Elektra Products Case

563 Words3 Pages
CASE 1: ELEKTRA PRODUCTS INC. IDENTIFICATION OF THE PROBLEM: ELEKTRA PRODUCTS INC. is an 80-y/o company that manufactures electrical product and supplies. Although in the business for several decades, the company is experiencing several problems that threatens its survival: • Stiff competition from local and international suppliers that eroded its market share • No new products are being developed by its manufacturing group • Employee morale is low and many are resigning • There are gaps in inter-department communications To arrest the decline, Elektra hired a new CEO, Martin Griffin, to reengineer the organization. Quickly, Mr. Griffin announced the company’s new direction and initiated reforms: • Focus on innovation • Openness - corporate information will be made available to employees under the company’s ‘empowerment programs • Formation of quality circles/problem-solving teams are encouraged Barbara Russell (VP Manufacturing) who was designated to lead the manufacturing team tasked to improve delivery of stocks to outlets heads one the teams formed. The team came up with some recommendations it hoped would help run the company efficiently. However, other top management members opposed the recommendations as these will affect on existing policies and practices: Griffin is now faced with a group of management members resisting new ideas and another group that thinks change is still possible. OBJECTIVE: Ensure the implementation of empowerment and innovation agenda to address Elektra’s current problems of declining revenue, low employee morale and gaps in inter-department communication. ALTERNATIVE COURSES OF ACTION • Replace management team members opposing change. o A drastic reform measure that will ensure quick implementation of needed change envisioned by Griffin. This can be done by offering early retirement program (ERP) or
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