Case study on Dellphi Company

Running Head : Case Study of Delphi Company

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Outline

Executive summary

Problems with the strategic plan by Delphi Company

Problem Statement

Data analysis

Decision Criteria

Alternatives analysis

Recommendations

Executive Summary

Delphi Company is a leader in the auto parts production . The company had over the years grown and expanded its production to other countries in the world . The company however in the years 2004 and 2005 neared collapsing as it was declared bankrupt . The bankruptcy was sought by

the management of the company when the Workers Union failed to consent to the proposed job cuts and huge salary cuts . The company intended to withdraw employee benefits including pension benefits for retired workers

The company was driven to declare bankruptcy by a number of factors . The company failed to set clear goal to attain . The company faced competition from other players in the market . The competitors had managed to outsource their operations thus reducing the operation costs Delphi Company aimed to do the same . The company proposed to cut off it 's spending on the employees by cutting off some jobs , cutting benefits and cutting salaries and wages . A number of options were available to the company that would have avoided the bankruptcy that resulted . The company ended up having more problems than it had anticipated

The options available to the company were to establish a strategic plan to optimize the resources the company had without harming their employees . An alternative plan of action that could have spurred growth in the company was to observe the internal and external factors that affected business . Good relations with the investors needed to be cultivated . The company too needed to build a larger customer base to enable them to counter current and future competition . The various other things that the company needed to include in their strategic plan are suggested here

Introduction

Delphi Company is a large manufacturing company dealing with production of auto parts . It is one of the largest auto companies in the United States . The company is headquartered in Troy and operates numerous manufacturing firms locally and abroad . The company had grown over the years to its present asset worth above 20 billion . The company is driven by a strong vision dubbed driving tomorrow 's technology . The company employed many employees numbering over hundred thousands in all its manufacturing firms . The employees had dedicated themselves to the success of the company , helping it to attain its goals

The company in 2004 faced the threat of bankruptcy . A new chief executive officer had taken over the running of the company and had proposed massive wage cuts and worker layoffs for the company to survive . An analysis done by the new chief executive found that the company spent unrealistic amount of money on employees . In his view the company had too many benefit schemes for the employees that chances of profitability narrowed . The company had some manufacturing firms that had stalled and therefore were expensive to the firm . The...