Ricardo Semiler and Semco Company and its Changes Case Study

Ricardo Semiler and Semco Company and its Changes - Case Study Example No. The older Semler, Antonio was already culturally rooted in his management ways of being too bureaucratic and autocratic. He also cannot separate his personal affairs to business and this made Semler & Company under his leadership a moribund. Moreso, he did not have the modern business perspective of the time to change his style of leadership unlike the younger Semler, Ricardo who went to Harvard business school. Yes, the transformation and change of the company would have still come even if things were going well. The external factors cannot change the trajectory of the company when Ricardo Semler assumed leadership of Semco because he really intended to change the autocratic leadership of the company. The crisis only highlighted how effective the change to the company. In a way the change was drastic. Upon assumption as the new CEO, Ricardo Semler fired two-thirds of the top management of Semler & Company and that included many close friends of his father. This would not have been possible under his father because Antonio Semler did not separate work from his personal relationships. The new set up of the company was also a total departure of the old autocratic style of leadership of the company. The young Semler felt that the old autocratic leadership thwarted people’s motivation and creativity. Thus, he decided that the authority to make decisions at Semco to be more evenly distributed. In the process, he dismantled the rigid bureaucracy and structure of the company to make it more flexible based on the new three values of the company – employee participation, profit sharing and free flow of information. To emphasize the change, even the name of the company was changed from Semler & Company to Semco. There were a lot of changes that can be considered drastic if it will be compared  to the old leadership.   Strategy wise, among them product was product diversification and the creation of Nucleus of Technological Innovation (NTI).   Leadership style also changed to democratic and participatory to the point that employees can already direct themselves- set their own budget, even their own salaries and even the hiring and firing decision of both employees and managers.

Middleby Corp Essay Example | Topics and Well Written Essays - 1750 words

Middleby Corp - Essay Example Finally, the report includes a personal recommendation from the author, and a hypothetical recommendation from the owner of the Dallas Mavericks Basketball Club, Mark Cuban. Real GDP is forecast to contract by 2.6% in 2009 as the financial crisis and the housing downturn take their toll on domestic demand. Massive fiscal and monetary stimulus will lead to a recovery of growth to 1.4% in 2010. Average consumer price inflation is set to turn negative in 2009 as a result of declining commodity prices. Inflation should turn positive again in 2010, but will remain low owing to the massive slack in the economy. The Feds forecasts show that its staff now expects the unemployment rate to rise to between 9.2% and 9.6% this year. The central bank had forecast in January that the jobless rate would be in a range of 8.5% to 8.8%, but the unemployment rate topped that in April, hitting 8.9%. I believe the stock market will recover to pre-crash numbers by April of 2010. From there, prices should remain stable because investors will still be a little skeptical, and then rise at about 15% for three years to follow. Discussion: The results seem to indicate that Middleby Corporation’s financial progression is well directed into the future; yet, it’s also clear that if a stock purchase is not made in the immediate future it could soon become overvalued. These finds, supplemented by the previous report, constitute substantial analytical information. The information demonstrates to a reasonable level that the company will continue its positive growth for the following five years. For current and prospective investors, the historical data demonstrates that the stock will increase at a minimal level. In regards to the market forecast and contemporary economic trends, my recommendation is to retain the stock. The company seems to have a strong foundation and will continue to grow. The industry is thriving, and the company is excelling