Wickersham Mills Strategic AuditEssay Preview: Wickersham Mills Strategic AuditReport this essayIndustry AnalysisTextile manufacturing is one of the oldest of mans technological accomplishments. The oldest known textiles process dates back to about 5000 B.C. Since then, the textile industry grew out of the industrial revolution in the 18th Century as mass production of clothing became a mainstream industry. Starting with the flying shuttle in 1733, inventions were made to speed up the manufacturing process to a industry now that is automated and machine driven.
In the 20th Century, the industry had developed a bad reputation, often involving immigrants in illegal sweat shops full of people working on textile manufacturing and sewing machines. These immigrants would receive compensation for the efforts, but the pay was very minimal. This trend has resulted due to attempts to protect existing industries which are being challenged by developing countries in Southeast Asia, India, and more recently, Central America.
Globalization has seen the manufacturing outsourced to overseas labor markets. Because of the low cost of labor, there has been a trend for the areas historically associated with the trade to shift focus to the more white-collar associated industries of fashion design and retail. The textile market today is worth more than $400 billion and it is still growing every year. As a result, the recent globalization of the textile trade has opened up highly demanding and evolving requirements for outsourcing of textiles.
Current StatusThe case at Wickersham Mills is based on article that was written in 1960. Wickersham is a mill that is in the business of converting cotton and synthetic fibers into cloth that can be sold to manufacturers that will use the cloth to produce dresses, shirts, and other clothing. The former president of Wickersham Mills, David Wickersham, recently died which left the position of president needing to be filled. A special meeting of stockholders was held with the obligation of electing a new president. There are four candidates for the position which are all descendants of the original founder of Wickersham Mills.
The four possible candidates of Wickersham Mills are Alfred, Benjamin, David, and Charles. Each candidate has a very different view and opinion on how the company should be ran. The future of the organization rides on the very basis of this decision. Alfred believes that a business is a means of transforming an idea into reality. He believes in imagination, rational choice, and that a companys real strength is its inner spirit. Benjamin believes that a business is similar to a living organism; training, discipline, and incentives are what allow a business to survive and grow. Charless approach to business is driven more by a sense of power and prediction. He believes it is important to be able to predict and control the market. He wants to control the business through knowledge and the use of an objective inquiry. David sees a business as a service to society. He insists on a method of responsiveness and even persuasion.
The idea is that an effective business is a person and a company, with a clear vision. This idea derives from the concept of the Company, created in a single person in a unique environment, who has the chance and need to change the world.
The term company, developed as part of the First World War, means that the idea that the Company is an inclusive, entrepreneurial corporation, an equal rights institution in a market place. The company is a vehicle for this, and its activities are regulated. A company is not in charge of its own success and failures.
The word company is a common and important concept to many people. It gives some of us a sense of value and responsibility. Many people think of a company as a whole. It has to be self-sustaining and self-governing, to be independent. In terms of being in charge, a company is a business of a few employees and of the most prominent and proud members, most of them very well paid.
The concept is that an effective company should have a set of values. The values you want a business to have are based on a certain set of principles.
The idea that an effective business has an identity is the definition of organization. That is what the corporation in each business name is. Its name is based on how you set up your life or your business model, or how you move forward.
There are four qualities that you should strive for when you are CEO of a corporation:
2. To be an effective leader.
3. To have complete control over your organization.
4. To be able to execute the needs of the company at hand.
As CEO of a business, it is imperative that your team have the same focus and knowledge on the company at hand as you. You need to have a complete experience working in different cultures, in different markets and in different industries. If you go into the business experience with an excellently trained, experienced and skilled staff, you are more than prepared.
The best managers are those who work closely with their family and coworkers to ensure the company is run as effectively as possible. This can include planning for your company’s future and its future leadership.
Once you have hired all the key individuals to manage organizations, you will see an abundance of different qualities to have:
3. An active control. This is the most important aspect of organizing a successful business.
4. An efficient, well-connected executive. Many companies struggle when the business has no strong management and has little or no talent behind it. Some companies (especially in the U.S.) have an internal division in which they control every decision, but only a small staff. These employees are largely controlled by a handful of people and they usually have no control over where the business takes place. The executive level has no other control, except at a minimum, what is done by individuals at the bottom.
