Friday, 28 April 2017

Analyze the effectiveness of their individual styles


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Principles and Practice of Management


Case Studies
CASE STUDY (20 Marks)
General Electric Company (GE) was a major conglomerate and one of the biggest companies in the world. One of the factors that was believed to be responsible for the company's steady growth for more than a century was its tradition of stable and long term leadership. One of the most successful phases in GE's history began when Jack Welch became its CEO in 1981. Welch attempted to make GE one of the top companies in every segment in which it operated. He also supervised several acquisitions that added value
to the business portfolio and was instrumental in creating a performance oriented culture at the company. Welch retired in 2001 after20 years at the helm. He was succeeded by Jeffrey Immelt, who was chosen by GE's board after a long and careful succession planning activity supervised by Welch himself. In September 2001, Jeffrey Immelt (Immelt) became the Chief Executive Officer (CEO) of the General Electric Company (GE). He succeeded Jack Welch (Welch), who was acknowledged as one of the most
successful CEOs in business history for his management of GE in the twenty years he headed the company (1981 to 2001). Welch studied chemical engineering at the University of Massachusetts, from where he graduated in 1957. He then moved to the University of Illinois, where he received his Masters and PhD in chemical engineering. Welch joined GE in 1960 as a junior engineer. After a year, Welch wanted to leave the company, unhappy with the bureaucratic culture of the company, but was convinced by his superior to stay back... This case discusses the strategic and cultural changes at GE as a result of the change in leadership. It compares GE's strategy and operations under Welch, with those under Immelt. It also talks about the changes in the company's culture under Immelt. The case concludes with a discussion on the challenges facing Immelt, as of mid2006.

Answer the following question.
Q1. Discuss the relationship between leadership and growth in large and diversified companies.
Q2. Debate the effects of a change in leadership on company strategy and culture.
Q3. Compare the leadership styles of two leaders in the above case.
Q4. Analyze the effectiveness of their individual styles.

CASE STUDY (20 Marks)
Casimiro Jr.’s only child, Adela, was a concert pianist who gave regular piano performances at Columbia. Later, Adela married concert violinist, Cesar Gonzmart (Cesar). In the 1950s, Casimiro Jr. brought Cesar into the business. Subsequently, Cesar and Adela became the third generation owners/operators. Adela and Cesar struggled to keep Columbia open during the 1950s and 1960s. This was a period during which Ybor City deteriorated due to a decline in the cigar industry. The poor economic prospects of the city led to a subsequent fall in population as people moved away to the suburbs and to other cities. Over the years, Columbia restaurants were opened at several other new locations in Florida. In 1983, a restaurant was opened in the historic district of St. Augustine, Florida. At Sand Key, on Clearwater Beach, Florida, another restaurant was opened in 1989. In the 1980s, Columbia also opened a few Caribbeanthemed bar and restaurants under the brand ‘Cha Cha Coconuts’. After the death of Cesar in 1992, both brothers began to manage the day to day operations at the restaurant. They then became the fourth generation owners/operators. However, it was not all smooth sailing for the business. After taking over the business, the brothers discovered that Columbia was under a large  debt, something that had been concealed by Cesar. The debt had the potential to threaten the very existence of Columbia. Gonzmart said, “Cesar would provide whatever numbers he wanted. None of the bankers believed it, but it was a different world, handshakes, etc. Instead of going in for an expansion, Columbia decided to invest in existing restaurants. In 2001, a new building was constructed to house a five thousand square feet kitchen for the Ybor City restaurant at a cost of US$ 2 million. It was built in a parking lot/delivery area on the south side of the restaurant. The new kitchen had a unique waste disposal system, water recycling capability, and quickchill technologies, which were expected to minimize labor and utility cost, as well as theft and shrinkage. Some of the valuable lessons learnt by the HernandezGonzmart family to successfully run the business were to maintain the traditional style and atmosphere, to keep the menu fluid, and to cultivate a personalized management style. Though the HernandezGonzmart family tried hard to keep up to date, they knew that a major part of the restaurant’s appeal was its age. All Columbia restaurants were designed to project an old world atmosphere through extensive usage of colorful arabesque Spanish tiles on the walls. Moreover, framed photos of previous generations were displayed prominently. The restaurant also paid very close attention to the menu layout. Columbia continued to be a completely family owned venture. Over the years, Gonzmart and Casey decided to let go of prominently displaying fancy titles for family members working in Columbia. While the brothers’ business card read ‘Fourth Generation’, their children’s visiting cards read ‘Fifth Generation’. Speaking about the new business cards, Gonzmart added, “We take pride in these titles; not many companies can make the same claim. Besides, it creates issues when you give family members titles.” In 2010, the Columbia was mentioned in a list of 50 ‘All American Icon restaurants’, compiled by leading restaurant trade magazine, ‘Nation’s Restaurant News’. According to the magazine, the restaurants on the list highlighted ‘longtime concepts that are not only intriguing, but also offer a broad representation of industry segments, foods, and locales’. As of 2012, six restaurants across Florida and two Cha Cha Coconuts outlets were owned and operated by the family. According to Gonzmart, 2012 was the best year in Columbia’s history. He added, “During the slow economy, the last five years, we’re up same store sales, I think 26 percent. No price increases.”

