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Case #8
“APPEX Corp.”
Harvard Business Case #9-491-082(Rev. February 10, 1992)
Academic instructors who are registered with the publisher’s
website (http://www.hbsp.harvard.edu) may download the Teaching
Note #5-492-039 (May 28, 1992) for this case free of charge.
ABSTRACT
Appex offers information services to the cellular
communications industry. The CEO led the company through a series
TEACHING OBJECTIVES
The structure of an organization has an impact on its
performance. Each organizational design has its strengths and
weaknesses. Companies need to modify their organizational form
from time to time in order to be dynamic and aligned with the
SUGGESTED QUESTIONS FOR CLASSROOM DISCUSSION
1. What were the challenges that Appex CEO Shikhar Ghosh faced
when he joined Appex? Why were “structure and control” deemed
necessary?
2. Evaluate each of the following structural changes Ghosh
implemented with respect to importance, problems resolved, and
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ANALYSIS
1. What were the challenges that Appex CEO Shikhar Ghosh faced
when he joined Appex? Why were “structure and control” deemed
necessary?
In the startup phase the structure of Appex was very fluid
and dynamic. It responded effectively to customers’ needs.
2. Evaluate each of the following structural changes Ghosh
implemented with respect to importance, problems resolved, and
problems created: (a) start-up, (2) circular, (3) functional, (4)
teams, and (5) divisional.
As Ghosh changed the organizational design of the company, he
3. What would you have done differently? Why?
These structural changes are not necessary for a company like
Appex. As any given organizational form has advantages and
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TABLE C8-1. PROBLEMS RESOLVED AND CREATED BY THE ADOPTED
ORGANIZATIONAL STRUCTURES
# Structure Importance Problems Resolved Problems Created
1 Start-up Very Important Growth, flexibility Communication,
(Prior to 10/88) lack of planning,
fire-fighting,
no hierarchy, confused
accountability
4 Business Teams Important Resource Allocation More “tail tooth”
(11/89) cost-effectiveness
Teams exemplify a flexible organizational form. Ghosh could
have made it work by additional policies and procedures which
minimize the weaknesses of team organizations.
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The changes introduced by Ghosh appeared to be mostly
reactive in nature. They were done hastily to resolve some
4. Would all the changes Ghosh made make sense if Appex were an
engineering organization? Why and why not?
As Appex is essentially a technology-based organization, the
management issues involved in this case are generally applicable
5. What are the lessons to be learned in this case?
Organizational change is one of several powerful tools
managers employ to bring about organizational effectiveness.