Delux Tool

Delux Tool Company Case Study

Delux Machine Tools, Safe Buy Insurance Co., and MicroAge Software are all separate companies but under the management of I.M. Tycoon. The assumption is that in order for the three companies to properly function under this one corporate umbrella, they must be restructured in such a way to allow for efficient and effective operation. An organizational structure will determine how the various roles, with their powers and responsibilities, are delegated, controlled, and coordinated, as well as how information flows between the levels in the structure. I.M. Tycoon’s primary goal is to ensure the companies of his siblings stay financially stable for at least the next three years, so he can pay out the monthly profit to the families of Harold and Jane.

This case is long but simple, I believe I.M. Tycoon should leave the companies to operate as they have been before, but place each company under a larger bureaucratic structure, with finance becoming a separate functional department. In doing so, I.M. Tycoon would be able to set performance standards, measure them, and then take action to correct the problems. Not to mention their employees are accustomed to doing things a certain way and are happy.

Delux Machine Tools has a bureaucratic structure as it uses a more centralized approach; Delux Machine Tools can also be seen as having a functional structure; with production, finance, research & development, and sales all having their own tasks, finally they should work together to achieve a single result, which would be to get the best and highest quality of RoboTool out in the market.

Safe Buy Insurance is more decentralized, using a market control structure; each agency in the group decides on how they are best to approach their market based on a variety of market indicators. They are spreaded out across different areas, which undoubtedly have requirements and needs that differ from each other.

MicroAge Software is using a...