What is functional structure? What were the strengths and weaknesses of functional structure?
How well did the product and business team structure address the problems with functional structure?
What do you think about the changes to a divisional structure? What are its relative advantages and disadvantages compared to the earlier structure? How would you address some of the problems with the divisional structure?
Does the changes in structure influenced employees’ behavior in Appex?
What would you have done in Shikhar's place? Were all the changes in structure necessary?
May 1988, Shikhar Ghosh was recruited as COO and shortly afterwards CEO toreform Appex .He was expert in structural changes.Under the leadership of Shikhar Ghosh, Appex Corporation has undergone anumber of significant and radical structural changes to respond to its meteoricgrowth as one of the primary suppliers in the rapidly expanding and evolvingcellular telephone industry.Mr. Ghosh realized that Appex was chan ging from “entrepreneurial” to“chaotic” at the time of joining but once he was into the process he did the same by changing organization structure after every six months hence creatingconfusion all over. He believed that the company was spending cash toohaphazardly but once he joined he too did the same forgetting his ownphilosophy about the same.As the number of employee increases, a structure can be modified butchanging it too often(after every 6 months) is too radical in nature and if anychanges are required it can be changed as it would be time tested within thussaving huge investments and costs.
He didn’t focused on financial implications and frequent resource allocations caused by the structural changes as every structure has its advantages anddrawbacks.
Instead of focusing on company’s