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From Swords To Ploughshares Essay

1434 words - 6 pages

Meritex Enterprises Inc. was successful recognizing and satisfying stakeholders (2010) interests in the company by diversifying into three core businesses involving warehousing, third-party logistics, and facilities modernization. The mechanisms available to senior leadership were the diversification strategies to expand business. The newly elected CEO and Chairman, Paddy McNeely’s implementation of the related diversification strategy enabled him to restructure the company, by negotiating buyout of the management company, Space Center Enterprises. Space Center Enterprises was success in fulfilling its governance role by electing Harry “Paddy” McNeely III, to the most ...view middle of the document...

, wanted the business to remain in the family and over time squabbles were settled. Paddy integrated third generation family members into the business affording them to become stewards of the family legacy. This new stewardship role enabled family members to work together as a team in the best interest of all stakeholders, and to create greater economic values and stronger family connections, as well as new innovative ideas.

The mechanisms available to senior leadership were the diversification strategies to expand business. As CEO and Chairman, Paddy McNeely led the restructuring of the company and negotiated a buyout of the management company, Space Center Enterprises, using the related diversification strategy. This strategy helped culminate the buyout of Space Center Enterprises, and subsequently the new company, Meritex Enterprises, Inc, was created in 2001 (Meritex).

Paddy represented all stakeholders, including all family members. He developed a management succession plan that identified and assisted the development of employees to potentially fill key leadership positions within the new company. This plan was built on the teamwork concept, and support from certain family members was a critical success factor. Paddy also initiated a strategic move to hire an experienced senior executive outside the company to fulfill the role of President and Chief Operating Officer. This executive brought in knowledge, experience, connections, credibility, the ability acquire capital assets, and develop an acquisition strategy enabling Meritex to achieve new business objectives and hold people accountable. The four key areas that all stakeholders share alike are family involvement in the privately-held business; business success (revenue and profitability); community involvement; and a positive business structure that reflects the family’s ability to maintain a healthy balance between business and family.

Through various strategic moves, Meritex acquired a site in Lenexa, Kansas to develop its fourth underground warehousing facility. The company has expanded its warehouse business where it owns over 8.3 million square feet of warehouse space across eight markets within the Continental United States (CONUS). These facilities are used for warehousing, manufacturing, “clean room” labs, and third-party logistics services. Today, Meritex continues to strategically acquire old facilities and retrofit them for new operations. It is Paddy’s strategic leadership that has helped him anticipate, envision and empower his organizational stakeholders to create the strategic change necessary to make the company successful. Meritex’s winning strategies have provided success to fellow stakeholders, board members and shareholders, because now there is a strong team of employees running the company.

Space Center Enterprises was success in fulfilling its governance role by electing Harry “Paddy” McNeely III, to the most...

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