A private equity firm acquired Johnson-Ware few years ago and renamed it as WeaveTech. WeaveTech is a clothing company and has been manufacturing coats, jackets, overalls, coveralls, and fire resistant clothing for the military. The rapidly developing market now required the CEO to devise a new strategy. The CEO considers reducing the number of managers by 20% in WeaveTech, as part of this strategy. The vice-president of the HR, Frank Jennings, is asked by the CEO to present the ideas to implement this plan. In order to adjust these transformations, Jennings has tried his hardest with the WeaveTech’s long history, its small-town and high-performance culture. The case provides data on the implicit lifetime employment contract, a strategic transformation, and a poor performance evaluation criterion. He found the reducing number of managers’ decision quite challenging. Whether the decision to reduce the high-performing managers is according to ethics? Whether this new strategy would be effective? What should be approach that Jennings could present to the board, and how should he react to this mandate of the CEO.
Related Case Solutions & Analyses:
The Hong Kong Jockey Club: Repositioning a Not-for-Profit Powerhouse
Satellite Radio: An Industry Case Study
Capturing the Real Value of Innovation Tools
Stopping Runaway IT Projects
Weight Solutions Clinic: Bariatric Surgery Center
Recyclers v. Superfund (D): The Politics of Unintended Consequences
Bayer & Millennium Pharmaceuticals: Success Based on Perfect Interaction
Apollo Hospitals of India (A)
Managing in an Information Age: IT Challenges and Opportunities
Texas Instruments: Cost of Quality (B)
