Knowledge Management Case Study
Case Description
Cablex Industries liked to be seen as itself a bastion of tradition. The original owner, Jagan, had maintained close control over the business for 25 years as it developed a number of cables for two wheelers. Until he retired in 1995, Jagan knew the names of every one of the 250 staff members and their families. He made all decisions about products, clients, and employment conditions, even signed every leave application. Jagan knew all dealers and major two wheeler manufacturers personally. Jagan was Cablex Industries. He knew his industry and business very well. Cablex’s business comprising of two wheelers cables consisted of manufacturing factory, packaging division and distribution, sales and office. Cablex had maintained the same business focus and systems for a long time. Sales were steady and reliable- after all, from 1970 to 1995- every Indian middle class dream was to own a two wheelers. Auto spare market was booming.
Employees were proud to tell friends that 95% of staff had been with the company for over 20 years. They boasted of their well developed systems and everyone had complete control on their work. Everybody has had a particular role, and there was a strong informal understanding of where each fitted. Everyday was predictable, and the level of work was comfortable. No one needed to think too hard, or consider how things could be done differently.
Jagan’ son Smart took over the reins of Cablex on his retirement. Smart was a MBA who believed that his father ran Cablex like a welfare state and felt that with changes company can become the market leader in auto part Industry. Jagn died of heart attack within three months of his retirement. The death of Jagan caused major upheaval. Smart started to hire expensive industry managers, and started acquiring new businesses by diversify from two wheeler cables to four wheelers cables and engine components manufacturing. The company expended to 1000 employees in two years. The
Cablex Industries liked to be seen as itself a bastion of tradition. The original owner, Jagan, had maintained close control over the business for 25 years as it developed a number of cables for two wheelers. Until he retired in 1995, Jagan knew the names of every one of the 250 staff members and their families. He made all decisions about products, clients, and employment conditions, even signed every leave application. Jagan knew all dealers and major two wheeler manufacturers personally. Jagan was Cablex Industries. He knew his industry and business very well. Cablex’s business comprising of two wheelers cables consisted of manufacturing factory, packaging division and distribution, sales and office. Cablex had maintained the same business focus and systems for a long time. Sales were steady and reliable- after all, from 1970 to 1995- every Indian middle class dream was to own a two wheelers. Auto spare market was booming.
Employees were proud to tell friends that 95% of staff had been with the company for over 20 years. They boasted of their well developed systems and everyone had complete control on their work. Everybody has had a particular role, and there was a strong informal understanding of where each fitted. Everyday was predictable, and the level of work was comfortable. No one needed to think too hard, or consider how things could be done differently.
Jagan’ son Smart took over the reins of Cablex on his retirement. Smart was a MBA who believed that his father ran Cablex like a welfare state and felt that with changes company can become the market leader in auto part Industry. Jagn died of heart attack within three months of his retirement. The death of Jagan caused major upheaval. Smart started to hire expensive industry managers, and started acquiring new businesses by diversify from two wheeler cables to four wheelers cables and engine components manufacturing. The company expended to 1000 employees in two years. The