Case History: Stanley Works and Change

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Case History: Stanley Works & Change Change is difficult for all organizations and individuals but not necessarily bad as seen from the following case. If managed in a cautious and smart way, change can actually be constructive for the organization and for its retained employees. The Stanley Works case serves as an illustration. Part A: Background The Stanley Works founded in 1843 in Connecticut, USA, as a manufacturer of hinges, bolts and other hardware became, over time, a global presence, and expanded its international operations to the extent that it now produces more than 50 000 different products, ranging from hand, mechanical, air and hydraulic tools to hardware, fastening systems, doors and automatic doors. It is present in every major region in the world, and sales revenue in 1997 was more than US$2.67 billion. Despite this, the late 1980s, the corporation suffered competition. From an Asian counterpart that was not able to produce goods of enhanced quality but also provided these items at cheaper cost than Stanley. Stanley, consequently, began to lose market share and customers. Changes came about with Stanley's new CEO of the US Corporation, John Trani. The changes were two-fold: firstly, the world-wide manufacturing and distribution sites would be decreased from 123 locations to only 70 locations, with two sources for each product category (one third-world, one first-world country). Secondly, the organizational structure would be changed from divisional
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