by: Street, Vera L.; Street, Marc D.; Weer, Christy; Shipper, Frank
Source: Journal of Business Case Studies (The Clute Institute)
SRC Holdings Corporation, formerly Springfield Remanufacturing Corp., is a well-knownmanufacturing enterprise comprised of numerous companies spread across 12 Business Unitsengaged in activities ranging from manufacturing to packaging to management consulting andtraining. However, their primary business expertise and core competency is remanufacturing --the process of taking used transportation parts, for example, and returning them to their OEM(original equipment manufacturer) specifications. Headquartered in Springfield, Missouri, theSRC story is one of tremendous financial success, virtually from the beginning of the organizationin 1983. At that time, a share of stock was worth 10¢; as of 2012, a single share is valued at about$361! But although the company is well-known for its financial record, it is safe to say that it ismost famous for its founder and current CEO, Jack Stack, and his insistence on converting hiscompany into an employee-owned firm very early on. The subsequent success of SRC and the roleits employee stock ownership plan (ESOP) played in this success is legendary. Thus, it's notsurprising that both the SRC ESOP and Jack Stack play central roles in this case study.
Link: SRC Holdings: Winning The Game While Sharing The Prize
Publication Date: 2014-01-01