Part II: Analysis Questions 6-10 Due March 12th ***Check your Capstone overview for format and length requirements for Part II. Part II should NOT be...

Part II: Analysis Questions 6-10 Due March 12th

***Check your Capstone overview for format and length requirements for Part II. Part II should NOT be submitted as a question and answer. This is what is being presented to Mr. Conn. Also, allow time to have a writing coach review your work. Set your appointment early.

6. Based on the scenario, prepare a detailed SWOT analysis of Conn Manufacturing.

7. Outline the four "Ps" for Conn Manufacturing. Provide additional recommendations to strengthen the current marketing mix.

8. How would you rate Stan Conn as a businessman and CEO? Identify the important management functions and skills Stan Conn failed to adequately apply as his company grew.

9. What type of leadership style does Mr. Conn appear to be using? Is this appropriate? If yes, please justify your response. If you believe Mr. Conn should be using a different style of leadership, which style would be more appropriate? Why?

10. What is the most logical entry mode for Conn Manufacturing to enter Argentina? Please discuss the specific advantages and disadvantages that Conn Manufacturing will face based on the entry mode you selected.

***CAPSTONE OVERVIEWPart II: Written analysis to Mr. Conn. Part II should not be a question and answer report. It should include detailed information and resources. Format: You have two choices: Select from an APA format, reference page, one inch margins, double spaced with 12-point font OR you can submit Part II as a Written Report like you would present to a CEO of a company. You will still need to have a reference page. Length of Part II should be 8-10 pages (not including reference page) *Note you are required to have your last draft reviewed by a member of the CCC Writing Center staff. They will provide you with feedback on how to strengthen your report to Mr. Conn, but they will not edit it for you. Page 1 of 5 Schedule your appointment early as their schedules fill up. If you do not live near campus, ask them about a Web Ex option. Please have the writing center e-mail me after your appointment to confirm you've met this requirement OR a member of the writing staff can sign and date your paper. You do not need to have them review and sign your final version. If you have them sign your reviewed draft, please bring that to campus when you present your Oral Presentation. For Part II, questions 6-10, know the case backwards and forwards before you begin the analysis portion. You will begin by analyzing the issues (problems and potential problems) you identified at a hypothetical company called Conn Manufacturing. Then you will propose solutions that will help the company improve performance and efficiency, and meet its goals. Give yourself enough time to write multiple drafts; you don't want to rush through it. By writing and re-writing your report, you may discover problems that you missed the first time around. You will also be able to better discern possible solutions. Plan to spend about 25 hours on the written report. As you start to structure your report, plan how best to divide it into logical sections and give some thought to your headings and subheadings. Headings should be clear and meaningful, rather than generic, so that they act as signposts, guiding Mr. Conn through the report and showing him where to find specific topics. Part II might have the following sections: Title page, Executive summary, Problem (Issue) statement, Analysis, Marketing Mix, Recommendations, and Conclusion. Your objective is to persuade Mr. Conn, so your written analysis should be clear and easy to follow As the consultant, you will understand the client's goals and priorities. Compare the strengths and weaknesses within the company to the external threats and opportunities. Determine if the company is in a strong competitive position and decide if it can continue as it is successfully. The next step in the analysis requires that you identify and analyze the structure and control systems that the company is using to implement its business strategies. Evaluate organizational change and communication, levels of hierarchy, employee rewards, conflicts, and other issues that are important to the company. The final part of your analysis is recommendations for the company. Every recommendation you make should be based on and supported by the context of your case study analysis. You will provide added value to Mr. Conn by coming up with a marketing mix for his new product idea. Finally, you will offer future directions based on this information—a kind of blueprint for the future, since Mr. Conn wants to explore foreign expansion. Note that restating of case facts is not considered part of the analysis. Your instructor and Mr. Conn are already familiar with the situation, and you need only to mention facts that are relevant to (and support) your analysis or recommendation as you need them.

