Case on Corwin Corporation

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Case 1: Corwin Corporation

Table of Contents

Summary of Findings…………………………………………………………… 3 Background Information……………………………………………………….. 3 Problem Statement……………………………………………………………… 5 Analysis of Alternatives………………………………………………………… 5 Detailed Recommendations……………………………………………………. 6 Implementation and Evaluation………………………………………………..7 References……………………………………………………………………….. 9

Case 1: Corwin Corporation
Summary of findings
This case is about a reputed rubber component manufacturing company that has a conservative and risk-averse culture. But they accepted a project from their client, Peters Company without making a deep research as they don’t want to lose their relationship. This project was more than what the company can chew. Corwin was not able to get the results as expected on this project. This was due to lack of time and expertise in personnel in making the “go or no go” decision for this project. Also there were no proper project management functions visible in the whole process right from selection of the project, which proves the lack of strategic decision making process in the upper hierarchy of the organization. Some other problems identified were accepting the project for a fixed price and letting the customer representative intrude the direct personnel working in the project. The best recommendation is to have a company-wide policy implementation for selection of projects and having skillful and experienced people determine the cost and make budgets. The company must stick to follow the project management functionalities however worse the situation is and should follow their rules in the own territory. Having the recommendations implied the success factor can be measured by customer satisfaction in that project.

Background information
Corwin Corporation (CC) has an international reputation for manufacturing lo-cost and high-quality rubber component. They follow risk-averse culture and don’t believe in entering new markets by introducing new product. As a marketing-driven company they seek to invade new markets with their existing products rather than investing on a new product and take chances. CC had good relationship with Peters Company as they were doing the specialty-product assignment for them. On December 7, 1982, Peters Company offered CC a fixed-price contract of $250,000 as they dint have enough of personnel to carry on the project. Out of the blue, CC accepted the proposal without doing proper research with experienced personnel. This was the first mistake made by the VP of Marketing to have accepted the project without following the protocol for making critical decisions. Thinking the project to be attractive, CC started working on the project. But sooner the thought turned out to be contrasting as the tests were a big failure. The results did not meet the client’s expectation. The project disturbed the work-life of the employees due to lack of experience of the project leader who was lenient about the in-house representative being intrusive in others job. At the end of third month of the project, the overall cost turned out to be higher than what was originally proposed. The failure of the initial results grabbed the attention of higher level executives who took care of the situation. New policies and test were implemented to complete the project. But Peters Company decided to cancel the contract due to insufficient results produced by CC. Also they mentioned that, CC’s executives did not pay attention to their project. These lead to loss of thousands of dollar and a valuable for customer for Corwin.

Problem Statement
In this case, four main problems were very prominent, namely: selection process of project, involvement of executives in the project, lack of communication style with stakeholders and making arrangements like buying raw materials for the project before signing the contract. Hamburger has stated in one of his article about failure of projects due to lack of...
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