Jingle Motors has been experiencing increasing competition from its rivals in the recent years. This has resulted in declining sales and profits for the company in the last two years. In around to turnaround the company, Mr. Kumar has been appointed as the new CEO of Jingle Motors. Mr. Kumar has the task of implementing multi-dimensional changes so as to increase its competitive advantage. Mr. Kumar has decided upon two main changes in order to overcome this challenge. First, he plans to restructure the company from a multi-divisional structure to one in which cross-functional teams will be responsible for developing new car models. Second, he wants to decentralize decision making authority to teams and make them responsible for achieving higher quality and lower costs. a. Discuss the nature of obstacles that Mr. Kumar is likely to encounter in implementing the changes. Which of these is most important to overcome? b. How can Mr. Kumar overcome these obstacles?

Understanding Business
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ISBN:9781259929434
Author:William Nickels
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Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
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Jingle Motors has been experiencing increasing competition from its rivals in the recent
years. This has resulted in declining sales and profits for the company in the last two years. In
around to turnaround the company, Mr. Kumar has been appointed as the new CEO of Jingle
Motors. Mr. Kumar has the task of implementing multi-dimensional changes so as to increase
its competitive advantage. Mr. Kumar has decided upon two main changes in order to
overcome this challenge. First, he plans to restructure the company from a multi-divisional
structure to one in which cross-functional teams will be responsible for developing new car
models. Second, he wants to decentralize decision making authority to teams and make them
responsible for achieving higher quality and lower costs.
a. Discuss the nature of obstacles that Mr. Kumar is likely to encounter in implementing
the changes. Which of these is most important to overcome?
b. How can Mr. Kumar overcome these obstacles?

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