Capstone Project

Conn Manufacturing Company

The point of view you will take is that of a management consultant, who has been brought in at Mr. Conn's request to provide advice on some business problems. Mr. Conn is president of Conn Manufacturing Company. He started out as a farmer, running a large cattle feeder operation. About 12 years ago, he invented a self-cleaning feed bunk for cattle. His invention eliminated the time-consuming job of cleaning feed bunks. He started making the new bunks one at a time in the workshop on his farm. After he made a bunk, he would load it into his pickup and call on cattle feeders, giving them a demonstration and a sales pitch. After he sold a unit, he would return to his shop and build another one, starting the cycle all over again. He was a one-man operation—he made and sold the product himself.

Although sales were small in the beginning, his bunk caught on with customers, and in the third year of operation, he was experiencing frequent orders and steady growth. The increased orders made it necessary for Conn to hire a few people to help build the bunks. Business continued to increase and in a few years he had to buy a larger facility. 

About seven years ago, Conn expanded his operation still further with other agricultural products. Again he expanded the facilities and added more employees. The company continued to grow, and today employs about 120 people.

The firm has a marketing department with a sales force, an engineering department, and a manufacturing section. The office section of the firm has an accounting and data processing department that handles all of the company finances and records. The company is a closed corporation. Mr. Conn holds 55 percent of the stock, and Mr. Lewis, president of the local bank, owns 20 percent. The remainder of the stock is held by long-term employees and business associates of Mr. Conn.

Your meeting with Mr. Conn

When you enter Mr. Conn's office, he greets you with "I'll get right to the point. I'm a busy man and I only have a few minutes to tell you what is on my mind. After that, you take it from there. I have investigated your background and find you are well-respected in the management consultant field. Therefore, I want you to look around the facilities and talk to my people. I want you to dig into things and fully analyze the situation. Don't be afraid to ask for anything. I'll expect a report from you when your work is finished. Now, here is the problem—actually it is a two-pronged problem.

"First," continues Mr. Conn, "from the time I started this business we experienced regular and steady growth until the last few years. For many years we exceeded the previous year by at least 30 to 35 percent. That's the way it was until about two years ago. Our sales began to taper off. Now we are at the same level as last year, just staying even.  We must be doing something wrong because I know the market for more sales is there. We just aren't tapping into it. There are areas of the country we haven't even touched.

"In addition, the research section in my engineering department hasn't added one single new product to our line for over a year. It seems that if I don't give them an idea, they don't come up with anything. Perhaps that's just as well for I'm not sure we could handle any more work in the shop. To do so would require more employees and equipment. Ironically, I can't justify putting in more work stations if we don't sell more product. It's a vicious circle. We seem to be spinning our wheels, not gaining any ground. I don't think our productivity per person is up to where it should be either.

"There's one new product I've been rolling around in my head. . . a cattle fountain.  Since we have much of the engineering technology in place with the self cleaning bunkers, this would be a good addition to our product line. This wasn't engineering's idea but mine, I pushed them to design a prototype of the fountain. With a few small design changes I think we could begin producing this product. "

With frustration in his voice he said, "Marketing has not moved on it. They need to develop a marketing plan for the cattle fountain. We also need a sales forecast so we know how many to produce. They don't seem to know where to begin. I suppose it is because the marketing staff is more comfortable working with the marketing and sales of the current products."

Conn pauses for a moment and, with a note of hostility in his voice, says, "The thing that really upsets me is the fact I have worked my tail off for 10 years putting this business together and trying to keep it running. I haven't taken any time off to enjoy life. I have worked night and day, seven days a week. Now, at my age, I feel I deserve a vacation. I want to slow down and get in some fishing and do some traveling. The problem is I can't get away. There are always problems to handle and decisions to make. Nothing happens unless I am here to tell people what to do and how to do it. Sometimes I believe they can't think for themselves."

