Stone Finch,

Stone Water Products Inc. founded in 1975

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Quality Products. Economies of scale. Well established supply chain partnership and sales force. Highly centralized chain of command.

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Product innovation was not a part of business model, Copy new products and undercut competition.

Company acquired Goldfinch Tech. in 2000, to invest excess capital in biochemical research.,

Jim Billings to head new Solutions Division.

In

2004, Jim Billings was made CEO when Richard Stone decided to step down.

Jim started new subsidiaries and funds them through surplus generated by Water  products division,

then the problems started

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12

Subsidiaries were formed spending $139 from water product Division. Out of which 4 were merged back and 8 are left.

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Beth Suarez-Head of Enzaclean (founder of a subsidiary merged back) declared VP of solutions Division.

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Quality Relationship Motivated Employees.

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Loses on Relationships. Demotivated Employees. Losing market share. Decentralized power.

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Inequitable

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Market Leader. Centralized power  Equal growth opportunities

Old

Innovation

growth.

New

 Alternative 1 `

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Buy back all the subsidiaries & move back to the old organizational Structure. Only Two Divisions-Water products & solutions. Centralized power  Equitable growth Distribution

 Alternative `

2

Beth Suarez-(VP, Solutions) needs mentoring on scaling and Delegation , otherwise look for  replacement options for her position.

 Alternative 3 `

Bring in R&D for water Products Division instead of making them cash cow.

 Alternative `

4

Switch focus from solutions division to product division,  Attract venture capitalist or take loans to invest in subsidiary.

Alternative 1

Buy back all the subsidiary & move back to the old organizational Structure.

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Follow In Phases

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Employee retention scheme is a must now. Motivating the employees by adopting various methods such as regular appraisals, monetary and non- monetary incentives, bonuses, etc. Division of work load more equitably among the employees. Additional incentives, benefits for loyal workers of  division. Retention scheme especially for salesman and those who were responsible for fast track growth

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Conducting regular "Jam Sessions" to know the grievances and views of the people working in the organisation. Involving the employees in decision making process and thinking over the ideas and reviews given by them.

THANK YOU