Reference no: EM133092830

Case Study 1

Jomba Kaka is the managing director of Vita Technology, a medium-sized high tech company operating in several geographic markets in Africa. The company provides software and instrumentation, mainly for military projects but it also does have civilian interests. It currently has four key projects: (1) a new artillery command, communication and control system, (2) a programme for updating of fighter aircraft avionics, (3) an air traffic control system for a regional airport and (4) radar installations for harbour authorities in the East Africa. All these projects were expected to have a life expectancy of at least five years before completion. However, Jomba Kaka is worried because they are all increasingly falling behind schedule and the contracts have late delivery penalties. Kaka is convinced that a significant cause of the problem is the way that the company is organised. It has been shown that a competitive advantage can be obtained by the way a firm organises and performs its activities. Vita technology is currently structured on a functional basis, which does not seem to work well with complex technologies when operating in dynamic markets. The functional structure appears to result in a lack of integration of key activities, reduced loyalties and an absence of team work. Hudson has contemplated moving towards a divisionalised structure, either by product or by market so as to provide some element of focus, but his experience has suggested that such a structure might create internal rivalries and competition which could adversely affect the performance of the company. Furthermore there is a risk that such a structure may lead to an over-emphasis on either the technology or the market conditions. He is seeking a structure that will encourage both integration and efficiency. 

Any tendency towards decentralization, while encouraging initiative and generating motivation may result in a failure to pursue a cohesive strategy, whereas a move towards centralization could reduce flexibility and responsiveness. The company is already relatively lean and so any move towards delayering; resulting in a flatter organization is likely to be resisted. Furthermore the nature of the market - the need for high technical specifications and confidentiality - is likely to preclude outsourcing as a means of achieving both efficiency and rapidity of response. 

Required 

(a) Provide an alternative organizational structure for Vita Technology,

(b) Discussing both the benefits and problems which such a structure might bring.

(c) Explain how Jomba Kaka should manage the potential slippage and risk associated with his company's projects.