Jog PCS is a wireless telephone company. It sells cell phones to three customer groups: (1) business users, (2) high-volume individual users, and (3) low-volume individual users. Currently, the company is functionally organized. Primary functions include product development, marketing, sales, and customer service. The organizational chart is as follows:
1. The CEO, von Hugel, is considering reorganizing the company as a multi divisional firm organized around customer type. Draw the revised organizational chart.
2. Discuss the pros and cons of the proposed reorganization, relative to the current structure.
3. Jessica Wilde, vice president of product development, suggests that a matrix organization might be better. Draw the organization chart implied by her proposal.
4. Discuss the pros and cons of the matrix proposal relative to the multi divisional proposal.
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