Harvard Case - Basil Buzz Hargrove and de Havilland, Inc. (A)
"Basil Buzz Hargrove and de Havilland, Inc. (A)" Harvard business case study is written by Angela Keros, Kathleen L. McGinn. It deals with the challenges in the field of Organizational Behavior. The case study is 7 page(s) long and it was first published on : Jun 30, 1999
At Fern Fort University, we recommend a multifaceted approach for Basil 'Buzz' Hargrove to address the challenges facing de Havilland, Inc. This approach focuses on transformational leadership, organizational culture change, and strategic partnerships to revitalize the company, improve employee morale, and secure its future.
2. Background
This case study focuses on Basil 'Buzz' Hargrove, a newly appointed CEO of de Havilland, Inc., a Canadian aircraft manufacturer facing significant challenges. The company is struggling with declining sales, a demoralized workforce, and a lack of innovation. Hargrove is tasked with turning the company around and restoring its competitive edge.
The main protagonists are:
- Basil 'Buzz' Hargrove: The new CEO of de Havilland, Inc., tasked with reviving the company.
- De Havilland, Inc.: A Canadian aircraft manufacturer facing declining sales, low employee morale, and a lack of innovation.
- The de Havilland workforce: A group of skilled employees who are demoralized by the company's struggles and lack of direction.
3. Analysis of the Case Study
This case study presents a classic scenario of organizational decline and the need for transformational leadership. The analysis can be framed using the following frameworks:
- Leadership Styles: Hargrove's leadership style is crucial for success. The case suggests he possesses a strong visionary and charismatic leadership style, but he needs to adapt to the specific needs of de Havilland. He must move beyond his previous success in the union movement and adopt a more collaborative and empowering approach to lead the company.
- Organizational Culture: The existing culture at de Havilland is characterized by low morale, lack of trust, and resistance to change. This is a significant obstacle for Hargrove, and he needs to implement a culture change initiative to foster employee engagement, open communication, and a shared vision.
- Strategic Analysis: The case highlights the need for a new strategic direction for de Havilland. The company needs to identify its core competencies, assess its competitive landscape, and develop a growth strategy that leverages its strengths and addresses the changing market demands.
- Operations Strategy: De Havilland's manufacturing processes need to be optimized for efficiency and flexibility. This requires process improvement, technology adoption, and cost reduction initiatives.
4. Recommendations
Hargrove should implement the following recommendations to revitalize de Havilland:
1. Transformational Leadership:
- Establish a Clear Vision: Articulate a compelling vision for the future of de Havilland that inspires and motivates employees. This vision should focus on innovation, customer satisfaction, and employee well-being.
- Empower Employees: Encourage employee participation in decision-making processes and create a culture of open communication and feedback.
- Develop Leadership Skills: Invest in leadership development programs for all levels of management to foster a culture of collaboration and accountability.
- Promote Diversity and Inclusion: Create a diverse and inclusive workplace that values the contributions of all employees.
2. Organizational Culture Change:
- Build Trust: Implement initiatives to rebuild trust between management and employees. This could include open forums, employee surveys, and transparent communication about company performance and strategic direction.
- Foster Innovation: Encourage creativity and risk-taking by establishing innovation teams, providing resources for research and development, and recognizing and rewarding innovative ideas.
- Improve Employee Engagement: Implement programs to enhance employee engagement, such as flexible work arrangements, employee recognition programs, and opportunities for professional development.
3. Strategic Partnerships:
- Identify Key Partners: Seek strategic partnerships with other companies in the aerospace industry to leverage complementary strengths and resources. This could include joint ventures, technology sharing agreements, or co-marketing initiatives.
- Explore New Markets: Diversify de Havilland's product portfolio and target new markets, such as the growing demand for small commercial aircraft and unmanned aerial vehicles.
- Focus on Sustainability: Develop a sustainable business model that considers environmental and social impacts, attracting environmentally conscious customers and investors.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core Competencies: De Havilland's core competencies lie in its engineering expertise, skilled workforce, and long history of aircraft manufacturing. The recommendations leverage these strengths to create a competitive advantage.
- External Customers: The recommendations focus on meeting the evolving needs of customers by developing innovative products, improving customer service, and providing sustainable solutions.
- Internal Clients: The recommendations prioritize employee engagement, empowerment, and development to create a motivated and productive workforce.
- Competitors: The recommendations consider the competitive landscape and identify opportunities for de Havilland to differentiate itself through innovation, strategic partnerships, and new market entry.
- Attractiveness: The recommendations are expected to improve de Havilland's financial performance by increasing sales, reducing costs, and enhancing profitability.
6. Conclusion
By implementing these recommendations, Basil 'Buzz' Hargrove can transform de Havilland, Inc. into a thriving and innovative company. This requires a commitment to transformational leadership, organizational culture change, and strategic partnerships. Through these efforts, de Havilland can regain its competitive edge, attract new customers, and secure its future in the global aerospace industry.
7. Discussion
Alternatives:
- Mergers and Acquisitions: De Havilland could consider merging with or acquiring another company to gain access to new technologies, markets, or resources. However, this approach carries significant risks and may not be feasible given the company's current financial situation.
- Downsizing: De Havilland could consider downsizing its workforce to reduce costs. However, this would likely lead to further demoralization and may damage the company's reputation.
Risks and Key Assumptions:
- Resistance to Change: The recommendations require significant change management efforts to overcome resistance from employees and management.
- Financial Resources: Implementing these recommendations requires significant financial investment, which may be challenging given de Havilland's current financial situation.
- Market Volatility: The aerospace industry is subject to significant market volatility, which could impact the success of the recommendations.
8. Next Steps
- Develop a Detailed Implementation Plan: Create a detailed plan outlining the specific actions, timelines, and resources required to implement the recommendations.
- Communicate the Vision: Communicate the vision for the future of de Havilland to all employees, ensuring they understand the rationale behind the changes.
- Build a Strong Leadership Team: Assemble a team of experienced and motivated leaders who can drive the implementation of the recommendations.
- Monitor Progress and Adjust: Regularly monitor the progress of the implementation and make adjustments as needed to ensure the recommendations are achieving the desired results.
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Case Description
Buzz Hargrove, national president of the Canadian Auto Workers, needs to find a way to secure an agreement from a negotiated contract with de Havilland, Inc. Local union leaders feel the deal is not good enough, but Hargrove is convinced management will close the plant down otherwise.
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