Summary of facts
· Shoe Corporation of Illinois (SCI) produces a line of lower-priced women’s shoes.
· Average profit per pair of shoes has decreased from 10 years ago.
· The company has 2 factories within 60 miles of Chicago and a headquarters; offering 100 to 120 different products to customers each year.
· The external environment is unstable, requiring rapid responses to style demands.
· SCI’s organization chart is based on Functional Grouping.
· Large shoe houses hold the market for “stable” shoe market because of economies of scale, SCI offers trendy styles and their org structure allows for them to be flexible for this.
· The volatile product environment of SCI causes friction within the company. An e-commerce department, directed by Olsen, was recently created to help reduce friction but this has not had the desired effect as most employees are resisting change and do not want to use the new technologies. Olsen believes these technologies would increase communication and product awareness and reduce design/production/delivery times.
· SCI continues to use outdated procedures for deciding new styles and unclear/confusing production procedures.
· According to Allison, the average time from design to the pilot run is too long but could be reduced and there is too much conflict in the styling phase.
· According to Lawson, Flynn is knowledgeable and has gained much experience over the years. Last year, he was promised a raise that he has yet to receive.
· Flynn says he is becoming dissatisfied with his job as it lacks creativity, he would like more freedom to design styles but Lawson told him the current process is proven.
· Flynn and Freeman feel Allison is overtaxed and his work is suffering. They also feel the procedures should be changes and without consulting others two projects with their new procedures, one successful and one not.
· There