Strengths
* Strong leadership & progressive company culture => decentralized management philosophy, egalitarian benefits, performance based compensation, strong emphasis on customer service and quality, and technological leadership through consistent investment in R&D and modernization of plant & machinery * Strong financials => consistent growth in sales and profits during the last 3 years (1983 to 1985) with the most recent year (1986) resulting in a sales figure of $755Mn (down $3Mn from last year) and net earnings of $46Mn. * Flat structure => leading to improved communication (formal & informal) between corporate and factory and amongst factories (interplant) => leading to improved efficiencies / productivity …show more content…
Automobile industry moved to aluminium * Unionisation, steel workers were paid 10 times the salary of an average manufacturing worker in the 1970’s. This cost factor could be a concern for pricing their products competitively in the market if unions were to try to negotiate for excessive wage increases