Essays on Poor Operation of Figgie International Inc Case Study

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The paper "Poor Operation of Figgie International Inc. " is a wonderful example of a case study on management. Figgie International, created by Harry Figgie grew through a series of acquisitions where more than a dozen companies were acquired from the beginning of 1963. By the year 1989, Figgie international had 36 divisions with several unrelated products from sporting equipment to fire fighting equipment. The stretch of activities raised the reputation of Figgie international to number 286 on the fortune 500 magazines. It was during this period that the company’ s earnings reached $1.31 billion out of which $63 million were profits to be distributed to 10887 shareholders and 17,000 employees.

On the contrary, these earnings blindfolded the management from foreseeing modernization problems affecting Figgie’ s divisions. In the housing insurance division, its bad acquisition led to a string of losses amounting to $13.5 million. Harry knew also that manufacturing plant needed modernization but the problem was how to source such a huge investment which was required to fulfill re-engineering or overhaul task. In order to reduce operating costs and produce quality products, it was necessary for Figgie international to take advantage of modern technology and equipment which would raise the company to a world-class level.

For Harry, modernization was a difficult mission and he had no idea how to achieve it. Consequently, he sought the assistance of old management consultants hoping that the objective would be realized. The CEO failed to consider recruiting internally expert personnel or even seeking advice from strategic managers. This report provides an analysis of major events that led to poor operation of Figgie international Inc. Issues to be identified will cover on: human resource, management, legal, financial among other essential areas of the company.

As equipments in the company were aging, while labour became competitive, it was imperative for the company to take stern action which would enhance survival in the competitive environment. At the same time, federal government crippled the economy through incessant deficit budgets. Studies indicate that six different consultants were on the ground trying to workout 10 different projects on the same plant which needed modernization. Some of the consultants worked on plant consolidation while another evaluated just in time delivery.

Too many consultants working on the project led to a conflict of goals. Subsequently, plant managers lacked enough time to work on their own.

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