John Ferry Bilaos, CPA May 10, 2015
S130145
PRIMAN

Elektra Products, Inc.

I. Definition of the Problem

Elektra Products, Inc. is an old company that has been around for 80 years. It had once been a top leading company in the industry but those years are long gone. Over the years, it has been encountering the following problems that lead to a great concern for its top management. These problems are as follows:

a. Declining market share due to increased foreign and domestic competition b. Few and far in between new product ideas c. Poor staff relationship – Departments such as manufacturing and sales barely spoke to each other d. Employee morale is in all time low – Many employees are actively seeking other jobs

Top management is already aware of the company’s shortcomings and problems. This led to the hiring of new CEO, Martin Griffin, who is pushing for the new empowerment campaign.

Management is aiming to foster a new era of employee involvement and empowerment amongst the employees of Elektra Products. With the increasing competition, Martin emphasized on the need for new ideas that will come from the employees. The new CEO believes that the new empowerment campaign is the best way to address the problem. This new empowerment will promote innovation and improvement of working relationship among the employee.

However, throughout the case, there are additional problems that were not explicitly stated. Such issues were:

e. Martin Griffin’s divided attention/interest when Barbara and her team were to report their ideas for improvements in manufacturing and retailing.

When Barbara was assigned as a team leader for manufacturing she was thrilled as she will play a vital role in the empowerment campaign and because of this she worked hard as she can to formulate