The following case analysis entitled The Mushroom Factory focuses on the issues concerning the Accessories Department of the Esco Company, a Midwest manufacturer, during a period of rapid change. The case analysis will critically discuss the events which took place during this time; it will examine the structure of the organization highlighting the core issue which then led to the existing satellite issues. Recommendations will made with reference to these Core and Satellite issues in order to correct these problems the company is currently facing.
Top management of the parent company, in conjunction with the Esco top management embarked on a plan to increase profitability of the Esco Division. This plan involved moving the ...view middle of the document...
Product Engineering: Was responsible for product inception, product prototypes and product start up, also customer service and relations.
Manufacturing Engineering: Handled the products during the production stage.
1973 the company purchased three small manufacturing plants and began phasing the manufacturing process out of the home plant, during this period this negatively impacted the morale and working efficiency of the original parties involved and in 1974 approximately one year later The Accessories Department was put back on a product basis. This however came too late as the accessories department had no chance to smooth out or have the operations go back to normal as The Esco Company was then merged with another division of the parent company and the frequently encountered “housecleaning” of middle and upper management positions began.
The Accessories Department:
The structure of The Accessories Department lead to some of the existing issues within the case, these issues will be highlighted and examined further in the case. The Department was headed by Richard Long and was divided into three sections; Group A which was headed by John Ritch was said to be the most productive group, the second group was Section B which was considered the least productive group within the department and was headed by George Kelley the final group was Group C which fell between the two other groups in terms of productivity, was headed by Valentino Rockford.