Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
SMA: Micro-Electronic
Product Division (A)
MGT 689B Spring 2016
Organizational Behavior and Design
Dr. Patricia Holahan
Team Members -
Abhilasha Shinde
Digvijaysingh Rajput
Girija Pishe
Ishan Trikha
Saurabh Katariya
Shivansh Wadhwani
SMA TEAM
Problem Statement:
MEPD’s dramatic decline in sales and profits in 2011 and its continuing poor performance in 2012.
Overview:
SMA’s MEPD division initially had two plants, one in Grenzach Germany for Integrated Circuits and
the other in Neuchatel Switzerland for microprocessors. Between 2010 and 2012 market competition
increased and customers’ demands changed. In 2009 MEPD built a new plant in Lyons France to meet
the high volume demands in electronic market. To deal with the downturn and fierce competitive
environment they came up with various strategies but then they ended up with increased number of
conflicts.
MEPD’s previous vice president Amman was innovative, entrepreneurial, risk taking, authoritarian
and had a strong personality. He even tried to use his organization behavior theories in his division.
After his sudden death, Guido Spichty took over as the vice president and general manager and
restructured the organization to cope with the uncertainties which MEPD was facing. He changed the
management hierarchy, many top managers didn’t have experience in the departments they had been
assigned to, due to which conflicts occurred. The organization was just not pulling together and the
lack of coordination was affecting their ability to develop new products.
Problem Analysis:
