Titeflex Corporation The Turnaround Chanllenge Case Solution

1. How serious is Titeflex's situation as Jon Simpson takes over as the company's president?

Jon Simpson is brought into the company as its CEO by the new owners of Titeflex, which is Tube Investments. At the time of Simpson’s arrival, the company is in a relatively bad shape with the company losing its market share every year, sales growth is almost zero, production took more time than usual, which resulted in late deliveries on a regular basis and the company’s management, had a deteriorating relation with the worker’s union. The highest stake the business had in the market is of the aerospace industry, but due to the problems faced by Titeflex, many aerospace companies are threatening to discontinue their purchases. Loss of the 50% market share in aerospace industry will cost the company dearly, because this industry is the prime source of profit margins that Titeflex makes with relatively less competition.

2. Did TI make a good decision in picking Jon Simpson to head Titeflex?

The decision to bring in Simpson as the CEO of Titeflex is a fine one, because he has a lot of experience in performance plastic companies, especially in R&D, which is one of the major elements of Titeflex. He has experience in managing a company’s operations and knew how to handle each situation. Simpson can mould himself according to the situation’s requirement. There is no better person to run this endangered company than Jon H. Simpson.

3. What, if anything, can he do to turn around Titeflex? How should Simpson deal with various internal groups, including workers, the union, Ralph Galarneau, and middle management?

The company can perform better when several of its aspects are changed significantly. Firstly, Simpson must ensure that there are no delays in orders and shipment of orders, because late deliveries means angered customers, whose plants are shut down until parts from Titeflex are delivered. Huge vertical hierarchy is one of the factors resulting in late deliveries and unusual time lags in production. This hierarchy must be reduced, and bring decision making to as few people as possible. Also, Simpson must focus on regaining the market share in aerospace industry while increasing the market share for other industries as well by decreasing the prices slightly, maintaining the quality, and improving customer services and relationship. Simpson needs to be a little strict, like what he did at his old job, to get the desired results from the company’s employees.