Mrs Fields Cookies
Situation: In 1977, Debbi Fields opened her first Mrs. Fields ' store in Palto Alto, California. The Mrs. Fields store concept quickly expanded to a national and international level. With more than 500 Mrs. Fields ' cookie stores in 25 states and five countries on four continents, Mrs. Fields ' Cookies was dependent on a corporate structure that was technologically advanced. The company 's organizational strategy included a flat organizational structure feel and a management control system that "put as much decision making and intelligence into the store level PC as is necessary to free the manager to do those things that uniquely people do" (HBS, p.6).
Critical Issue #1: A Flat Organization In a flat organization structure, "decision making is centralized, with the power often residing in the owner or founder...everyone does whatever needs to be done in order to complete business" (Pearlson, p.65). Typically, entrepreneurial organizations use this type of structure; it is better suited for entrepreneurial type organizations because they usually have fewer employees. As they grow, they carry with them the premise to do whatever is needed to grow the business. The structure also allows quick response in uncertain environments. As organizations grow, and the number of employees increases, a hierarchy is eventually formed (explicitly or not). It is difficult to continue on a flat path, and even though organizations may continue in an entrepreneurial spirit, the reality is work will be conducted in a hierarchical manner. IS plays a role in automating routine work in order to avoid hiring additional workers which is important because as the organization grows and a hierarchy forms, communication becomes more difficult as there are more employees. Typically, top management 's time is limited, and an increasing number of employees cannot depend on top management for direction. As a result, IS plays a vital role in communication becoming the glue that ties the
Critical Issue #1: A Flat Organization In a flat organization structure, "decision making is centralized, with the power often residing in the owner or founder...everyone does whatever needs to be done in order to complete business" (Pearlson, p.65). Typically, entrepreneurial organizations use this type of structure; it is better suited for entrepreneurial type organizations because they usually have fewer employees. As they grow, they carry with them the premise to do whatever is needed to grow the business. The structure also allows quick response in uncertain environments. As organizations grow, and the number of employees increases, a hierarchy is eventually formed (explicitly or not). It is difficult to continue on a flat path, and even though organizations may continue in an entrepreneurial spirit, the reality is work will be conducted in a hierarchical manner. IS plays a role in automating routine work in order to avoid hiring additional workers which is important because as the organization grows and a hierarchy forms, communication becomes more difficult as there are more employees. Typically, top management 's time is limited, and an increasing number of employees cannot depend on top management for direction. As a result, IS plays a vital role in communication becoming the glue that ties the
References: Beath, Cynthia Mathis (1991). "Supporting the Information Technology Champion." .MIS Quarterly. pp. 355-371. Harvard Business School. (1999). United Services Automobile Association. 9-188-192. President and Fellows of Harvard College. Pearlson, Keri E. & Saunders, Carol S. (2006). Managing & Using Information Systems, A Strategic Approach, 3rd Edition. Hoboken, NJ: John Wiley & Sons, Inc.