RST Carports was founded in 1980 as a private Midwest small business company. The business includes a 600,000 square foot building with office space to support its management. The business is in Albany Indiana and initially produced and installed 4 versions of carports which was gradually increased to 48 versions over the years. In 2000, the business ventured into the metal roofing business and began manufacturing and installing 18 varieties of metal roofing from the same facility in Albany. The company was profitable every year from 1981-2017, only losing money in its initial year of existence. The company used a pull system to control inventory, used the Seven Quality Tools and Seven Management Tools to solve 90% of their problems, and used Six-Sigma and Shainin Red -X Problem Solving to solve their complex problems. All of the Executive Managers were Six Sigma Blackbelts certified by ASQ.
In July 2017, Jerry Jones, the President, and private owner of the very successful business sold the company to WXY Corporation, a large competitor, for $60.8M. WXY elected a new Divisional Manager from its corporate office, Art Anderson, to replace Jerry Jones the week after the sale. Anderson immediately brought in a WXY SWOT team to make a one-month assessment of the RST management and working employees and to review its methods of operation.
Questions
1. How is the experience level different between the 1980-2017 management group and the 2018-2020 group?
2. How do the Leadership Styles differ between the two groups and within the groups?
3. How do the Management DecisionStyles differ between the two groups and within the groups?
4. How do Power Types differ between the two groups and within the groups?
5. What possible changes between 2018-2020 happened that could cause a very profitable company for 37 years to be unprofitable within a couple of years.
6. How did the previous management and leadership styles between the managers who ran the company from 1980-2017 compare and conflict with the 2017-2020 management team?
7. How did the reductions in force of the management and working employees affect the company’s profitability? Did the company achieve the expected results with the employee workforce reduction plan that had been recommended to the new President?
8. Set up a Pareto analysis of the three most important things that need to happen to bring RST back to profitability. Use a Microsoft Excel bar chart to develop your Pareto chart and paste it into your MS Word document.
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