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Organization Design Assignment – Structure

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Running head: Simulation Activity: Part 1
1. Functions of the Organization and Five Design Criteria
Lexcon Company is a manufacturing company that focuses on building microchips for
plants and electronics design in the USA. The company has a national wide geographical
coverage where it has based its operations, including manufacturing microchips and selling them
to its customers. The company has employed 25,001 – 100,000 employees. This large number of
employees enables it to facilitate its services in all its branches and satellite offices all-round the
country. Lexcon Company also has very high cash and excellent financial position.
Additionally, the company has a high capability of developing its own products through
conducting more research and designing new products for its targeted consumers. However, the
company has a low capability of maintaining its operations, including manufacturing, logistics,
information technology, and customer support. More so, the company has a moderate to high
capability of acquiring and retaining its customers.
Five Design Criteria
The organization focuses on producing microchips that are used in the production of
plant machinery, electronics, and computer hardware. The company participates in creating
research forums and spearheading the design and testing of new microchip technology invented.
The company also participates in the production of electronics in the country. Lexcon Company
has a five organization structure which includes; a functional structure with manufacturing,
production, finance, human resource, marketing, and customer care sectors, a division structure
with departments designed to meet their organizational output, a matrix structure combining both
functional and divisional structures of the organization, a team structure comprising of cross-
Running head: Simulation Activity: Part 1
functional teams, and a network structure to help managers keep track of all the business
operations of the company.
2. Organization’s Products, Markets Involved, and Customers
With its high financial capability, the company operates in the stock exchange market,
where it has listed its shares and equities. The company participates in the nation’s capital market
authority. Lexcon company’s customers are electronics assembling companies operating at the
middle level and are located in different regions within the USA. The company acts as the
leading information supplier to other microchip manufacturing companies, including Analog
Devices and Microchip Technology companies. The company is also a recognized center of
Science and Technology in the US, where researchers, private and government institutions refer
while conducting their own technological researches.
3. Location of Organization
The organization’s headquarters are located in Texas, which is the country’s capital city.
Its main offices are situated very near to its plants. Other sub-offices are located within its
manufacturing plants distributed within the country. The company thus has a low capability in
facilitating its operation activities since no logistics or transportation costs are incurred from the
manufacturing plants to the offices, and its warehouses.
4. Organization’s Competitors and Strategy
The company faces competition from other microchip producing companies, including
Intel Corporation, Nvidia, Texas Instruments, Micron Technology, Analog Devices, Microchip
Technology, Skyworks Solutions, Inc., and Maxim Integrated Products. Intel Corporation is the
Running head: Simulation Activity: Part 1
main competitor of Lexicon Company in America. According to Curry and Donnellan (2012),
Intel Corporation applies the generic strategy of product differentiation, which in the porter’s
five forces focuses on having a competitive advantage resulting from the features of its products,
customer service, and image management of its brand. Lexcon Company is different from this
company as it focuses on the supply advantage. With its high financial power, Lexcon focuses on
the mass production of microchips. Lexcon produces microchips in large quantities compared to
Intel. These products have advanced features and better prices which help improve its customer
care services. The company also ensures that it has an advanced feedback collection platform
which helps it improve its supply and quality standards.
Running head: Simulation Activity: Part 1
Anderson, D. L. (2019). Organization Design Creating Strategic & Agile Organizations.
Thousand Oaks: SAGE Publications, Inc.
Curry, E., Guyon, B., Sheridan, C., & Donnellan, B. (2012). Developing a sustainable it
capability: Lessons from intel’s journey. MIS Quarterly Executive, 11(2), 61-74.

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