There have been periods in which a product has got into difficulty because of loss of favor with the public, bad management or even neglect. Attention of the Sales Vice President to the problems of...

There have been periods in which a product has got into difficulty because of loss of favor with the public, bad management or even neglect. Attention of the Sales Vice President to the problems of some products has caused him, at times, to fail to recognize difficulties in others even though the product manager of such products has recognized them and had brought them to his attention. The burden on the present officers is becoming too heavy to ensure proper attention to all their responsibilities. Employment of assistants apparently causes loss of the close touch of the top group that is necessary to ensure success.

Opportunities for increasing the line of products and expanding the business are being lost because of lack of time among the executives to study them or manage new products. In any business where specialities sold under trademark brands are the major business of a company, it is necessary for that company to continually bring out new products and to study old ones to determine, in their case, the point of no return with regard to promotion and advertising expenses.

Once the top executive group has approved the idea of a new product, it is put under the responsibility of one of the Vice-Presidents. He develops an organization and brings it along; at first, the advertising appropriate for the product, accounting, and public relations.

Top executive conclude that Modern Corporation has a problem of organization.

Questions

1. How have changed conditions in this company affected the appropriateness of its organization structure?


2. What changes do you recommend to be made in the company’s organization structure?