Peter Browning and Continental White Cap
Peter Browning and Continental White Cap (A)
On April 1, 1984, Peter Browning assumed the position of vice president and operating officer of Continental White Cap, a Chicago-based division of the Continental Group, Inc. Having completed a successful five-year turnaround of Continental’s troubled Bondware Division, Browning found this new assignment at White Cap to be a very different type of challenge. He was taking over the most successful of Continental’s nine divisions—“the jewel in the Continental crown,” as one Continental executive described it. White Cap was the market leader in the production and distribution of vacuum-sealed metal closures for glass jars. Browning’s charge, though, was to revitalize and reposition the division to remain preeminent in the face of threatened, but not yet fully realized, changes in the competitive environment. Sales were stable and costs were up. Recent years had brought changes in the market: one competitor in particular was utilizing price cuts for the first time to build market share, and the introduction of plastic packaging to many of White Cap’s traditional customers threatened sales. White Cap had not yet developed a plastic closure or the ability to seal plastic containers. After more than 50 years of traditional management and close control by White Cap’s founding family, corporate headquarters decided it was time to bring in a proven, enthusiastic manager to push the business toward a leaner, more efficient, and more flexible operation—one capable of responding to the evolving market conditions. From the very start, Browning recognized two major obstacles that he would have to address. First, few managers or employees at White Cap acknowledged the need for change. Business results for more than 50 years had been quite impressive and when dips were experienced, they were perceived as cyclical and transient. Second, White Cap had a family-style culture characterized by long-term loyalty from its employees,
On April 1, 1984, Peter Browning assumed the position of vice president and operating officer of Continental White Cap, a Chicago-based division of the Continental Group, Inc. Having completed a successful five-year turnaround of Continental’s troubled Bondware Division, Browning found this new assignment at White Cap to be a very different type of challenge. He was taking over the most successful of Continental’s nine divisions—“the jewel in the Continental crown,” as one Continental executive described it. White Cap was the market leader in the production and distribution of vacuum-sealed metal closures for glass jars. Browning’s charge, though, was to revitalize and reposition the division to remain preeminent in the face of threatened, but not yet fully realized, changes in the competitive environment. Sales were stable and costs were up. Recent years had brought changes in the market: one competitor in particular was utilizing price cuts for the first time to build market share, and the introduction of plastic packaging to many of White Cap’s traditional customers threatened sales. White Cap had not yet developed a plastic closure or the ability to seal plastic containers. After more than 50 years of traditional management and close control by White Cap’s founding family, corporate headquarters decided it was time to bring in a proven, enthusiastic manager to push the business toward a leaner, more efficient, and more flexible operation—one capable of responding to the evolving market conditions. From the very start, Browning recognized two major obstacles that he would have to address. First, few managers or employees at White Cap acknowledged the need for change. Business results for more than 50 years had been quite impressive and when dips were experienced, they were perceived as cyclical and transient. Second, White Cap had a family-style culture characterized by long-term loyalty from its employees,