The Research On Organization Structure Of SU Company

Only the structure and the strategy of an organization adapted to each other,the organization can be developed healthily.At least one of them must be adjusted when the two are not comfortable.However,the strategy usually be influenced by the internal and external environment of the company.The study object of this paper,SU company,is the only company in China which can develop memory IC products independently.SU company belongs to a Highly monopolized industry.Before the year of 2008,five large corporations from Korea,America,Germany,and Japan occupied more than 90%of the market share of the world,which included QMD Company,the headquarter company of SU company.But after the Global Financial Crisis of 2008,QMD Company went bankrupt because of capital chain rupture,and thus SU Company was acquired by Chinese assets and became a Chinese company.Its corporate function also increased and became a comprehensive company integrating R&D,production,sales and other functions.However,after SU Company was transferred to the Chinese enterprise,it has not been effectively integrated and revitalized.Because of its small company scale,its market share in the total share is negligible.And it's week profitability has not been improved during recent 7 years.Furthermore,because of the dependence on OEM,SU Company also lacks the ability to control its product quality.There are many problems in the company now,such as low employee motivation,unreasonable allocation of human resources,incomplete formulation and process,low efficiency of operation and communication.These problems arise mainly because of while the internal and external environment of the company has changed dramatically,and the company's strategy has also been transformed from a cost leadership strategy to differentiated strategy.However,its organization structure was not adjusted correspondingly.SU Company only made delicate modification on the basis of the old organization structure,added some departments for new functions,thus the old organization structure lost efficacy gradually.Under the guidance of relevant theories such as domestic and foreign strategy,organization and organization structure,the strategy and organization structure of SU Company was analyzed,while the situation variables affecting the organizational structure were also analyzed.Then a functional matrix organization structure which can meet SU company's development strategy were obtained.Departments has been adjusted,including:add Production Purchasing Department and Quality Department,Human Resource Department will be changed to Human Resource and Administration Department,weaken the management of Product Design and Product Testing attributes,enhance their professional attributes,Product Department will be combined closely with Marketing and Sales.Responsibilities of departments and key posts have been defined,including Product Department,Marketing and Sales Department,Finance Department,Human Resource and Administration Department,Strategic Cooperation Department,Product Design Department,Product Testing Department,Production Purchasing Department,Quality Department.The key business processes that were not perfect were redesigned,including product sales,production purchasing,accounting,capital expenditure,budgeting,and performance assessment.The research of this paper is providing an organization structure which is adapt to its development strategy in the next several years.It will help SU company to seize the current opportunity while Chinese government is fostering memory IC industry,and to break the monopoly of foreign countries,and will also help SU company to get its own great-leap-forward development.Moreover,the research ideas and research methods of this paper can also provide reference for the development of other chip industry companies.