homework ,, today

Worksheet 2

FULL NAME:

CWU Corporation:

CWU Corporation (thereafter CWU) is a specialized bicycle manufacturer. CWU’s headquarters is located in Ellensburg. Its product categories are (1) bicycles for professional athletes, (2) luxury bicycles, (3) sports bicycles, and (4) bicycle accessories.

CWU has used the franchising system. Each franchisee will sell products in the four product categories while the president of CWU is thinking that CWU will promote luxury bicycle category to the luxury bicycle division in the US market. The luxury bicycle division will directly control its retail stores in premier shopping malls in order to sell the luxury bicycles.

CWU has two regional headquarters in order to control US operations. The regional headquarters are (1) East coast headquarters and (2) West coast headquarters. The CWU headquarters must supervise the following items closely in order to maintain organizational efficiency. The items are respectively (1) human resources, (2) research and development, (3) design, (4) finance, and (5) corporate affairs*. It is CWU’s strategic policy to delegate sales and marketing functions to each regional headquarters so that each regional headquarters can make its best supporting effort for its franchisees.

CWU has exported their products to Europe from the East coast; therefore, the East Coast Headquarters has been in charge of the European sales. However, the president of CWU is thinking that CWU will control European operations separately since sales in the European markets has become very large and CWU will need to deal with specific requests in the European market in order to keep expanding the market. The possible location for the European Headquarters is Slovak Republic. The European Headquarters will take care of sales and marketing functions to make its best supporting effort for its European franchisees. While the US regional headquarters will not control luxury bicycles very soon, the European Headquarters will control all of four product categories.

CWU has assembled its own bicycles at their assembly factories. In order to take advantage of mass production, CWU built a large assembly factory in Yakima and all types of products are assembled in the factory and distributed to all franchisees. The Yakima factory is directly controlled by the CWU Headquarters. The factory controls purchasing, logistics, and factory supervisions. The president of CWU start thinking CWU may want to assemble bicycles in Slovakia so that European franchisees can receive their products from Slovak factory. This is a good idea to reduce transportation costs, therefore, strengthen its price competitiveness in the European market. The Slovak factory will be directly controlled by the European Headquarters. While the factory will control factory supervisions, logistics of assembled products and purchasing parts will be directly controlled by the European headquarters.

*Corporate affairs department is one of staff functions.

Your idea about the current organizational chart of CWU Corporation (Your home work)

Your team’s idea about the new organizational chart of CWU Corporation (Class activity)

See what will be different for the current organizational chart of CWU Corporation.