The Grayson Chemical Company Case Analysis The Grayson Chemical Company manufactures industrial chemicals for sale

to other industrial companies. The company has become increasingly stagnant and has had declining earnings and sales. The company has steadily lost market standing and profitability. The board finally decided to get some new blood and hired Tom Baker who had made his former company an industry leader. Baker went to the board to develop a strategy about how he should proceed. The board was not on one accord so now Baker has a challenge deciding how to go about moving the company into a leadership position in the industry. Problems Macro Grayson lost its competitive edge. It has become stagnant and market standing in the industry has decreased. The management at Grayson is resistant to change. They feel that if it isnt broke, dont fix it. The problem is that it is broke and really needs fixing. Micro Incompetent managers were being promoted simply because they were next in line. Another problem is that when he polled the board to gage the direction in which he should go, he got a variety of answers. The board isnt even on one accord. There is no unity, so there is no direction. Causes Incompetent mangers are being promoted because the board doesnt like change and that is the way that it has always been done- by the book. Because of this philosophy, the company has failed to stay abreast of new ideas and fallen far behind the competition. The board doesnt have any unity and cant agree on issues because the organization is disorganized and has no

clear focus. This is apparent in the fact that although the company has been losing profits for years, it took them several years to agree to go outside of the company to hire someone with fresh ideas. Alternatives Well, Baker could just leave it like it is and let it continue has it has been. He would soon be out of a job though. Baker could also try implementing a few new ideas and make gradual changes to help them get used to the idea of change. He could also go with the style that has worked for him in his previous jobs, but incorporate the board and management into the changes. Recommendations I suggest that he stay with the style that has previously worked for him. He made his former company an industry leader with his strategy. He was hired because they heard about his methods and results. He should involve the entire corporation and enlist their assistance with the new direction. Those in opposition can look for employment elsewhere, because if something isnt done, everybody will be looking for new employment. Also, he should change the way managers are promoted.