brief to Curtis that responds to the questions that Curtis posed

Assignment: Case AnalysisPurposeTo assess your ability to apply control function concepts to a case scenario.Action Items1.Review the Business Brief Guidelines.2.Read the following case on page 673 in Management: Implementing Strategic Change.3.Write a 1? to 2?page business brief to Curtis that responds to the questions that Curtis posed4.??. ?..Note: Since this assignment is in the form of a business brief, be sure you are not just providing the answers to the questions but creating a business brief that addresses the issues in the questions.4.Check your writing style by using Grammarly. (See instructions under Submit To Grammarly in the MBA Toolbox.) Correct your business brief as needed.5.Submit your paper to turnitin.com. Your professor will provide the necessary access information so you can upload your paper to the turnitin.com class assignment site.6.Read the Originality Report you receive from turnitin.com and make any modifications as needed to your paper. This may include adding proper citations or better paraphrasing.?Case studyImplementing Strategic ChangeJames Fulmer, chief executive officer of Allied Industries, reviewed three notes he hadexchanged with Frank Curtis, director of fiscal affairs, now president of a companyowned by Allied. The two executives were going to meet in a few minutes to discussproblems that had recently surfaced. During the past decade, Allied had aggressivelypursued a growth objective based on a conglomerate strategy of acquiring companies indistress. CEO Fulmer?s policy was to appoint a new chief operating officer for eachacquisition with instructions to facilitate a turnaround. Fulmer reviewed two of the noteshe had written to Curtis.?Date: January 15, 2011?Memorandum?To: Frank Curtis, Director of Fiscal Affairs, Allied Industries?From: James Fulmer, Chairman, Allied Industries?Subject: Your Appointment as President, Lee Medical Supplies?You are aware that Allied Industries recently acquired Lee Medical Supplies. Mr.John Lee, founder and president of the company, has agreed to retire, and I am appointingyou to replace him. Our acquisitions group will brief you on the company, but I want towarn you that Lee Medical Supplies has a history of mismanagement. As a distributor ofmedical items, the company?s sales last year totaled approximately $300 million, with netearnings of only $12 million. Your job is to make company sales and profits compatiblewith Allied standards. You are reminded that it is my policy to call for an independentevaluation of company progress and your performance as president after 18 months.?Date: September 10, 2011?Memorandum?To: Frank Curtis, President, Lee Medical Supplies???. ?..From: James Fulmer, Chairman, Allied Industries?Subject: Serious Problems at Lee Medical Supplies?In accord with corporate policy, consultants recently conducted an evaluation ofLee Medical Supplies. In a relatively short period of time, you have increased sales and?profits to meet Allied?s standards, but I am alarmed at other aspects of your performance.I am told that during the past 18 months, three of your nine vice presidents have resignedand that you have terminated four others. An opinion survey conducted by the consultantsindicates that a low state of morale exists and that your managerial appointees areregarded by their subordinates as hard-nosed perfectionists obsessed with quotas andprofits. Employees report that ruthless competition now exists between divisions, regions,and districts. They also note that the collegial, family-oriented atmosphere fostered byMr. Lee has been replaced by a dog-eat-dog situation characterized by negativemanagement attitudes toward employee feelings and needs. After you have studied theenclosed report from the consultants, we will meet to discuss their findings. I amparticularly concerned with their final conclusion that a form of corporate cancer seemsto be spreading throughout Lee Medical Supplies.As Fulmer prepared to read the third note, written by Frank Curtis, he reflected onhis interview with the consultants. While Fulmer considered Curtis a financial expert anda turnaround specialist, his subordinates characterized Curtis as an autocrat and bettersuited to be a marine boot camp commander.?Date: September 28, 2011?Memorandum?To: James Fulmer?From: Frank Curtis?Subject: The So-Called Serious Problems at Lee Medical Supplies?I have received your memorandum dated September 10, and reviewed theconsultants? report. When you appointed me to my present position, I was instructed totake over an unprofitable company and make it profitable. I have done so in 18 months,although I inherited a family-owned business that by your own admission had beenmismanaged for years. I found a group of managers and salespeople with an averagecompany tenure of 22 years. Mr. Lee had centralized all personnel decisions so that onlyhe could terminate an employee. He tolerated mediocre performance. All employees werepaid on a straight salary basis, with seniority the sole criterion for advancement. Someemphasis was given to increasing sales each year, but none was given to reducing costsand increasing profits. Employees did indeed find the company a fun place to work, and?the feeling of being a part of a family did permeate the company. Such attitudes were,however, accompanied by mediocrity, incompetence, and poor performance.?I found it necessary to implement immediate strategic changes in five areas: theorganization?s structure, employee rewards and incentives, management informationsystems, allocation of resources, and managerial leadership style. As a result, sales areaswere reorganized into divisions, regions, and districts. Managers who I felt wereincompetent and/or lacking in commitment to my objectives and methods were replaced.Unproductive and mediocre employees were encouraged to find jobs elsewhere.Authority for staffing and compensation decisions was decentralized to units at thedivision, region, and district levels. Managers of those units were informed that alongwith their authority went responsibility for reducing costs and for increasing sales andprofits. Each unit was established as a profit center. A new department was establishedand charged with reviewing performance of those units. Improved accounting and controlsystems were implemented. A management by objectives program was developed toestablish standards and monitor performance. Performance appraisals are now requiredfor all employees. To encourage more aggressive action, bonuses and incentives areoffered to managers of units showing increased profits. A commission plan based onmeasurable sales and profit performances has replaced straight salaries. Resources areallocated to units based on their performance.?My own leadership style has probably represented the most traumatic change foremployees. Internal competition is a formally mandated policy throughout the company.It has been responsible for much of the progress achieved to date. Progress, however, isnever made without costs, and I recognize that employees are not having as much fun asin the past. I was employed to achieve results and not to ensure that employees remainsecure and happy in their work. Don?t let a few crybabies unable to adjust to changes leadyou to believe that problems take precedence over profits. Does it mean that I am notpeople oriented if I believe it is unlikely that a spirit of aggressiveness andcompetitiveness can coexist with an atmosphere of cooperativeness and familyorientation? Do you feel that we are obligated to employees because of past practices?Frankly, I thought I had your support to do whatever was necessary to get this companyturned around. In our meeting, tell me if you think my approaches have been wrong and,if so, tell me what I should have done differently.?Just as Fulmer finished reviewing the third memorandum, his secretary informedhim that Curtis had arrived for their scheduled meeting. He realized he was undecidedabout how to communicate to Curtis his ideas and beliefs regarding how changes in anorganization can best be implemented. One thing he did know: He didn?t appreciate howCurtis had expressed his views in his memorandum, but he recognized that he probablyshould set aside emotions and respond to the questions Curtis posed.SOURCE: J. Champion and J. James, Critical Incidents in Management: Decision andPolicy Issues, 6th ed. McGraw-Hill/Irwin, 1989. ? 1989 The McGraw-Hill Companies. ??.?..

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