Elektra Products, Inc.
Case Summary
Elektra Products is an 80 year old publicly held company. Elektra Products at one point had been a leading manufacturer and retailer of electrical products and suppliers. The company in recent years experienced multiple problems: market share was declining in competition of foreign and domestic area; new products ideas were few and far; morale was low at all time; and employees were actively seeking new jobs. Barbara Russell, a manufacturing vice president, felt hopeful that Elektra Products could once again be successful. She was assigned by Martin Griffin, Elektra’s new CEO to come up with problem- solving ideas with other managers. Griffin had been hired to revive the failing company. He recently made a challenge: “As we face increasing competition, we need new ideas, new energy, and new spirit to make this company great. And the source for this change is you – each one of you.”
The company was holding their monthly companywide meeting. In this meeting Martin Griffin, CEO, talked about how under the new empowerment campaign, employees would be getting more information about how the company was being ran and would be able to work with their fellow employees in new and creative ways. The meeting was supposed to have all the employees feel hopeful about the positive that would happen just with a couple of changes. Unfortunately half way into the meeting the company CEO was called out for an urgent matter and left many unanswered questions and the tension rose from employees; Even Simon a company employee and a friend of Barbara Russell when on saying, “just another pile of corporate crap” and “one minute they try downsizing, the next reengineering. Then they dabble in reconstructing. Now Martin wants to push empowerment…” Clearly its employees were not as hopeful as vice president of manufacturing, Barbara Russell and it was made known after the company CEO had walked out. What is certain is that change has to be done in order for the company to once again be number one in the market share.
Opinions and Assumptions
My assumptions are that Elektra Products, Inc. will be successful with the help of their new CEO, Martin Griffin. I think that this is possible because the vice president, Barbara Russell feels hopeful walking into their monthly companywide meeting. Although there is some negativity coming from an Elektra employee Simon, which is also a friend of Barbara, the company will have something to strive for and overcome the difficulties that the company is facing. All can be done and save the company with some change.
Problem Statement (or opportunity statement)
1. The symptoms that a problem exists: there is a lack of communication between departments such as manufacturing and sales, no new ideas for products are being created, the market share was declining due to competition, morale was at an all- time low, and the company’s employees actively seek other jobs.
2. The major problem that has to be addressed is that new ideas need to be created in order to create new costumers. Therefore people will want the product and sales will rise for Elektra Products.
3. Are there secondary problems or decisions? Yes. A company needs to make sure that their employees are happy. If you have a happy employee is it more likely that they will not seek other jobs. Employees that enjoy their job and have hoped that their company will just keep on succeeding makes them have a high morale.
4. Opportunities that need to be addressed: If Elektra Products comes out with new products and allows the employees to give a refund of up to $500.00 that will make the employees feel that they have more power. Although the finance department was not so well pleased with the idea it should be done because it boosts how an employee feels about the company. And the goal is to have high sales and also maintain happy employees. Also human resources were not content with change to the company because it would