HeavyCo is a US-based manufacturer of heavy industrial machinery, including earthmovers, bulldozers, graders, etc., used primarily in the construction and civil engineering sectors. The company began operations in 1969, and has enjoyed mostly positive growth during its first 50 years, with about 90% of their revenue being generated from domestic (US) clients. In the past few years, however, sales to international customers, particularly China, Argentina and Brazil have been increasing rapidly, and now account for 10% of revenues. Overall sales for the company, including international sales, are strong, growing at about 15% annually, and are projected to continue to grow at similar rates for at least the next 6-8 years. Currently, they are organized functionally, and non-US sales have been handled by the US sales departments, with sales staff travelling to foreign locations as required. Clearly their functional and domestically oriented organizational structure needs to be updated.

As COO of the company, what changes would you make to the organizational structure? Give consideration to the impacts on organizational structure resulting from
1. their industry (industrial manufacturing).
2. their various national cultures.
3. other factors you believe are relevant.

For this question, please create

a. A list of the 4-6 most important changes to their current organizational structure, and the supporting rationale for those changes—please use the table below, adding rows as necessary.
b. Two diagrams of the organizational structure—one diagram before, and one diagram after the re-structuring, with all major functions represented. This will require some skill with the software to create the org charts in a way that’s clear and understandable—use Word to create the charts, or considering using Powerpoint, then copying and pasting the results into Word. In any case, please ensure the charts are clear and legible.

Change to Current Organizational Structure Supporting Rationale