The Paradoxical Twins: Acme and Omega Electronics
MAN 701 – Organizational Design and Theory
School of Business/Graduate Studies
Miami Gardens, Fla.
Term A2/Spring, 2006
March 25, 2006
In 1986 a Cleveland manufacture bought Technological Products and subsequently sold the electronics division to separate investors that manufactured computer chips and printed circuit boards. One of the investors renamed their company Acme Electronics and the other investor renamed their company Omega Electronics, Inc. The Acme company retained its original management team and promoted the general manager to president. The Omega company hired a new president and upgraded several of its existing personnel. Both companies are located in the same geographical area and compete for the same contracts. Acme employs 550 people, whereas the Omega employs 480 people.
In the 1990s, production of complex circuit boards by Acme and Omega was threatened by mixed analog and digital devices. Both companies realized the pending threat and started to aggressively seek new customers. In July of 1992, a major photocopier manufacturer was looking for subcontractors to assemble digital memory units for a new experimental copier. The project contract was estimated between $7 million to $9 million in sales. Both Acme and Omega submitted competitive bids for the production of units and both companies were selected to produce 100 units. The photocopier manufacturer explained to both companies that production speed was a critical element of the contract and that each company would only have about two weeks to produce the prototypes or risk delaying the final copier production.
On July 13, 1992 the Acme company started ordering the necessary the parts and began production on the memory units. Each department worked separately and encountered problems that led...
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