Subject category:
Production and Operations Management
Published by:
Harvard Business Publishing
Version: 30 May 1995
Length: 19 pages
Data source: Field research
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Abstract
Ellis finds itself in a weakening competitive position largely due to the lack of rationalization in its plants. Driven by a strong traditionally decentralized sales organization, Ellis finds that all plants want control over all product lines. As a result, overall economics of scale are not achieved, and duplication of resources has weakened Ellis'' cost position. Case gives enough data for students to make specific recommendations.
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Abstract
Ellis finds itself in a weakening competitive position largely due to the lack of rationalization in its plants. Driven by a strong traditionally decentralized sales organization, Ellis finds that all plants want control over all product lines. As a result, overall economics of scale are not achieved, and duplication of resources has weakened Ellis'' cost position. Case gives enough data for students to make specific recommendations.