MetalBenders Industries, Inc

Case Study - Executive Summary

This presentation is analyzed and a d suggestion for Case of MetalBenders Industries, Inc. first of all, we talk about the background. Analyze this case MetalBenders is a classic case of a family owned business that started strong under its founder and became weaker in its second generation. Compounding the problem was the unexpected death of the second generation heir with the business now under the control of his widow, Maria, a woman of Hispanic origin, not trained in the world of business, and a person who was content to let her husband run the firm. As a reluctant leader of the firm, she must determine how to improve the firm’s profitability, to not only allow her to maintain her lifestyle, but also to position the firm for sale in the future. It is intended to furnish students with an opportunity to gain new insights into the many challenges faced by a small, second-generation family-owned business.

From this case we point five points to analyze:

n MetalBenders Industries, Inc : 33 years(1969)

n Maria as a CEO: 6 years(1996~2002)

n Past 3 years the sales ranged ($1.4 million to $1.7 million)
the breakeven point is $1.5 million

n Reputation from customers:

¨ always willing to take on spur-of-the-moment jobs

¨ A good company, they do good work, but they're always late

¨ Communication is below average

¨ so anxious to please the customer that they don't say no to any job. Nothing's too small, or too inconvenient

n No manage system (-), no standard product (+/-),
can’t increase profits for several years may get worse.

Then, there is compendious compare and discussion who is a qualified person can lead this company to the future amount mark, ted and jose, and the analyse depend on leadership theory show that there are no people can lead this company and the current leader Maria also can not play the role because she how to lead and use employees and do everything like depend on her habits. Such as, she does not like to listen to Ted and Mark.

Whereafter, some useful and accurate leadership policies would talk about as follow. Leadership style is the manner and approach of providing direction, implementing plans, and motivating people. The three major styles of leadership are:

o Authoritarian or autocratic

o Participative or democratic

o Delegative or Free Reign

Although good leaders use all three styles, with one of them normally dominant, bad leaders tend to stick with one style. The authoritarian style should normally only be used on rare occasions. If you have the time and want to gain more commitment and motivation from your employees, then you should use the participative style. Using participative style is of mutual benefit -- it allows them to become part of the team and allows you to make better decisions. Delegative is not a style to use so that you can blame others when things go wrong, rather this is a style to be used when you fully trust and confidence in the people below you. Do not be afraid to use it, however, use it wisely!

In the end of this presentation we suggest some Recommendation which include. Chance: ISO9000 certification, Risk equal chance, Maria has to change herself rather than complain and Maria cannot depend on her habits to lead the company, like Jose. It can be seem in the future the core-man will leave for sure.