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CASE A3

Atlas Tyre and Rubberized Company1

Professional Summary

Confronted with financial and competitive difficulties in 200X, Atlas Tire and Plastic Company's new CEO developed a strategic program that included an project to build industry leading source chain managing capabilities. While the organization strives to establish a " excellent supply chain” in the U. S. car tire division, many internal alterations have been produced. Over the last 36 months, the organization has generated a structure of collaborative teams to develop and apply strategies that drive cost, time, and complexity out from the supply chain.

Introduction

Atlas faced significant financial difficulties at the outset of 200X. Founded in 1905, the company was in the middle of a severe downturn. In the prior two years, consecutive deficits were placed for the first time in company history.

Atlas transferred aggressively to reinvigorate income, but the great impacts of rationalized functions, noncore business divestitures, and international growth were largely offset by new difficulties. Competition via low-priced import tires, market consolidation, and a sales slump inside the U. H. automotive industry caused it to be impossible pertaining to Atlas to find traction, especially in its range topping U. S i9000. tire department. As Atlas's debt level grew, the stock cost tumbled to a 20-year low, and its credit ranking was slice to junk-bond status.

A serious transformation was needed to deliver Atlas to a level of performance befitting one of the most identifiable brand names in the world. A key alter was the campaign of Walt V. Harrison to the placement chief executive officer in June 200X. Harrison signed up with Atlas 36 months earlier since president and chief functioning officer after having a 20-year career with Worldwide Container.

Harrison quickly embarked upon over a new path for the business. His vision of modifying Atlas into a market-focused, cost-competitive company symbolized a significant leaving from the production orientation that had described the company for over a century. Eschewing production-driven approaches and volumebased goals, the modern CEO set by a business presentation to a lot more than 1, 1000 independent wheel dealers that Atlas required to focus on buyers, quality, and costs. Harrison told the group: " Many of our problems are as a result of the setup level. We need to work on standard blocking and tackling. ”

While sounding straightforward, " getting back to basics” represented a major obstacle for a company with more than 102 production features in 28 countries around the globe. Thus, Harrison needed to quickly develop and clearly articulate his intend to Atlas stakeholders.

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Circumstance developed by Brian J. Gibson of Blonde University.

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Case A3

Supply Sequence Management Increases the Spotlight

The CEO's intentions had been conveyed by using a strategic prepare titled: " Seven Guidelines for Progress. ” The routine formed the inspiration of the industry’s initiative to come back to profitability and growth. Better leadership was the lynchpin of the Atlas transformation in Harrison's mind. He believed that having the right kind of traffic with the right abilities, experience, and mindset was essential to the execution of the other strategies. Five additional guidelines focused on familiar turnaround themes—cash flow improvement, cost decrease, customer romantic relationship enhancement, brand strengthening, and product development.

These other rules revealed Harrison's unique insight. He believed that a excellent supply chain was required to complete the Atlas turnaround. This integrated supply chain would improve Atlas's buy and completion processes, which makes them more accurate and for customers. The aim of the superior supply cycle was to support Atlas deliver " the ideal tire for the right place on the right time although keeping costs and inventories low. ” Ultimately, the intention was to create support capabilities that far surpassed those of...

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