Gulf Metal States A. Situational Analysis
GULF STATES METALS, INC. CASE STUDY
1)Gulf States Metal, Inc. Company is engaging in Nickel refining and also produces copper, cobalt, and ammonia sulfate. Its parent comp any is International Metals Inc. GSM created before 10 years by IMI and GSM has been in operation now for 8 years. IMI expected GSM to lose money the first 2 years operation after that it was expected to be highly profitable. In fact GSM has not shown a profit, losing $1million last year. This loses because of variety of factors and demand decrease for Nickel and Copper, the condition of equipment and labor problems. Another problem is price of substitute product is less. As they have done 20 years contract so as per terms current price for Nickel and Copper the cost of raw material makes it very difficult to show a profit.
The plant is operated twenty-four hours a day, seven days a week. Process is monitored through the reading Gauges & the analysis of samples testing. Process control department is responsible for making adjustment in the process ensure quality and flow. Building & equipment are old and corroded. Atmosphere is not proper. Employees are not use safety equipment. Operator’s behaviors are not proper.
Plant manager promoted to GM. IMI suggested for OD project at GSM. There is a poor management of former GM. Future of the plant depend upon new GM. IMI expect immediate Results. GM met some consultants for OD Project. Also no one has had any training in management.
Top plant managers are highly autocratic. Major problem is management style of top plant managers. Plant could be more productive if positions matched authority and responsibility. Also maintenance is poor. Cost of Material is too high. Middle manager & supervisor are incapable or unwilling for work. People are not doing their job. Supervisor can't be trusted for decision-making. Equipment is a problem. Director of engineering could not maintain his staff. Supervisor is totally intimidated by manager &
1)Gulf States Metal, Inc. Company is engaging in Nickel refining and also produces copper, cobalt, and ammonia sulfate. Its parent comp any is International Metals Inc. GSM created before 10 years by IMI and GSM has been in operation now for 8 years. IMI expected GSM to lose money the first 2 years operation after that it was expected to be highly profitable. In fact GSM has not shown a profit, losing $1million last year. This loses because of variety of factors and demand decrease for Nickel and Copper, the condition of equipment and labor problems. Another problem is price of substitute product is less. As they have done 20 years contract so as per terms current price for Nickel and Copper the cost of raw material makes it very difficult to show a profit.
The plant is operated twenty-four hours a day, seven days a week. Process is monitored through the reading Gauges & the analysis of samples testing. Process control department is responsible for making adjustment in the process ensure quality and flow. Building & equipment are old and corroded. Atmosphere is not proper. Employees are not use safety equipment. Operator’s behaviors are not proper.
Plant manager promoted to GM. IMI suggested for OD project at GSM. There is a poor management of former GM. Future of the plant depend upon new GM. IMI expect immediate Results. GM met some consultants for OD Project. Also no one has had any training in management.
Top plant managers are highly autocratic. Major problem is management style of top plant managers. Plant could be more productive if positions matched authority and responsibility. Also maintenance is poor. Cost of Material is too high. Middle manager & supervisor are incapable or unwilling for work. People are not doing their job. Supervisor can't be trusted for decision-making. Equipment is a problem. Director of engineering could not maintain his staff. Supervisor is totally intimidated by manager &