Acorn Industries

1536 Words Nov 15th, 2015 7 Pages
Case Study: Acorn Industries

Case Study: Acorn Industries

1) Strengths of Acorn
Acorn Industries, in spite of being a small organization with a single product line had strong technical capabilities, and a compelling marketing division whose core philosophy heavily relied on the importance of Voice of the customer, market research and competitive benchmarking, which was used in creating and submitting contract proposals. During the 1990’s, most companies such as Apple, Nike, McDonalds etc. were substantially dependent on the marketing departments that emphasized on face to face meetings with the customers, and employees pushing their sales numbers to increase revenue and business profits, which is similar to Acorn Industries’
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Introduction of the distinct marketing departments within each division created a higher sense of responsibility and ownership, allowing the divisions to effectively focus on the government and commercial contracts separately.

2) Weaknesses of Acorn
Acorn Industries is an example of a company that was experiencing “growing pains”. In order to expand the company from a single product with short term production cycle to diversified products with long production cycles and long-term contracts required careful planning and organizational metamorphism.

The cultural norm was to operate only within your function. This “decentralized managerial philosophy” hindered proactive communications between departments that that could have assisted in the company’s transition to project management.

Acorn Industries made several changes to the organizational structure in effort to support the new business model. The changes made in upper management were not effective because it did not trickle-down to the lower levels as well as it should have. Case in point, the Functional Managers were focused only on meeting their KMIP annual program targets and did not actively participate in the overall transformation. At the end of the day, Acorn was only able to meet its year-to-year financial requirements but failed to grow with the “new” customers in