Kent Chemicals Case Solution
Hindrances to the expansion strategy
The company’s president, Morales, recognized that the corporation is not in the flow due to the differences in pressures and the demands faced by the firm. Secondly, the management has connected to the decentralized approach now, therefore themanagers are not interacting properly for the global implications.
kent chemical case solution
Challenges to be resolve
Morales faced the following problems when he expanded the business internationally andthat they should be resolved soon.
Pressure and Demand
The local organization was facing difficulty to overcome the issues generated in the global market in accordance to Kent Chemical. Furthermore, the managers at Kent were abiding to work locally and globally both.
Failure of the Product
A product of the Kent Chemical, Fire protection, just made sales in one country and it has not developed the market internationally. Nonetheless, the product was not in accordance with the states legitimate particularly.
Communication gap between the headquarter and international organizations
Morales allocated decentralized structure of the organization to the subsidiary managers, as the managers incorporated operations according to their traditional procedures. Thus, Kent globally faced trouble to interact in compliance. Moreover, the decision at international subsidiaries wasnot implemented well as there wascommunication gap among the managers.
Reasons for the problem appearance
The reasons for the problems that Kent has faced are:
The regional management was unable to monitor and control the subsidiaries. This is the reason that the expansion of business faced suchproblems. The management encountered conflicts among its management. Moreover, the USbased leaders also started focusing only on the domestic branch. Also, thefunction of GBD was undermined and unclearly defined
Organizational changes
In response to overcoming the international issues that Kent has to deal, Morale developed the organizational structure suggested following practices:
Morale separated the organization’s strategy among domestic and the international companies. It had to be done globallyasKent hadto sell the products to morethan 100 countries, which was difficult to handle in anorganized and efficient way.
The organizational restructure procedure did not go well, and the one of the reason for the failure was Global Business Directors (GBDs). The GBDs developed by the organization werenot clearly defined. The GBDs were allocated nonsimilar roles for their procedures,therefore, the GBDs felt ambiguity of their roles and each was incorporated separately.
The second factor for the failure was that the organization lacked enthusiasm for devising the reorganizing procedures consequently asthere was lack of cooperation among the directors. Hence, the GDBs lost the efficiency and effectiveness in the working of the organization.
Reasons for failure of organizational changes
The strategies incorporated in the organization failed due to numerous reasons. The lack of uniformity was the main reason that each subsidiary was operating its subsidiary according to the need of the country and beyond the organizational decisions. The directors were not interacting with the formulation of strategies therefore,they were not sharing their own knowledge.On the other hand, the common areas of the subsidiary were also unclear...................
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