Think of an organization with which you are familiar, perhaps one you have worked for - such as a store, restaurant, office, church, or school. Then answer the following questions. 1. Which contingencies are most important in explaining how the organization is organized? Do you think it is organized in the best way?

I considered an Automobile manufacturer of cars in Japan in this case. the company is famous for manufacturing small and medium sized affordable cars in the market in a small lead time of introduction.

The contingencies that are most crucial for the company are the scarcity of low cost labor in its home country Japan, the increased competition in the same segment that is low cost of cars, in every country where the company operates.

The company is organised in the best form because it has a particular custom that has a strong hierarchical structure with little room to flexibility. it is a functional structure.

Explanation:

Solution

Let us consider a major automobile manufacturer of Japan in this context. the company is well established in Japan as well as in global automobile market in the last 30 years.

The company is known for manufacturing small and medium sized affordable cars in the market in a small lead time of introduction. the success of the company is primary on the efficiency improvement, lean operations and economics of scale.

Thus

The contingencies that are most important for this company is shown below:

Scarcity of low cost labor in its home country Japan. The lack of competitive advantages and unique resources to retain the same. The increased competition in the same segment that is low cost of cars, in every country where the company operates.

The company has followed a particular custom that has a strong hierarchical structure with little room to flexibility. it is a functional structure.

With the present expansion in different market the functional structure may not be efficient and effective for the company.