The best executives are those who know what is best for the business. They are those who will never let their business go to waste without having experienced, strong management. If you have a well-executed executive, and you don’t have the experience or knowledge to get the job done well, you will end up with a poor business that you can’t afford to end.
In addition to the three principles listed above, you
The idea is that an effective business is a person and a company, with a clear vision. This idea derives from the concept of the Company, created in a single person in a unique environment, who has the chance and need to change the world.
The term company, developed as part of the First World War, means that the idea that the Company is an inclusive, entrepreneurial corporation, an equal rights institution in a market place. The company is a vehicle for this, and its activities are regulated. A company is not in charge of its own success and failures.
The word company is a common and important concept to many people. It gives some of us a sense of value and responsibility. Many people think of a company as a whole. It has to be self-sustaining and self-governing, to be independent. In terms of being in charge, a company is a business of a few employees and of the most prominent and proud members, most of them very well paid.
The concept is that an effective company should have a set of values. The values you want a business to have are based on a certain set of principles.
The idea that an effective business has an identity is the definition of organization. That is what the corporation in each business name is. Its name is based on how you set up your life or your business model, or how you move forward.
There are four qualities that you should strive for when you are CEO of a corporation:
2. To be an effective leader.
3. To have complete control over your organization.
4. To be able to execute the needs of the company at hand.
As CEO of a business, it is imperative that your team have the same focus and knowledge on the company at hand as you. You need to have a complete experience working in different cultures, in different markets and in different industries. If you go into the business experience with an excellently trained, experienced and skilled staff, you are more than prepared.
The best managers are those who work closely with their family and coworkers to ensure the company is run as effectively as possible. This can include planning for your company’s future and its future leadership.
Once you have hired all the key individuals to manage organizations, you will see an abundance of different qualities to have:
3. An active control. This is the most important aspect of organizing a successful business.
4. An efficient, well-connected executive. Many companies struggle when the business has no strong management and has little or no talent behind it. Some companies (especially in the U.S.) have an internal division in which they control every decision, but only a small staff. These employees are largely controlled by a handful of people and they usually have no control over where the business takes place. The executive level has no other control, except at a minimum, what is done by individuals at the bottom.
The best executives are those who know what is best for the business. They are those who will never let their business go to waste without having experienced, strong management. If you have a well-executed executive, and you don’t have the experience or knowledge to get the job done well, you will end up with a poor business that you can’t afford to end.
In addition to the three principles listed above, you
The performance of the mill has been very poor. Over the past nine years the mill has lost just over half a million dollars. From 1951 to 1960 the earned surplus has dropped from $721K to just under $200K. These losses over the past few years are due to the significant issues and problems the mill has faced. The loss of surplus is mainly due to adverse market conditions. This is a dying industry and many customers have migrated to larger companies for their business. The competition from big companies in the South is a major cause of poor performance. The mill has also failed to secure long term contracts with any customers, which is making business difficult to predict.
The current mission, objectives, and strategies of the company are dependent upon which candidate is chosen. David wants to continue business by making specialty products and fine goods. His mission is service to society. He wants to provide customers with the kind of cloth that they want. His strategy involves anticipating customer needs and even persuading customers to want what the mill has to sell. Benjamins mission to stockholders is survival and growth. His strategy involves finding a correct mill balance in order to save money. His objective is to find more efficient ways of production and cut out as many costs as possible. Charless mission is achieving the power to predict and control. His strategy involves better understanding the market and being able to better predict the future. His objective is to improve the business until he can sell it for a reasonable price. Alfreds mission is self-realization. His strategy involves bringing a sense of leadership to the company.
Analysis of Strategic FactorsWickersham Mills management has historically been hard-nosed, focusing on predicting important market changes, and being on the forefront of trends in the industry. They fought to keep their workforce from unionizing, but were eventually forced to allow them into the Mill. Perhaps their greatest strength in the past has been their ability to forecast the markets that are vital to their business. These include labor, cotton, and production machines on the development side and consumer tastes and economic conditions on the sell side. By correctly predicting World War I, management greatly expanded their production capabilities allowing Wickersham to generate high profits. A talented economist they shrewdly employed was responsible for making this prediction. Their structure is organized in a manner which allows them to make use of their employees and machinery in an efficient manner. This helps to keep their production costs as low as possible.
A more complex chart of Wickersham Mills business operations was also available. The company has a large number of suppliers, where they offer discounts and free shipping on items purchased in bulk, a significant source of income.