founded in 1975 ` ` ` ` Quality Products. Highly centralized chain of command. Economies of scale. Well established supply chain partnership and sales force. .Stone Water Products Inc.

` ` Product innovation was not a part of business model. . Copy new products and undercut competition.

in 2000. . to invest excess capital in biochemical research. Jim Billings to head new Solutions Division..Company acquired Goldfinch Tech.

Jim Billings was made CEO when Richard Stone decided to step down. Jim started new subsidiaries and funds them through surplus generated by Water products division. .In 2004.

then the problems started .

` ` 12 Subsidiaries were formed spending $139 from water product Division. Out of which 4 were merged back and 8 are left. .

.` Beth Suarez-Head of Enzaclean (founder of a subsidiary merged back) declared VP of solutions Division.

Market Leader. Old New .` ` ` Quality Relationship Motivated Employees. Losing market share. Decentralized power. Inequitable growth. Demotivated Employees. Centralized power Equal growth opportunities ` ` ` ` ` ` ` ` ` Innovation Loses on Relationships.

Alternative 1 ` Buy back all the subsidiaries & move back to the old organizational Structure. Only Two Divisions-Water products & solutions. Centralized power Equitable growth Distribution ` ` ` .

Alternative 2 ` Beth Suarez-(VP. otherwise look for replacement options for her position. . Solutions) needs mentoring on scaling and Delegation .

Alternative 3 ` Bring in R&D for water Products Division instead of making them cash cow. .

.Alternative 4 ` Switch focus from solutions division to product division. Attract venture capitalist or take loans to invest in subsidiary.

` Follow In Phases .Alternative 1  Buy back all the subsidiary & move back to the old organizational Structure.

` Employee retention scheme is a must now. monetary and non. benefits for loyal workers of division. Retention scheme especially for salesman and those who were responsible for fast track growth ` ` ` ` . bonuses. Motivating the employees by adopting various methods such as regular appraisals.monetary incentives. etc. Additional incentives. Division of work load more equitably among the employees.

` ` Conducting regular "Jam Sessions" to know the grievances and views of the people working in the organisation. Involving the employees in decision making process and thinking over the ideas and reviews given by them. .


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