24-08-2012, 10:02 AM
Stone Finch Inc.
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BACKGROUND
Stone Water Products Inc. founded in 1975
Quality Products.
Economies of scale.
Well established supply chain partnership and sales force.
Highly centralized chain of command.
Business Model
Product innovation was not a part of business model,
Copy new products and undercut competition.
2004-2008
12 Subsidiaries were formed spending $139 from water product Division.
Out of which 4 were merged back and 8 are left.
DECISION ANALYSIS
Alternative 1
Buy back all the subsidiaries & move back to the old organizational Structure.
Only Two Divisions-Water products & solutions.
Centralized power
Equitable growth Distribution
Plan of Action
Employee retention scheme is a must now.
Motivating the employees by adopting various methods such as regular appraisals, monetary and non- monetary incentives, bonuses, etc.
Division of work load more equitably among the employees.
Additional incentives, benefits for loyal workers of division.
Retention scheme especially for salesman and those who were responsible for fast track growth
Conducting regular "Jam Sessions" to know the grievances and views of the people working in the organisation.
Involving the employees in decision making process and thinking over the ideas and reviews given by them.