This 12 page paper answers questions regarding a fictitious company Pro Tech and problems it is facing. The writer answers questions regarding how to restructure, including a chart, the adoption of activity based costing (ABC) accounting, resolving a threatened strike and the use of net present value (NPV). The bibliography cites 13 sources.
Name of Research Paper File: TS14_TEproteh.rtf
Unformatted Sample Text from the Research Paper:
issues. The organisation is run in terms of a dictatorship, where individuals may contribute, but the final word is always with Mr Chang who is the chief executive. There are
three main structures a company may use, simple, functional and multidivisional which includes network structures (Structure Types, 2002, Thompson, 1998). For Pro
Tech there on paper appears to be a functional structure where there is a chief executive officer and then management functions come below this. However, the structure is also reminiscent
of that of the manager owner as all the decision are focused bon a single individual. This is the structure that the business began with and as such hit has
continued as the company has grown. The increase in size and complexity of the company with two factories and numerous staff may be seen as one that is difficult to
manage in this style. It is not unusual for a company that grows form small beginnings to outgrow the original structure type making reorganisation essential for control to be maintained
(Huczyniski and Buchanan, 1996). In looking at how the company should restructure there is a need to consider the way the companies is
going to compete. For example, the structure of a company seeking to develop a cost advantage compared to one seeking to develop an advantage of differentiation will be different. Both
of these may still be undertaken with in a functional structure framework (Mintzberg et al, 1998). Other alternatives exist, there is the
multi divisional structure, however, the company is not very large and this may be over bureaucratic. More advanced structures such as a network structure may be possible as the company