|To: |Senior Management |
|CC: | |
|Date: |2/14/2010 |
|Re: |Case Analysis |
In 1986, 265 employees began working on linking Tyabji’s vision with the operational flow of the company. Verifone has grown dramatically by introducing new technologies, software customization as the need for payment transactions became the basis for the global economy. By 1994 employment has reached 1750 and revenue has increased each year since 1986. Expenses have been controlled until 1993 when we posted a loss over the last period for the first time since Tyabji took control. The decentralized form of management has reached its limitations as internal growth has diluted the loyalty to the company’s culture. As revenues climb we must evaluate expenses and have a coordinated effort to bring each office online with our core values and company goals.
Internal growth has presented challenges to our structure, promotional opportunities and buy-in by new employees. Being decentralized does not provide direct leadership across the company and individual offices no longer share the vision from 1986. The technology has made communication impersonal and work groups have the ability to work independently. Costs associated with travel and program development have become a factor in profitability. Our rank and file no longer embrace the decentralized management. We lack...