Assume you have just been appointed to chair the board of a medium sized manufacturing firm that makes small consumer appliances.

Assume you have just been appointed to chair the board of a medium sized manufacturing firm that makes small consumer appliances.

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General Management

MANAGEMENT PROBLEMS 2

Assume you have just been appointed to chair the board of a medium sized manufacturing firm that makes small consumer appliances. The company has experienced stagnant growth over the past five years, and a new board of directors was recently elected by dissident stockholders.

            One of your first tasks is to help top management discover why sales are constant and profits have been declining. Currently, the firm is faced with excessive inventory and problems in acquiring raw materials. Prices for these materials have been fluctuating widely in recent months; the previous management seems to have been unable to cope with this problem.

            How will you approach this task? What sources of information will you seek to help understand and solve problems in the company?

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