Essay on "Spectrum Brand CEO"
Essay 3 pages (1073 words) Sources: 2
[EXCERPT] . . . .
Spectrum case study: Matrix vs. multidivisional structuringMatrix structure
Spectrum Brands began as an organization focused on a single product: Rayovac batteries. This singular focus was suited to a more hierarchical, traditional form of governance. However, given the company's current diversification, a matrix structure might make it more responsive to current shifts in market demand. The demand for gardening tools is seasonal in nature, and matrix teams can be easily constructed and dissolved once the need for a seasonal product has peaked and waned. Additionally, synergy between different divisions can be created: a temporary matrix-style team could merge the product development and advertising teams of the gardening division, to create a 'composting' campaign for the summer, offering tools to enable people to compost their food waste to make fertilizer for their garden. This would take advantage of the new cultural interest in sustainability and merge marketing with technical innovation. A matrix structure could also support initiatives such as creating a team in charge of a comprehensive campaign in which all of Spectrum's different brands emphasized their 'greenness' -- from green, rechargeable batteries, to organic pet food, to growing one's own vegetables.
"In a matrix organization, each project manager reports directly to the vice president and the general manager. Since each project represents a potential profit centre, the power and authority used by the project manager come directly from the general manager. Information sharing is mandatory in such an organization, and several people may be required for the same piece of work. However, in
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Multidivisional structure
In contrast, in a multidivisional structure, there are clear responsibilities for each unit. "Each division deals[s]with a conceptually distinct business and [is] self-contained with its own functional hierarchy" (Hoskisson et al. 1993, p.1). A multidivisional structure takes advantage of specialization: for example, having the pet care department tailor its offerings to different types of pets, and even different types of pet owners. The multidivisional structure can also more effectively reflect different organizational personalities. Different pet care lines, gardening, and battery units would be separate, reflecting the unique needs of the industries, and also the different organizational personalities drawn to those industries. Employees drawn to work in pet care, for example, might be quite different than the more technologically-driven individuals drawn to working with batteries -- even if both units have needs for marketing and technological development, marketing or design for specific products can benefit from having a highly segmented approach, which is facilitated by a multidivisional structure.
Which structure would… READ MORE
Quoted Instructions for "Spectrum Brand CEO" Assignment:
“Born in Barberville, Kentucky, ***** Jones began as first-line Supervisor at General Electric, where he spent the first 13 years of his successful career before moving on and moving up. Jones has held chief executive positions with Electrolux, direct selling of vacuum cleaners, Regina Corporation, an appliances company, and Thermal Scan, a medical products company. This varied industry background and his enthusiasm for sports as a young man, helped shape Jones*****s management style. He emphasizes the importance of commitment, enthusiasm, and teamwork as important elements for success. Jones is convinced that pride in one*****s company, its employees, and its management team are keys to a successful operation.
Jones joined Rayovac in 1996. At that time, the company almost exclusively produced batteries. In his first year, Rayovac generated sales of $400 million. Since that time, Jones has changed the strategic direction of the company, introducing a diversified product line and competing in several different markets. Jones*****s strategy has ultimately led to a name change for the corporation. Today, the former Rayovac Corporation is known as Spectrum Brands Corporation. While still producing batteries, the company*****s products are diversified into the markets of pet products, personal grooming, and lawn and garden care. There is no doubt that Jones*****s team-***** style and diversification strategy have had a positive impact on Spectrum Brands. Today*****s gross sales are $2.8 billion.
Please answered the questions;
1. Give the business situation for Spectrum Brands explain how the firm might organize using a Matrix structure for the organization.
2. Explain how the firm could operate using a Multidivisional structure
3. Discuss which structure would be more effective? Explain
4. For each of your tow organizational structure, give three examples of potential communication problems the structure might cause. Recommend corrective actions the company can take to address these issues.
5. For each of your two organizational structures, recommend the degree of centralization that would be most effective. explain
How to Reference "Spectrum Brand CEO" Essay in a Bibliography
“Spectrum Brand CEO.” A1-TermPaper.com, 2010, https://www.a1-termpaper.com/topics/essay/spectrum-case-study-matrix/142343. Accessed 5 Oct 2024.
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