Commercial Metals Company ” Steels the Show”

MGT451 Team Leadership

importance of organizational design,

organizational design examples,

organizational design models,

organizational design principles,

organization design process,

organizational design and structure,

Week 8 -8/12/2018

Commercial Metals Company “Steels” the Show

1. What type of organization design does CMC appear to use? On what do you base your answer?
2. How might CMC be redesigned to make it even more efficient than it is already? How would this fit what you would regard to be its strategy?
3. How might CMC benefit from entering into some form of strategic alliance with other companies? What particular form of strategic alliance should be used and why

Commercial Metals Company “Steels the Show

1. The type of organization design utilized by the Commercial Metal Company is Multidivisional Origination structure. Under this design, independent franchises exist that are grouped based on the roles executed. Based on the case study, it is evident that the company is organized into five major segments namely Domestic Mills, CMC Zawiercie, Polish Domestic Fabrication, Recycling, Marketing, and Distribution. The departments are subdivided into small units that address different customer’s needs. The five divisions’ complement each other by ensuring steel wastage is minimized. Domestic Mills department is made up of four steel minimills that manufacture copper tubes.  The recycling unit provides raw materials used in minimills department (Greenberg, 2011).
2. CMC can be redesigned by forming strategic alliance with other organizations.  The strategy may help the company to penetrate into new markets and acquire large market share. Also, the corporation should be redesigned internally by settings up independent divisions that are headed by managers who monitor performance of each department. The performance control systems should be installed in each department to increase information sharing. Such systems may help in reporting progress of each division to CMC headquarters. This would fit to be a strategy because it acts as a skillful approach for enhancing efficiency and productivity of the company (Greenberg, 2011).

3.         Strategic alliance might help companies’ benefits by gaining access to new markets that could not have been entered by a single organization. Secondly, collaborations may help corporations to gain synergy and achieve a competitive advantage over its competitors. Companies are able to minimize the financial risk that could have been incurred by entering in a new market alone. Some forms of strategic alliance include multinational ventures……………………………..