Steinway’s Core Technology

a. What is the company's general environment?

b. What is the company's task environment?

c. What is the company's strategy?

d. what are the company's technology, structures, measurement system and human resource system?

First, Steinway’s core technology is highly uncertain and moderately interdependent. The manufacturing process is craft based and dependent on the nature of the materials. Each piano is built and adjusted with the specific characteristics of the wood in mind. So much so that each piano has a different sound that is produced as a result of the manufacturing process. The technology is moderately interdependent because the major steps in the process are not linked in time. Making the “action sets” is independent of the “bellying” process, for example. Similarly, the key marketing program, the concert bank, is independent of manufacturing.

Second, the corporate organization divisional (pianos and band instruments), while the piano subsidiary appears to have a functional structure. The key functions are manufacturing, distribution, and sales. A procurement, finance, and human resources group is also reasonable to assume.

Third, formal measurement systems within the production process are clearly present. There are specific mentions of inspections by both the worker and organization. For example, 100% inspection (as opposed to statistical sampling) costs time and manpower and no doubt is seen as critical to quality. In addition, there must be some system of keeping track of work-in-progress, finished goods, and concert bank system inventories.

Fourth, the human resources system is highly developed. The reward system includes both hourly and piece rate processes; the union relationships; worker retention programs; and global hiring, compensation, benefits, and training programs.

e. What is Steinway's culture?

3. In your chosen organization/client for your final output, determine the following:

a. The company's general environment

b. The company's task structure/organizatonal structure

c. The company's strategy and culture.

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