Wednesday, April 18, 2012

Organizational design


Volkswagen. We have already talked about all of the Volkswagen brands in the post about diversification. The organizational structure is divisional- all of the brands are independent. However, strategic groups are formed and knowledge is spread through the company. Research centers are working for all of the brands and innovational technology is incorporated in all of them. The interesting and unique thing about the organizational structure is that not only the divisions are independent but even structures inside them have relatively high independence- production plants and importance and other structures can decide for themselves and in some cases they have to negotiate deals as if they are separate companies. The independence is a positive characteristic as each department can aim at the best goals possible. However, there are supervisors who manage and coordinate the work in all of the departments and make sure they are not working against each other.

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