9-1: Organizational Structure and Culture What to Submit To complete this project, you must submit the following three items: I. Innovation Approach Presentation Submit a 10- to 13-slide PowerPoint pr

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9-1: Organizational Structure and Culture

What to Submit

To complete this project, you must submit the following three items:

I. Innovation Approach Presentation

Submit a 10- to 13-slide PowerPoint presentation with detailed speaker notes that highlight the important points you want to emphasize to senior management on your recommendation for an innovation approach. Use the feedback you received on Milestone One to revise your original presentation. If you include references, they should be cited according to APA style.

II. Strategic Plan Report

Submit a Word document of 5–8 pages, devoting 1 page to each critical element described above in Part 2 along with an introduction and a short executive summary. Use the feedback you received on Milestone Two to revise your original report. Sources should be cited according to APA style.

III. Organizational Structure and Culture Report

Submit a 5- to 8-page Word document using 12-point Times New Roman font, double spacing, and one-inch margins. Sources should be cited according to APA style.


You work as a middle manager for one of the top U.S. producers of luxury and mass-market automobiles and trucks.

The chief technology officer (CTO) of the company from the course scenario has been watching new technology developments that the company could integrate into its vehicles to enhance the usefulness of and access to the data acquired by the many digital sensors that have been integrated into vehicle subsystems over the past 20–30 years. The technology trend of particular interest is the internet of things (IoT)—the interconnection of embedded devices, such as sensors and computers, over the internet. By taking advantage of this trend, the CTO believes the company can seize an opportunity to provide better service and predictive maintenance to its customers, improving customer satisfaction and adding additional revenue streams.

Based on briefings by the CTO, senior management has decided to implement IoT in its product line. Your CTO has asked you to lead a cross-functional team to take this initiative forward. The recommendation you and your team make is Add new technology features into one model and then incrementally into the broader product line (incremental innovation).

In Milestone One, you and your team defined what that innovation looked like:  incremental (new features in one existing product)

In Milestone Two, you developed a strategy plan and a high-level business model. You’ve shared these with various stakeholders, and they are in agreement with your assessment of how best to get to market with this IoT innovation, which will allow the company to be competitive.

Now, the CTO has asked you to come up with a proposed organizational structure that will support the innovation implementation. In this way, you will be assisting in making the innovation sustainable for the company from the course scenario. Companies that are innovative must make sure they have structured the organization in a way that supports innovation, and a key component of innovation is keeping track of what their customers want in terms of products and services.


Complete each of the three parts of this project. Use your slides from Milestone One, your document from Milestone Two, and feedback on Milestone One and Milestone Two to complete the first two parts of your presentation. You can use the resources in the Supporting Materials section (below) for any other information you will need to complete your project.

Part One: Innovation Approach (See milestone one attachment)

In this section, share your revised slides from Milestone One and make your recommendation for the innovation approach you think the company should pursue. Ensure this section includes the following information:

  1. Explain potential risks and benefits for options A and B.

    • Overview (1 slide): Present the business problem and options A and B.
    • Option A (1–2 slides): Explain at least two potential risks and benefits for option A.
    • Option B (1–2 slides): Explain at least two potential risks and benefits for option B.
  2. Compare your competition’s products and services.

    • Competitors: (3–4 slides): Evaluate the competitors’ current products and services.

      • What are your competitors’ current products and services?
      • Are your competitors expanding in the current market? Explain how this impacts their market strength.
  3. Analyze your company’s capability to pursue the innovation.

    • Complete a partial gap analysis (2 slides):

      • Does the company own the technology, or does it need to be purchased?
      • How is the technology currently being used in today’s products and services?
      • What type of technology is available to purchase?
  4. Recommend the innovation approach your company should pursue.

    • Innovation Approach (2 slides): Explain which innovation approach you are recommending and why.
    • Consider the different stakeholders (research and development [R&D], marketing, finance) while communicating your recommendations.

      • Include a description of the incremental or discontinuous product that you are recommending for R&D.
      • Include the sales forecasts for marketing.
      • Include a financial snapshot for finance.

Part Two: Strategic Plan (see milestone two attachment)

In this section, share your revised paper from Milestone Two, which provides an overview of your competitors’ position in the marketplace, the available and future marketplace, and a plan for how to address a change in business conditions. Ensure this section includes the following information.

  1. Analyze the competitors’ relative strengths in the marketplace. Use Power BI to create charts on the growth rates.

    • What is the growth rate of each competitor?
    • How much of the market does each competitor now own? Do you see a trend of gaining or losing market share?
    • Determine each competitor’s market strength by looking at the financials for each competitor.
  2. Explain how your company’s market share compares to your competitors’. Use Power BI to create charts on your and your competitors’ market share.

