CASE PROBLEM 8-A Redesigning the Kellogg Company Kellogg\'s (also referred to as

Question

CASE PROBLEM 8-A Redesigning the Kellogg Company Kellogg's (also referred to as the Kellogg Company) is a giant multinational food company, headquartered in Battle Creek, Michigan. Kellogg's produces a wide variety of well-known cereal and convenience foods. mong these famous brands are Corn Flakes, Frosted Flakes, Rice Krispies, Kashi and Cheez-it. The company's products are manufactured in 18 countries, and mar- CEO & Chalrman John Bryan CFO US Snacks keted in 180 countries Assume CEO and Chairman John Bryant comes to your class and says, "Folks, as you know we produce some of the world's most recognized brands. I bet that every member of your class and the professor has enjoyed a Kellogg cereal or snack at some point in his or her life. Yet, company management is worried. Too many people are eating bagels, toast, or natural goods for breakfast, as well as for other meals. We may have to become a more nimble company. Maybe we should begin with our organization structure. Right now 20 people report directly to me, as shown in the organization chart. Please suggest a simplified organization chart that might help Kashi Company CIO Kellogg Canadia Legal, Dev & Secretary Kellogg North America Breakfast Category us uncomplica te Kellogg." Your job is to simplify the Kellogg's organization structure and chart, perhaps with an eye toward faster decision making in the company. Use the most efficient medium for your drawing, including paper and pencil, APAC Snacks Category lip chart, or computer graphic. Kellogg Europe Supply Chain Case Questions What do you think of John Bryant's span of control? Kellogg Lalin America 2 Why will your new organizational structure help Kel Human Resources logg become more effective? US Research, Quality & Technology Morning Foods US Frozen Foods Marketing us Specialty Channels Sales

Explanation / Answer

1. ) Currently , everyone in the organization reports to CEO and Chairman John Bryant. His span of control is whole organization department starting from CFO to Sales. So it is one man army type organization. For any decision in any areas of organization he has to take decision and there is no hirearchy or matrix type structure.

2.) New Organization structure in which organization will be subdivided into function and function heads.

These function head will report to CEO. It will create more ownership among organization. So, instead of looking and solving each and every problem of organization in earlier structure he can now focus on more strategical decision. This structure will create lean ways of working in Kellog's and will make problem or decision making faster and correct.

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