manageable. In the case of Malard, the
interdepartmental conflict and disagreement among departments can be handled if the organization will
evolve to meet their own strategic needs in rational, sequential and linear ways. The managers must be
able to make decisions contingent on current circumstances to help the organization.

VII.

Alternative Courses of Action

ACA 1: To re-adapt Vertical Stucture of Organization (Unitary). Continue with the Sequential flow
of production and shorten production timeline.
Malard, under the supervision of Ms. Crandell shall continue to delegate her authority to department
heads. Cut off unnecessary steps to focus on product testing to ensure desired outcome of CV305.
PROS

Chain of command is not broken and decisions

coming from the management are
communicated and carried out with precision.
Cutting off unnecessary procedures in the

CONS

Since departments are independent from each

other, they will lack coordination and may not
execute proper delivery of departmental functions.
Specific details in the design, development and

design, development and production of CV305

shortens the process and gives more time for
testing the product.
Speedy deliberations and prompt action in
case problems may arise from the course of
each departmental tasks.

production may be overlooked because of fastpaced process.

Department managers still depend on Ms.
Crandells supervision and miscoordination among
departments still pose a problem irregardless of
shortened timeline.

ACA 2: To adapt to the Multidimensional Horizontal Structure of Organization and carry out tasks
simultaneously (for the current project) and then re-adapt the Vertical Structure of Organization
later on
This structure shall focus on specific functions of departments and will speed up the process of production
for the current project. Once they are able, the current Vertical Structure of Organization can be reviewed.
PROS

Concentration on R&D, design and

engineering and production by respective
departments gives focus and polish on their
specified functions.
Conflict in a single departmental function will
not involve other departments and assigned
managers can immediately take action and
decide on how to stay attuned with the
projects goals and rollout process.
Ms. Crandell can leave the department heads
to manage each step of the rollout process
and come up with the best strategies they
could decide on to produce CV305.
(For the shift to the Vertical Structure later on,
same pros as for ACA1)

CONS

Each department may be too focused on their

specific functions that they fail to coordinate
properly necessary informations and plans with
other departments regarding specifications, design,
and prototype engineering.
Decision making requires involvement of each
department and having several incoherent
decisions will cause delay and need ample time for
deliberation.
Discrepancy on departmental subcultures may
arise and can add frustration and delay.
(For the shift to the Vertical Structure later on,
same cons as for ACA1)

ACA 3: Adapt Matrix structure of Organization and deliver departmental tasks sequentially.
The company will adapt a dual-chain type of command. Coordination and collaboration among units can
make the project successful.
PROS

Decision making with regard to design,

engineeing and production of CV305 is
dynamically deliberated and scrutinized. Ms.

CONS

Since the Matrix structure entails having different

departments collaborating, dual-chain of
command may result to conflict and

Crandells heavy responsibility will be eased.

Steps are cross-checked by different
departments involved in the process. This
means each department is accountable to
the work of other departments.
Sequential process will entail careful and
detailed manufacturing of the product.
Collaboration among departments will speed
up the process of making a functional product
ready for the market in 30 days.
Ms. Crandell can easily make final decisions
based on each department managers
recommendation.

VIII.

disagreement that could delay the process

instead of expediting it.
Managers might spend a great deal of time
holding meetings, taking time away from core
work activities.
Disagreement may arise from insubordination
because of the dual-chain of command in this
kind of structure. Having two bosses could
create confusion on the part of the employees.
Approval of a certain decisions made by each
department has to be reevaluated by the
succeeding department and so on.

Recommendation

ACA1

ACA2

ACA3

Obj.1 - Launch the product in 30 days (40%)

30

40

20

Obj.2 - Develop a strategy/structure for development (30%)

30

30

30

Obj.3 - Implement structural changes (30%)

20

20

20

80

90

70

TOTAL

We recommend ACA 2. This ACA is the best scenario that will allow the company to meet the
target deadline of 30 days, without sacrificing quality. No time is wasted. After this development
cycle, they will have time to review their processes to prevent this type of problem from
happening again. For ACA 1, there is a big risk that the product wont be launched in time. Time
will also be wasted in re-adapting their development processes.

7S Framework:
Strategy: the plan devised to maintain and build competitive advantage over the
competition.
Before
Their current strategy involves updating
their products when new developments
in technology occur. Their development
process starts when the technology is
already there.
Development is sequential, leading to
delays when one of the process has to
be repeated.
Regarding marketing, it is unsure of what
was done in the past.
It is unsure how customizations in
customer orders were treated.

