Stone Finch (Case Study)

Topics: Strategic management, Leadership, Management Pages: 14 (4887 words) Published: December 4, 2012
(Lecturer: Dr Bharat (Ben) Shenoy

Student Name: Hamzah Takamlay

Student ID Number: 027007

Course: Wales MBA (General)

Module Name: Leadership and Strategic Change

Introduction of Stone Finch3
Diagnosing the Problem3
Strategic Intent of Stone Finch, Inc.4
Adaptive Leadership of Stone Finch, Inc.4
Organizational Architecture of Stone Finch, Inc.5
Diagnosis of the Strategic Intent6
Diagnosis of the Contextual Leadership7
Diagnosis of Organizational Architecture8
Recommendations for Strategic Intent9
Recommendation for contextual leadership Billings, Saunders and Suarez11
Recommendation for Organisation architecture of Stone Finch15
Reference List18

Introduction of Stone Finch
The company discussed in this paper is Stone Finch, Inc. The company was founded in 1975 by the Stone family and manufactured products for the water/wastewater industry. It started as Stone Water Products, Inc. This firm served a variety of markets that created wastewater. Stone Water Products had made a good reputation by supplying good quality products and service arrangements done by its sales people within 25 years. In 2000 the CEO and chairman of Stone Water Products, Richard Stone, the son of the founder made the decision of acquiring Goldfinch Technologies. Goldfinch Technologies was a biochemical frim which was in the water/wastewater processing market led by Jim Billings. After the acquisition the company name was changed to Stone Finch, Inc.

Diagnosing the Problem
In 2008 Stone Finch, Inc. was in a grave situation. To analyse the symptoms and diagnose the reasons why the company was facing this situation I will be using the modified Tushman-O’Reilly model.

Source: Lecture hand-out, 2011
As the model is divided into 3 key aspects which are strategy, leadership and culture of the organization, I too will be critically analysing these areas of Stone Finch, Inc. This model will be applied to find out the symptoms or the key issues that took place in the history of Stone Flinch. Due to which they are facing this situation. Then justified recommendation will be given on how they can overcome this problem. Symptoms

The symptoms are divided into different part as the modified Tushman-O’Reilly model. The keys issues or symptoms in the three parts of the organisation are given below Strategic Intent of Stone Finch, Inc.

The challenge Stone Finch is facing is that their manufacturing division named Water Products division is not a leader in any market in the past two years. As well as their manufacturing division was been used like a cash cow to feed the growing number of subsidiaries. On top of this Water Products was about to pass its maturity phase. The strategy of Stone Finch adopted in 2004 was the incubator concept of strategic subsidiaries adopted by Jim Billings. Jim’s strategy was to position Stone Finch in new markets of servicing nuclear power plant wastewater and aid municipalities purifying ground water. He also believed that focus on bringing cutting-edge water purification process and technologies would to build an innovation pipeline for the Solutions Division. This strategy was not properly executed and thus proved to be an unsustainable strategy for the company. The idea was, when the Water Products passed the maturity stage the new product from the subsidiaries which was continuously nurtured by new talent could be used to make a profit. This profit would lead the company through the slow growth periods phase and through the turbulent and globally crowded markets. But it did not happen. The products from the Subsidiaries division were not able to last in the long term, which put more pressure on Water Products division. Another issue was that the Solutions Division was 15% over their budget. A majority of the company’s capital was used by the Solutions Division leaving the Water...
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