Implementing Strategic Change

In: Business and Management

Submitted By soho
Words 323
Pages 2
Case Analysis
In: Business and Management
Case Analysis
TO: Frank Curtis
FROM: Tomasz Rudnik
DATE: February 2, 2014
SUBJECT: Case Analysis

Introduction
Allied Industries Company decided to acquire Lee Medical Supplies that the annual sale is approximately $300 million but net earning only $12 million. James Fulmer, chief executive officer of Allied Industries promoted his director of fiscal affairs Frank Curtis to president of a company owned by Allied. Frank Curtis’ new responsibility is to turn around the present situation and achieve results up to 18 months. Until today, it was a family managed company with no stress and very pleasant atmosphere. “All employees were paid on a straight salary basis, with seniority the sole criterion for advancement. Some emphasis was given to increase sales each year, but none was given to reduce costs and increasing profits. Employees did indeed find the company a fun place to work, and the feeling of being a part of the family did permeate the company. Such attitudes were, however, accompanied by mediocrity, incompetence, and poor performance”. (Management) Frank Curtis made a company profitable in 18 months but had to implement immediate strategic changes in five areas: the organization's structure, employee rewards and incentives, management information systems, allocation of resources, and managerial leadership style. These changes brought several actions such as three of nine vice presidents have resigned and that four others have been terminated.
Case analysis
Frank’s Curtis job was to make company sales and profits compatible with Allied standards. In the period of time that has been given to you all the factors met Allied profile but there are also some other alarms regarding your managing style. It doesn’t mean you are not people orientated person. During the acquisition, you have been told to make sales…...

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