    • Is your company gaining or losing market share?
    • What is your company’s growth potential in the industry?
    • How do your company’s financials look compared to your competitors’?
  3. identify future potential total available market (TAM) and growth for chosen product/service and technology.

    • What is the TAM for cars and light trucks?
    • What is the TAM for IoT-connected cars and light trucks?
    • What is the projected compound annual growth rate (CAGR) for cars and light trucks?
    • What is the CAGR for IoT-connected cars and light trucks?
  4. Identify ways to adjust if business conditions change.

    • What can you do if your customers are slow to respond (buy) the innovation?
    • What can you do if one competitor is overtaking all the others, including you?
  5. Describe the steps your company needs to take from concept outline to launch.

    • What is the size of development that will be required?
    • Will you require additional capital and personnel?
    • How would you approach determining the timeline from the beginning of development until initial product launch?

Part Three: Organizational Structure and Culture Report

Based on your analysis of the organization’s structure and culture, share recommendations for changing its structure and culture to be more conducive to innovation.

  1. Describe the current organizational structure’s impact on innovation.

    • How does your company’s organizational structure support innovation?
    • How effective is the current structure in addressing changes in market demand?
  2. Recommend changes to the current organizational structure.

    • How does the new structure support innovation?
    • How will your recommended changes make the enterprise more responsive to market demand?
  3. Explain how organizational changes support a culture of innovation.

    • In what ways does the current culture work against innovation?
    • How does the new structure support a culture of innovation?

