Commercial Metals Company “Steels the Show

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CommercialMetals Company “Steels the Show

CommercialMetals Company “Steels the Show

1. The type of organization design utilized by the Commercial MetalCompany is Multidivisional Origination structure. Under this design,independent franchisesexistthat are grouped based on the roles executed. Based on the casestudy, it is evident that the company is organized into five majorsegments namely Domestic Mills, CMC Zawiercie, Polish DomesticFabrication, Recycling, Marketing, and Distribution. The departmentsare subdivided into small units that address different customer’sneeds. The five divisions’ complement each other by ensuring steelwastage is minimized. Domestic Mills department is made up of foursteel minimills that manufacture copper tubes. The recycling unitprovides raw materials used in minimills department (Greenberg,2011).

2. CMC can be redesigned by forming strategic alliance with otherorganizations. The strategy may help the company to penetrate intonew markets and acquire large market share. Also, the corporationshould be redesigned internally by settings up independent divisionsthat are headed by managers who monitor performance of eachdepartment. The performance control systems should be installed ineach department to increase information sharing. Such systems mayhelp in reporting progress of each division to CMC headquarters. Thiswould fit to be a strategy because it acts as a skillful approach forenhancing efficiency and productivity of the company (Greenberg,2011).

3. Strategic alliance might help companies’ benefits by gainingaccess to new markets that could not have been entered by a singleorganization. Secondly, collaborations may help corporations to gainsynergy and achieve a competitive advantage over its competitors.Companies are able to minimize the financial risk that could havebeen incurred by entering in a new market alone. Some forms ofstrategic alliance include multinational ventures, integrationalliance, vertical partnership, complementary andPseudo-concentration collaborations (Greenberg, 2011).

References

Greenberg,Jerald. (2011). Behaviorin Organizations: An Experiential Approach.10th ed. Boston. MA: Irwin/McGraw-Hill. ISBN-13: 9780136090274

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