Allentown Materials Cooperation - the Electronic Products Division

Allentown Materials Cooperation:

The Electronic Products Division (Abridged)

Week 2 /Case Study Analysis

October 13, 2016

        Hypothesis: Electronics Product Division (EPD) at Allentown Materials Corporation (AMC) have appointed a new Vice President and General Manager, Don Rogers. Sales in the company had declined the past two years. The component manufacturers projected they were competing for a shrinking total market. However, it depends on your perception.

In the 90’s EPD became a competitive market in electronics. In 1992 60% of sales came from computer components, telecommunications, and consumer electronic markets. Rogers worked differently than other managers before him. He realigned the mangers and the way they had meetings. He pulled people off the development floors into the meetings with other executives to get their input. When coworkers talked to him they said he seemed uncomfortable. Rogers may have been self-conscious however he was an optimistic man with determination.

Growing of the Company

AMC began in the 1800’s strong financially, in a good profit position. It was a leading manufacturer of specialty glass. It built its reputation on ability to invent and manufacture new glass products. In 1992 it was in a strong financial and profit position. Its investment in R&D was good for business. Now EPD with R&D was a research producer, processed search in glass, and related technology business. Electronic Products Division made sales of their resistors and capacitors for several markets such as:

• 1980’s for the space and the military’s reliance on missile defense system
• Personal computers
• Personal pagers
• Cellular phones
• Facsimile machines

New Management

In July of 1992 Don Rogers was appointed Vice President and General Manager of Electronics Products Division (EPD) at Allentown Materials Corporation (AMC) following the death of his predecessor’s untimely death. The job came with pressure at headquarters and he felt increasing pressure from a number of other problems that came with the job. He was expected to show 110% average annual growth rate and aggressive profit target as the new EPD manager

When Don Rogers took charge there was 900 people employed; 725 hourly wage and 175 salaried managerial and professional employees. There were three plants, four sales districts, and a self-contained multifunction organization. Before this new position, Rogers had been the director of electronic materials research in Allentown’s Technical Staffs Division. His promotion to Vice President and General Manager was unusual some thought, perhaps due to his lack of line experience. His colleagues believed he had the qualifications and background relevant to the EPD’s business and management.