Airstar Case Study
Airstar, Inc. manufactures, repairs, and overhauls pistons and jet engines for smaller, often privately owned aircraft. The company had a solid niche, and most managers had been with the founder for more than 20 years. With the founder’s death five years ago, Roy
Morgan took over as president at Airstar. Mr. Morgan has called you in as a consultant.
Your research indicates that this industry is changing rapidly. Airstar is feeling encroachment of huge conglomerates like General Electric and Pratt & Whitney, and its backlog of orders is the lowest in several years. The company has always been known for its superior quality, safety, and customer service. However, it has never been under threat before, and senior managers are not sure which direction to take. They have considered potential acquisitions, imports and exports, more research, and additional repair lines. The organization is becoming more chaotic, which is frustrating Morgan and his vice presidents.
Before a meeting with his team, he confides to you, “Organizing is supposed to be easy. For maximum efficiency, work should be divided into simple, logical, routine tasks.
These business tasks can be grouped by similar kinds of work characteristics and arranged within an organization under a particularly suited executive. So why are we having so many problems with our executives?”
Morgan met with several of his trusted corporate officers in the executive dining room to discuss what was happening to corporate leadership at Airstar. Morgan went on to explain that he was really becoming concerned with the situation. There have been outright conflicts between the vice president of marketing and the controller over merger and acquisition opportunities. There have been many instances of duplication of work, with corporate officers trying to outmaneuver each other.
“Communications are atrocious,” Morgan said to the others. “Why, I didn’t even get a copy of the export finance report until my
Morgan took over as president at Airstar. Mr. Morgan has called you in as a consultant.
Your research indicates that this industry is changing rapidly. Airstar is feeling encroachment of huge conglomerates like General Electric and Pratt & Whitney, and its backlog of orders is the lowest in several years. The company has always been known for its superior quality, safety, and customer service. However, it has never been under threat before, and senior managers are not sure which direction to take. They have considered potential acquisitions, imports and exports, more research, and additional repair lines. The organization is becoming more chaotic, which is frustrating Morgan and his vice presidents.
Before a meeting with his team, he confides to you, “Organizing is supposed to be easy. For maximum efficiency, work should be divided into simple, logical, routine tasks.
These business tasks can be grouped by similar kinds of work characteristics and arranged within an organization under a particularly suited executive. So why are we having so many problems with our executives?”
Morgan met with several of his trusted corporate officers in the executive dining room to discuss what was happening to corporate leadership at Airstar. Morgan went on to explain that he was really becoming concerned with the situation. There have been outright conflicts between the vice president of marketing and the controller over merger and acquisition opportunities. There have been many instances of duplication of work, with corporate officers trying to outmaneuver each other.
“Communications are atrocious,” Morgan said to the others. “Why, I didn’t even get a copy of the export finance report until my