: Menno de Lind van Wijngaarden
: 2, Kongstrup Machine Factory
1: Michiel Witting
2: Frederic Küpers
3: Cas Schoonderwoerd
1. List the challenges facing Kongstrup after the collapse of the alliance with MB. How could they have prepared better for the break-up? All distribution and sales activities were in complete ruins after the cancellation. They should be involved whit the distribution and sales activities while they had a contract with MB and not let MB do all the work. Then it wasn't all ruined because they know what to do with the distribution and sales activities. The functional structure was not efficient.
There were several environmental changes what is one of the weaknesses of the functional structure. They should have noticed the breach with MB and know with that there would come environmental changes so they could start earlier with changing their production. Also they had a comprehensive increasingly product range, that is not good for a functional structure. There was no appropriate organizational structure.
When they say they have a functional structure they should have one or a few products, but they had a wide range of products. So they should concentrate on producing one product, or go from functional structure to divisional structure. The fact that the company did not have much experience in handling crises was a serious problem for Kongstrup. This wasn't really their fold, but the management could have read something about it and know a little bit what to do. They had to change some key decisions as soons as they were implemented. Never considered which strategy to use in its customer relations. They had to consider it way earlier, before the cooperation they also sold to customers so they should have experience with customers and know something about the strategy to face them. The conclusion...
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