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The Paradoxical Twins Acme and Omega Electronics

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The Paradoxical Twins Acme and Omega Electronics From reading this case study I found that Acme and Omega have problems that need to be looked at. Both firms produce similar products and offer similar services. In this assignment I am going to analyse the forms of control used in Acme and Omega. I will also try and comment on both firms effectiveness. I will try to be thorough as possible. I will first begin to give brief background information on both companies and then try to compare them to one another and try to comment on their effectiveness to the full. To end it I will give my conclusion. From looking into Acme I gained knowledge that its president John Tyler is a very tough going individual. He is portrayed to be an autocratic individual. I say this because he tends to communicate in one way, for example what he says goes. He makes all the decisions and gives out all instructions and orders, expecting them to be obeyed, without question. An employee/ manager categories the president as 'one man band'. He feels that John Tyler should try and give more information rather than giving orders. He also does not take suggestions from people. To me it looks as if there is a slight communication problem. ...read more.


I say this because he does not allow written memos, he expressed "the plant is small if people want to communicate they can just drop by and talk things over". Employees of Omega complained that this was a waste of time. To me passing round is time consuming and gives workers excuse of talking to one another, this slows down production and performance. Also messages can be misleading if someone passes the wrong message out. This can also cause problems as workers will not get the correct information. Most decisions at Omega were made by the management team. Acme has an organisation structure therefore communication is good although there are improvements that need to be made like the way John Tyler communicates with his managers. Whereas Omega has no structure therefore is causing problems within the firm. Ames president is a person who wants everything perfect. He believes his firms greater effectiveness to his mangers is to run a 'tight ship'. This I think is because his firm would have: * Good control * Good communication * Dept functions * Well structured and organised * Has simple reporting relationship * Concentration on skills. This shows Acme's president has a firm grip whereas Omegas president does not, he seems to be more laid back. Acme's president is autocratic leader as he does what he wants and does not take other workers/ mangers' opinions or suggestions into consideration. ...read more.


He proposed the concept of the overlapping group membership structure. This involved a linking pin process in which the superior member of one group was subordinate member of group above. Likert argued that the benefits of such an organisations design include improved communication increased co- operation and more team commitment and faster decision making. Overall I think Acme got the contract due to many reasons, for example Acme had a structure therefore made it look like Acme has good control. Acme also may have been given the final contract because of there past, as they achieved grater net profit than Omega "Acme was consistently more effective than Omega and regularly achieved greater net profit". Acme's annual sales was also higher than Omegas. Acme's president was also a very confident and demanding man therefore it makes the firm look strong "Tyler was very confident that had the demand not been so great, its competitor would not have survived". In the end Acme reduced there costs by 20% therefore the photocopier manufacture gave them the contact as it would have been more cheaper to buy units. Omega could have used the same tactics/methods but this may not have been the only thing that could have given them the contract. Things that I could suggest that may have given them the contact would be if they were a larger firm with a clear structure to show that they have some sort of control. DIPTI BHUDIA CASE STUDY 98169701 ...read more.

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