At this point he is visibly disturbed and emphatically says, "You'd think my staff of managers would take the ball and run with it. I have four division managers. One over the office function, one in charge of engineering, one over manufacturing, and one directing the marketing and sales operation. The office operations manager has three department managers under him. The engineering operations manager also has three managers reporting to him. The marketing and sales manager has five district managers and an office staff. And, the manufacturing operations manager has six department managers reporting to him. In addition, I have a personnel manager, a purchasing manager, and an inventory control manager. I've got all kinds of managers and I have to handle everything."

Rising from his chair, Conn makes your mission clear. "So there you have it. Find out what is wrong. Get some answers. I want to know why no new products are being researched and developed. I want to know why everyone comes to me with simple little questions. I want to know why I personally have to settle disagreements. In other words, find out why no one seems to be able to act on their own. Finally, see what can be done to free me up so can take a few days off now and then."

Conn continued, "I will expect a written report from you. I want you to include a summary of your observations and what you conclude from those observations. I want you to come up with specific recommendations on what should be done. If you feel there should be some personnel changes, I want to know if you think someone should be moved to another job or terminated or whatever. In short, I want you to spell it out. I expect you to be clear so I don't have to call you for clarification on what the report says. I can't spend my time deciphering the report or run the risk of a misunderstanding. I want your report addressed to me personally and marked confidential. After I read the report I may want to meet with you again to discuss implementing any changes you come up with. However, we'll see about that later."

Mr. Conn concludes the meeting by saying, "I sent a memo to all of my managers and department heads informing them you would be here. I briefly explained what you would be doing. They are expecting you. Here is a list with all the names and titles of the management personnel. Gwen, the human resources manager, will show you around and introduce you to anyone you want to talk with.  Now, I've got to get over to engineering and double-check a design one of the draftsmen is working on." With that, Conn leaves the office and you head for the human resources office.

At the Human Resources Office, you find Gwen Parks, the manager, to be very open and cooperative. She not only responds candidly to your direct questions, she volunteers helpful information. She has been with the company for seven years. Gwen tells you, "Mr. Conn is an entrepreneur. He was raised on a farm and had his own successful farming operation before he started manufacturing his first self-cleaning bunk. He is an honest and very hard working man. But, he is fiercely independent. Quite frankly, he wants things his way and doesn't take kindly to people questioning his action or decisions. He has always taken great pride in his accomplishments and the growth of the firm. I think he feels, shall we say, indispensable. I think he is really bothered about the company not showing any growth these last couple of years."

Gwen continues, "I joined the firm when Mr. Conn was expanding the operation. We had to hire a lot of new people. My job was to do the initial screening of applicants and refer the promising looking candidates to Mr. Conn for final approval or rejection. And, that is the way it still works. As a matter of fact, Mr. Conn insists upon putting his stamp of approval on almost everything in the company.

"The problem is," Gwen went on, "Mr. Conn is so busy you can't get to him when needed. Then, things get delayed and that compounds the problem. I recently asked him if it would be all right for the operations manager of a department and me to make the hiring decision when a person was needed for that department. Mr. Conn's response was, 'Gwen, you know I put a lot of faith and trust in you, but I want to make sure we get the right people. Don't want to get a bad apple, you know.' It appears to me he really doesn't fully trust our judgment."

At that point Jack Blevins, the manufacturing operations manager, stops by Gwen's office and she introduces you to him. You and Jack leave the personnel office and walk out to the manufacturing floor.

Jack Blevins started with Conn in the early days. Jack was the first employee Conn hired to help with the fabrication operation. Over the years Conn promoted Jack, and now he is in charge of all the manufacturing operations.   Shortly after Jack's promotion, two other men were hired to manage other departments, but both left the company after one year.  

"It's odd," Jack says, "they always wanted to talk things through, or bring people into discussions, and that's not how Stan and I think things should be done."  He went on to say that a manager should know how to do his job without constantly talking to other people. "Afterall, we know what needs to be done so we should just do it, right?"  

