1) The company was established in 1941 and restructured in 1967 into two divisions, one headed by George Brown and the other by Richard Brown.
2) By 1974, the company had grown significantly but lacked strategic direction and long term planning from George Brown.
3) Under George Brown's hands-off management style and lack of strategic vision, the company was now poorly performing, with declining margins, market share, and employee motivation due to undefined roles and responsibilities.
2. Company History
Established in 1941
1967 - Brown Sr. Restructures the Biz & Exits
UP Inc.– Headed by George Brown
UP Southeast Inc – Headed by Richard Brown
1974:
Sales - 3.5 Million (up 22%), Profits up 40%
Sales doubled in last 4 years
28000 Sq. feet facility, 6000 customers, 34 Employees
Rivals competing on scaled down product portfolio
Product line (UPI):
3500+ items: Staples, Stapling Machines, stenciling Equip.,
Industrial Tapes, Gluing Machines, work gloves, Gummed tape
machines, labeling equipment
4. George Brown’s Management Style
GB’s Mission: Become financially secure, develop Highly Profitable
Business
Lack of Vision & Strategy
Conservative: Happy to grow @20%
No involvement
100% Delegation
Little or no Competitive Analysis & Market Research
No innovation
5. How well is UPI doing now?
Key Decision Maker: Hank Stevens
No Long term planning, Only Reactive
Roles & Responsibilities not defined
Low employee motivation & productivity
No innovation
Increasing cost of inputs
Declining Margins & Market Share
6. What Explains level of
Performance?
Lack of Strategy & Direction
Non-existent Planning
GB is satisfied with the growth UPI has achieved
so far.
No Stretch-Goals
No review mechanism
No focus on analysis & control of costs