Summary Of Bill Peach's Goal

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Bill Peach calls for a meeting with all plant managers. Due to problems companywide Mr. Peach decides to plan a meeting for all plant managers. On the way to the meeting Alex finds out from another plant manager that Mr. Peach has a year to improve production or the division will go up for sale. This explains Peach’s unpredictable behavior lately. During the meeting while learning the expected goals for next quarter Alex gets side tracked and remembers a recent business trip. While on the trip he ran in to his physics professor (Jonah) at the airport. Jonah has become familiar with plant operations and catches Alex off guard with the knowledge he has of his plant however, he does not know where he works. Jonah correctly identifies that Alex’s plant has a high inventory and is late on most orders. Jonah then asks what the primary goal is at his company, Alex is confused…show more content…
On his way out he cannot stop thinking about what Jonah said about the importance of a company’s primary goal. Alex sets out to get pizza and a six pack of beer to clear his mind and discover what their goal is. Alex finally identifies that the goal is to make money and anything that will make them a more productive manufacturer. Following his realization Alex decides to head back to the plant. While at the plant he coincidently meets with the plants accountant Lou. They reach the conclusion that in order to accomplish the set goal the plant will have to increase net profit and increase return on investment and cash flows. Alex’s Dilemma Due to all the troubles at the plant Alex is faced with a Dilemma whether or not he will stay with the company. When Alex arrives home he is approached by his daughter who makes him wonder if the job at the plant is worth the risk to put his family through. Alex knows he can turn the plant around so he decides to stay and contact Jonah for advice. Contacting

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