Reference no: EM131532937

Kimpton sometimes buys individual hotels form other companies, renovates them, and reopens them under a new name. why would kimpton do this. rather than grow through a merger with a larger, more recognized hotel?

Kraft Foods

When Kraft foods announced it was splitting into two companies, the grapevine buzzed for months over who would wind up in which positions on the new organization charts. little by little, announcements filled in the blanks, with senior managers from the parent predecessor firm taking the top spots in each spinoff. About 1,600 jobs were cut as each side consolidated offices and streamlined its structure.

Kraft needed more than a year to plan the split, because of the complexity of separating the two companies' operations and getting each business ready to stand on its own. To ease the transition, the company created a high-level management group to resolve issues related to the structural changes. Even during the reorganization period, sales were up--especially outside the United States--giving the two spinoffs momentum as they left their former parent, Kraft Foods.

1. Would you expect the two spinoffs to be flatter or taller, compared with the structure of Kraft Foods before the split? why?
2. The structure of the two spinoffs is geared toward location, for responsiveness to local needs. How can each of the spinoffs use this structure as a global strength, not just as a local strength?