Dashman Case Essay

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DASHMAN COMPANY SITUATION ANALYSIS Dashman Company is an equipment manufacturing company serving armed force of United States. The company had over 20 plants, each acting as an independent business unit with decentralized business operations. These plant were being operated by respective plant managers with their staff, who enjoyed autonomous power of taking decision related to manufacturing and purchase. With conflicts and tensions between nations rising during the Second World War, the company started facing difficulty in procuring the essential raw materials, thereby affecting supply lead time. Mr. Manson, company’s president, appointed an experienced purchasing executive Mr. Post as vice president in charge of purchasing to address the current operational problems. Mr. Manson also gave Mr. Post, the freedom to act and make decision independently to improve company’s purchasing operations. Mr. Larson, being served the company for many years and acquainted with most plant executives was appointed to assist Mr. Post. Mr. Post appointment was announced through formal communication and a notice in company publications. This indicates that both management and Mr. Post ignored to communicate via personal meetings and failed to build up rapport with independent plant managers. With peak buying season approaching, Mr. Post realized purchase operations being decentralized is dependent on various units and took immediate action to centralize the company’s purchasing procedure. He tried to impose restriction on plant managers (who enjoyed autonomous power) to follow centralized purchasing procedure to notify purchasing contracts exceeding $10000 to the head office. After seeking approval from board of directors, Mr. Post sends a letter to all units to immediately adopt this plan to effect. The authoritarian style of letter posted by Mr. Post to plant managers,

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