Strategic Design at Dynacorp

Individual and Team Case Analysis

Case: Strategic Design at DynaCorp

Situation analysis * DynaCorp is a global information systems and communication company based in the US, with sites across the US and in Europe, known to be an industry leader. * DynaCorp was known for innovation and experience rapid growth in the 1980s, but noticed declining growth rates and periods of reduced earnings in the 1990s. * DynaCorp currently has a functional organizational design across three main divisions: engineering, manufacturing and marketing. |

Principle issue (3 points):DynaCorp is faced with three challenges: high costs, being too slow to get products to market, and the need to increase value created for customers. The decision to be made is whether or not organizational design change is needed, and if so, what is the best way to reorganize. |

Subsidiary issues (what other issues impact our principle issue? Consider relevant course information, 5 points): * The marketing team needs more technical support, integration of products for customers, and more polished marketing pitches. * Each department blames the others for the problems DynaCorp faces. * Engineering and manufacturing do not communicate well or quickly enough to get products to market. * DynaCorp’s current model does not allow for flexible product/service offerings for customers. * Current product managers do not get the full cooperation of the functional divisions, and do not have much power to direct decision-making. * The company is hierarchical, so new proposals are getting little or no feedback. |

Alternative courses of action & analysis (Identify several ways the decision could be addressed, and discuss the pros and cons of each, 6 points): * Product Division Structure * Pros: More strategic insight into product lines and costs, better customer support, and faster delivery to market. * Cons: Duplication of activities/resources, hinders cooperation across...