AO Hugh Russell, INC

A Case Study By-: y Luv Singh (027/1) y Mayank Kumar (028/1) y Nayan Manik Tripura (029/1) y Pawan Kumar Arya (030/1) y Piyusha Baghel (031/1)

y A well structured company with divisional hierarchies . a chain of wholesalers of hardware and sporting goods.The Case y AO HUGH RUSSEL. a mid sized Canada based steel distributer. bearings and valves distribution and a a small manufacturing business. y Business consisted 4 groups: Core steel distribution activities..INC. job descriptions and extensive data processing system for progress tracking. .

y Financial crisis created by banks y Fear perceived by shareholders .Crisis y Hostile takeover over of the company.

. y Wayne Mang new president y Shift from hierarchy to task forces y Cross functional teams and blurring of organisational boundaries.Change y The takeover and the merger.new business and new environment. y New bankers . y Strengthening relationship with banks and suppliers.

independent companies have power over small companies.Resource dependence y Dependence on a resource is based on two factors: o Importance of the resource to the company. . o To use interlocking directorship. o How much monopoly power those who control a resource have over its allocation and use. o Join trade association . y Power strategies: o Large. y Resource strategies: o To adopt to or alter the interdependent relationship. o To take political action.

o Achieve greater effectiveness and better use scarce resources. y Why Collaboration: o Major reasons are sharing risk. . y Companies join together to become more competitive and to share scarce resources. y Adversaries to partners: o With the push from international competition organizations are shifting to partnership. reducing cost.Collaborative Networks y Collaborative network perspective is an emerging alternative of resource dependence theory.

Population Ecology y Population: Set of organizations engaged in similar activities. y The ecological change process Variation: appearance of new form of population Selection: The process of survival. . Retention: The preservation and institutionalization. y Diversity in Population is prone to the changing environment.

y Everybody was contributing to the institutional development. y Legitimacy .Institutionalism y Transparency among the business partners.

Customers . Suppliers 4. Shareholders 3.Organizational Ecosystems It is a system formed by the interaction of a community of organizations and their environment. Banker 2. Hugh Russell travels in four major industries1.

A Framework of Interorganizational Relationships Organization Type Dissimilar Resource Dependence Similar Population Ecology Competitive Organization Relationship Cooperative Collaborative Network Institutionalism .

separate resources Short-term contracts Contract limiting the relationship . high commitment Electronic linkages to share key information. problem feedback and discussion Mechanisms for close coordination. people on-site Involvement in partner¶s product design and production. competition. arm¶s length New Orientation: Partnership Trust. addition of value to both sides.Changing Characteristics of Interorganizational Relationships Traditional Orientation: Adversarial Suspicion. shared resources Long-term contracts Business assistance beyond the contract Limited information and feedback Legal resolution of conflict Minimal involvement and up-front investment.

y y y Mimetic forces.Describes how it survive and succeed through congruence the expectation from its environment.Results from Uncertainty Coercive-Results from Dependence. political influence Normative-Results from common Training and Professionalism . Institutionalism.General perspective that an organizations actions are effective. Composed of Norms and Values from stakeholders.  Legitimacy.INCREASING LEGITIMACY AND POWER.

 REASON Share holder dissent and non support.Continued .  Credit crisis. employee and all other stake holder. DOES THIS STRATEGY MAKE SENSE FOR A POWERLESS COMPANYYES. legitimate and take -So legitimacy and power was required to influence Banker to bring funds. Personal Relationship by open communication with other companies as mechanism to increase legitimacy and power.  To gain support from Supplier. the firm in a competitive position. -So needed an increased power by this strategy. .  Gained a new from of informal influencing power due to this new relationship. -Needed a power to coordinate.

Thank You y Any questions . .

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