Global Manufacturing Organization Case Analysis


Global Manufacturing Organization GMO) is a privately owned manufacturing firm located in a Midwestern state in the United States. GMO employees design and manufacture heavy equipment. The organization was founded by the CEO who started the business when he graduated from high school. He began his business in the 70s and has grown it from a one-man operation serving the State he currently operates to a business that produced 45 million dollars in revenue each year and employs over 300 people in his warehouse and central office. All operations are located in a warehouse/office in the Midwestern State.

GMOs have dealerships all over the world. The dealerships work under contract with GMOs. Their sole purpose is to sell the parts that GMO designs. While they are individually owned they must adhere to GMO’s policies and procedures.

GMO has three major divisions. They include manufacturing, sales, and administration. While dealerships are selling GMO products worldwide, GMOs does not use dealerships in the United States. U.S. sales are handled by GMO’s internal sales division.

Changes Needed:

Due to a Pandemic the administration and sales departs have primarily worked from home. The CEO would like to bring his staff back to their respective offices. He faces challenges in doing so since he has an open work space for his employees. He is the only staff member with a private office. Several of the staff have stated they are nervous about returning to the office and would like to remain at home.

The CEO has announced plans outsource the sales department to dealerships in every Sate in the United States. He plans to do this over the next three years. He will need to recruit, train and develop dealerships. He is willing to relocate any existing sales employee to one of these locations. They are not happy with this.

The CEO conducts regular weekly meetings with all dealership managers worldwide. He has faced issues with communication and understanding cultural differences among the managers. Some managers state they feel like their ideas are not being considered due to these differences and some have complained that the corporation does not adjust practices based on the culture in their geographic area.

Two employees in the manufacturing plant have tested positive for the virus. While the CEO has a strict policy on wearing masks and socially distancing at work, he has discovered the staff have not been complying with this policy.

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