Essay about Sma Micro Electronic

1287 Words Oct 1st, 2013 6 Pages
Team Case 2: SMA: Micro-Electronic Products Division (A)
Executive Summary
This paper analyzes the problems facing SMA: Micro-Electronic Products Division (A) as requested by Guido Spichty, vice president and general manager. After a rough period in 2008, sales are finally back up but the company is still facing a time of high competition, low morale, lack of confidence, trust, and coordination. Divisions are constantly arguing with each other, which is affecting sales and profits. Key managers feel Spichty is not involved enough in the day-to-day operations. Some feel he does not listen to their problems and does not have the ability to face conflict. There are several solutions to remedy these problems facing MEPD, which would
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It is believed that the decline began when the market became more competitive and consumers began to demand lower costs and quicker delivery. Since this had not previously been an issue, the company had a difficult time adjusting (Beer & Tushman, 2013).
Until his death in 2007, the division leader was Jacob Amman. He was known to be very creative, had an authoratative leadership and was feared by many. He had a great desire to grow the company by experimentation and could single-handedly run his division. After his death Guido Spichty assumed the position of vice president and general manager.
External Research
Low morale among employees in any company eventually leads to decreased profits with other factors of the business decreasing along the way. “And US Airways employees, who have seen their pay cut by more than 20 percent and their health insurance and pension plans shrink, are certainly an unhappy lot” (Claudia H. Deutsch). In order to increase profits, the airline has decreased pay and took away some of the earned vacation. “Company executives say they are taking steps that will improve working conditions and profitability” (Claudia H. Deutsch). Many employees were calling in sick which the company believed would eventually lead to poor customer service.
Companies in general should examine other areas of cutting costs. When leaders of

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