Detroit Electric Essay Example for Free

Detroit electric car Essay1. What organizational structure do you believe is being utilize to produce Detroit voltaic vehicles? Detroit Electric concentrates theirs efforts on research and development of the motor, vehicle design, marketing and distribution. The company does not produce cars the actual manufacturing of cars is outsourced. From the fictional character I conclude that technology design is the core business of Detroit Electric. Technology changes rapidly and therefore Detroit Electric has to be flexible in conditions of change and uncertainty. expert excellence and efficient use of resources is the key to compete and to avoid wastage as the cost of RD is high. Based upon the above observation, I believe that the organizational structure used is the matrix model. 2. How has differing organizational structures influenced the pace of development between these two companies? Ford and Detroit Electric be both car companies. The major difference is that Ford manufa ctures cars whereas Detroit Electric does not. Fords organizational structure will most likely resemble other manufacturers structure, i. e. functional plane sectionalization.A major disadvantage of this structure is that because specialists are working with and encouraging each other in their areas of expertise and interest, organizational goals may be sacrificed in favor of departmental goals hence, the inability to coordinate efforts amongst competing department to achieve the goal of producing electric vehicles. Detroit Electrics matrix structure on the other hand gives the organization the flexibility to respond to challenges faster in conditions of change and uncertainty hence their relative pace (fast)in developing electric cars.3. What issues may arise from this cooperative arrangement of international companies? The first issue is control. How does Detroit Electric ensure that their exact specifications are followed by their licensees? Regular audits will have to be conduc ted and these audits are costly. Who will bear responsibility if problems arise (faulty products) due to blow of any of its licensees do not follow procedures? The second issue is differences in objectives. For example, Detroit Electrics performance and quality standards objectives may differ from their licensees.