Sma Micro Electronic Essay

1268 Words Oct 6th, 2013 6 Pages
Team Case 2: SMA: Micro-Electronic Products Division (A)
Executive Summary
This paper analyzes the problems facing SMA: Micro-Electronic Products Division (A) as requested by Guido Spichty, vice president and general manager. After a rough period in 2008, sales are finally back up but the company is still facing a time of high competition, low morale, lack of confidence, trust, and coordination. Divisions are constantly arguing with each other, which is affecting sales and profits. Key managers feel Spichty is not involved enough in the day-to-day operations. Some feel he does not listen to their problems and does not have the ability to face conflict. There are several solutions to remedy these problems facing MEPD, which would
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If employee pay has to be the area to take a hit, then earned vacation time should not be affected. The consideration of not receiving a raise for the upcoming year would be an idea that is better received by employees than an actual pay reduction. Another area of review for cost cutting would be the cost of supplies.
Another company that has suffered from lack of effective leadership and good decision-making is Hewlett-Packard. During his short tenure at HP, CEO Leo Apotheker made a drastic decision which poorly affected the company. He decided to forego the TouchPad tablet and sell off the PC side of the business. Instead of keeping the focus on what had always been profitable for HP, he set his sights on a high-margin area of business such as software services and servers. He purchased a second-rate software company for entirely too much money and this decision by Apotheker decreased the value of the HP’s stock by half (Ghosh, Palash). Internal strife among the board members was rampant. A decision was made to replace the CEO in order to move the company forward.
Problem Definition
SMA: Micro-Electronic Product Division has been experiencing a decline in sales, which according to its Vice President Guido Spichty, has led to a decline in morale among key employees. Spichty is currently seeking help to determine that if the conflict between groups is serious and what can be done about it. Spichty and other top management groups within

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