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  • Connelly Strategy

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    Siddharth Bhattbhatt
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    Under the leadership of Connelly, Crown Cork & Seal underwent major restructuring in the late 1950s and 1960s to recover from bankruptcy, including reducing staff by 24% and debt, instituting accountability for managers, and focusing on tin-plated cans and specialized markets. These changes led to dramatic growth, with revenues increasing 12.2% in the first three years, profits rising 1,646% by 1961, and annual sales and profit increases averaging 15.5% and 14% respectively throughout the 1960s and 1970s. The keys to Crown's success included lean and dispersed manufacturing, recycling programs, customer-centric marketing and service, and focusing R&D on customer requests rather than basic research.

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    Under the leadership of Connelly, Crown Cork & Seal underwent major restructuring in the late 1950s and 1960s to recover from bankruptcy, including reducing staff by 24% and debt, instituting accountability for managers, and focusing on tin-plated cans and specialized markets. These changes led to dramatic growth, with revenues increasing 12.2% in the first three years, profits rising 1,646% by 1961, and annual sales and profit increases averaging 15.5% and 14% respectively throughout the 1960s and 1970s. The keys to Crown's success included lean and dispersed manufacturing, recycling programs, customer-centric marketing and service, and focusing R&D on customer requests rather than basic research.

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    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
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    10 views3 pages

    Connelly Strategy

    Uploaded by

    Siddharth Bhattbhatt
    Under the leadership of Connelly, Crown Cork & Seal underwent major restructuring in the late 1950s and 1960s to recover from bankruptcy, including reducing staff by 24% and debt, instituting accountability for managers, and focusing on tin-plated cans and specialized markets. These changes led to dramatic growth, with revenues increasing 12.2% in the first three years, profits rising 1,646% by 1961, and annual sales and profit increases averaging 15.5% and 14% respectively throughout the 1960s and 1970s. The keys to Crown's success included lean and dispersed manufacturing, recycling programs, customer-centric marketing and service, and focusing R&D on customer requests rather than basic research.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 3

    Crown under Connelly

    Revenues grew by 12.2% in first 3 years


    after company restructuring
    Turnaround from bankruptcy in 1957 to
    1,646% increase in profits on a relatively
    insignificant sales increase by 1961
    Throughout 1960s, company averaged an
    annual 15.5% increase in sales and 14%
    increase in profits
    Return on equity averaged 15.8% during
    1970s

    Steps by Connelly
    Reduced staff across functions to reach a lean force
    Abandoned paternalistic culture
    Eliminated division line and staff concept
    Reduced payroll by 24% and eliminated 1,647 jobs

    Instituted the concept of accountability


    Managers as Owner Operators of individual business
    Compensation not tied but performance based rewards

    Reduced companys debt concerns


    Paid off banks through inventory
    liquidation
    New production and inventory control

    reduction

    and

    Key to success
    Products and Markets
    Emphasis on tin-plated cans and
    crowns
    Concentration towards specialized
    use
    Steel to aluminum cans in early
    1980s

    Manufacturing
    Small plants at geographically
    dispersed locations
    Closing down of old cumbersome
    facilities
    Emphasized on quality, flexibility and
    quick response to customer needs

    Recycling
    Formed Nationwide Recycler, Inc.
    Created goodwill among customers

    R&D
    Stayed away from basic research,
    saved huge R&D costs

    Marketing and customer


    service
    Worked closely on customer
    specific requests
    Extremely customer centric

    Financing
    Sale of excess inventory
    Discontinued stock dividends
    Eliminated preferred stocks

    International Markets
    Received pioneer rights
    Older equipment to use in
    developing countries

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