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Art Inc.: Global Innovation’s Challenges Case Study

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From the Case we can tell that Peter Vyas has been very effective in dealing with the tricky situation of his Unit. He in fact managed to rebuild a low morale and a high turnover Unit selecting entrepreneurial minded people. He truly believes in the skills of his team and had faith in its project, which has been discharged by previous management, and succeeded in motivating the team to pick up the project again and develop it further.
In Cynthia Jackson’s words, VP of the divison, he “seems to be an excellent talented manager”. In fact he rather brilliantly coped with the global challenges of his cross cultural and cross continental Unit, fixing the communication issues between
Wagner and the ITC during the critical phase 2 of the …show more content…

Jackson would have similar feelings about the effort put in the project, given that she has hands on experience of the whole third launch attempt. She knows that the team has proven to be disciplined and successfully responded to the strict 3 phase process. In addition, during the development of the product, in true ART spirit, the team activated a full range of synergies with the ITC, HVAC and Healthcare divisions.
Coming to a higher perspective, considering the critical situation in which the Filtration Unit is, an above-the-target performance of the project would bring up the value of the entire Unit; this might not be enough to mitigate the bulky yearly losses, though. In fact, a logic of divesting the BU might be the one Jackson would look at. Such an investment, in fact, even if does not turn out to be at ART standards might still represents a high performance for other companies. In the end such an investment can make a BU with chronic losses like the Filtration Unit a more valuable asset to be sold.
Furthermore is to be considered that 2M$ financing is a mere sum compared to the yearly 6M$ losses of the Unit, making it a low opportunity-cost investment.
The decision of Jackson would be to invest in the project but at the same time starting a cost reduction policy by focusing on the internal R&D center and by dropping the

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