Grayson Chemical Case Study
Case Study:
Grayson Chemical Company
Presented by: Allan Bermudez Marlon Abito Zarny Zaragoza
CASE STUDY: Grayson Chemical Co.
Executive Summary:
Grayson Chemical Co, a 40-year old company manufactures industrial chemicals sold to other industrial companies. It has been run by a stable management in which there had only been two presidents. However, within the past few years, the company is suffering from declining earnings and sales. This has brought pressure from the board of directors, investment bankers, and stockholder groups to name a new president. The company had become stagnant – (although at Grayson, they refer to this as conservative) and had steadily lost market standing and profitability. Finally, the board decided to hire a new CEO and was able to hire a dynamic manager from another major corporation.
CASE STUDY: Grayson Chemical Co.
Tom Baker, 47 and an MBA, has helped his former company into a leadership position. He has chosen to join Grayson after another executive was chosen for the top job in his former company. Baker knows what he needs to do and that is to develop a topnotch management team that could provide leadership to turn the company around. Unfortunately, the situation at Grayson is not very favorable. Decisions are made by the book or taken to the next higher level. Things were done because “they have always been done this way,” and incompetent managers were often promoted to higher level jobs. Baker met with three members of the board. Each of them had a different advice to offer to tom.
CASE STUDY: Grayson Chemical Co.
Robert Temple said: “You can’t just get rid of the old organization if you want to maintain any semblance of morale. Your existing people are all fairly competent technically, but it’s up to you to develop performance goals and motivate them to achieve these standards. Make it clear that achievement will be rewarded and that those who can’t hack it will have to go.” James Allen noted: “You need to
Grayson Chemical Company
Presented by: Allan Bermudez Marlon Abito Zarny Zaragoza
CASE STUDY: Grayson Chemical Co.
Executive Summary:
Grayson Chemical Co, a 40-year old company manufactures industrial chemicals sold to other industrial companies. It has been run by a stable management in which there had only been two presidents. However, within the past few years, the company is suffering from declining earnings and sales. This has brought pressure from the board of directors, investment bankers, and stockholder groups to name a new president. The company had become stagnant – (although at Grayson, they refer to this as conservative) and had steadily lost market standing and profitability. Finally, the board decided to hire a new CEO and was able to hire a dynamic manager from another major corporation.
CASE STUDY: Grayson Chemical Co.
Tom Baker, 47 and an MBA, has helped his former company into a leadership position. He has chosen to join Grayson after another executive was chosen for the top job in his former company. Baker knows what he needs to do and that is to develop a topnotch management team that could provide leadership to turn the company around. Unfortunately, the situation at Grayson is not very favorable. Decisions are made by the book or taken to the next higher level. Things were done because “they have always been done this way,” and incompetent managers were often promoted to higher level jobs. Baker met with three members of the board. Each of them had a different advice to offer to tom.
CASE STUDY: Grayson Chemical Co.
Robert Temple said: “You can’t just get rid of the old organization if you want to maintain any semblance of morale. Your existing people are all fairly competent technically, but it’s up to you to develop performance goals and motivate them to achieve these standards. Make it clear that achievement will be rewarded and that those who can’t hack it will have to go.” James Allen noted: “You need to