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.
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.