Allentown Materials Corporation: the Electronic Products Division

955 Words Mar 4th, 2016 4 Pages
Allentown Materials Corporation: The Electronic Products Division

A) Main organizational causes of EDP’s performance problems

1) Analyze the main changes occurred in EDP’s environment and explain how they impacted EDP’s strategic priorities.

Allentown Materials Corp is a company with more tan a century with a steady growth and high reputation in the market by the end of the 80’s. A great deal of its success is based on a strong technological capability in the invention and manufacture of glass products supported by a strong Technical Staffs Division (R&D). It was competing through product differentiation and growing profitably (average of 10% per year) without substantial competitive pressures through premium prices of
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After analyzing all the environment and situation, I have identified the following key issues as the drivers of the company’s lack of effectiveness:

1. Don Rogers was not using an effective style of leadership as it seemed that he does not have control of the division. He was more interested in the specifics of new products but not as much in the process of getting the divisions to synergize and ensure that the products were developed and sold. He was also not involved enough in the decision making and management of new product development and was not holding anyone accountable for their actions.

2. Lack of synergy and communication among the functional departments: There were overlaps in the responsibilities of the new functional units which caused a lot of disputes among the business units as well as prolonging the process of new product development unnecessarily.

i- Manufactoring

- Manufacturing area complained that low-gross-margin business and there was no penalization for it.
- There was a distrusting feeling between Sales and Manufactoring and they reflected two groups that have