Stanley Hydraulics Corporation (A)
From my overall point of view, I don’t think that Bob Nehrgardt was crazy. It’s highly appreciable that someone is dedicated to work so enthusiastically and objectively for his company. Bob achieved a huge success in a relatively small time period. In ten years with Dynamic Controls, Bob Nehrgardt raised up the annual sales from $600,000 to $5 million. Entering in the product engineering, he developed his path towards industrial sales, marketing, product development and finally to the top management. He acquired diverse experience which was necessary run a company successfully. Bob has outstanding management skills, intense and broad knowledge, and qualified working experience to think of making a company successful with his maximum contribution. Bob Nehrgardt had a brilliant idea of starting his own company and he has a solid plan and intellectual goal for the same. He wanted a have company with no politics so that there can be a full utilization of human energy and intelligence solely in the work. For his new company Stanley Hydraulics Corporation, he spent a full year for the planning and preparing every aspect of the new operation. He estimated that it would take at least five years of operations to build strong relationships with the distributors and at least three years to begin showing a positive cash flow. He even thought of very details such as floor space and sales employees in three situations: pessimistic, realistic and optimistic. Bob Nehrgardt wanted to remove the problems of hierarchy and the ossification that comes in the minds and the behaviors of employees. He also designed workable and attainable organization rules for his new company. These rules were the guidelines for the employees. For example, he anticipated that employees work with the customers, distributors, employees and suppliers, and foster the relationships with honest and fair commitment. He wanted to have a check on these aspects. I would...
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