Jack tells you, "Stan Conn is one heck of a guy. He is a roll-up-his-sleeves-and-let-me-at-it type. In the old days we worked side by side. We welded parts, drilled holes, and bolted the cleaner together. When we got a couple of units ready to market, he would load them onto the trailer behind his pickup and make sales calls and deliveries. We worked a lot of long and hard days back then. Busy as we were, we still found a little time once in a while to go fishing together. We don't get to do that anymore. Stan sure likes to fish. He is going to do himself in if he doesn't slow up."

Jack continues his story, "I don't get to see much of Stan these days, that is, not to really talk with him. We do have a weekly manager's meeting with Stan. However, that session is pretty well limited to giving reports and getting Stan's approval or disapproval on all proposed purchases or new methods and procedures. Even the managers that report to me must attend the weekly meeting. Stan wants to hear directly from them on any issues that come up or to tell them something directly. Sometimes they find out things at the same time I do. The only other time I get to talk to Stan on the phone or to see him is when I need to get his advice or approval on something. And getting to him for that is tough. Seems like he is always tied up with someone in the middle of ironing out kinks of some kind.

"Up until the time of the last big expansion, he would regularly come into the shop and spend time. He would visit with the employees. He'd inquire about their families and engage in small talk. He would offer them encouragement when they needed it and give them a pat on the back. That all started to change when we started adding more employees. Now, he makes his rounds like a whirlwind, checking this and checking that. If he finds something he doesn't like, he will call me later and tell me to straighten it up. Then he will call me again to see if I have taken care of it. He bypasses the supervisors. When someone makes a mistake and Stan thinks he knows who made it, he will contact that person directly. We managers have little overall say-so.  No one gets a raise or promotion unless Stan says so. It has always been that way and I guess it always will be."

In conclusion Jack says, "The only time he comes out here to spend some time is when there is a problem he has heard about. Then he takes the 'bull by the horns' and orders people around. Don't get me wrong, I have a lot of respect and admiration for Stan. He is a sharp businessman and is competitive. But, he is spreading himself too thin. He doesn't delegate. You know, he still occasionally goes out and makes calls with the salesmen? He claims he has to do that so he stays on top of what customers want."

At this point, you ask Jack to select a half dozen of his employees to meet with you in the break room for an informal discussion.  You now find yourself with six employees from the manufacturing line. What you hear is a replay of what you have already heard from Gwen and Jack. The most senior employees of the group also tell you they noticed how Mr. Conn seemed to change as the operations expanded.

The employees say they don't see Mr. Conn very often, but when they do it is because of some problem. Then, they say, "Conn comes in like a dynamo and starts telling people how to fix it. We've gotten used to it, but some of the new guys get fed up and leave."  One employee tells you, "I do my job, and I go home. That's it. This isn't exactly brain surgery here."   Another employee says, "If you do a good job, and don't stick your neck out, Conn will promote you. He likes to reward people for doing their jobs, and it keeps them happy. It seems like there's a new manager or assistant manager or supervisor every other month." You conclude the session and decide to make some observations on your own.

You walk through the plant and office areas and make notes of the things you see, hear, and feel. You observe that both the manufacturing and the office areas are well laid out. Work areas are clean and spacious. The equipment is up-to-date and in good shape. All of the employees are busy, but you sense something you can't quite put your finger on. There is something missing. Is it a lack of enthusiasm? Motivation?  You need to think this over.

