Fancy & Secure is a reputable packaging company and is planning to diversify. Company was formed in
Question:
Fancy & Secure is a reputable packaging company and is planning to diversify. Company was formed in 1980 with strength of 50 including managers and staff. Initial revenues were Rs.1.5million to 2million annually and provided packaging services of cardboard cartons to a few large manufacturing firms in diary, confectionary and food products. In the 1990s and most of the 2000s the company moved into plastic and sachet packaging technologies increasing company revenues to Rs.50 to 80 million (5 to 8 crores). Management structure has moved from functional to product / divisional structure with respective business heads for each packaging unit responsible for profit / loss. Staff strength has increased to 1000 employees.
Keeping in view the changes in the firm’s situation, management’s intent to diversify, tremendous revenue growth and employee strength increase. You have been called in as an External OTD consultant to advise and facilitate. Provide your assessment of the situation in the context of the OTD concepts for the following queries:
Q1. Elaborate the firm’s situation in light of OTD concepts of differentiation and integration whether they can be beneficial or not?
Q2. Keeping in mind the different strategy framework(s) as delivered by John Chandler, Danny Miller, Michael Porter and Miles & Snow Strategy Typology. Identify the strategy followed by the firm and how it impacts organization structure in the firm.
Managerial Accounting A Focus on Ethical Decision Making
ISBN: 978-0324663853
5th edition
Authors: Steve Jackson, Roby Sawyers, Greg Jenkins