ENGINEERING MANAGEMENT

EMG20/A1
CASE STUDY #3

CARCELLAR, MARIA REBEKA ISABEL M.

SUBMITTED ON: MARCH 1, 2017
 Case #3
BYC PETROLEUM, INC.

The BYC Petroleum Products, a subsidiary of ABC Company, Inc., is a successful refining
company. Its six refineries manufacture three main business products: fuels, petrochemicals, and
lubricants. The products are sold to Denmark Industries (another ABC Subsidiary), chemical
manufacturers, industrial plants, the auto industry, and a variety of other customers. The multi-
billion company has a work force of about 5400.

BYC Petroleum currently has a functional organization structure, with the following major
positions reporting directly to the president: chief counsel; vice president for financial services; vice
president for technology; director for planning and administration (to whom a general manager for
planning and a general manager for human resources report), and vice president for operations (to
whom a general manager for marketing and a general manager for manufacturing and supply
distribution report).

Because of changing conditions in the markets for the company’s main products, BYC
Petroleum is thinking about changing its organization structure to a product structure design. In the
process, the president is considering adding a senior vice president of resources and strategy to
oversee the company’s strategic planning.
1. What does the company’s current organization structure look? Draw the organization
structure and describe the type of departmentation.

2. What would it look if the company adopts the departmentation by product? Draw the
organization structure