Answer the following question.
Q1. Debate the succession strategy adopted by Columbia.
Q2. How the traditional style and atmosphere was maintained by the HernandezGonzmart family and why?
Q3. Debate the reasons for Columbia being under a large debt.
Q4. Discuss how the family business was sustained and revives.

CASE STUDY (20 Marks)
Progressive Chemical Industries Ltd, is engaged in manufacturing and export of specialty chemicals, having turnover of Rs 300 crores. The Company is growing and having good export orders. The CEO is in mood to expand the business and aiming to reachturnover of Rs 1000 crores in next 5 years. The CEO is worried about the increase in input costs and workers’ demands. Union has threatened to go on strike indefinitely. Union has demanded 50% increase in salary and other benefits. But is not agreeing to link it to productivity. It has also raised issues like unsafe, hazardous working conditions, leakage of poisons gases affecting the health of workers. The consultant has advised the CEO to be strict and take strict action against the erring employees and be ready to declare lock out if situation warrants.

Answer the following question.
Q1. What are the various laws which could be applicable in the above problems?
Q2. Do you feel management policies/practices are right? As a CEO how will you convince the union and workers?

CASE STUDY (20 Marks)
Medical secretaries know better than anyone the hard work that goes into running an efficient private medical practice. John Morgan, Accounts Director of the Jenny Morgan Secretariat, is no exception. Starting in 2000 with only 6 clients, today the firm Mr Morgan runs with his wife Jenny manages the affairs of 16 specialists. So how did the firm get to where it is today without a huge increase in overheads? Mr Morgan believes that a major factor in the firm's success is the support provided by Health code’s web based management solutions. To boost capacity, Mr Morgan knew that he needed an integrated practice management system. "When we started out I was able to devise my own systems for invoicing, correspondence and so on" he says. "But we grew to the extent that an integrated system that managed all the administrative tasks we carry out was the only way forward." Health code's Practice manager system allows Mr Morgan to generate and print standard letters, receipts, invoices and statements; batch print documents; enter bulk payments; enter patient alerts and notes and set up and manage patient identifiers. Electronic billing comes as part of the package, saving Mr Morgan a huge amount of time and expense. "We use electronic billing for roughly 60 per cent of our invoices and the Health code system streamlines everything for us" he says. "All we have to do is enter a few details and then submit the bill directly to the insurer through the secure network. Payments are made much more quickly as a result which is good for cash flow." Mr Morgan also uses the system to invoice self paying patients, finding the system straightforward and easy to use. He uses the reporting facilities for monthendand to track invoices and payments, with the aged debtors listed by payor particularly useful when chasing insurers for money. Mr Morgan concludes: "We have built our business based on the simple principle of delivering excellent service. The innovative management solutions Health code provides us to maintain these high standards while giving us the capacity we need for future growth."

Answer the following question.
Q1. Drive a conclusion of this case study.
Q2. How does the package help to reduce the workload in the system? Explain.


Assignment Solutions, Case study Answer sheets
Project Report and Thesis contact
ARAVIND – 09901366442 – 09902787224



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