Harvard Case Study: Bausch & Lomb: Regional Organization
The Daniel Gill, the chairman and CEO faces the possibility of changing the organizational structure of Europe, Asia/Pacific, and the Western Hemisphere. The current organization includes an International Division which oversees production and marketing for countries outside the United States. The goal of changing the organizational structure of these three regions is to increase sales growth internationally and decentralize responsibility away from headquarters to field operations.
Case Synopsis Company Background: The company was originally started in 1853 by John Bausch in Rochester, New York. The small store excelled because Bausch discovered
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The benefits of this restructure included increased capabilities and entrepreneurship to local markets. Also, operations were closer to the customer, so their needs were met quicker. In addition, an experienced group of global grew that could lead the company in the future. Also, communication and growth were expected to grow with the implementation of regionalization and the committees. On the other hand, the organization's new structure might not completely address the underlying communication problem. Communication with the U.S. and the regions would occur on an individual basis, which may make decision-making more complex. The committees carried the intense burden of coordinating strategies, so much of the company's success directly rested on their shoulders. There were also culture clashes between these committees, which made the load more burdensome. This makes quick decision making a problem, especially since country subsidiaries continued to grow. As they grew, they resembled the past failed system of the ID. Regional Organization and Marketing Effectiveness: The regional organization was customized to fit each market. The amount of attention needed also varied by region. For example, emerging markets would required more attention, and areas that were geographically distant from the U.S. needed more coordination. By 1992, there were 27 subsidiaries, 6 joint-ventures, and several distributors globally.