Dynacorp Case Analysis Essay Example

customers made the company vulnerable. Because the product division structure creates the transparency of performance, costs and profits of each product is clearer than the functional structure.

Each division performance will be monitored closely and the costs or profits of each product will be clear for the Dynacorp management. Thus, with the product division structure, Dynacorp can control and reduce the high costs. In addition, product division structure provides the managers the clear strategic focus. Thus, the managers can know how to manage and direct their employees to the company’s goals. When the managers has the clear strategic focus and manage their employees in line this focus, Dynacorp can meet the value-added demands of customers.

On the other hand, one of the reason of these problems is that the devisions don’t understand each other. At the product division structure, the people in the group perform a variety of different task such as engineering, manufacturing, and marketing. Because the people who have different background work together and understand each other, they will focus on a product process instead of division’s benefits. Therefore, each division will generate the new products based on the customer needs in time and in the properly way.

Although the product division structure may cause some new troubles, the Dynacorp top managers can handle them. Because some of managers employees want to maintain the current structure, they can resist the new structure. Also, the functional experts spreaded across different groups and divisions can lose their professional abilities. Because they will work with the people having different professional background, they may trouble to conform the new situation.