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CORPORATION

By: Group 12

APPEX

Chandani Arora
Kawalpreet Singh Nakul Khandelwal Navneet Sinha Shubham Singh

BACKGROUND

Appex Corporation was founded in May 1986 from the merger of Appex, Inc. and Lunayach Communications Consultants(LCC). The company had its headquarter in Waltham, MA. Provides management information systems and inter carrier network services to cellular telephone companies. Also LCC provides design and engineering of cellular radio networks. Since 1986, Appex has been at the forefront of the cellular communications revolution providing products and services to fuel its growth. During 1987-1990, Appex has enjoyed revenue growth of over 1600%. Rated as the fastest growing high-technology company in the United States in 1990 by Business Week.

PROBLEMS

FACED BY THE COMPANY

No development of an underlying planning structure Poor customer service(call you back attitude) Loosely structured Failures in product development Loosing money rapidly

CAUSES
No defined organizational structure. Expenses were not monitored. No financial planning was there. No prior planning of work. No proper intra communication of information. Employees lacked discipline.

DIFFERENT STRUCTURES ADOPTED BY APPEX


Innovative Structure Circular Horizontal Structure Hierarchical, Functional Structure Introduction of Product Teams Introduction of Business Teams Divisional Structure

CIRCULAR STRUCTURE
Features Non-hierarchical Concentric circles expanding out from executives to customers Positive Effects Free flow of information customer-based Negative Effects Employees were unfamiliar with the structure Developed the mentality that customer was the enemy Geared towards responsiveness and not towards planning

HORIZONTAL STRUCTURE
Features Non-hierarchical Separate sub units Positive Effects Increases control within a sub unit Negative Effects Employees did not respond enthusiastically

HIERARCHICAL, FUNCTIONAL STRUCTURE


Features Positive Effects Negative Effects Politics came into existence Polarization of teams (restricting other departments involvement) Sub-functions within a team Source of authority became functional and not managerial Personalities became more pronounced Functions are Growth of organized as teams organizational chart Sub functions within teams Focussed on completion of tasks System of Accountability

PRODUCT TEAMS
Features Positive Effects Negative Effects Conflict of authority between product teams and functional teams Resource allocation problems across teams Increase in time spent on meetings Product teams did not know about their authority. Separate teams for Functional teams each product were aware of all the product Product teams cohappenings on a existed with daily basis functional teams More focus on each product

BUSINESS TEAMS
Features Positive Effects Negative Effects Decrease in revenue-producing people Diminishing of customer focus Infrastructure costs escalated Less focus on company wide financial goals Teams acting as Authority lied in intermediaries the hands of between the business teams product teams and the corporate Problems related management team to resource Teams that allocations were operated on the solved same network and shared the same customer base reported to a business team

DIVISIONAL STRUCTURE
Features Positive Effects Negative Effects Bad sharing of resources Divisions did not want to share resources Little communication across divisions No sense of financial accountability as sub divisions began to alter their financial statements Functions are Improved grouped together accountability, according to budgeting and specific demands planning of products, markets or More focus on customers(ICS & meeting financial IS) targets Greater horizontal and functional Increased structure and more cooperation among complex divisions integrating mechanisms

SUGGESTED SOLUTION
Rotation policy: Provide opportunities for team members from different divisions to be interchanged to enhance communication across divisions. More focus must be given to cost and quality. A separate division for customer care should be created. There should be proper time management policies.

THANK

YOU