Appex Corporation Essay

863 Words4 Pages
Case Summary This case is about the company structure evolution of Appex, which is a fast growing cellular service provider during 1987 to 1990. Shikhar Ghosh, CTO and later CEO of Appex, adopted a series of organization structure changes to solve the problems came up within the company, the company has gone through a loosly structured -> circular structure -> Hierarchical functional structure -> Divisional structure change, whenever new structure is adopted, part of the existing problems were solved while new issues always come up. Below let’s take a closer look at the structure change history of the company, and the relevant pros and cons introduced by the changes. Initial Stage – a loose structure, project-based. Before Ghosh joined Appex, the company was entrepreneurial, technology-driven, and loosely structured. The company was at its start-up stage, few business procedures had been defined as they were considered as unnecessary given the relatively small size of the company. As well people had particular expertise but everybody did anything because nobody had any sense of what their job description was. This is a very typical structure for those small company in the starting up stage. Advantage is that when the company business is not very large, it can act in this way to fully utilize the resources and make itself responsive and effective at getting things done quickly and relatively cheaply. But the disadvantage is that if fortunately, the market was growing quickly and so was t he company, things will change into chaotic because there is no long-term planning for the company and all people just focus on the immediate issues. The company will not be able to further grow with this structure. Circular Structure A circular structure was then implemented to address the problem mentioned above. The special thing in circular structure is that senior

More about Appex Corporation Essay

Open Document