Global Enterprise

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As the president and CEO of GLOBAL Enterprises, it is clear to Jennifer Copperman-Williams that GLOBAL’s strategic performance is sliding and is starting to affect the company’s financial performance. While the company is not yet in crisis, if it does not initiate reactive change more quickly, it soon will be. The root cause of GLOBAL’s current strategic challenges is closely tied to the restructuring effort that took place in 1991. Prior to restructuring, GLOBAL’s international partners Rhine Mark and Nitta Nippon enjoyed some independence in product develop and making production decisions. Both of these companies lost control of product development and production after restructuring which frustrated their respective General Managers. As Peter Notehelfer, GM of EMA, best describes it, “…GLOBAL has gutted the power and capability of the country organization in favor of centralized U.S. control”. In line with this new strategy, GLOBAL closed down the Best Brands plant in Germany to consolidate and reduce production cost. GLOBAL also incurred loss in the development of New Horizons’ interactive multimedia product – Carl Rose, the product line manager of New Horizon, did not succeed in generating sales operating profit. Drawing together the observations of GLOBAL’s current situation and performance, Jennifer should identify the organizational capabilities (Exhibit 1) that are necessary for GLOBAL’s structure, management processes and leadership behavior and develop capabilities to support new strategy. To improve financial performance, GLOBAL must improve its competitive edge by reducing production cost. Jennifer should look into consolidating manufacturing plants to reduce product cost in Asia/Pacific as it has the highest cost of products and services amongst the three region ($487 millions). Secondly, GLOBAL must start operating as one company to deliver new technologies that add financial values to the company. Since the restructuring in 1991, some senior...
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