Acme Omega
The Paradoxical Twins: Acme and Omega Electronics1
Part I
In 1984 Copitronics of Cleveland, Ohio was purchased by Global Xerograph
(GX), a global manufacturer of copying machines. GX had no interest in the electronics components division of Copitronics. The two manufacturing plants that produced electronic components for copiers and other devices were sold.
One plant, located in western Pennsylvania, was purchased by former
Copitronics managers and renamed Acme Electronics. Most of the plant personnel remained with the newly formed company. The former plant manager became president of the new company. The other plant, located in Cleveland, was purchased by investors and renamed Omega Electronics. The Omega investors hired a new president who had worked in research and development for a large computer manufacturer. Some new research engineers were hired and several Copitronics personnel remained with the company but in new positions. Acme and Omega often competed for contracts to supply components to several large electronics manufacturing firms in the US. Both companies prospered in the mid-1980s and early 1990s as computerized electronics equipment boomed.
Acme had annual sales of over $170 million and employed 350 people. Omega was somewhat smaller with sales of $140 million and about 275 people.
However, Acme was consistently more efficient and profitable than Omega.
Acme – A close-up. Acme’s president, Fred Taylor, attributed his company’s success to the fact that he and his managers ran a “tight ship.” They retained the same basic structure that the division had when it was part of Copitronics because it was efficient for high volume production of electronics components such as switching devices and printed circuit boards. Taylor noted that, “Acme regularly undercuts the competition because of their focus on efficient production.
We are regularly the profit leader in this business.” Acme’s structure is shown in
Figure 1. Workers are generally satisfied at
Part I
In 1984 Copitronics of Cleveland, Ohio was purchased by Global Xerograph
(GX), a global manufacturer of copying machines. GX had no interest in the electronics components division of Copitronics. The two manufacturing plants that produced electronic components for copiers and other devices were sold.
One plant, located in western Pennsylvania, was purchased by former
Copitronics managers and renamed Acme Electronics. Most of the plant personnel remained with the newly formed company. The former plant manager became president of the new company. The other plant, located in Cleveland, was purchased by investors and renamed Omega Electronics. The Omega investors hired a new president who had worked in research and development for a large computer manufacturer. Some new research engineers were hired and several Copitronics personnel remained with the company but in new positions. Acme and Omega often competed for contracts to supply components to several large electronics manufacturing firms in the US. Both companies prospered in the mid-1980s and early 1990s as computerized electronics equipment boomed.
Acme had annual sales of over $170 million and employed 350 people. Omega was somewhat smaller with sales of $140 million and about 275 people.
However, Acme was consistently more efficient and profitable than Omega.
Acme – A close-up. Acme’s president, Fred Taylor, attributed his company’s success to the fact that he and his managers ran a “tight ship.” They retained the same basic structure that the division had when it was part of Copitronics because it was efficient for high volume production of electronics components such as switching devices and printed circuit boards. Taylor noted that, “Acme regularly undercuts the competition because of their focus on efficient production.
We are regularly the profit leader in this business.” Acme’s structure is shown in
Figure 1. Workers are generally satisfied at