Analysis
Application 5.1 describes the Steinway organization and provides an opportunity to perform the following organization-level analysis. A useful starting point is to ask how well the organization is currently functioning. Steinway has excellent market shares in the high-quality segment of the grand piano market, a string of improving financial measures, and strong customer loyalty. However, the data on employee satisfaction are mixed (there are both long-tenured people and an indication that workers are leaving for other jobs), and the financial improvements appear modest when contrasted with the industry averages. Understanding the underlying causes of these effectiveness issues begins with an assessment of the inputs and strategic orientation and then proceeds to an evaluation of the alignments among the different parts. In diagnosing the inputs, two questions are important.