Scribd
Upload
154 views17 pages

Finch Stone Overview

Stone Water Products Inc. was founded in 1975 and built a successful business around quality water products, economies of scale, and a well-established supply chain and sales force. In 2000, it acquired Goldfinch Tech to invest in biochemical research and named Jim Billings to head the new Solutions Division. By 2004, Jim Billings was made CEO. He started new subsidiaries, funding them through the water products division. However, the subsidiaries struggled, and some were merged back or shut down, causing employee demotivation and loss of market share. The document discusses alternatives to refocus the company, including buying back the subsidiaries and returning to the previous centralized organizational structure.

Uploaded by

Sanchit Arora
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
154 views17 pages

Finch Stone Overview

Stone Water Products Inc. was founded in 1975 and built a successful business around quality water products, economies of scale, and a well-established supply chain and sales force. In 2000, it acquired Goldfinch Tech to invest in biochemical research and named Jim Billings to head the new Solutions Division. By 2004, Jim Billings was made CEO. He started new subsidiaries, funding them through the water products division. However, the subsidiaries struggled, and some were merged back or shut down, causing employee demotivation and loss of market share. The document discusses alternatives to refocus the company, including buying back the subsidiaries and returning to the previous centralized organizational structure.

Uploaded by

Sanchit Arora
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

Stone Water Products Inc.

founded in 1975
` ` `

Quality Products. Economies of scale. Well established supply chain partnership and sales force. Highly centralized chain of command.

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

Company acquired Goldfinch Tech. in 2000, to invest excess capital in biochemical research.,

Jim Billings to head new Solutions Division.

In 2004, 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,

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.

` ` `

Quality Relationship Motivated Employees. Market Leader. Centralized power Equal growth opportunities

` ` ` ` ` `

` ` `

Innovation Loses on Relationships. Demotivated Employees. Losing market share. Decentralized power. Inequitable growth.

Old

New

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, Solutions) needs mentoring on scaling and Delegation , otherwise look for replacement options for her position.

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.

Alternative 1


Buy back all the subsidiary & move back to the old organizational Structure.

Follow In Phases

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

` ` `

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.

THANK YOU

You might also like