Nordstrom Case Study Essay

consequence 1 In the 1990s, Nordstrom had half-dozen co-presidents who were half dozen cousins belonging to the familys fourth generation. tot aloney vi cousins took decisions jointly on study issues concerning the railway line. Thus, it was necessary that all six co-presidents suit on a decision or a plan for it to be acted upon. This was kind of a difficult task as all of them often had differing opinions. Due to this many some other(prenominal) decisions were delayed or met with resistance by one or the other fragment.These six co-presidents were comp atomic number 18d to a multi-headed hydra. Dismantling the hydra would s go past conflicts on future decisions and would as well as enable decisions to be taken quickly. It volition also vest the ownership for the decisions onto one person. It will also enable a family member to be groomed for possibly tether the company one day. The possible disadvantages of level the hydra is that the six co-presidents could stoma ch all contributed their make loveledge and experience and have arrived at a better more certified decision. If equal power is vested in six people at the top, it enables them to share the workload. rejoinder 2 Creating departments around products will take a shit independent profit and loss units for each(prenominal) product. The members of each department will have expertise on their products. They will know how to procure those products and effective gross revenue and market techniques to sell those products better. This will narrow drink their focus and they will concentrate further on the product that they are sell and will gain expertise on how to sell it crush. The possible disadvantages of creating departments around products are that the employees will not have a complete picture of the entire business and where they stand. If in future, they are moved to another department, they will have to gain selective information about that product from scratch.Answer 3 The following changes prompted the move from mechanistic to primitive organization. In the 1990s, the company met with stiff challenger from its competitors. Its sales began to plateau. Its net income fell 2% and sales edged up only(prenominal) 1.9%. In the stores that had been open for a year, its sales dipped 1.1% after a 2.6% trim down the prior year. Nordstroms shares fell from a 1999 high of 44 3/16 to under 20 in February. The customers and outsiders complained that top executives spent more time in seeking consensus of all co-presidents on issues and this was a reason for Nordstrom being slow in presenting new fashions for sales.Answer 4 In designing an organization to manage change, an additional structural change that Mr. Whitacre should consider is to bring a competition among the departments. In this quarterly competition, the department that has the best sales and net income should be the winner and its members should be abandoned some incentives. They should be ask ed to share the best practices with the other departments in order to ease them manage change better. Employees should be turn regularly from one department to another.