THE BEGINNING OF CHANGE AT BOEING In 1997 market demand increased dramatically and Boeing attempted to meet the surplus of orders by doubling their production capabilities instantaneously. A manufacturing crisis ensued and Boeing’s reputation took a dramatic turn for the worse when they were required to stop production of the 747 aircraft for 20 days. The company had “stubbed its toe”, according to the then-president of the Commercial Airplane Group, Ron Woodward, who was dismissed not long after the crisis. The “win at all costs” approach that Boeing supposedly had to its business dealings and a lock of communication within the organisation appeared to have been the source of this problem. After experiencing these manufacturing difficulties an attempt was made to revitalize Boeing’s operations by streamlining aircraft
In this essay, I will discuss the circumstances that resulted in the merger, assess the significant positive (or negative) effects of the merger, and examine the organizational structure that has resulted from the merger. American Airlines filed for bankruptcy in November 2011. According to an interview with Richard Quest of CNN, Thomas Horton the new CEO of American Airlines stated that the company was forced into bankruptcy because of the cost disadvantages it faced compared to it’s competitors that had already gone through a bankruptcy. The news came as a shock to many. The company had enough money to sustain the losses that it may incur through
Case analysis on Aston-Blair,Inc Background of the case: Aston-Blair was the large U.S producer of precious metal alloys and other specialized alloys for commercial and industrial use, but suffered big losses in the first quarter of 1991. Except the external problems that are economics slowdown and declining price of gold due to the air strike against Iraq, the CEO of Aston-Blair, Wynn Aston felt one of the internal problem which caused the firm’s poor performance is improper forecasting. Aston asked Casey,Vice precident of marketing,and Trott,Vice pricident of corporate planning to reexamine the company’s procedures for forecasting sales. Task force: Casey and Trott decided to form a task force to investigate the forecasting problem and put Michael Bacon who is a special assistant to Trott, in charge of the task force. Besides Bacon, there are 2 members,Reiss and Holt, came from Corporate planning, Bodin,came from Sales division,Meir,came from Economic forecasting, and 3 product managers came from Market division,they are Ratliff,Paulson and Kolinsky.
How difficult a challenge did Welch face in 1981. How effectively did he take charge? According to the Harvard business case “GE's Two Decade Transformation Case Analysis”, Jack Welch assumed as CEO of General Electric year of 1981, he had the task of stimulating the competiveness and prolific capability of the corporation. The United States economy was in a time of recession due to the high interest rates and a strong dollar exacerbated the problem, so it results in the highest unemployment rates since the time of the United States depression. CEO Welch comprehend that GE needed to make some changes in restructuration of the company and this involved the modernization and reorganization of operations, reducing the organization, and decrease of payrolls and strict efficiency measures.
Overview The lawsuit between Solo Cup Company (“Solo”) and Trigen-Cinergy Solutions (“Trigen”) arose out of an Energy Services Agreement and Equipment Lease that Solo entered into with Trigen to construct an 11.2-megawatt electricity co-generation plant at the Owings Mills facility. Solo was under the impression that by entering into this agreement, they would save at least $820,000 in energy costs annually, which was to be prepaid by Trigen and eventually paid back by Solo over 20 years. After Solo did analyses on the project, they discovered they would actually be losing money in the first year of the contract, and took action to sever the contract. Arbitration then took place to award damages to the rightful party. After extensive review of the relevant facts in this dispute, it has come to my attention that the loss contingency is incorrectly booked for Solo Cup Company.
The second part of Lee’s strategy was heavily focuses on exploration and expenditures to discover new oil reserves. Under Lee’s leadership, the number one priority of Gulf Oil Corp. was to replace domestic reserves of hydrocarbons through discoveries and acquisitions. Eventually, falling oil prices led to increased debt due to a large focus on exploration that wasn’t necessarily resulting in increased profits for the company. In 1984, the CEO of Mesa Petroleum Company, Boone Pickens, began trying to gain a majority stake in Gulf Corp. Gulf was against this because they saw it as Pickens attempting to gain control of the company, only to benefit from the current revenues and reserves without preserving the company outlook. Boone Pickens was not concerned with the future of Gulf, but rather the major reserves of oil that they already possessed.
It lost $1.7 billion. Some additional problems included: * Merger with US Airways Group blocked by Federal antitrust regulators which led to expensive contract deal leaving united with the highest labor costs in the industry * In 2000, pilots and mechanics put pressure on management for new contracts which led to flight cancellations and loss of business customers * Rise of low-cost, low-fare airliners that competed for business and did not have the same overhead costs which United could not match. In September of 2002, Glenn Tilton was brought on as the new CEO for United Airlines as the board of directors believed someone from outside the airline industry would help turn things around. It was only three months later into his career at United, in December 2002, that under Tilton’s leadership as CEO, the company filed for Chapter 11 bankruptcy. The bankruptcy lasted until February 2006.
Analysis Brief Background Major events have shaped the history of the company in the recent years: first the hostile takeover, 1989, then the loss of key accounts and credibility in the business. Many key senior employees have left in the 2 years following the takeover. The company Vison has been: “just keep doing the same thing, just better”, but the world around has been changing. The marketing business has clearly become more global in nature, with "mergers to form mega-agencies and the concept of transporting brands around the world", and customers are demanding for “more service at lower costs”. Re-creation Technically the type of organizational change Beers has to face as new CEO of the company is called re-creation: it’s a change introduced in response to an immediate demand, in this case the loss of customers and image.
Reasons that back up source 4 are that Labour promised to sort out Britain’s economic problems. By the early 1960s there was a balance of payments deficit, high inflation and growing unemployment. The Conservative Chancellor of the Exchequer, Selwyn Lloyd, attempted to deal with the problems by setting up a National Economic Development Council and National Incomes Commission but these failed. In 1962, therefore, Lloyd was replaced by Reginald Maudling. He was just as unsuccessful and by the time of the October election of 1964 Britain was in debt to the tune of £750 million.
In 1982, the amount of the new global strategy was launched when Wisse Dekker became CEO. Under the impetus of the new policy, the plants which were lack of efficiency was closed in order to focus on its core business. Philip purchased Grundig and Westinghouse Electric business in North America. To stimulate profits, the CEO continued Van’s innovation. Unfortunately, the sales were still declining.