UNIVERSITY OF THE EAST

Caloocan

CASE STUDY ANALYSIS

Cleveland Twist Drill

Franco, Rose Ann M.

BMG 114 - 2M
3:00-4:00
Time Context
1981

Summary/Abstract

Jim Bartlett assumed managerial control at Cleveland Twist Drill with an inadequate grasp of both the

internal strengths and weakness of the company and the position of the company in the market.

Additionally, Bartlett assumed his responsibilities at the company, and developed and implemented

policies based on a gross misreading of the state of the broader economy. As a consequence, the

situation at Cleveland Twist Drill deteriorate rather than improved under the leadership of Jim Bartlett.

Bartlett identified labor costs as a major issue confronting the company.

I. Statement of the Objectives

To make Cleveland Twist Drill competitive in labor costs and to rationalize a product line

II. Statement of the Central Problem

How could Bartlett turn a manufacturing driven company into a marketing driven one?

III. Areas of Consideration (SWOT Analysis)

Strength
 Robust Domestic Market that Drill Twist Operates in
 Managing Regulations and Business Environment
 target various segments in the domestic market
Weakness
 Customer Dissatisfaction
 environmental issues
 struggling to restructure processes
Threats
 Threats of New Entrants because of Reducing Costs and Increasing Efficiencies
 dependence on debt to expand
  Change in product demand
Opportunities
 E-commerce business model
 Access to intentional talent in global market
 Explore adjacent industries corporate governance, labor, strategy execution to further market
growth

IV. Alternative Courses of Action

1. Develop a Diverse Workforce
Advantages
 Ethnic and racial management diversity
 Diverse opinions and perspective
 Widen the talent pool
Disadvantages
 Can create communication problems
 can lessen the amount of trust that exists
 initiatives are usually left to a single person to implement.

2. Reorganize the corporate structure to decentralize planning and accounting.

Advantages
 communication and decision-making may improve.

 Increased operational efficiency

 Operational costs may decrease

Disadvantages
 Can create communication problems

 Even though you can reduce long-term costs by restructuring the business, the process of
restructuring can be expensive in itself

 Employees fear change and when they are scared of being downsized, it can affect morale

3. Enhance and develop labor cost reduction strategy

Advantages
  It will give you a plan and a clearer focus
 Meet the needs of target customers
 Helps you discover what makes your business unique
Disadvantages
 Takes time, money and resources
 Can be challenging to generate momentum
 Can lead to faulty marketing decisions if data isn't analyzed properly

V. Recommendation
I therefore conclude that the best solution to the problem is alternative course of action #2, Reorganize
the corporate structure to decentralize planning and accounting. Because planning and improvisation
are essential ingredients for business success.

VI. Plan of Action

 Determine whether existing jobs and structures are meeting department goals.
 Consider what factors contribute to effectiveness of jobs and structure
 Collect good information and control systems so that individuals and activities can be
measured.
 Create a new schedule specially if night shift would be needed
 Great clarity in procedures.
 Re-evaluate each workers performance to assign them to a task that match their skills
 Identify methods for collecting input from staff
 Determine skills needed for each position.
 Compare current skills with what is needed.

VII. Potential Problem

1. What if the company’s expectations are not met?

2. What if the service is not satisfying the customer's needs?
3. What if the new corporate structure doesn’t foster creative strategic management?

VIII. Contingency Plan

 Generate a product characteristic plan based on the specific situation and possibility
assessment
 Maintain the communication between the company and consumers by hiring someone to
address the complaints and needs of the consumers, that way they will know what to improve
 Include affected parties in discussions of what solutions the company needs to implement in
order to remain productive.
 Identify all training needs. Train personnel to use new tools and techniques long before the
final implementation takes place.