Acme Electronics and Omega Electronics were spin off companies from the original Technological Products of Erie, Pennsylvania that was bought out by a Cleveland manufacturer. The two companies were in the business of manufacturing printed circuit boards. Acme Electronics retained its original management while Omega Electronics hired a new president but upgraded several people within the plant. Both companies being in the same line of business and geographically close to each other often competed for business. In 1976, both companies were asked by a major photocopy manufacturer to produce 100 prototype memory units that would be used in a new experimental copier. The company with the winning bid would be awarded the contract to assemble these memory units. They had two weeks to come up with the prototypes. This paper examines the different goals pursued by Acme and Omega, their impact and strategies used to achieve the goals. It also looks at effectiveness of both methods used as well as the best results from the company that got the winning bid. Analysis
It is clear from the case that the two companies had different goals. Omega’s goals seemed to be excellent internal processes and employee satisfaction whereas Acme’s goals were profits that came from operations being run very efficiently. Top management in any organization usually sets the strategy and communicates it down to the line worker to ensure that the whole organization was working together to achieve common goals. This was no different at the two organizations above. Acme’s president credited his organization’s success and effectiveness to the high degree of efficiency they were able to achieve. This was because employees had clear cut responsibilities and narrowly defined jobs that led to high performance. Omega’s president on the other hand had great emphasis on employee relations. As soon as Acme got the blueprints, they divided the work among the different departments and each went...
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