Allied Electronics Corporation Ltd Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Allied Electronics Corporation Ltd Case Solution

“To Evaluated and demonstrate the link between Compensation policies and organization’s long-term sustainability”

Introduction

The case introduces Allied Electronics, a company engaged in the business of manufacturing and selling various telecommunication electronic items along with information technology systems and power electronic products to the customers available in the market. After Robert Enter, the Chief executive of Alton presented his integrate annual report to the stakeholders of the corporation, with the satisfaction that he had achieved his goals with respect to organizational innovation and leadership. However, it can be assessed that, the evolving reporting environment compelled Center to develop an integrated corporate strategy. Which would incorporate the key concepts of long-term sustainability for the organization. For which, the senior management of the organization develop eleven strategic themes, while considering forty-five critical issues that would potential provide benefit to the organization in maintaining and ensuring its sustainability over the long-term.

Furthermore, it can be evaluated that out of the eleven strategic themes identified by Center and his management team, a couple were new such as human capital, the environment and corporate governance. While others strategies were changed or improved to incorporate the broader sustainability concept for the future benefit of the organization.Moreover, it was assessed that, the corporation and its senior management was fully committed to the sustainable development. However, it was evaluated that, the main issues with in the corporation was related to its compensation structure in which, the employees were given more compensation or rewards for achieving financial targets instead of achieving sustainability target. Therefore, Center was faced with the critical issue to evaluated, whether his compensation structure was in-line with his new integrated and sustainability oriented strategy or not. It can be determine that, if the organization compensation structure acted or operated against the corporate strategy then it could cause major hurdles for the corporation in the achievement of their sustainability goals.as the employees would be more prone towards the achievement of the corporation financial goals, attributed to the reason that through this, they would be able to secure more compensation or rewards for themselves.

In addition to this, it can be evaluated that, the attitude of departmental heads would be more focused on the achievement of their financial objective or meeting their financial targets so that, they would be able to be able to secure appropriate levels of K Pis for their respective departments. Hence, it can be determined that, Enter and his senior management team needs to evaluate the situation and come up with effective plans and strategies to align the compensation structure with their corporate strategy, to ensure their long-term sustainability goals.

Backgrounds

Allied Electronic Corporation Ltd (Alton)was established in 1965, as Allied electric by bill Enter, who was responsible for establishing his business as a family owned small electronic business initially. Due to his diligent efforts and optimum strategic implementation, the organization was able to be recognized as the leading in South Africa’s high technology industry. By the year 2011, the corporation was comprised of three principal subsidiaries, which included Al tech, Bytes technology group and Power tech. Furthermore it can be evaluate that, Alton group controlled and managed around two-hundred companies and provide employment for over 14,000 employees.

Additionally, the corporation was responsible for providing a wide variety of power and telecommunication electronic products and information technology systems. Which, in turn, had enable Enter and his senior management team to record revenues up to R 22.61 billion. Moreover, it can be evaluated that, the key success factor of the organization was due to the ability of Mr. Bill Enter, who started his small business manufacturing, designing and distributing various products for US, UK and French based Manufacturer. Which had enabled him to generate sufficient cash flows, while gaining and maintain significant share and enhancing their organizations brand image in the market. In like manner, Bill Enter acquired Standard Telephones and Cables after 10 years of Alton establishment, which was estimated to be four times the size of Alton at the time,based on an opportunity that was presented to him when its major holding company TIT divested from ST.

Allied Electronics Corporation Ltd Harvard Case Solution & Analysis

Therefore, it can be evaluated that, it was because of his efficient investments that Alton was able to achieve high levels of cash flows for reinvestment within South African region. Which, in turn, enable the corporation to have control of various companies in Europe, Africa, UK, US, Australia and the Far-East regions across the world...............

This is just a sample partial case solution. Please place the order on the website to order your own originally done case solution.