Reference no: EM132997524

Case: Quatrostar - Further Developments

In view of its declining profitability and competitive performance, nine months ago Quatrostar formed a task force of senior directors to examine its position and remedy the situation. To aid its deliberations, the task force commissioned a consultancy study from the business school of a prestigious American university and one month ago the consultant's report was presented to the board of Quatrostar. Its main conclusions were:

• The electronics industry is one that is characterised by a rapid rate of technical development, which results in very short product life cycles.
• For this reason, the key to success in the industry is a focus on standardised products that can be sold worldwide, but with (mainly cosmetic) modifications to customise them to local market conditions.
• Quatrostar's major competitors all operate as globalised organisations, which gives them significant advantages in terms of costs, flexibility, rapid response to market conditions and the ability to assimilate new technology and incorporate it into products.
• Unless Quatrostar effects a radical shift in the way it is organised (i.e. to become a globalised organisation) it faces a bleak future.

On receiving this news, the managing director was dumbfounded and said, 'What on earth does this mean? We operate in 37 different countries around the world, and if that is not being a globalised organisation, I really don't know what is.'

Using the information above, together with that given in previous Case Study Quatrostar, answer the questions below, giving reasons for your answers.

Question 1

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If Quatrostar is not a globalised organisation, what sort of an organisation is it?

Question 2

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What steps would Quatrostar need to take to transform itself into a globalised organisation?

Question 3

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How difficult do you think it would be to make this transformation and, in particular, what structural changes would be needed?