Analysis of Article about EnClean Case Essay examples -- Harvard Busin

This case analyzes situation described in the Harvard tune Review article about EnClean located at http//harvard tradeonline.hbsp.harvard.edu/b02/en/ habitual/item_detail.jhtml?id=7941151. Major issues facing EnClean.A. Stock price is work through more than 85% from its high of $22.Company has been losing money since the first quarter of 1992. Financial fundamental principle be sagging Gross margin is dropping SG&A atomic number 18 too high debt is hugeAs a result, investors draw mixed-up confidence in the phoner.B. Managerial incompetence. COO has lost control all over several major companys SBUs. Since 1989 EnClean has been failing the task of right on integrating acquired companies. Business units such as CMC, AlphaChem, and Sizemore have resisted change and have never accepted the vision, the mission, and the common strategy of EnClean.C. Demoralized personnel.Because of the following problems EnClean is losing exceedingly valuable sales and techni cal associates absence of clear goals lack of knowledge confusing deliverables faulty employee recognition system blame culture, finger pointing bout between corporate and divisional interests D. Uncertain/declining economic conditions. Economy has been in recession for several years Environmental cause has received a hard blow in 1992 when pre casent Bush Sr. postponed or cancelled many environmental laws. As a result, companies began to postpone environment-related jobs.E. face up heavier competition. Environmental side of the EnCleans business faces increased competition collectible to the business erosion. Competition lowers prices to secure the reduced amount of work. Industrial side of the EnCleans business faces equal competition. For instance, 1992 saw the emergence of two hefty competitors WMX Technologies and Rust International.F. Losing the focus on lineament.Since 1988 EnClean had been basing its strategy on providing hi gh quality service (as opposed to low-cost). Quality improvement and control processes had been developed and successfully maintained. However, by 1992, as a result of rapid expansion, many divisions were execution quality procedures as a formality, just to satisfy the corporate group. Thus, EnClean is undermining its aggregate competency hig... ...ompany.o Create a learning network to serving companys best practices throughout the organization.o Start create a management development facility to teach and preach company values to managers of various divisions.o Identify and start to fold down businesses that are outside of the companys core competency.Long terminus Action Itemso Free up capital by divesting from the business units that are unprofitable or are outside of the companys core competency.o Use that capital to improve financial fundamentals, particularly debt-to-equity ratio. o Put all companys managers through the leaders development program .o Put in place semi-annual management military rank survey. All managers must be regularly evaluated on their effectiveness, creativeness, and, most important, whether they are compatible with companys values, mission, and vision.o Grow EnClean into the strongly centralized company, where planning, even if done on an individual division basis, is then united back to the overall strategy of the company.Works Citedhttp//harvardbusinessonline.hbsp.harvard.edu/b02/en/common/item_detail.jhtml?id=794115