williams machine tool company case study solution pdf

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Williams Machine Tool Company case study

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Business Finance

Colorado State University: Global Campus

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Based on your review and analysis of the “Williams Machine Tool Company” case study (Kerzner, 2017, pp. 37-38), address the following discussion topic key elements: (CASE STUDY ATTACHED)

First, describe the subject organization’s resultant culture in context of its project management environment.

Then address one of the two questions at the end of the case study.

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Explanation & Answer

Attached. Running head: ORGANIZATIONAL CULTURE Organizational culture Student’s name Institution 1 ORGANIZATIONAL CULTURE 2 Organizational culture refers to the values, beliefs and attitudes shared by employees in a company. The shared beliefs, values and attitudes have ...

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case_1 williams machine tool company

• Case_1 Williams Machine Tool Company

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Case Study - Williams Machine Tool Company

Page 1 of 2

For 75 years, the Williams Machine Tool Company had provided qualityproducts to its clients, becoming the third largest U.S.-based machine toolcompany by 1980. The company was highly profitable and had anextremely low employee turnover rate. Pay and benefits were excellent.

Between 1970 and 1980, the company's profits soared to record levels.The company's success was due to one product line of standardmanufacturing machine tools. Williams spent most of its time and effortlooking for ways to improve its bread-and-butter product line rather thanto develop new products. The product line was so successful thatcompanies were willing to modify their production lines around thesemachine tools rather than asking Williams for major modifications to themachine tools.

By 1980, Williams Company was extremely complacent, expecting thisphenomenal success with one product line to continue for 20 to 25 moreyears. The recession of 19791983 forced management to realign theirthinking. Cutbacks in production had decreased the demand for thestandard machine tools. More and more customers were asking for eithermajor modifications to the standard machine tools or a completely newproduct design.

The marketplace was changing and senior management recognized that anew strategic focus was necessary. However, lower-level managementand the work force, especially engineering, were strongly resisting achange. The employees, many of them with over 20 years of employmentat Williams Company, refused to recognize the need for this change in thebelief that the glory days of yore would return at the end of the recession.

By 1985, the recession had been over for at least two years yet WilliamsCompany had no new product lines. Revenue was down, sales for thestandard product (with and without modifications) were decreasing, andthe employees were still resisting change. Layoffs were imminent.

In 1986, the company was sold to Crock Engineering. Crock had anexperienced machine tool division of its own and understood the machinetool business. Williams Company was allowed to operate as a separateentity from 1985 to 1986. By 1986, red ink had appeared on the WilliamsCompany balance sheet. Crock replaced all of the Williams seniormanagers with its own personnel. Crock then announced to all employeesthat Williams would become a specialty machine tool manufacturer andthat the "good old days" would never return. Customer demand forspecialty products had increased threefold in just the last twelve monthsalone. Crock made it clear that employees who would not support thisnew direction would be replaced.

Page 2 of 2

The new senior management at Williams Company recognized that 85years of traditional management had come to an end for a company nowcommitted to specialty products. The company culture was about tochange, spearheaded by project management, concurrent engineering,and total quality management.

Senior management's commitment to product management was apparentby the time and money spent in educating the employees. Unfortunately,the seasoned 20-year-plus veterans still would not support the newculture. Recognizing the problems, management provided continuous andvisible support for project management in addition to hiring a projectmanagement consultant to work with the people. The consultant workedwith Williams from 1986 to 1991.

From 1986 to 1991, the Williams Division of Crock Engineeringexperienced losses in 24 consecutive quarters. The quarter ending March31, 1992, was the first profitable quarter in over six years. Much of thecredit was given to the performance and maturity of the projectmanagement system. In May 1992, the Williams Division was sold. Morethan 80% of the employees lost their jobs when the company wasrelocated over 1,500 miles away.

1. Could project management have been used for those projects involvingmodifications to the standard machine tool line?

2. How should you handle experienced employees who live in the pastand refuse to accept project management?

3. Who should be blamed for the failure of Williams Company to reactquickly to changes in the marketplace?

4. Is project management the real reason why the company was sold andemployees lost their jobs?

5. Should Crock Engineering have held on to the Williams Company? Ifso, how?

6. Could there have been a hidden agenda behind the sale of WilliamsCompany? (i.e., such as poor prognosis for the future of the machinetool industry)

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