Student: Organizational Structure and Machine Shop Essay

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Case Study 6 – Bennett’s Machine Shop, Inc.
Coleman University

This case describes Bennett’s Machine Shop, Inc. that has been experiencing problems with a day to day cash flow. In 1972, Pat Bennett, the owner of the Bennett’s Machine Shop, graduated with B.Sc. Degree in mechanical engineering and later decided to open the shop. Bennett’s Machine Shop was opened in 1977. The shop was very successful, sales and profits continued to expand through 1979. In 1979, Bennett’s Machine Shop moved to a new location and continued to expand untill 1981. In 1981 Bennett began to do over the fender work, installing the engine and minor repair work. The business flourished and Pat has reached prosperity. This changed due to Pat’s decision to expand from engine rebuilding into engine installation and to open new long distance location. Pat failed to operate this facility and decided to close it in 1986. In February 1987 Pat expanded his business to doing contract work for Boeing. In late 1987, Bennett’s Machine Shop, Inc. was involved in three types of work: engine rebuilding over-the-fender work, and tool sharpening and modification (the Boeing contract). In addition to Pat and Jack Beard, the shop coordinator, Bennett’s Shop employed 16 people.
Mission
– to find innovative ways of repairing and renewing mechanical equipment’s and operating systems frequently of all kinds.
Bennett’s Current Mission

Constantly finding new ways of repairingand renewing mechanical equipmentsand operating systems of all kindsespecially auto engines


Pat Bennett’s self interest– Entrepreneurby heart-- exploit his core competence

PROBLEM CONCERNING THE COMPANY
Major Problem o Management system:-
•
Pat alone manages all the three departments of hisshop. It shows when
Bennett’s
was unable to set up agood functional structure and control system as thecompany expanded.
•
Pat not applying the hierarchy of authority which is whoreport to whom and the span of control. o Poor organizational structure:-
•
Bennett’s does not have Machine Bureaucracystructure as very large, typically mature, and thetechnical core is often oriented to mass production.

o
Weak of structural dimension:-
•
The formalization and standardization is not emphasizeseriously.
•
Pat’s
Bennett does not implement any rules andregulation in term of management, operating, marketingor even human resources. o Finance:-
•
Pat needs to manage their finance in a better waybecause it is seen from the case study that the companyhas got into crisis because of their misuse of funds.

Minor Problem o Marketing strategy:-
•
A sustained effort to smooth over periods of slack demandwith increased advertising would stabilize the core business. o Lack of professionalism:-
•
Bennett department management is lack of skill workers.Pat Bennett should employ them who have some knowledgeand also need a supervisory hierarchy. o Environmental issues:-
•
The environmental issues is facing by Pat Bennett’s is that
Pat
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