Aaron Feuerstein's Case Study

Improved Essays
Aaron Feuerstein, built the Malden Mills Company, it was a family business in Lawrence. The company did very well until one night there was a fire in 1995 that destroyed most of the mill. Despite the fire the mill experienced other troubles. Some of the problems were, bankruptcy and issues with the insurance companies that did not want to pay on the fire claims. Mr. Feuerstein decided that he would rebuild the Mill and ignored the skepticism of some that thought he should leave well enough alone. When Feuerstein didn’t wait for the policies to pay on the fire claim before he had a meeting with all his employees, to let them know of his plan. He announced while the buildings were still smoldering that he would pay all of his employees …show more content…
Feuerstein considered his employee’s his most important asset. He could not in good conscience, abandon his employees, when a feasible alternative existed. He was challenged with concerns about loosing customers, suppliers, and lenders. After all the customers are the stakeholders of the establishment and are the ones that determine the life or death of a company. In my case study, Aaron Feuerstein assures all of his customers at an exhibition that the company would be up and running in about thirty days. One of the main reasons he didn’t hold back information was because he felt that his employees were not expendable. As a matter of fact everyone that made the system work added value. The people in various sectors had been with him for many years and made him a very rich man. Feuerstein was optimistic and didn’t mind letting all that would take him seriously know …show more content…
His solid decision to go forward with the plan to rebuild the mill worked out as planned. Yes, he did have obstacles but with perseverance the show went on, and was up and running in ten days instead of his earlier forecast. The trouble wasn’t over and his plan had to be adjusted thus far claiming bankruptcy but he was always optimistic that it would not be the end of the road for Malden Mills. He came up with an idea to make a new invention that would bring in more revenue; he financed most of the project with his own money. Instead of shutting down the mill it was re-opened with many of the workers making higher earnings than before. The mill workers were back to work and the company was stronger than before with high hopes on the road to

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