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Management article
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Reference no. 96508
Published by: Harvard Business Publishing
Published in: "Harvard Business Review", 1996

Abstract

Jack Marlowe, Sargon Corp.''s president, is wrestling with one of the most intractable problems he has dealt with since joining the company: what to do about Arcell, Sargon''s mature household appliances unit, and Charlie Crescent, its president. CEO Hal Hestnes and Marlowe are forging a new identity for Sargon--formerly a small defense contractor--as a diversified manufacturer. Sargon is counting on Arcell''s unit to provide the lion''s share of the money for the company''s investment in its future. Marlowe has made it clear to Crescent that he expects Arcell to run lean and mean. And Crescent has said that he understands. But his actions don''t show it. He keeps wanting to plow his profits back into Arcell. Marlowe faces several questions: Should he replace Crescent? If so, where should he put this valued employee? Wouldn''t whoever replaced Crescent be equally frustrated at having to lead a unit that the company considers a cash cow? Four experts analyze Marlow''s problem in this fictitious case study.

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Abstract

Jack Marlowe, Sargon Corp.''s president, is wrestling with one of the most intractable problems he has dealt with since joining the company: what to do about Arcell, Sargon''s mature household appliances unit, and Charlie Crescent, its president. CEO Hal Hestnes and Marlowe are forging a new identity for Sargon--formerly a small defense contractor--as a diversified manufacturer. Sargon is counting on Arcell''s unit to provide the lion''s share of the money for the company''s investment in its future. Marlowe has made it clear to Crescent that he expects Arcell to run lean and mean. And Crescent has said that he understands. But his actions don''t show it. He keeps wanting to plow his profits back into Arcell. Marlowe faces several questions: Should he replace Crescent? If so, where should he put this valued employee? Wouldn''t whoever replaced Crescent be equally frustrated at having to lead a unit that the company considers a cash cow? Four experts analyze Marlow''s problem in this fictitious case study.

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