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Discussion 7

In: Historical Events

Submitted By bjzob
Words 1333
Pages 6
ASSIGNMENT #1 2
Question #1 - Given the business situation for Spectrum Brand. Explain.
Spectrum Brands, the former Rayovac Corporation, went on a radical business transformation under David Jones’ management. According to Dictionary.com, to transform means to: “change in condition, nature, or character;; convert” (“Transform,” 2011, para. 2). The company that used to produce only batteries ventured into new businesses and currently operates in the market of pet products, personal grooming, and lawn and garden care (“The Buyout

Boom,” 2007).
The diversification of products certainly required a new organization structure, which should be based on a matrix structure, or a multidivisional structure; since line, and line-and-staff structures would not be appropriate anymore for the required dynamic of the new company. It has been discovered that “[a]s companies grow and diversify, traditional line structures become difficult to coordinate, making communication difficult and decision making slow” (Ferrel, Hirt & Ferrel, 2009, p 247). Remember, you never end a paragraph with a quote.
In a multidivisional structure, the company is organized in divisions, which are large groups that might be formed on the geography, product or customer basis; and within those divisions there may be departments also organized by customer, products, regions or a combination of those groups. This structure enables the decision process to be faster, since the managers are empowered to take decisions and they operate closer to the customer, product or region activity (Ferrel, et al., 2009). The negative side of this organizational structure is the duplication of work, which limits the opportunities to leverage economies of scale.
Question #2 - For each of your 2 organizational structures, give 3 examples of potential communication problems the structure might…...

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