Peter Browning and Continental White Cap.

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Peter Browning and Continental White Cap

Introduction

Peter Browning assumed the management of Continental White Cap, which was a division of the Continental Group, Inc. Browning was recognized as a very powerful and influential leader that had assumed and completed strenuous assignments in his prior history with Continental. In his new role, Browning would need to revitalize a division of Continental which had stable sales and rising operating costs. In addition, the market was changing; their competitors were seeking new innovations and building additional market share. Continental was known as a company that looked after its employees. Browning would need to reduce salaries and administration (S&A) costs without tainting company morale.

Environmental Factors to Consider

* White Cap's management did not recognize the competitive onslaught of the plastics innovation

* Bob White was the previous manager and established a multi-layered, formal, and restrained organization. This was known in the organization as "Management without confrontation"

* White Cap's most recent competitors were slashing their prices. Continental did not want to cut their prices.

* S&A costs were increasing and Continental's upper management perceived White Cap as inflated. White Cap's admin costs were 13%, compared to 3-4% in other divisions.

* Browning was constrained by two explicit factors: 1. Continental did not want White Cap's image to change; and 2. Continental did not want to break its tradition of employee loyalty.
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* Employees feel entitled to the way of life at White Cap.

Key Issues to Resolve with White Cap

. Browning needs a culture change to meet his goals of lowering the S & A. Browning needs to address Bob White's legacy and Art Lawson's impending linkages to past White Cap culture.

2. Browning noted that the marketing department was not being progressive. The Marketing department needs to take on new initiatives as opposed to "simply administering existing programs." In particular it needs to embrace the emerging plastics innovations. Browning will need to address ...

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