Robert is the Chief Executive Officer at Strong Corporation, a 45-year-old engineering firm with long running success in the design and operation of user-pay highway and road systems.In the past three years the senior management team has concluded that Strong Corp.needs to develop completely new business opportunities, but the current structure of the company is too hierarchical and rigid to allow for a new division to flourish under the same roof.The consensus is that the organization needs to create a whole new division with the mandate to be creative and innovative.The new entity needs to be independent of Strong Corp.and, yet, remain somewhat integrated at the most senior levels to ensure accountability.If you were advising Robert on what kind of structure would be best for Strong Corp., what would you recommend? Why would you recommend it?

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Towanada Pettway · Accepted Answer

Final Answer : I would recommend that Strong Corp.begins to move toward an ambidextrous organization.This is one in which a company can simultaneously exploit current competencies while at the same time explore emerging opportunities.It is likely they will need to create a separate legal entity, even in a separate location geographically to be sure the culture can remain as independent as possible.The ambidexterity will start to become important as the new entity is created, and Strong Corp.will have a tendency to want to operate it in the same way as the main engineering business.This is somewhat akin to Saturn Automobiles when GM originally created it.By having some independence coupled with integration at the most senior management level, the combination of organic and mechanistic organizations should be the right solution for Strong Corp.

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