Question: Case study 4 The Rander Corporation started as a small entity in 1949. in Agra handling leather and footwear. The business was very profitable and
Case study 4 The Rander Corporation started as a small entity in 1949. in Agra handling leather and footwear. The business was very profitable and it ventured into several other areas by 1970. In 1970, it entered into IT and IT enabled Service, went for an initial public offering and expanded into infrastructure and airlines. It was started with a simple structure by Mr Randhir Singh. His son who was a graduate from a reputed business school in US took charge in late 2005, but in the meanwhile, the corporate had expanded in every direction. Some consultants advised him to sell off the unrelated businels while others said that it can be managed by organising a propriately They strengthened their argument with examples of so many companies in the world, which had unrelated businesses Meanwhile, Rander Corporation moved its corporate headquarters to Gurgaon in the National Capital Region and organised it into IT. IT enabled service, infrastructure, airlines, leather, and exports. It engaged a CEO for each of these. But this did not solve its organisation problem. The organisation of IT and IT enabled service was quite different from others. The innovative and relatively free employees and managers of IT had spun off a social networking community, which started growing day by day with its own variations to include free e-mail service, semi-paid matrimonial and they also ventured into a job portal. It had a large number of projects and therefore the project teams would consist of people from marketing, finance, operations, and design departments. It had also entered into exporting anything and everything from leather, finished leather goods, cashew, tea, spices, diamonds, fish, fruits, etcto various countries and each of these countries had different laws and agents. The airline business was another ball game. The government control, fuel prices, and the level of leasing jobs required a large number of specialists and the CEO had to keep a close watch of all these. Any small incident could blow up into a major issue. The customers were also highly discerning and almost every government department had control over it. The infrastructure was a greater headache with bidding. problems of land acquisition and delayed payments by the government agencies and high level of investment. which required mobilising huge funds. After several rounds of discussion with the consultants, the company had the following doubts: Questions: 1. Should it break away from the convention and adapt different types of departmentation and different structures for each business? 2. Could it follow a strategic business unit concept? 3. Does it need matrix organisation in some pl
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