Case Study Sun Microsystems

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Running head: CASE STUDY: SUN MICROSYSTEMS

Case Study: Sun Microsystems

Case Study: Sun Microsystems
Sun Microsystems has an accommodating work environment. The owners’ vision was to create a “Peter Pan” atmosphere where creativity reigns. It is a fun place to work. This loose arrangement has caused some trouble along the way. This study will explore several issues that threaten Sun’s continued success. This is what we know…

We know that Sun Microsystems started out with a bang. Their sales revenue and profits have increased exponentially. Their company grew quickly and without a formal structure. We also know that the leaders in the corporation have all the skills necessary to turn their goals into reality. Despite all this, Sun saw their profits crash. And so, they are in quite a predicament…

The fact that Sun Microsystems saw their profits crash is only a symptom of the underlying problem that exists in their company. The real problem is that there is no structure in place. Because of this, their organization is not efficient. People do not know who is in charge. They have to wait for approvals. There are inventory issues. Work is being repeated. Because the four founders of the company wanted to start a company with an informal environment and a “Never Grow Up” motto, they have put the future success of their company in jeopardy. This is what we do not know…

While we know that the competition for the company was saturated at the end, we do not know the level of competition at the beginning. Knowing this may be beneficial because it could explain the huge sales revenue growth and profit growth at the beginning. This is important because without competition, of course they would own the market and all the profits that went along with that. Only after competition has entered the market, can the strength of the company be measured. What do we do now?

This problem can be addressed in several different ways....
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