The Adams Corporation Case

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THE ADAMS CORPORATION Case

WHAT KIND OF COMPANY WAS ADAMS BEFORE THE ARRIVAL OF M. MILLMAN ?

AND WHAT WOULD YOU DO IF YOU WERE

M. MILLMAN?

1

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Adams Corporation

PHILOSOPHY

ORGANIZATION

ETHICAL STANDARDS

QUALITY PRODUCTS

QUALITY OF THE WORKING CLIMATE

HOLY BIBLE AND FAMILY STEWARDSHIP

BELIEF IN:

FUNDAMENTAL GOODNESS OF MAN

POWER OF FAIR PLAY

INTEGRITY

Publicité

7 SALES DIVISIONS

IMPORTANT PRODUCTION DIV.

UNDEVELOPED INFO. SYSTEM

CONSERVATIVE COMPENSATIONS

LIFE EMPLOYMENT

EMPLOYEE BENEFITS

TRADITIONS

CENTRALIZED

RESULTS

INNOVATIVE IN PRODUCTION PROCESSES

LEADER IN MANUFACTURING AND LOGISTICS EFFICIENCY

«BEST VALUE» BY CUSTOMERS

BUT…RECENTLY

IMPORTANT CHANGES IN ENVIRONMENT

MORE INTENSE COMPETITION

ADAMS: A SLEEPING GIANT

2

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Publicité

What is Adams strategy now?

Quality

Lowcost

Value for the money

Rely on inherent product superiority to attract customers  no advertising

Emphasize production

Emphasize internal cooperation to compete with outside rivals

What is the problem with these strategy components?

 Low profitability and decreasing competitivess (loosing market share)

How would you describe the change undertaken by Millman?

IS IT VERY DIFFERENT FROM WHAT EXISTED ? HOW?

WHAT WAS CHANGED BY MILLMAN ?

GOALS !

 WHAT ARE THE NEW GOALS ?

STRUCTURE !

 WHAT ARE THE CHARACTERISTICS OF THE NEW ORGANIZATION?

COMPENSATION SYSTEM

 SUPPORT SYSTEMS: ACCOUNTING, PACKAGING, MARKETING

Publicité

3

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 infuse Adams with "fighting spirit" and "competitiveness."

« organizational philosophy » = fight and win.

Improve effectiveness= I have but one goal: each month must be better than the past.

Inculquer chez Adams « l’esprit de lutte» et «la compétitivité».

Il dit:" Ma philosophie personnelle et organisationnelle sont = se battre et gagner ‘’

Améliorer l’efficacité: je n’ai qu’un seul but: chaque mois doit être mieux que le passé.

If you were M. Millman what would you do?

Would you change ? What?

 highlight the problems that you could meet

 draw the expected results and consequences of your program

Mettre en évidence les problèmes que vous pourriez rencontrer,

Prévoir les résultats et les conséquences du programme de changement (lequel?) que vous allez implanter.

4

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Que Faire?

ECONOMIC GOALS

Publicité

Return On Inversement (ROI)

MARKET SHARE

EFFICIENCY

Contrôler l’adéquation

NON ECONOMIC GOALS

VALUES

BELIEFS,

HOW TO DO IT ?

STRUCTURE

SYSTEMS

LEADERSHIP

RESSOURCE ALLOCATION

 REENGINEER THE PROCESSES

Conclure par: quelques lignes pour indiquer les objectifs de votre programme (Profitabilité, augmentation des parts de marché, efficacité d’utilisation des ressources notamment humaines, valeurs et croyances (culture d’entreprise) partagées par le personnel ,…

Et en indiquant comment arriver à les réaliser: rôle de leadership à assumer et allocation des ressources (continuer à faire du social ou être orienté compétitivité, efficacité, profitabilité attendue par les actionnaires notamment les nouveaux acquéreurs).

