EXECUTIVE SUMMARY
Perdue Farms, Inc. (“PFI”), a large and successful family-owned company, has grown from 40 employees in 1950 to 20,000 employees. Its current organization structure does not support the rapidly changing environment. PFI needs an organizational structure that quickly responds to environmental changes that will affect the future direction of the company.
We have provided some analysis analysis that reviews the current organization design and its fit with the environment. This includes Organizational goals and strategy, Organizational structure, Information systems, Culture, Human Resources Management and Organizational effectiveness.
Based on the analysis, we recommend the hybrid structure that combines the functional design with divisional structure. With this design core functions are centralized that enable PFI to maintain its excellence in quality, improve efficiency and reduces production cost which at the end will improve PFI’s overall profitability.
PROBLEM IDENTIFICATION
Key Facts
• Arthur W. Perdue a former Railway Express Agent established PFI in 1920 when he left the Railway Express and entered the egg business full time. PFI began as a small egg farm company. After 80 years of operation the company has grown to a multi-billion dollar operation with the seven themes dominating and characterizing it’s history: quality, growth, geographic expansion, vertical integration, innovation, branding and service.
• PFI is a privately held family owned company. Over the years PFI has become vertically integrated in order to be more competitive and maintain financial stability.
• PFI has a mission to provide the highest quality poultry and poultry rela ...