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Case Study

1508 words - 7 pages

Chief Executive Officer Tom Grant set many objectives for his company to achieve in order to be successful in their industry. These objectives included commanding a strong position in all their chosen markets worldwide, based on leading edge technology, total quality and high manufacturing efficiency, bringing the automotive, aerospace and industrial sectors to a better balance in their contribution to group sales and profits, achieving performance and profit levels which match and beat those of their international competitors in all their businesses, enhancing the value they are able to provide to their existing and potential customers, and developing a company culture that encourages and ...view middle of the document...

 He believed that the SLP would give the company a competitive advantage in the market. But, implementing both changes simultaneously proved to be detrimental. Derek Hoffman, the Vice President of finance, explained it was difficult to get his division’s CAP approved because many of his key talents were out of the office in training instead of working on the plan. He believed that this program was not the best use of resources.
Another wasteful decision and one that contributed heavily in the poor implementation of the SLP was hiring Richard Breeze and his team. Richard was not fully committed to the company, working for it only two weeks out of the month. He clearly did not understand what Tom and the other executives wanted and needed in an analysis and plan of their position in the market. This is most likely because he is an outsider, and doesn't fully grasp the strategy and culture of the company. His ideas about creating new product lines and discontinuing core products spread through the different sectors and led to a lot of employee resentment. You get the sense that people questioned how he would know what is best for their division. If this organization is decentralized, why would this outsider get to tell them what to do? Probably the biggest mistake Tom made was not asking employees at each individual sector their opinions on the future of product lines. To properly initiate change, it is critical to have your employees on board.
Once Lanchester has a clear vision of how they would like to be positioned in the marketplace, they need a strategy on how to achieve this. The critical thing here is that I believe each sector; (automotive, aerospace and industrial) should have their own unique marketing plan because after all, the company is decentralized and the sectors carry very different product lines. The HR strategy in this case would be to hire a different consultant for each perspective sector him or her work very closely with the executives of that sector, to fully understand their business wants and needs. HR should focus on hiring consultants who have experience in business to business selling and promotion.
As with many large companies, Lanchester naturally follows a decentralized business structure; having many different departments working in a team like setting to improve and gain profit in the company. This is critically important information to take into account when establishing a long term plan for a company, especially one as strong as Lanchester. It is this piece of information that Tom Grant, Chief Executive of Lanchester industries fails in administering. Consistently through the SLP program, Tom shows low tolerance for criticism, and a lack of understanding towards how a “team” should act; being that just because you are the captain doesn’t mean you make all the decisions.
To start on Lanchester’s inability to administer their decentralized structure goes to the training and development department with Mr....

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