Conduct a SWOT analysis (2 points each) and recommendation (300 w o r d s) of the organization with emphasis on the organization in the below case:

Conduct a SWOT analysis (2 points each) and recommendation (300 w o r d s) of the organization with emphasis on the organization in the below case:

The Organization

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PAC Resources is a small manufacturing company located in a mid-sized city in

the upper Midwest. PAC manufactures high-quality specialty components for

the computer industry. The company was founded in 1994 by current CEO,

David Dukakis. Dukakis was a talented young engineer in Silicon Valley. When

the industry hit the skids in the early 1990s, he found himself out the door with

little more than an entrepreneurial spirit and a small severance package. Dukakis

left California, moved back to his home state and used his severance package to

finance PAC Resources, starting the company in small rented quarters in a nearly

vacant strip mall. He brought in Cliff McNamara early on as chief financial officer.

Dukakis was smart enough to know that he had no head for figures, but McNamara

did. McNamara was an old college buddy, a super accounting wiz, and somebody

Dukakis could trust to squeeze as much mileage as possible out of his severance

money. It was a good match. McNamara managed the business, and Dukakis was

the idea man and designer of the specialty components, patents of which were the

backbone of PAC’s success. Today, the low-rent strip mall is a part of company

history, and PAC employs 835 full-time workers in its own contemporary facility

built in 2002.

So far, PAC has not been significantly affected by the latest downturn in the

industry. Its market niche continues to be high-quality, specialized equipment.

The company is proud that its products continue to be made in the United States

and of its ISO quality certification granted by the International Organization for

Standardization. Dukakis believes this is what has kept his company in business

while others in the industry shipped jobs offshore or went by the wayside.

PAC sells its own products and has a small customer base scattered throughout

the United States and Asia, but this generates only a small percentage of PAC’s

revenue. Eighty-three percent of PAC’s sales come from building original specialty

components for one manufacturer. This has been a steady income source for PAC,

but heavy reliance on one customer is a significant source of worry for PAC’s

management team, especially because sales of finished products are down for this

customer and cutbacks are expected. If the rumor proves true, PAC will not escape

unscathed. Consequently, the push is on for belt-tightening in the organization.

PAC instituted a hiring freeze, and marketing and sales budgets were directed

to increasing the company customer base. Canadian and European markets are

being explored, and while there is some interest, there are no solid contracts. PAC

employees are understandably jittery.

Though PAC remains non-union, three years ago the organization went through

a difficult period of employee unrest. There were complaints of poor management,

inconsistently enforced policies and unfair practices regarding job changes and

movement of employees within the organization. Because of the company’s standing

as a respected employer in the community, it was a significant public relations

black eye when an anonymous employee wrote a scathing letter to the editor of

the local paper. This brought in union organizers who distributed leaflets and

circulated authorization cards. To address employee concerns, PAC responded with

management training and reorganization of lower-level supervisory positions. A

companywide “Talk-to-the-Boss” program was implemented, allowing employees to

bring issues to any level of management without fear of reprisal. It seemed to help.

The authorization cards failed to generate enough interest for an election, and things

settled down. Unrest, though, never goes away entirely. Employees became cynical

about “Talk-to-the-Boss,” and “the union buzzards”, as Dukakis calls them, never

completely went away.

Things have certainly changed for PAC from the old days of the store-front location

and a handful of employees. Dukakis remains the CEO, but he no longer manages

the day-to-day operations, spending his time instead at his family’s summer retreat

on the Maine coast or in the Caribbean during the winter months. Decision-making

is primarily in the hands of McNamara, who is now the organization’s senior vice

president, and a second vice president, Mark Schilling. Schilling came to PAC eight

years ago with an honors degree in human resources and a successful military career.

With a history that has known only growth and strong revenue, it will be a major

culture change for PAC to respond to the eroding economy and a possible decline

in sales. In addition to the hiring freeze, McNamara directed managers to cut waste

and improve productivity across the board. Employees were reminded that every

department would be affected and that nothing was sacred.

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