In 1994 United Airlines became the largest employee majority-owned enterprise in the United States, with various groups of employees – most represented by unions – having purchased 55% of its stock in exchange for various concessions. The employees accepted pay cuts and made other concessions, but were also granted representation on the company’s board of directors…[newline]
Cisco Systems, specializing in network systems that link computers and provide Internet communications, was founded in 1990. Employee compensation is closely tied to company and individual performance through stock ownership and profit-sharing, and performance is focused on customer satisfaction. Cisco has grown mainly by acquisition, always trying to stay ahead of the next best technological … Read More
For several years, William H. (Bill) Carris (President and CEO) looked for ways to bring employees into the business. From the beginning Michael (Mike) Curran (Vice-President and COO) had been not in favor of implementing short-term incentives at that time. But having worked with Bill for 20 years, Mike knew when Bill’s mind was set on proceeding…
Less than a year after Sealed Air embarked on a program to improve manufacturing efficiency and product quality, the company borrowed almost 90% of the market value of its common stock and paid it out as a special dividend to shareholders.
Procter & Gamble’s top executives form a small, autonomous, cross-functional Corporate New Ventures team led by a young former brand manager. The team invents a systematic approach to gathering information and producing creative ideas for radically new product categories.
In mid-1993, representatives of Rhone-Poulenc, a leading nationalized French firm, worked with the French government to plan the imminent privatization of the firm.
Following a successful corporate turnaround and, more recently, a leveraged recapitalization, management of a highly profitable, fast–growing outdoor advertising company must consider alternative ways to harvest cash flow from the company without jeopardizing the turnaround or incurring significant tax liabilities.
McKay Nursery Co., founded in 1897 in Waterloo, WI, had a longstanding history of commitment to employees. The close-knit organization was a pioneer in the agricultural industry of several employee-friendly policies. But in the early 1980s, as McKay’s owners grew older and senior management neared retirement, the next generation of managers feared for the future of the profitable, debt-free company…
Colt Industries is a conglomerate that is considering undertaking a leveraged recapitalization.
A company nears the end of a long multiyear turnaround and now must consider how to “cash out” so its management can realize a financial return on investment. The privately held company has several options, including a leveraged ESOP and a leveraged recapitalization.
Connor Formed Metal Products was a small, privately owned manufacturer of custom metal springs and stampings. Since becoming president in 1984, Bob Sloss had implemented many changes to the company’s organizational structure, management control systems, and information systems.
In the largest attempted employee-buyout in history, a large U.S. commercial airline seeks substantial wage concessions from its employees in return for 53% stake in the airline’s common stock and guaranteed seats on the board of directors.
William Apfelbaum, president and CEO of Transportation Displays, Inc., must restructure both the company’s method of doing business and its liabilities to keep it from bankruptcy. The value he hopes to receive from the reorganized company will be an important issue in the restructuring negotiations with creditors.
In the late 1980s Howard Schultz led the Starbucks Coffee Co. to explosive growth, transforming a small whole-bean coffee company into a national retail power. Starbucks success hinged on its reputation for quality and personal service…
Transportation Displays, Inc. has gone through a series of restructurings. This case describes the last few stages, which substantially reduced debt and increased the ownership of management.
Nine years ago, the author bought a small manufacturing company with marginal profits, poor union relations, nit-picking work rules, and high labor costs. After a year of bickering, Frey decided he wanted to implement profit sharing.
This case describes the innovative approach to organizing and managing employees by People Express and describes the company’s eventual demise.
A long-time community development worker creates hundreds of jobs for low-income women and minorities by forming a for-profit home health care cooperative, Cooperative Home Care Associates…
Douglas Kruse’s carefully executed study of two companies owned by the workers through Employee Stock Ownership Plans (ESOPs), examines the hopes and anxieties that have been articulated by many of the participants in one of America’s fastest growing types of work experiments.
This case covers the strategy and management practices of the world’s largest manufacturer of welding equipment. Discusses the compensation system and company culture, and the leadership style of management.