Question OneUniversal Products Company (UPC) is currently facing crisis and its management team are divided on the course of action to be taken. These is due to their varied opinions and ideas on which they are yet to come into a conclusion, this in itself is threatening to divide the company even with its new leadership. The board of directors appears to be the key sources of all those differed opinions concerning the steps to be taken in re-organizing UPC. This has been so because three out of the five divisions of UPC have been performing badly especially Wire and Cable, on the other hand two divisions (Connectors and Switch gear) have been making profits with exemplary business activities.
The fact that some divisions were making loses made the board of directors to convene a meeting so as to discuss the way forward. It appears that they did not have confidence with the then CEO and chairman sir Randolph Charteris a thing that saw his resignation and was replaced by the incumbent Mr. Charles Rampart. The current low rating of universal product company Ltd in the common stock as a result of falling stock prices, the slow and almost stagnant growth in the company, continued defection of key personnel and management employees and the realization of losses for the last three years adds to the sources of the current perception distortion and bias at UPC.
(Kelvin, 1998)The new idea by Charles Rampart of the downsizing strategy has brought mixed reactions from the management team mostly from Connectors division, which is the most profitable. The team feels that retrenchment strategies should not be applied in their division since it is doing well and what it needs is actually additional resources.
Samuel Godwyn who is the division’s VP for marketing and sales is totally against that move proposed by the new CEO he feels that the number of employees should not be cut at connectors since they do not have any problem with operations and are realizing considerable revenues. Mary Wyatt the V. P for finance at connectors appears to agree with the measurers taken by the new CEO. She says this will be good for the entire company in the long run since the new chairman is initiating this in good faith.
She adds that supporting him will bring the management team together thus benefiting the entire company. The division’s (Connectors) general manager Andrew Jordan appears to be ambivalent on the decisions to take, he largely depends with his VP for sales & marketing and the VP for finance who appears to have very divergent views, with one of them supporting the move while the other opposes the same. This in itself might complicate things for Jordan since he values decisions from both of them thus making it had for him to appear as though he is opposing one of them.
He would be forced to conduct wide and thorough consultations with the company’s top management team so as to come up with a viable conclusion.