Reference no: EM132339631

Homework Assignment 2

By now you should know how to access business articles using the UH-D library website. If not, go to the UH-D main page, click on "Library" at the bottom, click on "Databases," click on "B," and click on "Business Source Complete" at the bottom. Two input boxes appear into which you can enter various characteristics of the article (Title, authors, journal name, etc.). A search using these inputs should produce a link to the article below. If the article you seek is not available via the Business Source Complete database, a good alternative is the ABI Inform database, listed under "A.")

I. Read the following article.

Sull, D. & Eisenhardt, KM. 2012. Simple rules for a complex world. Harvard Business Review Sept. 2012.

II.The ALL (America Latina Logistica) example presented in the reading is perhaps more commonly known in business strategy parlance as an example of a "turnaround strategy." Turnarounds are usually initiated because an organization is performing poorly.

1. The article never mentions the financial performance of ALL prior to the turnaround. However, it does suggest that the ALL has several weaknesses which, if addressed, might improve performance. Make a list of the weaknesses ALL inherited.

2. Clearly there are changes in this case which might affect the performance of ALL yet fall outside the purview of its "planning system." For example, the use of a cross-functional team may be regarded as a change in organizational structure. Too, the pervasive use of simple rules might be regarded as an attempt to either change a bureaucratic culture or an attempt to further change the organization's structure.

However, we are concerned in Chapter Two with the planning system of the organization, especially how we can also change it to address the weaknesses inherent in ALL. Thus, we look to its functions.One of the functions of the planning system is to prioritize.

2. At the senior level, what simplifications in priorities (objectives) are chosen to address the following weaknesses of the firm?

-The tendency for managers to sub-optimize

-The confusion of managers

3.  On the one hand, while simplification certainly appears to be a goal in this case, nevertheless the rules set by senior management and the cross-functional team also appear to be quite broadly stated. What function(s) might this practice serve?