Table of ContentsExecutive summaryThe report seeks to explore the organizational design and strategy of the Airstar Inc. , a firm that is currently facing several problems. It demonstrates ways in which the company fails to be an effective organization, as it does not comply with the principles of a successful organization. The report also intends to examine the current failures of the corporation, which include conflicts among the corporate officers regarding business decisions like acquisitions and mergers. Another issue that the report seeks to point out regards the stiff competition that the company presently experiences, as well as its low performance, as compared to the past.
In the report, it is clear that the company has no written and clear responsibilities and duties for its superiors; hence, the regular conflicts among them. Moreover, the report indicates that the corporation has a misalignment between its business strategy and organizational design; hence, low performance. What is more, the report shows that the company lacks a proper evaluation and mapping framework of its main business models. Furthermore, the report also suggests some of the solutions to the aforementioned problems for the company to adopt in order to be effective.
IntroductionPurpose In order to thrive and survive in the contemporary competitive environment, a company should have an explicitly defined strategy, and link its processes and people to attain business goals. The overarching strategy is instrumental in the provision of a roadmap, while the organizational structure is a means through which the company achieves success. The best organization is the one that identifies and develops a suitable strategy, and designs the firm for maximum execution.
Therefore, this report aims at analyzing the situation at Airstar Inc. in terms of the concerns affecting the company’s organizational design, strategy, and structure. It also attempts to define The Company’s present strategy and form main rationales for the strategy’s failure. In addition, the report intends to recommend certain solutions to the current problems with justifications of the proposed change. BackgroundAirstar Inc. is a corporation that deals in manufacturing, repairing, and overhauling jet engines and pistons for smaller, usually formerly owned aircraft. For a long time, most managers were with the founder in a firm position.
Upon the founder’s death, a new president, Roy Morgan took over the leadership. Currently, the company experiences stiff competitions from other firms like Pratt & Whitney and General Electric. This situation also made the company’s performance and efficiency to reduce drastically. Consequently, managers need to develop another organizational strategy, as the old one is not successful. In fact, some of the considerations made by the managers include acquisitions, exports, import, extra repair lines, and research. Apart from competition, the company experiences a challenge relating to conflicts between controller and marketing vice president over acquisition and merger opportunities.
These managers are out to outdo each other in the corporate affairs. In an attempt to establish the cause of the issues in the organization, it was apparent that the company does not have well-defined job descriptions in written form for its employees. The management, thus, decided to introduce a new strategy organizational design that would help eliminate these problems, and propel the firm towards the achievement of its set business objectives.