22 Jan 2019
Allianz is realizing it has very many, too many, different products in its property-casualty portfolio. Increasing the number of different products in an organization causes higher costs. This theoretical organization principle is to be seen currently in Allianz in reality.
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Janurary 5, 2019
MAN and Scania are two separate subsidiaries of the VW-corporation since quite some time. When acquiring VW thought truck business is resembling car business which would be advantageous for VW as well as for MAN and Scania. However before getting the full amount of profit VW saw it had to accomplish the task of coordinating the production processes of the two truck companies – starting with research and development and procurement. VW as the holding company believed monitoring and coordinating could be done in conceivable time.
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In 2019 Continental is planning to install three divisions.
1 – The Automotive Group, 2 – the Rubber Group, 3 – the Powertrain Division
(the present Powertrain division is to be turned over into a listed stock company with majority still at the holding corporation).
Continue reading “Continental AG Corporation”
April 2018: “Management may be overextended by too many products in one organization”. That’s theory. The supervisory board of Volkswagen found that’s the case and decided to change the all over organization. Three divisions – or product lines – were established in car business: Continue reading “Volkswagen Change of Organization Structure”
2013: ThyssenKrupp had introduced the matrix management system. Product line- and country-management are to decide jointly on all important customer and selling issues. Former CEO Heinrich Hiesinger expected to improve the decisions especially in overseas markets. But in matrix system Continue reading “Thyssen-Krupp Corporate Organization”
2014: The recent history of changing the Siemens corporate structure clearly demonstrates the general problem large companies face:
– Production: how few production divisions are necessary for efficiently manufacturing large amounts of different products – how many units are necessary for a sustainable customer orientation and relationships?
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General Electric – The New Structure
2015: GE until 2014 was defying any theoretical tenets of organizational structures. It was a conglomerate corporation with a wide range of businesses. Its divisions included on one side industrial fields as e.g. aviation, power and water, transportation and on the other side services, e.g. financial services, lending and leasing, media, entertainment and others – indeed very divers business fields.
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Matrix Organization in Practice
Procter & Gamble introduced the matrix-system in 2006. The company believed by this system 300 brands, 160 countries markets and production sites in 80 countries will be managed in optimal manner – the longer decision processes Procter & Gamble is taking into account.
Continue reading “Matrix Organization Cases”