Organizational Structure and Strategic Design Lens
Dynacorp: Case Analysis
MGT 636-52
February 3, 2012
Dynacorp: Case Analysis
Introduction
Dynacorp, officially The Dyna Corporation, is a major global information systems and communications company. It was originated as an office equipment company and moved in the 1960s and 1970s into high-technology applications. In the 1980s the company became an industry leader by being the first to provide innovative and high quality products. The demand for products was so high that customers were willing to wait for months just to have them delivered. Growth and earnings slowed in the 1990s as the company’s costs increased, value-added services and solutions were not offered, new products were slow to market, and the products were not meeting marketplace demands. Solutions packages that were offered by information technology and communications (ITC) consulting firms were winning high-margin client business from Dynacorp who did not have a competitive concept. The gap that Dynacorp had created in the technical product market was shrinking due to gains by technology manufacturers. Dynacorp was not changing fast enough to keep pace with competitors.
Problem
The goal to remain an industry leader in technological innovation and comprehensive packaged solutions is being pursued by Dynacorp through the following objectives * Produce and offer new technologies within project plan timelines to obtain the technical leadership advantage in the market * Within two years: * Drive product offerings by identifying changes in the marketplace * Reduce product costs to remain competitive * Rebuild market share by increasing relevance and profitability
The Chief Executive Officer (CEO) charged an internal task for with the duty of exploring the major challenges that Dynacorp was facing. These included the high costs, slow pace of providing the market with new products, and the need to increase value for customers. A consulting firm that was
MGT 636-52
February 3, 2012
Dynacorp: Case Analysis
Introduction
Dynacorp, officially The Dyna Corporation, is a major global information systems and communications company. It was originated as an office equipment company and moved in the 1960s and 1970s into high-technology applications. In the 1980s the company became an industry leader by being the first to provide innovative and high quality products. The demand for products was so high that customers were willing to wait for months just to have them delivered. Growth and earnings slowed in the 1990s as the company’s costs increased, value-added services and solutions were not offered, new products were slow to market, and the products were not meeting marketplace demands. Solutions packages that were offered by information technology and communications (ITC) consulting firms were winning high-margin client business from Dynacorp who did not have a competitive concept. The gap that Dynacorp had created in the technical product market was shrinking due to gains by technology manufacturers. Dynacorp was not changing fast enough to keep pace with competitors.
Problem
The goal to remain an industry leader in technological innovation and comprehensive packaged solutions is being pursued by Dynacorp through the following objectives * Produce and offer new technologies within project plan timelines to obtain the technical leadership advantage in the market * Within two years: * Drive product offerings by identifying changes in the marketplace * Reduce product costs to remain competitive * Rebuild market share by increasing relevance and profitability
The Chief Executive Officer (CEO) charged an internal task for with the duty of exploring the major challenges that Dynacorp was facing. These included the high costs, slow pace of providing the market with new products, and the need to increase value for customers. A consulting firm that was
References: Ancona, D., Kochan, T. A., Scully, M., Van Maanen, J., & Westney, D. E. (2009). Managing for the future: Organizational behavior & processes (Third ed.) (J. W. Calhoun, M. P. Roche, J. Szilagyi, J. O 'Neill, & E. Gross, Eds.). Mason, OH: South-Western Cengage Learning. Snell, S., & Bohlander, G. (2013). Managing human resources (J. W. Calhoun, M. Rhoades, & J. King, Eds.). Mason, OH: South-Western Cengage Learning.