TO: Frank Curtis
FROM: Dejan Lazaroski
DATE: April 06, 2014
SUBJECT: Case Analyisis
Lee Medical Supplies is company acquired by Allied Industries Company. The annual sale of Lee Medical Supplies is approximately $300 million but net earning only $12 million. The director of fiscal affairs of Allied industries, Frank Curtis, was promoted to president of a company owned by Allied, by James Fulmer, chief executive officer of Allied Industries. New responsibility of Frank Curtis is to turn around the present situation and achieve results up to 18 months. In the past, Lee Medical Supplies was company with mismanagement history, family managed company with very pleasant atmosphere and no stress. Previously, the employees were paid on a straight salary basis, with seniority the unique criterion for career development. It was given some priority to increase sales each year, but it didn’t result with reducing costs and increasing profits. Employees did indeed find the company a fun place to work, and the feeling of being a part of the family did permeate the company. Such attitudes were, however, accompanied by mediocrity, incompetence, and low performance. In 18 months, Frank Curtis made a company profitable, but had to implement immediate strategic changes in five areas: the organization's structure, employee rewards and incentives, management information systems, allocation of resources, and managerial leadership style. These changes brought several actions such as three of nine vice presidents have resigned and that four others have been terminated.
Mr. Curtis, your objective was to make company sales and profits compatible with Allied standards. In this period of time that has been given to you, all the factors met Allied profile, but there are also some other disturbances regarding your managing style. Don’t understand this that you are not people orientated person. You took the responsibility make the sales and...