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The Paradoxical Twins:

Acme and Omega Electronics


Highlights

Division of Technological product into Acme and Omega electronics.


Acme and Omega produced similar products and offered similar services.
Annual sales:
Acme-$ 10 million
Omega-$ 8 million.
Both the firms got a contract from one of the major photocopy manufacturers to
assemble the memory unit.
Upon submission of prototypes by both companies, 10 of Acmes final memory
units were defective whereas no defectives were found in case of Omega.
Reducing final cost and maintain zero defects was the main directive.
Entire contract awarded to Acme due to its effective cost cutting.
Brief about Acme and Omega
Acme Omega
Retained its original management and Hired a new president.
upgraded its general manager to president.
Emphasis on cost cutting and efficiency and Emphasis on teamwork, communication and
not on quality of products. quality of products.
Regularly achieved greater net profits than Less net profits than Acme.
Omega.
Detailed organisational chart. Doesnt believe in organisational charts.

Formal way of communication and clear cut Informal communication.


defined responsibilities.
Organisational structure: Acme

Mechanical structure
Clear cut defined rules and regulations
Centralised decision making power
Vertical communication
Lack of team cohesion and domination by top management.
Organisational structure: Omega

Organic structure
No clear cut rules and regulations
Decentralised decision making
Strong horizontal communication
Effective teamwork
Key Issues

Acme Omega
There was no internal communication. No proper rules and regulations

Less focus on quality of products. Wastage of time in filling in people who


didnt contribute to the problem solving.

No importance given to lower and Lack of hierarchy and thus no clear


middle management in decision making authority and responsibility for an
process. employee.
Recommendations
Acme
Innovation should be encouraged.
More empowerment of lower and middle management.
Internal communication should be improved.
Product quality should be enhanced.
Omega
Clarity in terms of allocation of tasks to individuals.
Reduction of costs by streamlined business processes.
Have some hierarchy for clear authority and responsibility.
Adoption of mixed organisational structure, i.e., mix of both mechanical and
organic organisational structure.
Conclusion
Entire contract was awarded to Acme as:
Acme decided to run a tight ship and reduced costs by 20%.
placed lower bid initially
better market standing than Omegas due to greater sales and profits
benefits of large scale production
Thank You