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The Sunflower[INC] Problems SUNFLOWER Incorporated Contents 1 About The Sunflower[INC] 2 Problems 3 Q&A Questions
Answer Jacco :-)
The Business Executive Luke
Just new in the workplace Nikki
The student Maureen
The executive More than 5,000 employees
Gross sales of more than $550 million
Main business Process:
Distribution of salty snack foods and liquor to the retail stores Sunflower has 22 sales, finance, purchasing departures and central warehouse in US and Canada
Company distributes national and local brands and packages some items under private labels
Each region was profit center
Headoffice encourages each region to be autonomous because of local taste and practice Profits of each center varied widely
Some center was believed to selling low quality products
Most region facing tough price competition Peter Langley, vice President of SUNFLOWER hired Loretta Williams, as director of pricing and purchasing
Williams find two problems
Sunflower should make better use of IT
Pricing and Purchasing decision should be standardized across regions She wants
Each region to notify her of any local price change of more than 3%
All new contracts more than $5,000 should be cleared thorough her office Langley He Suggested William ought visit regions and discuss new policies
He Suggested waiting to implement until annual regional directors meeting Williams She said such trip would be expensive and time consuming
She believed the procedure were needed now, The message went out next day Result of her plan
During next few day, e-mail replies came in from only 7 region.
Eight weeks later, She had not received notice from any regions
She discovered that they didn’t know who she was, had never heard about her position 1. What is Problem with William’s approach? What type of control were used at SUNFLOWER by Williams? 2. What information media would you consider appropriate for communicating new procedures on pricing and purchasing to employees?
for announcing and providing authority to a new person occupying a new position? WHY? She tried to impose bureaucratic control, the idea is that the organization can glide smoothly between a highly formalized, hierarchical structure.
But SUNFLOWER incorporated had highly decentralized organization.
And they were under outcome control, which based on monitoring and rewarding results, and managers had paid little attention to how these results are obtained. Face to Face Communication
Williams tried to change whole managial process and affect the personal power and authority of local managers,
And also her position was not well understood so face-to-face discussion with rich information from her superior would provide greater insight and understanding on the part of regional managers.
And use of a formal written announcement would be appropriate for a more routine change INTRANET
for link people and departments within a particular building or across corporate offices, enabling them to share information and cooperate on projects
And enable employees to keep in touch with whats going on around the organization, quickly and easily share and find information they need and work on projects collaboratively.
And Management control system helps formal routines, reports and procedures that use information to maintain or alter patterns in organizational activities 3. What advice would you give Williams about the potential use of information technology for strategic advantage? About how to implement change? Thank you 2009006715 Jung Hyun, Kwon 2008010920 Dong Sik, Lee