Case - M-Tronics Inc.
Introduction: The new President, John Martell of M-Tronics Inc. is attempting to pursue growth through the launch of Entrepreneurial Subsidiaries. While M-Tronics grows revenues from $600 million to over $2 billion in 10 years, problems surface as the entrepreneurial subsidiaries are integrated into the established business. This paper will define performance gaps, analyze the current situation and provide solutions to the organization problems facing M-Tronics Inc.
1. Performance Gaps
M-Tronics is facing challenges. In an attempt to get employee feedback on the problems at M-Tronics, the president John Martell contracted an outside consulting firm to carry out confidential interviews with personnel in the Electronics Division. The interviews found middle managers were concerned over the confusion in the division which was causing a loss or morale. The division was having problems with lost equipment, missed billing, and confusion in the plant. Lower management personnel were complaining that upper management is either not being informed of problems, or they don't know how to solve problems.
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Figure 1There are little emphasis on production efficiencies, market forecasts are inaccurate, there is little planning, market forecasts are inaccurate, and there are no systematic controls.
The machinery division, led by George McElroy was also facing problems. Infrastructure was beginning to show signs of wear, and this was limiting their ability to remain state of the art. Their products were becoming less competitive. Quality of products was decreasing.
M-Tronics was experiencing turnover in personnel. Salespeople were leaving because they felt the qualities of the products were decreasing. The morale of the salespeople were low, "they felt unimportant". Even George McElroy, a senior VA of Machinery was "losing motivation to stay with the company".
In summary management expects diversification, innovation, good company morale and growth. The entrepreneurial subsidiaries and the Electronics division R...