Allentown Materials Corporation: The Electronic Products Division Abridged

0Case Study#2: “Allentown Materials Corporation: The Electronic Products Division Abridged)

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ABSTRACT:

Organizations in very competitive markets face several challenges that impact on both the sales and the reputation of the organization. The purpose of this paper is to study the problems that Allentown Corporation faces that have greatly contributed to an almost collapse of the company. The paper will analyze these factors from the economical point of view. This is because the management is using a blame game instead of analyzing this problem from theories and findings of approved researchers. The methodology used in this paper is solely dependent on evidence from approved research and comparisons to the competitors shall be made where possible.

Problem Definition

There are a lot of factors that contribute to the successful of any organization in any organization. However, the major problems are cultural differences and poor leadership skills. Problems that arise are usually as a result of the management overlooking the factors that skilled manager employ and after all, any professional manager knows what is a good management and poor management.

Diagnosis

From the strategies that the company had adopted such as the extensive research and development, keeping up with new technologies, the major threat to the company is poor leadership. For instance, it’s reported that among things that Don Rogers noticed, lack of group team decisions among the top leaders was a problem. Due to the changes in customers’ preferences and entrant of new highly competitive firms, the company’s management began experiencing difficult times in finding out the best ways out of their problem. One of the worst things they did was to cut on the number of employees so as to reduce costs. The employees became demoralized as job security was no longer guaranteed. The quality or the performance of the employees dropped and when this happens, definitely the quality of the products drops.

Proof of Causes

Gareth and Jennifer, (2008) defines employee motivation as the psychological forces that determine the direction of a person’s behavior in an organization, a person’s level of effort and a person’s level of persistence. In addition to this, Porter, Bigley & Steers, (2003) argued that motivation is what energizes, directs,