Bosch group in India: Transition to a transnational organization Harvard Case Solution & Analysis

Bosch group in India: Transition to a transnational organization Case Study Solution

Activities against the change management process:

The operations of Bosch Group in India had been managed to a geographic division which were inter-related with different divisions of business. However, there was no such need to bringing change in India. But due to the changes made globally, the organizational structure of Indian organizations had been affected which was known as Verticalization process. As this process was mainly associated to have a product strategy throughout the world.

As the Verticalization process was based on reporting and co-ordination, its main aim was to function as one organization. However, there had been some activities which not according to the initial policy of the organization which was to be followed for its benefits. It includes:

• Each division of organization was well-aware about their profit margin and the divisions with more profit were found reluctant in order to subsidize the divisions with less profit.
• The divisions of production and sales claimed to allow them with authority to make their own margins.
• Multiple reporting lines of each organization operating tended to be a great source of conflict and confusion making it difficult to function different organizations as one.
• Due to difference in the divisions of production and sales, there had been a great fight over transfer prices. Therefore, the use of incentives in order to seek to high prices of transfer resulted in a blame game. (Singh, 2015)

Recommendation:

As per the analysis of the organizations structures and process of decision making, the management of organization had exploited some functions in some countries. Decisions made at global level and applicable to all organization resulted in some of the unusual activities which were against the conditions of management process. Therefore, it is suggested to the management of Bosch Group not make decisions at global level and implement unnecessarily. Protection of data and information about the profits, sales in different areas on which the organization operates is the responsibility of organizational management. Hence, effective leadership style is to be used where there is a need.

Conclusion:

The Bosch Group had been a leading service and technology supplier around the world with concentration in areas such as Consumer goods and building technology, industrial technology and automotive technology. Due to the geographic distances in the organization operating in different regions or countries, purposely for the close management of organizational operations there had been difficulties in communication and travelling. Decisions made at global level and applicable to all organization resulted in some of the unusual activities which were against the conditions of management process.

 Exhibits:

Exhibit –Key issues of leadership

Exhibit – SWOT Analysis:

Exhibit –Change in activities against management process

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