EMG20/A1

Case Study

Tinaya, Patrick Carlo J.

March 1, 2017
Case #3

BYC PETROLEUM, INC.

The BYC Petroleum Products, a subsidiary of ABC Company, Inc., is a

successful refining company. Its six refineries manufacture three main business
products: fuels, petrochemicals, and lubricants. The products are sold to
Denmark Industries (another ABC Subsidiary), chemical manufacturers, industrial
plants, the auto industry, and a variety of other customers. The multi-billion
company has a work force of about 5400.

BYC Petroleum currently has a functional organization structure, with

the following major positions reporting directly to the president: chief
counsel; vice president for financial services; vice president for technology;
director for planning and administration (to whom a general manager for planning
and a general manager for human resources report), and vice president for
operations (to whom a general manager for marketing and a general manager for
manufacturing and supply distribution report).

Because of changing conditions in the markets for the company’s main

products, BYC Petroleum is thinking about changing its organization structure
to a product structure design. In the process, the president is considering
adding a senior vice president of resources and strategy to oversee the
company’s strategic planning.
1. What does the company’s current organization structure look? Draw the organization structure and describe the type of
departmentation.

President

Director for
Vice President for Vice President For Vice President for
Chief Counsel Planning and
Financial Services Operations Technology
Administration

General Manager
General Manager General Manager General Manager for Manufacturing
for Planning Human Resources for Marketing and Supply
Distribution
2. What would it look if the company adopts the departmentation by product? Draw the organization structure