MBA 517 Strategic Case #1
Several years ago your company decided to consolidate it’s manufacturing into (4) strategically located manufacturing centers. However; your company just acquired a new manufacturing company, a previous competitor, located on the east coast of the United States. Your team has been assigned to go to the newly acquired company and evaluate their manufacturing capability.
Once there the team realizes that the company has the same capabilities as the other strategically located manufacturing centers. In fact many of the company’s assets mirror the assets in the other manufacturing centers. The staff of the company is made up of the same functional disciplines as the other companies, i.e. engineering, quality, marketing, finance, etc.
During this review period you have to answer the following strategic questions:
1.Since this company is a duplicate of other companies in the corporation, should they remain astand-alone business unit, shouldthey be foldedinto one of the other companies, or do you recommend closing the company?2.When contemplating the answer to question #1, what considerations, advantages, and disadvantages should you consider?3.If the decision is to fold the company in or close the company what do you do with the physical assets? What do you do with the staff? What do you do with the facility?4.If the decision is leave the company as another manufacturing center, how do you justify this? What type of organizational structure do you setup? What about this company competing for resources and sales againstyou’re already existingmanufacturing centers?
The aforementioned involves Strategic Thinking. Your team must rationalize your actions. Prepare a (5) slide PowerPoint presentation explaining what actions you are recommending along with rationale.
