Mount Cedar Case

Achieving success is always easier than continuing to be successful. A business needs always to be competitive to continue growing, especially in this era because consumers now have many choices, so if a company could not be effective and efficient, it would not be able to provide the best services and products in competitive prices, and it will go out of business in the very near future.

According to Dr. Kenneth Mackenzie, there are two types of organizational problems face businesses. One of them is the observable problems. This type of problems is always a symptom of the other type of problems which are the hidden problems (Mackenzie, n.d). Mount Cedar Technologies is an example of a company that has these two kinds of problems. This company was very small and then expanded to become a big company that sells many products and has many customers. The expansion of the company was not accompanied with development in its organizational structure and culture.

One of the hidden problems that cause other observable problems for Mount Cedar is the fact that the company lacks an organizational structure to improve its operations’ effectiveness. Obviously, the company is not mature enough to adapt with its realized growth and with its new business volume. The lack of the organizational structure causes observable problems like the decentralization of decision making and the loss results from the lack of the coordination between the company departments. Another observable problem appears as a reflection of the lack of organizational structure is the fact that the CEO of the company shows up at the company’s meetings asking questions and expecting to get answers. Such a big company should have a strong information system and periodic reporting to provide information from all the departments to the higher management. This shows how Mount Cedar is still managed like a small company.

The second hidden problem is the emphasis on financial measures in the company. This is the reason causes observable problems like the focusing of the managers on sales and customers and dedicating most