Atlas Tire and Rubber Company
1) What were Atlas’ major challenges prior to the promotion of Walter Harrison as CEO? The main challenges faced by Atlas’ were competitive and financial challenges. As for the first time from 1905 the company was facing losses for consecutive 2 years in row as the company was facing a severe downturn. This was all because of the new challenges, which the company was facing due to their growth and expansion policies
The company was also facing the competitive challenges from the low prices import products which were affecting their price strategy resulting in low profits, heavy slump in the automotive market in America also pulled back Atlas to regain its flagship.
Due to all these the stock prices dropped down to 20 years low resulting in cutting down of credit rating to junk – bond status.
So during this declining phase, the company needs some major transformational changes so that Atlas can regain its position and pride back.
2) Why did Harrison focus on an integrated supply chain as a significant element of Atlas’ new strategic plan? As Harrison and his team found that Atlas lacked integrated supply chain capabilities due to which disjointed distribution network was there and various third – partly logistic companies were used which lead to many problems and challenges. And logistics was only considered as a storage and distribution function rather than a strategic supply chain process. As Harrison came out with a strategic plan “ Seven Principle of Growth” for turning around the Atlas’s fate. Harrison special focused on a superior and integrated supply chain. He focused on Integrated Supply Chain because he strongly feels that this would streamline the order and its fulfillment process so that they can be more accurate and easy to use because of their simplicity. The main focus was to deliver “the right tire to the right place at the right time while keeping costs and inventories low.” Harrison wants to create...
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