9-1: Organizational Structure and Culture What to Submit To complete this project, you must submit the following three items: I. Innovation Approach Presentation Submit a 10- to 13-slide PowerPoint pr
Milestone Two: Strategic Plan 1 Milestone Two: Strategic Plan Jacqueline Campbell MBA 580 Dr. Jeffries Southern New Hampshire University October 1, 2022 Strategic Plan Introduction Our organization’s management has resorted to utilizing incremental innovation to grow the company’s revenues. The next step is to develop an effective strategy to implement the invention. This demands that we analyze the relative strengths of our competitors and get a glimpse of our stance in the market. We must also look at the growth rate predictions and the available market. Our Organization’s Competitors’ Relative Strengths in the Marketplace Relative Strength and Growth Rate This section highlights the current market share for our organization compared to our competitors. Figure 1: Market Share Percentage for Cars and Trucks Now Figure 1 above shows the current market share of our organization’s main competitors for cars and trucks. VW holds the largest market share, that is, 8.76 percent, followed by Toyota (8.53 percent), then our company (5.80 percent), and lastly BMW (3.91 percent). Our company stands at the third position in the local market share. Now let us look at how the market share will appear in 2030 (See Figure 2). Figure 2: Market Share Percentage for Cars and Trucks in 2030 The chart above indicates that the market share for our company is going to decline from 5.80 percent to 5.28 percent in 2030 (a deviation of -0.52 percent). This means we must act promptly to grow our market share and gain a competitive edge over our primary competitors. Even though BMW and Toyota’s market share will likely decline, VW’s market share will probably increase slightly. The global market share is projected to grow from 78.74 percent to 79.07 percent (a marginal increase of 0.33 percent) by 2030. This means that our organization could lose out market share to our competitors by approximately 0.3 percent in the coming years. For our organization to avoid losing 0.52 percent of its market share, it needs to strategize effective ways to address any issues causing this decline. Now let us look at the market share for connected cars currently and in 2030. Figure 3: Market Share Percentage for Connected Cars and Trucks Now Figure 4: Market Share Percentage for Connected Cars and Trucks in 2030 Comparing the above two charts, it is arming that our organization’s market share for connected cars and trucks will most likely drop from 7.10 percent to 1.98 percent (a deviation of -5.12 percent) by 2030. Even though our competitor’s market share for connected cars and trucks will also reduce, the margin is smaller; hence they will maintain their market share. The two charts indicate that the global market layers will grow their market share for connected cars and trucks from 74.35 percent to 78.82 percent. This implies that if our company does not take immediate action, it will lose 5.12 percent of its market share if these predictions are accurate. Financial Strength Next, we will analyze the financial strength of our organization compared to our competitors by looking into the comparative operating data. Figure 5: Financial Strength of Each Player The figure above compares the net and operating income in terms of percentage revenue for our company and its main competitors. There is a significant gap in the total revenue that our company can convert to net income compared to our competitors. When we analyze the revenues for the four companies, our organization comes at number three but the last in net income. However, our company can enhance its financial strength since there is room for growth in the market. Now let us look at the four companies’ shareholder equity, liabilities, and assets. Figure 6: Comparison of Assets, Shareholder’s Equity, and Liabilities Figure 7: Comparison of Current Ratio Each player’s operating efficiencies’ losses are shown in their current ratio, shareholder’s equity, liabilities, and assets. Our company’s liabilities (270.2 billion dollars) and support (310 billion dollars) have a slight marginal difference. Figure 7 shows that our organization has the lowest current ratio (1.147) compared to other players in the industry. This is also alarming and calls for the company to take action to improve the situation. For instance, Toyota appears to have the highest ability to convert its revenues effectively to profits since its current ratio stands at 1.649. Total Available Market (TAM) and Growth Rate This section analyzes each company’s growth rate in the next ten years. Figure 8: Cars and Trucks Projected CAGR Over the Next 10 Years Figure 8 shows that our company’s growth rate is slower compared to our key competitors. The organization is projected to grow at a rate of 3.10 percent. However, VW is the fastest growing company with a projected CAGR of 4.30 percent, which is also higher than other global players predicted to develop at a rate of 4.10 percent. This means that VW would most likely maintain its first position in the market as a worldwide leader. Next, we will analyze the growth rate for connected cars and trucks (See Figure 9) Figure 9: CAGR Over the Next 10 Years Figure 9 shows that our organization is expected to grow at a lower rate of 10.20 percent. Our competitors will grow at a rate of 25.50 percent (BMW), 24.80 percent (Toyota), and 23.20 percent (VW). Nonetheless, BMW has a remarkable growth rate since it is higher than Global Players, whose CAGR is 25.20 percent. Generally, there are significant future potential growth opportunities and total available markets (TAM) for the commodities our company provides. Therefore, in the coming years, we intend to incorporate new features, including assisted driving, a wholly integrated information system, semi-autonomous vehicles, and IoT. Currently, our company is marketing its ability in connected cars; hence, it must embrace rapid innovations since it has a slower market growth rate and is also not among the prominent leaders in the automobile industry. Therefore, it is recommended to launch connected cars to achieve a competitive edge in the industry. Strategies to Adjust if Business Conditions Change In case our clients become slow to buy or respond to the new products, we will strategize ways to maintain the attention of our customers. Humans value consistency, and since our organization will embrace incremental innovation, this will help create a positive attitude among the organization’s clients. Besides, the company is constantly launching new products. Thus, clients will remain interested in our new features and models. We will also use social media for marketing the product before and after the launch effectively. This will help our clients respond swiftly to the new launch. We could also create a reward or loyalty program to help customers access discounts or have free mechanical services when they purchase our automobiles. If