After
Engineers should attend seminars early to
update themselves on trends in development
so that if/when the technology is already
available, they are prepared to incorporate it
Moving to a simultaneous development
process promotes forward movement
Products should be marketed early on.
Regular customers should be informed about
the CV305 and future products early (the
product doesnt even need to actually exist).
Preorder discounts be given to beat out
competitors.
Customizations can be considered early on
instead of it being a post-production activity.

Structure: the way the organization is structured and who reports to whom.
Before
The current Organizational structure was
focused
on
several
department
managers/heads
reporting
to
the

After
Given
the
importance
of
product
development, a Production Development
Manager should be appointed to oversee

Executive Vice President, who likes to

keep a tight control over the organization.
It is too centralized and delays in the
approving processes will occur.

the entire cycle. The EVP is too high up and

won't be able to focus on product
development.
Approving processes should be analyzed
and sped up.

Systems: the daily activities and procedures that staff members engage in to get the job
done.
Before
It was not indicated what systems exist in
the company. There was also no mention
of any monitoring/evaluating procedures,
as well as any internal rules or processes.

After
Investing in Time Management Systems as
well as Production Management Systems
can help the company identify bottlenecks
as well as areas where processes can be
shortened due to slack

Shared Values: called "superordinate goals" when the model was first developed, these are
the core values of the company that are evidenced in the corporate culture and the general
work ethic.
Before
It is unsure what the core values of Malard
are. There is also no mention of the
fundamental values the company was built
on, and if these values are still being
practiced.

After
A review of their Mission and Vision should
be done.
Promoting a culture where products of
high quality should be encouraged.
For marketing, a culture where after sales
support matches the industry standard
should be supported. This will help them
later on during the next production cycle.

Style: the style of leadership adopted

Before
It is not clear about how the EVP, Ms.
Crandell, manages the company. Although it
was mentioned that she wants to keep a
tight control over the organization, it wasn't

After
The EVP should designate a product
development manager to directly oversee
the product development. This will also
allow the EVP to focus on other areas

mentioned how this is done. However, it

seems she no longer had any time to
monitor the CV305 development.
Employees don't seem to be cooperating
with one another across departments.
The
teams
functioning
within
the
organization are more divisional and team
members don't seem to interact outside their
department.

outside production development which, if

addressed, can possibly lead to beneficial
effects on product development.
A culture where cooperation between
departments at the rank and file level can
benefit the company since it can eliminate
red tape for simple matters.
Nominal teams should be designated
which promote brainstorming which can
be beneficial for the company.

Staff: the employees and their general capabilities.

Before
It was unclear as to which departments
have new managers who are inexperienced
in product development. Given the limited
time that the company has, something has
to be done.

Skills:

After

Given the limited time that we have, a

short term solution involve filling the gap in
knowledge by relying on department
officers/supervisors
to
give
more
assistance to their new managers who are
novices when it comes to new product
development.
The long term solution would involve them
reviewing their past products and the
accompanying documents related to their
development.

the actual skills and competencies of the employees working for the company.
Before

After

It is implied that Malard is a company that Since there are new managers, training on
can cope with changes in technology and
new product development skills must be
can implement these changes into their
done before the next round of product
products. There is no indication that there
development is done.
are any gaps in their skills.

IX.

Learning

Manufacturing companies like Malard has to be fast and equipped with effective structure.
It is vital for them to be prompt in decision making and to be able to determine people responsible
for different areas especially when it comes to the production and development of a specific
product. Redesigning and finding the most suitable structure in different work and company
setting will help increase ones profit, hasten the task and identify problems that have not been
addressed. Proper coordination among departments is also necessary to keep track of every
activity of the company. Also, conflict among employees should be avoided as much as possibles
and dealt with in a professional manner.
Cliche as i may sound, but the only thing that is constant is change. A company could adopt a
vertical structure and then next thing you know they are using that horizontal structure. As the
world is being globalised, customers will demand faster and better service which horizontal
structure gives best. But to be a company with a good structure, you have to have the best of
both worlds.
X.

1.
2.
3.

4.

References

Dyck, B., & Neubert, M. (2012). Management: Current Practices and New Directions.
Cengage Learning.
Silbiger, Steven Alan. (2012). The Ten Day MBA: A Step-by-step Guide to Mastering the
Skills Taught in Americas Top Business Schools. Harper: New York, New York.
The Vertical Structure Vs.The Horizontal Structure in Organization retrieved from;
http://smallbusiness.chron.com/vertical-structure-vs-horizontal-structure-organization4904.html
The Theory of the Firm and Chinese Enterprise Reform: The Case of China retrieved from;
http://books.google.com.ph/books?id=ryQOXMg358C&pg=PA32&lpg=PA32&dq=U+form+theory&source=bl&ots=j5LM6cJt_E&sig
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d=0CD8Q6AEwBQ#v=onepage&q=U%20form%20theory&f=false