Next you head over to the manager of sales support, Sarah Stiller. Sarah gets right to the point, "For the last three months I thought I needed to expand my staff, and just when I was about to approach Mr. Conn with my request, business really slowed down. Obviously, my plan to try to add new employees is on hold." However, Sarah continues, she has noticed a troubling pattern of communication with her staff. "Ordinarily," she says, "when I want one of my staff members to work on a task, I email that subordinate the necessary information. For the last several weeks, my email requests have gone unheeded, and my subordinates seem to respond to requests only after I visit them in person and give them a specific deadline. Each time, they apologize for not getting to the task sooner but say that they are so overloaded with requests that they sometimes even stop answering their phones."  Sarah tells you that unless someone asks for something more than once, her staff seems to feel that request is not that urgent and can be put on hold. She continues, "I think this state of affairs is dysfunctional and could lead to serious problems down the road. Also, I'm starting to realize that my subordinates seem to have no way of prioritizing tasks—hence, some very important projects I've asked them to complete were put on hold until I've followed up with them."   Sarah knows she cannot add employees to her staff in the short term, and she's looking to you for ways to improve communication with her overloaded staff.

Next you head to the office of Don Engles, the manager of engineering.  He tells you his loyal staff has been working hard, and it's true they find it easier to come up with product improvements rather than innovations. Don says, "I know Mr. Conn is focused on innovations, but times are tough and customers may not be willing to take a chance on a brand-new product.  Mr. Conn has said there will be no raises or promotions for the foreseeable future, yet he keeps increasing demands as well as responsibilities.  Moreover, I think our department is being unfairly blamed for problems beyond our control, such as the slow sales. Sometimes I'm feel I'm on shaky ground and powerless given the current state of affairs. Confidentially, if I got another job offer elsewhere, I'd seriously think about taking it."

Next you walk into the office of Rick Black, who supervises four outside sales managers across the United States.   He's been with the company for about a year and is responsible for leading a virtual team in charge of four regions.   You ask Rick to explain what he does and he says, "I communicate directly with the managers via telephone and email, as well as written reports, memos and faxes. When virtual team meetings are convened once a month, videoconferencing is used."    He goes on to tell you that after his first few virtual team meetings, he noticed that the managers seemed to be reticent about speaking up. Interestingly enough, when each manager communicated with him individually, primarily in telephone conversations, she or he tended to be very forthcoming and frank.

"I think I have a good rapport with each of them," Rick asserts, "however, getting the managers to communicate with one another as a virtual team has been a real challenge. At the last meeting, I tried to prompt some of the managers to raise issues relevant to the agenda that I knew was on their minds from my individual conversations with them. Surprisingly, the managers skillfully avoided informing their teammates about the heart of the issues in question."  Rick is clearly confused and troubled. "While I feel my other responsibilities are going well, I know that my sales team is not operating like a team at all, and no matter what I try, discussions in virtual team meetings are forced and generally unproductive."

Rick goes on to share another concern: a South American businessman has heard about Conn's products and think they could sell well in Argentina.  "International expansion is something Mr. Conn has talked about for years," Rick says, "but I don't know a whole lot about the South American market.  I mean, I know there's benefits and risks and all, but aren't cattle the same all over the world?  And the Argentine businessman, I don't know whether he wants to  be a partner or just a facilitator, but shouldn't he tell us everything we need to know about the market?" Rick asks.  "I know Mr. Conn is unhappy with the company's current growth and I suspect he's going to pursue this Argentine deal quite vigorously. That's his personality—he decides he wants to do something and then he charges ahead with it. " 

Your final stop is the human resources office. You ask Gwen to show you the firm's organizational chart. Upon studying the chart you see it is rather typical. The chart has the traditional pyramid appearance. The CEO, Mr. Conn, is at the top; human resources is a staff function which report to the CEO; the four division managers, in line positions, report to the CEO; department managers report to the division managers; and the departments are sub-divided into sections, with each having its own supervisor. You note there are three levels of management below the CEO level.

From what you have learned, you know this organizational chart is far from accurate. You say to yourself, "This is another one of those cases where what appears on company records is not a representative picture of reality."  You know that organizational charts are used to show relationships within the firm. They are designed to show the relationships between departments and levels of management. A chart is also supposed to show levels of responsibility and authority. 

You thank Gwen for her help and cooperation and leave for your office to ponder the situation. Your plan is to fully analyze what you have learned, draw conclusions, and then write a report (in the form of a letter) to Mr. Conn.