Question: In 1993 M R reorganized from a centralized functional organization

In 1993, M& R reorganized from a centralized functional organization (Refineries, Transportation, Warehousing, Retail, and Marketing) into 17 geographic business units (sales and distribution) and 14 service companies. The functional organization was slow to react to changing market conditions and the special customer needs that differed across the country. The new decentralized organization was designed to better focus on the customer. New marketing strategies could be better tailored to local markets by giving local managers more decision- making authority.
A new corporate strategy to focus on the less price- sensitive customer who would not only buy Global gas but also shop in its convenience gas- store outlets was implemented simultaneously with the reorganization. Global’s new strategy was to redesign its convenience stores so they would be-come a “destination stop,” offering one- stop shopping for gas and snacks.

a. Critically evaluate M& R’s implementation of the balanced scorecard. Identify any strengths and weaknesses of the program.
b. Was the adoption of the balanced scorecard at M& R responsible for the turnaround in its financial performance?

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  • CreatedDecember 15, 2014
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