The purpose for the establishment of the ALSTOM

The ALSTOM Power Service was established in 1999 afterward the merger of the go with with ABB. It was started as an in imagineent unit which was expected to incite the service business of the ALSTOM company, which is base in Paris.The purpose for the establishment of the ALSTOM berth service was to develop and market the companys service activities for the already installed advocate coevals capacity. The ALSTOM power service was meant to hand over a solution for the market gather up to service the business in spite of appearance the industry.The main aim for the segment was to picture service to the quick plants in order to prolong their service otherwise than installing new plants in the branch of optimizing maintenance and enhancing plant efficiency, and this accounted for close to 35% of the demand of the power industry.The ALSTOM started as a segment of the ALSTOM group which was intended to provide service to the industry and it did this by combining the existing company distributed service departments and dedicated distinct resources and its management towards developing as a service business, however it was not autonomous until 2003 when it was guaranteed its autonomy. The segment started with a labour force of more than 10000 employees worldwide in assorted local units of which all were inherited from the ALSTOM group.Question one Critical abstract of the industryALSTOM power service operate in the power industry where its provide service to the power industry. The business of ALSTOM power service heavily depend on the operations of the manufacturing company in the industry and in this national they are expected to orient themselves of how the plants which stick out been installed by the manufacturers perform their functions in order to provide the service of supplying parts and also doing the touch on in prolonging the service of the plants. It should get updated on a sidereal day to day technological changes that happens in the mo ther plant manufactures so as to plosive speech sound relevant in the marketQuestion Two The leadership, organisational structure and cultural issues in ALSTOM power service i) Leadership issues.The leadership of the company was based on promotions where an soulfulness was to work at a lower post, and later promoted to higher ranks after the mastery of the companys operations and the requirement of the industry.Walter Granicher was given the responsibility to lead the company based on the ground that he had worked within the industry since 1976 gutter 1999 when he was given the leadership of the ALSTOM power service. This is a good scheme for ensuring efficiency because decisions make will be made by persons with a more understanding of the industry requirements and also with the understanding of the organisations floriculture (Hatch, 2006).This merciful of leadership canful however be perceived as the almost appropriate in maintaining the companys culture but it is limited to the reason that the companys culture might not be the best, thus it will be locking the company to new cultures which could have otherwise been introduced into the company if the company could have taken a leader from outside the company in the process of encouraging diversity of culture.The decision making of the segment was not make solely done by one person, that is Walter but rather in conjunction with other managers working in specialized divisions within the segment.This scenario enabled in force(p) decision making because each and every manager had a component part to play in the making of a joint decision where Walter can be perceived as the coordinator of all the decision that were made within the segment (Mullins 2005).This is no like in the situation where decision making is done one leader in the organisation with inadequate knowledge about the operation of each division in the segment. The single tending(p) decision making exposes an organisation to the risk of making a wrong decision which might cripple the organisations performance than when the decision is made collectively by involving a wide range of participants with varied experiences.