QUESTIONS
- Challenges facing Millennium Airlines in the external environment?
- Introduce and explain your ideal structure (the structure you would implement in the absence of organisational politics; the one which doesn’t have to deal with the realities of the organisation) and discuss how this would assist the firm in meeting the challenges of the external environment.
Make sure to use strategic management jargon. What is the name of your ideal structure? (Theories are in L10 + L11). And how will it address the challenges the firm is facing in its external environment?
- What is your political non decision making which informed your recommended strategy? Give an overview of the decisions you would like to have made, but took off the table due to the politics of the organisation. Think about which personal relationships or political games or types of elite capital might make certain types of restructure impossible.
- Introduce and explain your recommended structure (the structure you would implement which seeks to account for organisational politics; the one which deals with the realities of the organisation). Give an overview of the decisions you have made, and base your argument on your understanding of the politics at play and theory on organisational structure. How does your recommended structure account for the political battles which are at play in Millennium Airlines? Who has gone? What new roles have been created? Who has been shifted into a new area?
- Please do make a diagram of ideal structure and recommended structure (or explain in words; make sure you follow the given example). Be clear about the:
- Type if structure
- Hierarchy of positions within the structure
- Names of people associated with these positions
Introduction
Presently Millennium Airline showcases potential to grow, but the organizational politics are not in sync with the organizational strategies. A significant per cent of the roles are members of the Apex club, who share the same ideas, making them reluctant to new people and ideas. Since its inception, some positions have been in existence and make it difficult for the company to achieve success. Following this, it is paramount to review multiple key personnel and structure in the organization to account for its external factors.
Acting on behalf of Atkinson Consulting, Roger Thwaite has authorized me to restructure Millennium Airlines. According to his brief, he requested that I delayer the organizational structure to bridge the gap between the Board and the customers to allow the Board to understand the clients’ needs and preferences.
In the course of the restructuring process, I interviewed multiple employees in different capacities in the organization. I analyzed all the data gathered from the interviews and used it as a foundation and reference point for the delayering process. However, the decision of my recommended structure includes an in-depth investigation of external and internal challenges currently facing Millennium Airlines.
After an in-depth analysis, my ideal structure would be the SBU M-Form structure. There are fewer links between divisions in this structure, and the firm implements a related linked strategy. With this structure, it is easy to drive competitive advantage. This type of corporate structure will allow Millennium Airline to bridge the widening gap in the ever-changing landscape of climate change and offer strategic approaches to cope with environmental uncertainties during pandemics. From this perspective, the SBU M- the structure will lay a firm foundation for stockholders to ensure they operate in a conducive and favourable environment. In essence, this structure will provide flexibility to allow Millennium Airline to allocate resources and prepare to succeed in the future.
Key Findings and Conclusions
Millennium Airline is a multinational corporation that has been operating for 130 years. Currently, the company is facing numerous challenges, such as the rapid rise of “The Ground movement” for carbon-neutral air transport, climate change, and the ongoing pandemic. Globally, countries have closed boundaries to halt the spread of COVID 19, significantly reducing the number of air travel passengers. Although Millennium Airline has gained a competitive edge over the years, the company is experiencing severe headwinds due to new budget airline competitors. Currently, buyers hold the key to tumultuous market forces as they want more for less, and marketers have moderate power. Therefore the external environment is presently not conducive for Millennium Airlines.
During the review process, my political non-decision making was splitting the marketing team into two distinct sectors. Ideally, one team would work in the commercial department while the other focuses on improving the travel experience. However, I took this off the table as all operations; activities are housed under Millennium Airline. Furthermore, Naresh Sing would never approve of this strategy as it will incur extra costs on the budget. I also based my recommended structure on eradicating the financial and strategic controls to enhance flexibility and enable performance to maintain stability in the organization.
As the CEO of the company Julie Penberthy is in charge of monitoring the running and operations of the company while safeguarding the interests of the shareholders. Julie is an elite who portrays capital interests. In her purview, the company needs to diversify its product and services to grow by targeting and satisfying the business. Initially, it was plausible to retain the Group Director strategy (Karen Barlow) in the Board. However, an in-depth analysis of Julie’s CEO and Naresh, the CFO, strained the relationship. It is evident that regardless of the strategies formulated at the top management level, there will always be a political crash at the executive level. This is primarily due to the existing budgeting games in the organization. Currently, there are highly polarized financial and resource allocation strategies to advance the organization while coping with the emerging internal and external issues. Millenium Airline consists of multiple actors, each with their competing interests and objectives. This means that some strategies will be blocked while others may flourish.
Recommendation
After a review of the interdepartmental relations in the organization, I would recommend a Competitive M-Form structure. All the divisions are independent in this structure, and resources are allotted depending on the divisions’ ability to achieve organizational objectives. I recommend removing the CFO position to financial controls based on the organization’s strenuous relationship between the finance function and other departments. I believe the finance department is the critical driver to supporting or blocking proposed strategies. In this regard, I recommend combining all the upper-middle management roles of finance into the executive role to facilitate resource allocation. All upper management has been integrated into the executive management role. All financial decisions are made at the executive level, thus prioritizing Millennium Airline’s strategic development approaches. All organizations require a rigid financial framework to use the organizational resources to advance the organization. The competitive M-Form structure accounts for the financial crisis experienced at the various interdepartmental levels at Millenium Airlines. Naresh Sing (CFO) and Audrey Mccormish (GM, Accounts payable) have been removed, and freelancers replaced their position to review the budget.
In surmise, the Millennium Airline organizational structure was subjected to specific changes to allow the smooth running operations of the core activities. The recommended structures restore balance in the use of power in the organization.
Recommended Structure
Ideal Structure
