Harvard Case - Corning Glass Works: The Electronic Products Division (A)
"Corning Glass Works: The Electronic Products Division (A)" Harvard business case study is written by Michael Beer. It deals with the challenges in the field of Human Resource Management. The case study is 19 page(s) long and it was first published on : Jul 1, 1976
At Fern Fort University, we recommend that Corning Glass Works' Electronic Products Division (EPD) implement a comprehensive strategic plan to address its current challenges and capitalize on its growth opportunities. This plan should focus on talent management, organizational development, and strategic partnerships to drive innovation, improve operational efficiency, and enhance market competitiveness.
2. Background
Corning Glass Works' EPD, a division established in 1958, faced a significant challenge in the late 1970s. Despite being a leader in glass technology, the division was struggling to compete in the rapidly evolving electronics industry. The case study highlights several key issues:
- Declining profitability: EPD's profitability was declining due to increased competition and rising costs.
- Lack of focus: The division lacked a clear strategic direction and was pursuing too many diverse product lines.
- Organizational structure: The functional structure of EPD hindered communication and collaboration, leading to inefficiencies.
- Talent management: The division struggled to attract and retain skilled employees, particularly in the rapidly growing field of electronics.
The main protagonists of the case study are:
- James R. Houghton: The CEO of Corning Glass Works, who was tasked with turning around the struggling EPD.
- Dr. Donald E. Stookey: The head of EPD, who was responsible for developing a new strategic plan for the division.
3. Analysis of the Case Study
The case study can be analyzed using the following frameworks:
Strategic Framework:
- Porter's Five Forces: The analysis reveals that the electronics industry was highly competitive, with numerous players and rapid technological advancements. The threat of new entrants was high, and the bargaining power of buyers was increasing.
- SWOT Analysis: EPD possessed strong strengths in glass technology and research & development, but it faced weaknesses in strategic direction, organizational structure, and talent management. Opportunities lay in the growing electronics market and the potential for new product development. However, threats included increasing competition, rapid technological change, and rising costs.
Organizational Behavior Framework:
- Organizational Culture: EPD's culture was characterized by a strong focus on technology and innovation, but it lacked a clear sense of direction and purpose. This led to a lack of employee engagement and motivation.
- Leadership Styles: The case study suggests that the leadership style at EPD was more focused on technical expertise than on strategic vision and leadership. This limited the division's ability to adapt to the changing market landscape.
4. Recommendations
To address the challenges facing EPD, the following recommendations are proposed:
Talent Management:
- Strategic HR Planning: Implement a comprehensive HR strategy that aligns with the division's strategic goals. This includes identifying key talent needs, developing targeted recruitment strategies, and establishing clear career paths for employees.
- Leadership Development: Invest in leadership development programs to cultivate a new generation of leaders with strong strategic vision, communication skills, and the ability to manage change effectively.
- Employee Engagement: Foster a culture of employee engagement through initiatives such as employee surveys, feedback mechanisms, and recognition programs.
- Diversity and Inclusion: Promote diversity and inclusion within the workforce to leverage a wider range of perspectives and experiences.
Organizational Development:
- Organizational Structure and Design: Restructure the division to create a more agile and responsive organization. This could involve adopting a matrix structure or establishing cross-functional teams to enhance collaboration and communication.
- Change Management: Implement a structured change management process to facilitate the transition to a new strategic direction and organizational structure. This includes clear communication, employee training, and support mechanisms.
- Organizational Culture: Foster a culture of innovation, collaboration, and customer focus. This can be achieved through leadership behaviors, employee empowerment, and recognition of successful initiatives.
Strategic Partnerships:
- Mergers and Acquisitions: Explore strategic partnerships or acquisitions to expand into new markets, acquire complementary technologies, or access new talent pools.
- Strategic Alliances: Form strategic alliances with key players in the electronics industry to leverage their expertise and resources. This could involve joint ventures, technology licensing agreements, or research collaborations.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core competencies and consistency with mission: The recommendations focus on leveraging EPD's core competency in glass technology while aligning with the broader mission of Corning Glass Works.
- External customers and internal clients: The recommendations prioritize customer needs and satisfaction while ensuring that internal clients, such as employees, are engaged and motivated.
- Competitors: The recommendations aim to position EPD as a leader in the electronics industry by focusing on innovation, efficiency, and strategic partnerships.
- Attractiveness ' quantitative measures: While specific financial metrics are not provided in the case study, the recommendations are expected to improve EPD's profitability by driving growth, reducing costs, and enhancing efficiency.
6. Conclusion
By implementing these recommendations, Corning Glass Works' Electronic Products Division can overcome its current challenges and position itself for future success in the rapidly evolving electronics industry. The focus on talent management, organizational development, and strategic partnerships will enable EPD to drive innovation, improve operational efficiency, and enhance market competitiveness.
7. Discussion
Alternatives not selected:
- Divesting the division: This option was considered but rejected due to the potential loss of valuable technology and expertise.
- Maintaining the status quo: This option was deemed unsustainable due to the declining profitability and competitive pressures.
Risks and key assumptions:
- Implementation challenges: Implementing the recommended changes will require significant effort and commitment from all stakeholders.
- Market volatility: The electronics industry is subject to rapid technological change and market fluctuations.
- Competition: The competitive landscape is constantly evolving, and new players may emerge.
Options Grid:
| Option | Advantages | Disadvantages |
|---|---|---|
| Implement comprehensive strategic plan | Improves profitability, enhances competitiveness, fosters innovation | Requires significant effort and commitment, potential for implementation challenges |
| Divest the division | Reduces financial burden, focuses resources on core businesses | Loss of valuable technology and expertise, potential negative impact on Corning Glass Works' overall strategy |
| Maintain the status quo | Minimizes disruption, avoids immediate change | Unsustainable in the long term, risks further decline in profitability and market share |
8. Next Steps
The following steps should be taken to implement the recommendations:
- Develop a detailed strategic plan: This plan should outline specific goals, timelines, and resource requirements for each recommendation.
- Establish a dedicated implementation team: This team should be responsible for overseeing the implementation process and ensuring that all stakeholders are involved.
- Communicate the plan to all employees: Clear and consistent communication is essential to ensure that employees understand the rationale behind the changes and are committed to their success.
- Monitor progress and make adjustments as needed: The implementation process should be monitored closely, and adjustments should be made as necessary to ensure that the strategic plan is on track.
By taking these steps, Corning Glass Works can successfully transform its Electronic Products Division into a thriving and competitive business unit.
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Case Description
Describes a division of Corning Glass Works that finds itself with deep financial and organizational problems. Severe conflict and lack of coordination exist between functional groups. Employees do not have a sense of direction and morale is low. Provides sufficient data to determine that the cause of these problems is a change in business environment that had been followed by change in organization and management. Can be used for analysis of organization-environment relationships and action planning for change and environment.
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