Problems faced by Allentown -
Problems due to Internal Factors -
Organization Structure –
In general terms, the organizational structure of the Electronic Products Division of Allentown follows the same structure of the other divisions. Under the General Manager there is a controller, a product development manager, a manufacturing manager (with three plants treated as three different profit centers), a sales manager and a marketing manager. The last two may be the major difference regarding the general structure of the company, since sales and marketing are usually combined in one single department. The breakdown in two departments has been made by the general manager, reasoning that the sales division should be concerned about short-term actions, while the marketing one should take care of pricing policies and strategic plan.
However, this vision generates an overlapping problem between the marketing department and the product development department. The marketing department, among other duties, is responsible for the identification of new opportunities and also to assure the development of new products. Unless these activities are extremely well coordinated with the product development department, there will be misalignment in the strategy of the EPD. Ultimately, this misalignment will affect a third department, i.e. the manufacturing department, since it is directly involved in the product development process.
The organizational design, especially the particularity mentioned above, is generating a considerable amount of tension. There is a constant exchange of accusations between the two departments; marketing is critical to the product development department’s responsiveness, its time-to-market and its priorities. The coun ...