Goshe Corporation, Acorn Industries, Continental Computer Corporation Case Study

2266 Words Dec 21st, 2012 10 Pages
Group 5: Acorn Industries, Continental Computer Corporation, and Goshe Corporation

Goshe Coporation

In the case study on the Goshe Corporation, we are introduced to the head of the organization, Banyon. He announced that there would be an average salary increase of 7% for workers. The problem began to arise when the Finance division only received a 5.5% salary increase. The scientific programmers in the Finance division felt that their Electronic Data Processing (EDP) efforts should be duly rewarded, at least as much as any other employee at the Goshe Corporation, considering that this software shortened work schedules and lowered manufacturing costs. This inherently contributes directly to the bottom line, corporate profitability.
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In order to do this, they decided to initiate a strong acquisition program in which they acquired smaller firms through purchasing them and subsequently brought them under Acorn’s wing. Upper management felt that this acquisition strategy would secure future growth and development, as well as permit them to diversify into other fields. The major problem with all these acquisitions was inherent in the fact that Acorn Industries had never applied or utilized any form of Project Management.
In July of 1996, after years of research and development and intensive competition from a major defense company, Acorn Industries was awarded a major defense contract. Just as they operated in the past, they obtained this contract through their superior technological prowess and strong marketing efforts. Acorn followed three factors in their marketing strategy: 1. Know exactly what the customer wants 2. Know exactly what the market will bear 3. Know exactly what the competition is doing and where they are going
These contracts were granted to them, amounting to $80 million each and they would last from seven to ten years, reaching into early 2009. As a result of this enormous task ahead of them, Acorn was forced to change general managers, and brought on someone who had an extensive background in Project Management and was previously heavily involved in research and development. This new manager began to face many underlying problems that

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