Appex Corporation Harvard Case Solution & Analysis


  • 1.     Organized fact in chronological order

The merger of Appex Inc. and Lunayach Communications Consultants (LCC) changed the atmosphere of the company from “entrepreneurial” to chaotic. Customers began to complain and the company was unable to address all the technical assistance of customers, so the new CEO of a rapidly growing company, Ghosh was eager to try out some of the innovative organizational structures. The first structure implemented was a circular one. Later on, the management realized that the circular structure did not suit the company because employees could not relate to the circular structure and they were completely unfamiliar with it. Consequently, the management then tried a horizontal structure in which the employees did not respond enthusiastically as well. For instance, when Paul Gudonis, Senior Vice- President of Sales and Marketing called a meeting of his new direct report, so on the first day the horizontal structure was implemented and nobody showed up for the meeting.

            In February 1989, the management established a hierarchical and functional structure. The functions were organized as teams; there was a sales/marketing team, a software development and services team, engineering and technology team, operations and a finance team along with human resource and administrative team. After facing too many difficulties in this structure in August 1990, the management of the company implemented a divisional structure, which consists of two broad divisions that include: Intercarrier Services (ICS) and Cellular Management Information Systems (IS). Appex Corporation’s products could be logically divided into one of the two businesses. At the same time, the third division was also established namely, Operations, which included utility functions that serviced the two businesses. Each division had one head that was responsible for the entire division and reported to Ghosh.

  • 2.     Evaluation of Gosh thinking and exploration of other priorities

Appex Corporation is operating in a rapid technological development industry, which requires organizational structure that can help in developing strategy response to the technological development; whereas, the current organizational structure fails to respond appropriately because there is a less hierarchal structure, which has no job description regarding the concerned delegated authorities.

Therefore, Appex Corporation needs an organizational, which can achieve those strategic objectives.

Other priorities: Company’s CEO strategy is mainly about internal development and improvement of the organizational structure and culture. However, he can also devise a strategy, which can also take account of the external factors like, focusing on marketing strategy to gain larger market share.

  • 3.     Pros and cons of each organizational structure

Horizontal structure- Advantages

  • As a result of less supervision and more involvement in the decision making process of the Appex Corporation, employees can easily implement their skills and knowledge due to which many ideas and proposals can be evaluated...........

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