Case Study: Family Matters
Read the case study, “Family Matters.” After reading the case study, address the questions and prompts below.
- What is the most immediate problem for Larry Cohen, the president of Accurate Perforating?
- Describe Accurate Perforating’s current business model.
- Describe a new business model using business theories and concepts that you believe would improve Accurate Perforating’s profitability.
- To support the success of this new business model, what knowledge, skills, and abilities are needed from management?
- What are your recommendations for keeping or replacing Aaron Kamins as the chief executive officer (CEO)?
- Create one human resource (HR) policy that would support the growth of this business.
- Does your new business model solve the problem that you identified as the most immediate problem?
- What other actions would you recommend for this company?
The most immediate problem for Larry Cohen, the president of Accurate Perforating, is the company’s declining profitability and the tension between management and employees.
Accurate Perforating’s current business model is based on a production-oriented approach, where the focus is on producing a large volume of perforated metal sheets as quickly and efficiently as possible. This approach has led to high production costs, low product quality, and a lack of focus on customer needs.
A new business model that could improve Accurate Perforating’s profitability would be a customer-centric approach, where the focus is on understanding and satisfying customer needs. This could be achieved through implementing Total Quality Management (TQM) principles, where the focus is on continuous improvement and customer satisfaction. Additionally, implementing Lean Manufacturing principles, where waste is reduced and efficiency is improved, could also help improve profitability.
For the success of this new business model, management will need knowledge in TQM and Lean Manufacturing principles, as well as strong leadership and communication skills. Additionally, they will need to be able to motivate and empower employees, foster a customer-focused culture, and be able to make decisions based on data and customer feedback.
Regarding the CEO, Aaron Kamins, it is recommended that he be replaced. His production-oriented approach is not aligned with the customer-centric approach needed for success. Additionally, his lack of communication and leadership skills has led to a negative work environment, low employee morale, and declining profitability.
To support the growth of the business, a human resource (HR) policy that could be implemented is a continuous learning and development program. This policy would provide employees with opportunities to acquire new skills and knowledge, and support their personal and professional growth. This would create a more motivated and skilled workforce, and contribute to the success of the new business model.
