21 May HOW WOULD A MOVE TO OUTSOURCE CORE MANUFACTURING PROCESSES TO MEXICO CHANGE THE CULTURE OF THE ORGANIZATION?
MRA Associates believes that acquiring Xecodynamics will give the firm a distinct advantage in the highly-competitive environmental remediation industry because the acquisition will enhance the image of MRA Associates as a technological innovator. Xecodynamics covets MRA Associates’ client list as high value potential customers. MRA Associates believes that the addition of products will provide a new profit stream and a platform for the technical experts at MRA Associates to create innovative new products which can be manufactured in-house. The current venture capital owners of Xecodynamics believe they can make major changes in the profitability of MRA Associates, once they join the management team.
Paper Part Two:
1. Describe the organizational structure of Xecodynamics. What are the advantages and disadvantages of the current organizational structure? If Xecodynamics remains a standalone company, what indicators will signal to the leadership team that a change in organizational structure is necessary for the firm to continue to grow and prosper?
2. If MRA Associates purchases Xecodynamics, what kinds of challenges will the management team face in restructuring the organization to accommodate Xecodynamics staff and operations? What kinds of resistance to change are likely to be encountered as Xecodynamics is incorporated into MRA Associates? What cultural implications can be expected as a result of the merger of the two companies?
3. MRA Associates believes that at least part of the manufacturing currently taking place at Xecodynamic’s facility in San Diego, California could be outsourced to Mexico to take advantage of the lower wages and costs of doing business across the border. How would a move to outsource core manufacturing processes to Mexico change the culture of the organization? What are the ethical considerations that would come into play in making an outsourcing decision?
4. If MRA Associates purchases Xecodynamics, the management dynamics of the firm will change as the current owners and managers of Xecodynamics, all of whom are interested in sharing power and control in the merged company, are incorporated into the firm. How will structural and cultural changes in the merged company affect the relative power of both the existing managers in MRA Associates
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