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Tar Products AlliedSignal A Case Solution

Solution Id Length Case Author Case Publisher
1668 2889 Words (10 Pages) Bruner Robert F., Larson Andrea, Paddack Katarina Darden Business publishing : G-0504
This solution includes: A Word File A Word File

The case study provides valuable insight on key operational issues of an underperforming subsidiary of a business that is otherwise performing well. The parent company, AlliedSignal, is performing quite well in the recent years, however, its daughter company; Tar Products is under very heavy losses. All the companies under the umbrella of Tar Products have various strategic problems which are resulting in their inability to perform well in the market.

Following questions are answered in this case study solution

  1. Introduction

  2. Analysis

  3. Recommendation

  4. Conclusion and Proposed Action Plan

Case Analysis for Tar Products AlliedSignal A

Through the study of the case, three core issues were identified, solving which can turn things around for this organization. In the Carbon Refining business unit, the key issue is that they have not accounted for the changes in people's perception of the environment. Further, they have also not kept up with the change in the market. This is also the problem with Environmental Systems and Services. The third company; Commercial Roofing Systems has been performing well, but it is not noticed by the top management because of the inefficiencies in their operations management (Aragón‐Sánchez and Sánchez‐Marín). AlliedSignal is trying to revamp the whole Tar Products business. This report shall include literary analysis of the above identified key issues and then draw recommendations and formulate an action plan for the company. 

2. Analysis

i. Congruence Model

The congruence model applied on a company is a tool of change management that analyzes the performance of a business on the foundation of how it operates as a system. The organization is broken down into different smaller elements, and the congruence model studies those components and endeavors to improve the functionality of the organization by scrutinizing each part of comprehension how the congruence model functions. It is crucial to comprehend the different components that make up a firm’s whole capacity to perform (Zott and Amit).

The congruence model studies how a business processes data from external and internal sources and how the company actually receives this information, how it decides what level of information is significant and in which part of the operation, information is maintainable. Further, how it reacts to the Information is also part of the model communication configurations of the company, which are then studied to find out if they are handling and disseminating information in a manner that helps increase the profitability of the organization (Cheung).

ii. Embracing the Market Change

The world is changing, that of economies and companies too. To these new realities, to the challenges they pose, organizations must react by their strategies, and leaders by a new state of mind: the management of the future. It has been predicted for 20 years: management must evolve towards more emotional and emotional involvement, namely: relational management, participative management, cooperative leadership, proximity management (Watson and Wixom).

Continuity, change, is one of those characteristics which in part can help us understand the management of the future and the future of management. The link between management and future is the ability to integrate man's relations with time. However, these relations between management and the future have often been ambiguous, confusing, without major doctrines or theses. This is obviously not the case for Philosophers, Religious or, of course, scientists (Augier and Teece).

The objective leaves room for imagination, overtaking, manages the immaterial (image) while the result curbs initiatives removes opportunities, forbids adapting, contingent on the material, the predetermined path. Profitability could be found in the ability of the content of strategies to be modifiable to adapt to the environment and its evolution: it is useless to continue on a path if we realize that you go straight against a wall (Augier and Teece).

This principle requires reducing the number of decision-makers in crisis management to rely on a small group in which the board - internal or external - will not intervene beyond its "technical" role. No law is to be written in the marble, at least in strategic matters, this does not mean having to communicate contradictory, quite the contrary (Watson and Wixom).

In the management of the unpredictable, it is now necessary to join participatory management, this type of management which tends to optimize the collaboration of staff. This new vision of man brings the theorists of this school, like Douglas McGregor, to affirm the importance of taking into account the "human dimension of the company". For the individual to work better, for the number of conflicts to decrease and for personal and organizational goals to come together, a new management must be developed that respects the need for everyone to be recognized as a human being: this is the birth of participatory management (Seelos and Mair).

Concretely, many participatory tools need to be developed: quality circles or ideas boxes for example. Profitability, i.e. the monetary attainment of the firm, it depends directly on its management’s performance. Many studies have shown that the management style or corporate culture, have little influence on results. Much more decisive is the effectiveness of collaboration between managers and employees (Aragón‐Sánchez and Sánchez‐Marín).

Effective collaboration means "integration" and involvement of all employees. A manager succeeds all the better because he manages to "integrate" his employees into the objectives, tasks and projects of the company. In other words, a successful manager or manager is one who practices a participatory "leadership style." "Directional style" should not be understood here as the image that the manager gives himself vis-à-vis the outside or his collaborators. Instead, it is a matter of increasing the personal "efficiency" and work of the supervisor in the arena of "integration" and the participation of his collaborators (Watson and Wixom).

To support such an organization, the principles of Fair Management emphasize dialogue, dialogue and delegation as the pillars of a management mode in which the development of skills and career developments integrate personal projects and relationships based on mutual respect and recognition (Watson and Wixom).

iii. Environmental Change Realization

Business activities have a considerable environmental impact. Companies that are committed to a sustainable development approach want to minimize their impact on the environment. Factory chimneys releasing greenhouse gases Business activities have a considerable environmental impact. They represent a major source of natural resources harvesting and releases to the environment. The oil industries and chemical plants are not the only polluters. All businesses consume raw materials, energy, water, use space, and release more or less harmful and polluting substances into the environment in different proportions depending on their activity (Harmes). 

The intense consumption of natural resources by certain industries causes considerable environmental damage: deforestation, extinction of animal or plant species, depletion of resources. Serious pollution of the environment, as well as global warming, are to be deplored in part Because of the discharges of companies: the discharge of harmful substances into oceans or rivers, polluting gases or greenhouse gases into the air, hazardous and polluting substances in nature (Harmes).

Many companies are aware that their long-term survival depends on their involvement in the protection and preservation of natural resources. Their environmental stakes are vast: consumption of raw materials, energy, water and natural resources. Releases to the environment use of space compliance with environmental laws and regulations (Zott and Amit).

The education and training of company’s employees is quite a lot cited as a parameter in the successful implementation of an ecological management process. To properly implement an environmental management system, managers, employees and workers must be trained in this new system. Specifically, human capital development programs will assist in developing the capabilities of staff to empower them in order to manage the necessities of their novel venture, to appropriately realize their ecological duties and to react swiftly to cases of environmental risk. They will also raise their awareness of environmental issues. Companies that are "proactive" regarding the natural environment also try to create a climate, an organizational culture that supports the goal of protecting the environment (Prasad and Elmes). 

Monitoring results are about monitoring results and holding employees accountable for some of them. Environmental, financial and non-financial performance measures will help to focus the efforts of managers and employees on the environmental goals to be achieved. Individual and group rewards must be explicitly linked to the performance of these performance measures. Indeed, the use of reward systems based on environmental performance helps translate environmental policy into everyday actions (Lee).

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