Appex Corporation

Case : “Appex Corporation” Summary Between the periods (1988-1991) under the leadership of Shikhar Ghosh as Chief Operating Officer, the Appex Corpration changed several structures to respond to its growth as the company is the fastest growing high technology company in the US. Revenue grew 1600% and was expected to continue to grow rapidly. Even each of these structural modifications has provided some improvement of operating performance for a short period of time. However, each kind of structures have generated another problem and inefficiencies to the company and also effect to the new product innovation, operating performance and the growth of the firm. Consequently, the organization tend to change in organization behaviors and focus more on individual not on whole company. Gosh always surprise by the immediacy of the impact of structural changes: “What is striking to me is how quickly behavioral changes occur in the reaction of structural changes” He asserted that although structural changes created some anxiety among employees, they were necessary: “As we hire new people and the business changes, we need to change the structure to match the people and the business changes.” In October 1990, EDS an Information System Management own by GM, acquired Appex. As a division of EDS, Appex had to follow EDS’s requirements, such as its financial planning system, resource allocation system and administrative procedures. Following the acquisition, Appex’s challenge was to work out its own divisional structure and structural changes in the context of its role as a division of larger, bureaucratic organization. Analyze the strengths and weakness of each structural form To response the growth of the company Gosh has restructured the organization for several times unfortunately, each restructuring has generated the problems rather than positives. We can see the summary of structural changes of the company during 3 years controlled by Gosh from the table below

Structure...