a competitor is overtaking our organization or other companies, we will adjust our prices and create friendlier prices to attract more customers. We will invest heavily in market research to analyze what strategies the market leaders have adopted to maintain their position in the market and also research what customers require and expect from autonomous automobiles. The company will also conduct surveys on its targeted customers to establish their needs. Next Steps To convert the concept to launch, our organization must develop intensively to accommodate the new connected cars. This will also require additional personnel (for research and development) and capital to realize its innovative plans and successfully launch the product. However, we will satisfy the needs of our customers with our existing capabilities and expenditure to achieve a competitive edge. The approach we intend to use from the beginning of the project to its launch is incremental innovation. We will introduce new product features at every stage and obtain feedback from our customers to ensure that the final product matches their expectations. Our company will also combine Agile and Stage-gate processes in launching the final product. Conclusion The analyses above indicate that our company needs to invest extensively in its capabilities and focus on increasing its operating efficiencies to fasten its innovation process. The company is also expected to maintain its market share in the coming decade. Nonetheless, the deviations in the figures call for immediate action so that the company does not lose its market share and competitive edge. Our company also needs to advance by taking advantage of innovations and improve on its efficiencies. Besides, it is a great idea to accelerate the entire procedure from only an opinion and launch newer models of automobiles to meet the needs and expectations of consumers.
9-1: Organizational Structure and Culture What to Submit To complete this project, you must submit the following three items: I. Innovation Approach Presentation Submit a 10- to 13-slide PowerPoint pr
MBA 580 Chief Technology Officer (CTO ) Brief Over the past three decades, sensors have been increasingly integrated into automobiles. Currently, a typical car has 50 –100 sensors (Tyler, 2016) , and this is expected to grow to as many as 200 over the next few years. These sensors measure everything from oil levels to the distance from the car in front . These sensors currently connect (Computers in Your Car , 2018 ). These computer sys tems can warn of a collision or an engine problem and communicate the condition to the driver ( e.g., turn on the check engine light). Increasingly, these computers are connected wirelessly via the internet to other computers , like the user’s phone for things like remote starting, and to the manufacturer to help generate predicti ve maintenance recommendations. The commercial term currently used for this is connected cars . Technically, this is part of the internet of things (IoT) concept —where device s from refrigerators to door locks are connected via the internet for convenient access by the user from phones, computers, and personal automobiles. Currently, and in the immediate future, connected cars will help the driver navigate, find the cheapest ga s station, locate the nearest Starbucks or parking lot with open spaces, and allow friends on social media to know when their friend will arrive . As more semi -autonomous driving features are added over the next few years, these wireless computers will also talk to other cars to help predict their next move and communicate to road se nsors to monitor conditions (Gossett, 2019) . Eventually, enough information will be provided to and from the connected car that autonomous driving will become commonplace. It is estimated that the market for IoT -connected cars will grow from $54 billion in 2019 to over $510 billion by 20 30 at a 25 % compound annual growth rate (CAGR) (Meola, 2020) . This compares w ith an overall industry growth of 4. 1% (The Global Automotive Motors Market Size Is Projected to Grow from USD 20,321 Million in 2020 to USD 25,719 Million by 2025, at a CAGR of 4.8% , 2020) . Our company is marketing some connected car capability —but we are not the leader. We need to innovate so that our products can be competitive in the rapidly growing market. Our cars have sensors and computers, and our technology expertise is competitive. We have some connectivity —driver apps for keyless start and OnStar (The Benefits of OnStar | Keeping You Safe and Secure , n. d.) connectivity to detect accidents and alert first responders . Our growth and ultimate health as an enterprise depends on us taking the leadership or, at least, keeping up with the leaders. Furthermore, there is significant opportunity to improve our cus tomer satisfaction and increase our repair and parts revenue streams by alerting customers to needed maintenance before an expensive breakdown occurs on the road. With our current technology implementation plan, however, we expect to grow at 3.1%, abo ut 1% less than the industry . Our growth projection for connected cars is 10.2% —less than the industry at large . We must speed up our innovation o r risk losing market share. Here is what we estimate our competitors are doing and how fast they are adding technology . The leader among existing auto manufacturers is BMW . BMW cars have significant connectivity to information services now. Some driver -assist functions, such as auto -parking and lane -keeping , have been in BMW models for several years. Market rese arch suggests that BMW will have a full suite of information connectivity in their cars within several years and that the company will begin producing fully autonomous driving machines within 12 years . Toyota has fully integrated social media in Japan and expects to implement it in European and U .S. markets, subject to 5 G wireless availability. Volkswagen is about where we are — but has partnered with Microsoft to jump ahead. Competitors from outside the traditional automobile manufacturers are also indicating that they intend to enter the connected car market with disruptive technologies. Apple, for example, is aiming for a fully autonomous delivery vehicle by the mid -2020s and an autonomous passenger car within a decade . Our goal is to launch an au tonomous vehicle following quickly after BMW, our main luxury competitor . However, we have a long way to go. We are considering two ways to get there : A) Introducing a radical innovative design in several years or B) Introducing incremental improvements faster than we have in the past and improving ou r current models each year . Option A does not prevent us from continuing to introduce incremental improvements in the interim. Our approach will depend on your analysis of our capabilities to innovate . H ow can we get the technology being researched in our lab ready —how can we develop it, produce it, and take it to market ? What technology do we already have , and what will we need to acquire? What are our competitors doing , and are there weak nesses we can exploit ? The two paths we can take are discontinuous or radical innovation , or incremental innovation . What do I mean by this?  