Woodson Chemical Company Solutions

Solutions:

1. Critical issues may include but are not limited to the following:

• Sales across most divisions are leveling off or falling ·

• The company is trying to reverse downward sales trend by improving customer service -- how is this to be accomplished? ·

• Management and communications bottlenecks with expanded operations ·

• The company believes that efficiency and effectiveness improvements can be achieved through integration -- which is only possible with information technology

• Woodson Chemical might serve “common” customers by merging resources

2. The text of the case cites that competitive advantage in the industry is gained “from a focused market position, good raw materials supply..., and a lean efficient organizational structure.” Students are encouraged to consider a number of possible changes or provide explanation why the current approach is acceptable. Reasonable options may include integration within WCC divisions and across the supply chain. Joining forces with other divisions as well as with supply chain partners might develop synergism and greater efficiency in resource utilization.

Alliances with suppliers and/or transportation providers would ensure that the stream of inputs and delivery of goods meet demands. Locking into long-term, trusting relationships with customers would allow for better planning and smoother operations. Any of these close relationships will rely on improved communications and information technology among participants.

3. The perceived risks and benefits depend on the specific changes students determined in question 2 above, but a short list of general risks and benefits among the parties might include:

a) WCC North America corporate management:

Risks

• Loss associated with failure; loss of investment, competitive position, employee faith

Benefits

• Potential competitive advantage

• Improved worker morale and support

• Better relationships across divisions and supply chain

b) WCC North America line distribution management:

Risks

• Having to “correct” operations and regain workers’ confidence if the plan fails given that people are generally adverse to change.

Benefits

• Greater certainty in demand with closer relationship with customers