Semco's Transformation from an Autocracy to an Entrepreneurial Democracy

Topics: Management, Ricardo Semler, Semco Pages: 11 (3487 words) Published: November 7, 2008
The following case study is based on a company named SEMCO. SEMCO is best known for its industrial democracy and innovative business management policies. The objective of this case study is to analyze the transformation of SEMCO`s autocratic style of management to a decentralized, participatory style. Let us study in brief. History of SEMCO

SEMCO, A Brazilian manufacturing company, invented by the founder’s entrepreneur son, Ricardo Semler, turning it into one of the worlds most unusual and admired workplaces. SEMCO’s headquarters is located in São Paulo, started in 1952 by Ricardo’s father, Antonio Semler, with a small patent for a centrifuge that could separate lubricating oil from vegetables, later growing under the entrepreneur’s hands into one of those countries most successful companies. Ref: ( 50s

Founded in 1953 by Austrian engineer Antonio Curt Semler, SEMCO starts manufacturing centrifuges for the vegetable oil industry. 60s
Taking advantage of naval growth in Brazil in the 60s, SEMCO also starts producing hydraulic pumps, load pumps, axles and other components for the naval industry. 60s to the 80s
During this 20 year period, SEMCO has equipped over 70% of the domestic naval fleet. 80s
Ricardo Frank Semler, the founder’s son, takes over at the company and implements a series of changes. In the 80s SEMCO was directed towards a single industrial area and due to the small number of customers. Then, it’s started diversifying its businesses and purchases manufacturing licenses from other companies, such as Philadelphia Mixer and Little ford Day. In 1982 SEMCO starts producing mixers for the chemical, pharmaceutical, food and mining industries. The stage is considered the first cycle of changes carried out by Ricardo Semler. In 1984 the company started manufacturing industrial refrigeration equipment, air-conditioning systems, food processors and other equipment. In 1984, SEMCO continues to diversify its services and purchases subsidiaries and foreign companies which were departing from Brazil, such as Hobart. In 1986, SEMCO changes to a centralized management system and started operating with four strategic business units: Naval Unit, Industrial Equipment Unit, Refrigeration Unit and Durable Goods Unit. In1989, all SEMCO businesses are developed based on a business unit concept. This provides greater freedom and also more responsibility for managers and everyone involved in the companies. 90s

When globalization begins, SEMCO moves into innovative service areas. Thus, the company once again creates partnerships with well-known companies on the international market. In 1992, ERM Brazil is created, providing environmental consultancy. In 1994, Cushman & Wakefield SEMCO is created to operate on the real estate consultancy and facilities management market. The following year the SEMCO Johnson Controls joint venture was created, to manage facilities in the industrial sector. SEMCO RGIS is created in 1998, to provide computerized inventories for retailers. 2000s

SEMCO Ventures was created, a part of the Group specializing in prospecting and developing new businesses. In 2001, SEMCO Manutenção Volante created providing electrical and civil maintenance and other services. The company is characterized by its mobile maintenance services throughout the country. In 2002, the SEMCO Group is one of the founding shareholders in Tarpon Investments. In 2005, SEMCO creates a partnership with Pitney Bowes, a worldwide leading company in document and postal management solutions. In 2006, SEMCO realizes its exits in ERM Brazil and SEMCO RGIS. In 2006, the Bio energy project was created, which later gives rise to BRENCO (Brazilian Renewable Energy Company). In 2007, Tarpon Investments concludes the listing process for it shares on the Luxembourg stock market and on Bovespa, making it one of the first asset managers in Brazil to access the capital's market....
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • democracy Essay
  • Entrepreneurial Essay
  • Liberal Democracy vs. Autocracy Essay
  • Hamlet's Transformation from Good to Evil Essay
  • Macbeths Transformation from Soldier to Tyrant Essay
  • Transformation Essay
  • Freire: Transformation from Domination to Liberation Research Paper
  • Essay on Democracy vs Autocracy

Become a StudyMode Member

Sign Up - It's Free