★ Lecture 07 - Case Study: A Kodak Moment Flashcards
Organisational Background
ECL Holding - Case Study JoN
- business background (3)
- entities (2)
ECL Holding - Major shipyard design & construction conglomerate with a $2.5 billion turnover.
-
Seasonal fluctuations
due to project volumes. -
Four distinct geographical regions
with cultural and language differences. -
Contractual agreements as a maintenance provider.
ECL Holding provided support activities and aimed for revenue maximization, cost reduction, and digitalization.
Three technically independent entities:
- Engineering & Construction (EC Ltd.),
- Maintenance & Plant (MP Ltd.),
- Construction Logistics (CS Ltd.).
Engineering & Construction Ltd (BU EC) (3) - Study Case JoN
Central & relatively stable management of three divisions in each region.
General Contracting (EC GC)
Major infrastructure projects,
all engineering categories
and coordination.
Project Management & Engineering (EC PME)
Designs and supervision
for less complex projects.
Design Authority (EC DA)
Owner of technical design,
contracting authority for MP Ltd.
BU MP Maintenance and Plant Ltd
[⛵️ Study Case JoN]
- Structure
- Value Stream
- Strategy
No divisional structure,
- regional structure based on technical departments.
High need to subcontract
- due to dissatisfaction (customer) & employee fluctuations.
Failed to implement corporate strategy.
- Strong resistance to change.
BU CL Construction Logistics Ltd (2)
- challenges
- structure
[⛵️ Study Case JoN]
Challenges with integration of MP Ltd tasks.
Two central divisions with one in each region.
- Strategic Purchasing (CL SP) & Transport Services (CL TS).
- Supply Chain Management (CL SCM)
→ planning, purchasing, and delivery.
Analysis and Strategy/Objective Formulation EC, MP, CL (3)
[Study Case JoN]
Engineering & Construction (EC Ltd)
Achieve growth and establish a monopoly in infrastructure construction.
Maintenance & Plant (MP Ltd)
Maintain the status quo.
Construction Logistics (CL Ltd)
- Pursue growth, conduct market analysis and expand services.
- Establish miniature work yards at project sites to reduce dependence on MP Ltd.
Transformation (3)
[Study Case JoN]
CL Ltd pursued its plan but faced resistance from MP Ltd.
- Executive level required costing for different models before acceptance.
- Stocking of shadow inventory due to unpredictable changes.
- Acquiring an external consultant for insight.
The Iceberg (2)
[Study Case JoN]
Consultant identified issues and advocated mediation & communication.
- Encouraged CL Ltd to adopt MP Ltd’s language for improved communication & trust.
- EC Ltd’s involvement was necessary to achieve goals.
Critical Points (2)
- Case Study JoN
Emphasized the importance …
of industry knowledge & skill retention through education.
Conflicting strategies among divisions.
Informal elements not addressed.
(processes & organizational culture)
Critical Points for Blue Sky Holdings (2x4)
[Study Case JoN]
Informal strategy with power plays
- lack of transparency,
- leading to a lack of trust.
Dissolved (aufgelöst)
- due to a gradual loss of market share.
- Divested (Verkauft) Yellowfin Ltd,
which faced scandals
and liquidation.
Strategic Actions to Prevent Issues (3)
[⛵️ Case Study JoN]
Clear Strategic Planning
- Develop transparent planning involving all levels. Communicate, understand, and align strategic goals to prevent power plays.
Encourage a culture valuing input from all levels
- Empower Operational Input: Recognize the importance of experience and expertise.
Talent Retention and Development:
- Implement strategies for retaining key talent. Emphasize internal training and knowledge transfer.
