1 what type of arrangements do you see the two firms using i

Solution

1. What type of organizational arrangement(s) do you see the two firms using in coordinating their worldwide operations?

Their worldwide operations are coordinated through a very important system of organizational hierarchy necessary to suit their organizational philosophy of facilitating decision making and empowering their employees for shared vision . Their leadership is basically participative and so it enables functional level decision making powered by linear acoustics . Their central office has a very tall structure keeping in view their levels of specialization and decision making process . In all other countries where they have their offices, the structure is quite flat with lesser levels of interference and in keeping with the culture and tradition of the country of operations. The entire global network is operated through a system of horizontal integration.

2. Which of the two companies has the more modern arrangement? Do you think this increases that firm’s efficiency, or does it hamper the company’s efforts to contain costs and be more competitive? Why?

Ford has got a better organizational arrangement because of its continuous efforts to reorganizing its   traditional family iconic structure to a more modern one to suit the strategic initiatives taken by Alan Mullaly. The alignment of the core values towards the mission and vision statement was made possible by replacing tradition with moderness. The “Way Forward plan” was administered and implemented by Mullaly. The meetings that were held semi annually was in fact one of the reasons why decision making could not be hastened. The cultural set up of Ford built on historical strengths proved to be the greatest bias. The weekly meeting enabled team decisions possible. Volkswagen on the other hand was limited by its ability to strategically move forward as it was hindered by high levels of centralization. It was thus able to become competitive by allowing for supply chain effectiveness to take place at the local level and this brought in the advantages of lean technology powered by cost efficiencies .The introduction of innovation powered by technology and investment in customer base were the other important organizational arrangement characteristics which powered and fuelled organizational efficiency. .