Dynacorp Case Essay

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Dynacorp Strategic The old division of labour was divided into Engineering, Manufacturing and Marketing units. The new division of labour includes business units composed of engineering and manufacturing functions. As well, a small number of people from the marketing division were assigned to each business unit to deal with market strategy and market positioning. The new “skeleton” of the organization is linked together much stronger. Since before engineering and manufacturing had difficulties moving products from one division to the other, the unification of the two divisions will allow for greater integration. This is an example of horizontal differentiation, whereby division of labour is organized according to the product. This allows for a more “reciprocal” form of interdependence, whereby engineering, manufacturing and marketing units work amongst each other on a certain product. This allows for a stronger linking between the divisions, meaning that information and resources flow in a more rapid fashion. This links back to our objective or increasing linking mechanisms between the engineering division and manufacturing, due to their lack of being able to move products from one division to another in a speedy fashion. The marketing division was organized into three large geographic divisions, of which the largest was U.S. Customer Operations. Each division was organized by geography: by country in Europe and Latin America/Asia, by region in U.S. In the past, each of the eight U.S. regions had been organized by geographic branches with a specific sales territory: for example, the Northeast Region has eight branches located in major urban centers. The new design kept the terms “branch” and “branch manager”, but each of the ten branches now covered the entire Northeast region for a particular set of industries or sectors, such as government, process
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