5

The Adams Corporation Case

Business Strategy and Organizational Change · notes

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<!-- Slide number: 1 -->

THE ADAMS CORPORATION Case

WHAT KIND OF COMPANY WAS ADAMS BEFORE THE ARRIVAL OF M. MILLMAN ?

AND WHAT WOULD YOU DO IF YOU WERE

M. MILLMAN?

1

<!-- Slide number: 2 -->

Adams Corporation

PHILOSOPHY

ORGANIZATION

ETHICAL STANDARDS

QUALITY PRODUCTS

QUALITY OF THE WORKING CLIMATE

HOLY BIBLE AND FAMILY STEWARDSHIP

BELIEF IN:

FUNDAMENTAL GOODNESS OF MAN

POWER OF FAIR PLAY

INTEGRITY

Advertisement

7 SALES DIVISIONS

IMPORTANT PRODUCTION DIV.

UNDEVELOPED INFO. SYSTEM

CONSERVATIVE COMPENSATIONS

LIFE EMPLOYMENT

EMPLOYEE BENEFITS

TRADITIONS

CENTRALIZED

RESULTS

INNOVATIVE IN PRODUCTION PROCESSES

LEADER IN MANUFACTURING AND LOGISTICS EFFICIENCY

«BEST VALUE» BY CUSTOMERS

BUT…RECENTLY

IMPORTANT CHANGES IN ENVIRONMENT

MORE INTENSE COMPETITION

ADAMS: A SLEEPING GIANT

2

<!-- Slide number: 3 -->

Advertisement

What is Adams strategy now?

Quality

Lowcost

Value for the money

Rely on inherent product superiority to attract customers  no advertising

Emphasize production

Emphasize internal cooperation to compete with outside rivals

What is the problem with these strategy components?

 Low profitability and decreasing competitivess (loosing market share)

How would you describe the change undertaken by Millman?

IS IT VERY DIFFERENT FROM WHAT EXISTED ? HOW?

WHAT WAS CHANGED BY MILLMAN ?

GOALS !

 WHAT ARE THE NEW GOALS ?

STRUCTURE !

 WHAT ARE THE CHARACTERISTICS OF THE NEW ORGANIZATION?

COMPENSATION SYSTEM

 SUPPORT SYSTEMS: ACCOUNTING, PACKAGING, MARKETING

Advertisement

3

<!-- Slide number: 4 -->

 infuse Adams with "fighting spirit" and "competitiveness."

« organizational philosophy » = fight and win.

Improve effectiveness= I have but one goal: each month must be better than the past.

Inculquer chez Adams « l’esprit de lutte» et «la compétitivité».

Il dit:" Ma philosophie personnelle et organisationnelle sont = se battre et gagner ‘’

Améliorer l’efficacité: je n’ai qu’un seul but: chaque mois doit être mieux que le passé.

If you were M. Millman what would you do?

Would you change ? What?

 highlight the problems that you could meet

 draw the expected results and consequences of your program

Mettre en évidence les problèmes que vous pourriez rencontrer,

Prévoir les résultats et les conséquences du programme de changement (lequel?) que vous allez implanter.

4

<!-- Slide number: 5 -->

Que Faire?

ECONOMIC GOALS

Advertisement

Return On Inversement (ROI)

MARKET SHARE

EFFICIENCY

Contrôler l’adéquation

NON ECONOMIC GOALS

VALUES

BELIEFS,

HOW TO DO IT ?

STRUCTURE

SYSTEMS

LEADERSHIP

RESSOURCE ALLOCATION

 REENGINEER THE PROCESSES

Conclure par: quelques lignes pour indiquer les objectifs de votre programme (Profitabilité, augmentation des parts de marché, efficacité d’utilisation des ressources notamment humaines, valeurs et croyances (culture d’entreprise) partagées par le personnel ,…

Et en indiquant comment arriver à les réaliser: rôle de leadership à assumer et allocation des ressources (continuer à faire du social ou être orienté compétitivité, efficacité, profitabilité attendue par les actionnaires notamment les nouveaux acquéreurs).

5