Given the combination of several different factors, I don’t think Simmons should roll out the Great Game of Life (GGOL) program. I would suggest he wait to launch the GGOL until the economy showed signs of stabilization and the program proved to be definitely effective.
In the year 2001 there were several different obstacles standing in the way of the implementation of the program. Firstly, the 9/11 attacks, recession and negative GDP growth contributed towards economic downturn. Secondly, there was a 16% decrease in sales and over $100 million was lost because three of Simmons' major customers declared bankruptcy. Thirdly, there were issues regarding the foam used in beds which put the company in a compromising situation because there were still a lot of replacements that were to be done. Lastly, there was disorganization at Simmons- The different plants would treat each other as competition rather than integrating and helping each other out that would foster a growing environment. The employee morale was low and there was no proper communication …show more content…
GGOL increased employee motivation, togetherness, teamwork thereby improving overall plant productivity. It was said that the GGOL is a “metamorphosis” (course pack, page 234) for the people and companies. The fact that it could change the Charlotte’s plant culture from poor to extremely progressive in one year is indicative of its potential to increase Simmons’ revenue and makes it safe to assume that the implementation of this program will be successful and beneficial. But, it is incredibly risky to implement such an expensive program at such a time of financial uncertainty. Hence, I would recommend the “Fenway” turnaround strategy because what Simmons immediately needs is a proven approach that offers short-term security than an approach that is uncertain in improving long term
In the year 2001 there were several different obstacles standing in the way of the implementation of the program. Firstly, the 9/11 attacks, recession and negative GDP growth contributed towards economic downturn. Secondly, there was a 16% decrease in sales and over $100 million was lost because three of Simmons' major customers declared bankruptcy. Thirdly, there were issues regarding the foam used in beds which put the company in a compromising situation because there were still a lot of replacements that were to be done. Lastly, there was disorganization at Simmons- The different plants would treat each other as competition rather than integrating and helping each other out that would foster a growing environment. The employee morale was low and there was no proper communication …show more content…
GGOL increased employee motivation, togetherness, teamwork thereby improving overall plant productivity. It was said that the GGOL is a “metamorphosis” (course pack, page 234) for the people and companies. The fact that it could change the Charlotte’s plant culture from poor to extremely progressive in one year is indicative of its potential to increase Simmons’ revenue and makes it safe to assume that the implementation of this program will be successful and beneficial. But, it is incredibly risky to implement such an expensive program at such a time of financial uncertainty. Hence, I would recommend the “Fenway” turnaround strategy because what Simmons immediately needs is a proven approach that offers short-term security than an approach that is uncertain in improving long term