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Nadler-Tushman Congruence Industrial Services of America

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BACKGROUND

Each of the diagnostic models presented in Module One had particular strengths and weaknesses. The Nadler-Tushman Congruence Model is particularly strong in terms of Inputs. Therefore, for this part of the case, you are to analyze the Key Inputs of Industrial Services of America, Inc.

From the reading you will see that there are four input categories:

Environment (factors external to the organization)
Resources (factors internal to the organization)
Organizational history (Persistent Traditiona)
Strategy (goals, objectives and strategic initiatives)
You will see that the Key Factors in the first three input categories should support and integrate with the Strategy Input factor.

REQUIRED READING:

Start by reading the article by Nadler and Tushman which can be found here: http://www.cumc.columbia.edu/dept/pi/ppf/Congruence-Model.pdf
Again, read pages 35 to the top of 43. This will tell you how to go about completing an analysis of Key Inputs.

Refer to the assigned and optional readings in the background for this module.

The purpose of a Case is to show that you have thought critically about the subject matter that you are learning AND to make an argument for a Claim about the specific situation.
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REQUIRED:

Make a Case for one of the following propositions: The inputs at Industrial Services of America, Inc. consisting of Organizational Environment factors, Internal Resource factors, and Historical Tradition factors, [highly support, partially support, or do not support] the companyâ??s mission. (Choose the level at which the Strategy is supported by the other factors.)

Make a Case for which OD model you think is the best for doing an OD analysis for Industrial Services of America, Inc., based on several current issues the company is facing. There are several parts to this assignment.

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Solution Summary

Illustrates the Nadler-Tushman Congruence Model using a case study of the inputs of Industrial Services of America. The applicability of ISA's corporate strategy are critically assessed in relation to the its inputs. Focuses on Michael Porter's basic corporate strategies, and Steven Falletta's summary of organizational diagnostic models, specifically the Nadler & Tushman model. 1425 words in APA format with 6 references. Also attached as a PDF.

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Introduction

The inputs at Industrial Services of America, Inc. (ISA) consisting of Organizational Environment factors, Internal Resource factors, and Historical Tradition factors, highly support the company's strategy. While the ultimate purpose of for-profit enterprise is the singular pursuit of increasing profits, the business strategies employed are legion. Nadler and Tushman (1980) illustrate business strategy as the active link between organizational inputs, and its internal value generating mechanisms. Figure 1 summarizes the Nadler and Tushman model of an organization, and while a business strategy must be a highly complex, ever evolving element in reality, it will be treated as illustrated-a one-way bridge between an organization's inputs and its internal operations. In this way, an analyst is able to focus on the givens of input, building a picture of how these constants add up to the strategy employed.

Industrial Services of America-Strategy

If ISA's strategy was to be summarized into a single word it would be innovation. ISA operates two business segments: waste management and recycling processing, (ISA, 2011). The first, waste management, is a traditional logistical operation focused on collecting and transporting solid waste. ISA has innovated the operations of this segment, however, by including contracting and go-between services for local waste disposal services and national chain customers, (New York Times, nd). The second segment-recycling operations-comprises the future growth potential of ISA and has been the focus of the company since 2005, (ISA, 2011). Traditional waste management business models have these segments operating independently, ISA, however, seeks to leverage further profits from initial logistics customers to provide raw materials for recycling operations. This raw material is recycled through internal processes, and a finished product for construction firms is produced and marketed.

No business can operate on such a vague strategy as "innovation," however. A more specific goal must be defined in order to bridge the gap between inputs and outputs. Michael Porter (1998) organized generic business strategies into three main types: cost leadership, differentiation, or niche. ISA has adopted a two-fold strategy for its operations-differentiation for its waste management operations, and cost leadership for its finished goods.

Congruence Model for Organization Analysis

The implementation of any strategy can be a difficult proposition. The more complex ...

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