Simmons case study
Overview and Executive Summary
In this case analysis we will discuss Organizational Behavior, Decision making, Organization’s culture, Diversity, Values and leadership behavior. Today relatively small differences in performance between companies, such as in the speed at which they can bring new products or services to market or in how they motivate their employee to find ways to reduce costs or improve performance, can combine to give one company a significant competitive advantage over another. Managers and companies that use proven management techniques in their decision making and actions increase their effectiveness over time. Companies and managers that are slower to implement new management techniques and practices find themselves at a growing competitive disadvantage that makes it even more difficult to catch up. This case is all about implementing new management techniques like empowering employees and engaging in adaptive organizational culture. Simmons had the competitive advantage over competitors for almost a century.
Simmons History
Simmons, a mattress manufacturing family run company, with a history of over 130 years, started manufacturing in 1876 with nine employees and a $5000 investment. Founder of the company Zalmon Gilbert Simmons in 1875 decided to change their business from wood products to woven wire mattresses, which resulted in great profits to the company. In early 1920’s Simmons had factories in Mexico City, London, and Paris with international operations which is unusual for the era. By 1936, the firm’s overall sales reached $42 million with more than 16,000 retailers carrying Simmons products. By 1978, the company was operating in 15 countries around the world and this is the time Simmons started early forms of Employee Stock Ownership Plans (ESOPs) although it was formalized in 1989. As a socially responsible company, Simmons also contributed products like bunk beds, tents, parachutes and more for solders during war situations.
In this case analysis we will discuss Organizational Behavior, Decision making, Organization’s culture, Diversity, Values and leadership behavior. Today relatively small differences in performance between companies, such as in the speed at which they can bring new products or services to market or in how they motivate their employee to find ways to reduce costs or improve performance, can combine to give one company a significant competitive advantage over another. Managers and companies that use proven management techniques in their decision making and actions increase their effectiveness over time. Companies and managers that are slower to implement new management techniques and practices find themselves at a growing competitive disadvantage that makes it even more difficult to catch up. This case is all about implementing new management techniques like empowering employees and engaging in adaptive organizational culture. Simmons had the competitive advantage over competitors for almost a century.
Simmons History
Simmons, a mattress manufacturing family run company, with a history of over 130 years, started manufacturing in 1876 with nine employees and a $5000 investment. Founder of the company Zalmon Gilbert Simmons in 1875 decided to change their business from wood products to woven wire mattresses, which resulted in great profits to the company. In early 1920’s Simmons had factories in Mexico City, London, and Paris with international operations which is unusual for the era. By 1936, the firm’s overall sales reached $42 million with more than 16,000 retailers carrying Simmons products. By 1978, the company was operating in 15 countries around the world and this is the time Simmons started early forms of Employee Stock Ownership Plans (ESOPs) although it was formalized in 1989. As a socially responsible company, Simmons also contributed products like bunk beds, tents, parachutes and more for solders during war situations.