Discontinuous or radical innovation. This would be more expensive —a completely new model is expensive —as much as $6 billion (Viswanathan, 2013). A major redesign and recent technology integration are also riskier to develop — we might fail —and it would take longer to get to market. We might require enough of our existing resources that we could fall behind with our current models, but it also might provide insight in incremental changes to current models while we developed a major new product line. It is a lot to think about. That said, we could take the leadership position ourselves in the growing market and better protect ourselves from competitors . If we took this path, we would first introduce a new high -end model and, as we brought costs down, rapidly deploy it across our whole product line, using this innovation process to accelerate our ability to innovate.  Incremental innovation. The automobil e is a mature technology —the modern automobile is over a century old and it has been changing and adapting over that time. Our company does incremental innovation as well as our major competitors and the costs are built into our way of doing business . Give n how we build automobiles today, we can continue to add sensors, computers, and IoT capabilities each model year just by upgrading modules . There are risks, though: 1) Could changes in the market impact what customers demand ? A faster competitor or a new entrant could produce a breakthrough in automobiles that makes everything else obsolete . It has happened in other mature industries —could it happen here ? 2) Are we missing significant new opportunities (e.g., market growth overall or opportunities in integrated maintenance , service revenues and parts , or a high -margin business ) that we do not control now? Reference s: Tyler, N. (2016, December 14). Demand for automotive sensors is booming . Newelectronics.Co.Uk. https://www.newelectronics.co.uk/electronics -technology/automotive -sensors -market -is- booming/149323/#:%7E:text=Currently%2C%20each%20vehicle%20has%20from,car%20b ased% 20on%20current%20trends Computers in your car. (2018, January 24 ). AAMCO Colorado. https://www.aamcocolorado.com/computers -in-your – car/#:%7E:text=Your%20Car’s%20Computer,controls%20to%20meet%20emissions%20standard s Gossett, S. (2019, August 13). IoT i n vehicles: A brief overview . Built In. https://builtin.com/internet – things/iot -in-vehicles Meola, A. (2020, March 10). How 5G & IoT technologies are driving the connected smart vehicle industry . Business Insider. https://www.businessinsider.com/iot -connected -smart – cars?international=true&r=US&IR=T The global automotive motors market size is projected to grow from USD 20,321 million in 2020 to USD 25,719 million by 2025, at a CAGR of 4.8% . (2020, August 17). PR News wire. https://www.prnewswire.com/news -releases/the -global -automotive -motors -market -size -is- projected -to-grow -from -usd -20 -321 -million -in-2020 -to-usd -25 -719 -million -by -2025 –at-a-cagr – of-4-8-301113089.html#:%7E:text=%2F%3Futm_source%3DPRN – ,The%20global%20aut omotive%20motors%20market%20size%20is%20projected%20to%20gro w,at%20a%20CAGR%20of%204.8%25.&text=The%20growing%20adoption%20of%20these,dem and%20for%20safety%20and%20convenience The benefits of OnStar | Keeping you safe and secure . (n.d.). OnStar. https://ww w.onstar.com/us/en/why -onstar/ Viswanathan, B. (2013, May 7). Why are cars not getting cheap even with better economies of scale? Forbes. https://www.forbes.com/sites/quora/2013/05/07/why -are -cars -not -getting -cheap – even -with -better -economies -of-scale/?sh=3ad2b1045ad9
9-1: Organizational Structure and Culture What to Submit To complete this project, you must submit the following three items: I. Innovation Approach Presentation Submit a 10- to 13-slide PowerPoint pr
MBA 580 Organization Overview (Processes, Structure, Culture) Your company manufactures and distributes automobiles across six continents. The structure is very complex and it is difficult to accurately count the levels of hierarchy. The company operates under a tall matrixed structure design. Tall structures can be cumbersome, and decision makers are often those farthest from the customer. Communication can be slow and difficult, also slowing down decision -making speed. The specialized functions and organizations, often referred to as centers of excellence or center s of expertise (COE), allow for deep knowledge and expertise. Your company has many functional COEs where increased structure, governance, and control allow for resource and process efficiencies. Resources are centralized, reducing duplication of effort ac ross the organization. These efficiencies can, however, result in rigid, inflexible processes. In addition, COEs can create functional silos or reduced cross – functional coordination and lack of connectedness, where each function is striving toward its own unique objectives. Your company follows a centralized and standardized approach where enterprise -wide decisions are often made centrally and at the top of the hierarchy. This centralization makes it easier to implement common policies and practices, preven ts parts of the organization from becoming too independent, and capitalizes on specialization. Matrixed organizations are often associated with this specialized COE structure. Rather than having permanent cross -functional teams or organizations working on specific projects or product launches, matrixed organizations pull teams together from the various functional departments. Specialists are pulled from functional areas to work on a specific project or product design. In essence, they report to two managers at the same time and may work on multiple projects simultaneously. Although the project manager, who is on the same leadership level as the functional vice president (VP), supervises the project, the true management authority still resides with the VP. Sp ecialists supporting specific product launches generally remain “seated” with their functional team but meet regularly with their product team to advance the project. They may be fully dedicated to the project or still work on other unrelated projects. Fin ally, product teams are pulled together at the enterprise level and are not region -specific. Although they may produce differentiated projects for unique regions, their primary focus is on enterprise -wide initiatives. Organization Structure Chart Product A Product B Product C Functional VPs: Project Manager Project Manager Project Manager Design Technology Hardware Electronic Systems Safety Engineering Sustainability Quality Strategy Finance Procurement Marketing Specialists are pulled from functional area to work on specific project or product design. In essence, they report to two managers at the same time and may work on multiple projects simultaneously.


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