Delux Tool Company

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Category: Business and Industry

Date Submitted: 07/19/2011 08:59 PM

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In my analysis about the case, there are several issues that I discovered in this case, from the lack of bureaucratic control: setting performance standards, measuring performance, comparing performance against the standards and determining deviations, and taking action to correct problems and reinforce successes (Bateman & Snell, 2008). Another issue was the many different organizational structures, operating techniques and strategies, and different levels of success.

In my analysis specifically while observing Deluxe, it is considered by definition a more centralized approach. Decision-making is made at top management, which no regards to other inputs and then passed to low levels for implementation (Bateman & Snell, 2008). Further analysis study showed that Deluxe is a structural differentiation, means that it is composed of many different units that work on different kinds of tasks, using different skills and work methods (Bateman & Snell, 2008). Deluxe has a simple functional structure containing Production, Finance, Research & Development, and Sales. In addition, Deluxe has a specialized line of product, RoboTool. They hired an engineer, to help oversee that RoboTool is successful. This is considered and applied as an organizational integration-the way all parts of the organization will work together (Bateman & Snell, 2008).

In my analysis specifically while observing Safe Buy the word that jumps out is decentralized. The low level management made the decisions for their perspective agencies (Bateman & Snell, 2008). However, this approach worked as the many agencies are spread out in different areas, so it is a good business strategy. On the other hand, market control is an area to consider, as the agencies were not producing as much profit as a few years ago. And because the lack of standardization amongst the agencies it is a challenge being that Harold wanted the agencies to remain as they are as they must adapt to local markets.

In my...