Memo (Victoria Heavy Equipment) Harvard Case Solution & Analysis

To: Board of Directors

From: XYZ

Date: November 22th, 2014

The purpose of this memorandum is to propose you the changes that are necessary in order to improve the long term performance of Victoria Heavy Equipment Limited. There are various areas of this organization that needs to be modified and revised which will result in the long-term growth and profitability of Victoria Heavy Equipment.

Firstly, hierarchical structure of the company needs to be change and it is beneficial for Vitoria to adopt and implement the matrix organizational structure in order to avoid the conflict within the organization. Additionally, it would allow to make efficient decisions and allocate resources throughout the organization. Additionally, the matrix organizational structure requires the combination of both functional and divisional structure. This would help the effective flows of information within the organization as well as increase in the coordination and can speed up the decision making process.

Moreover, it is important for the Vitoria to develop Vertical Information System (VIP) in order to facilitate the effective communication among the employers and departments’. As, it would help the organization to strengthen the communication and coordination between different levels of the management of Vitoria. Furthermore, it would allow the organization to improve the level of coordination among the employees and management. The Vertical Information System would also provide the opportunity to increase the effectiveness and efficiency of the employees.

There are also some strategic changes that are required in order to achieve the vision of long term performance. The effective compensation and motivational plans need to be implemented to increase the motivational level of the employees. In addition to this, significant increase in bonuses of the workers will enhance the working morale of employees.

However, leadership plays a significant role in the success of an organization so, high level leadership qualities are needed to direct Victoria towards the accomplishment of long-term goals by inspiring and motivating members of the organization. Transformational leadership style needs to be adopted in order to motivate and enhance the creativity and the morale of the employees. It would also be beneficial if the organization adopts the approach of Concurrent Control System as it would allow the organization to ensure that work activities of the employees produces the correct results not. Also, it would help the management of the organization to identify and monitor the progress of the work at several stages to avoid the problems and deviations.

Likewise, it is essential to develop new innovative and differentiation strategies in order to sustain the position in the highly competitive environment. Victoria should also focus on the diversification of business activities as well as expansion into other market segments to gain competitive advantage over its rival as currently it is the second largest producer of cranes.

In the end it is concluded that Victoria Heavy Equipment Limited has to continuously innovate and restructure its strategies in order to sustain in the highly competitive environment. Also, the approachable attitude towards the industry changes would help the organization to improve the efficiency in order to achieve the organizational long-term goals. Additionally, to implement all these changes it is important to create awareness among all the members of the organization about the required changes as well as properly allocating the resources and cost is very important for the company in order to implement changes.................

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