Dynomax Case Study

Case analysis

DYNOMAX, INC.

In 1965, the Tucson Electronics Company established The Navigational Systems Division at Dynomax, Inc. The main function of the company was the manufacturing of radar and communications equipment for the United States military. Due to a downturn in military spending in 1978, Tucson Electronics sold the Navigational Systems Division to Dynomax Inc., which was renamed TEC. As a result of increased military spending, the company saw rapid growth between the 1980’s and the 1990’s, but after the Cold War ended, growth slowed drastically for Dynomax Defense System Group. After that time, Dynomax was forced to develop a new corporate strategy, which was manufacturing high technology commercial electronic products.

The Dynomax Defense Systems Group (DSG) served defense contracts. This group was composed of three divisions which were Navigational Systems Division (NSD), Radar Systems (RSD), and Communications Systems (CSD). The NSD was located in Austin, but the Radar Systems and Communications Systems were located in Denver. In 2001, because of reduced defense spending by the military, the future of the Dynomax Defense Systems Group (DSG) was uncertain. Also, Dynomax announced its desire to divest the entire DSG in order to resolve corporate cash flow problems in June 2001. In addition, the internal business of Dynomax Defense Systems needed development.

George Landry presented his own set of solutions to a Dynomax corporate internal management consultant in order to solve these problems. George Landry has been with the organization since 1983 when he began his career as a programmer. He was promoted several times throughout his employment, and is the Director of IS. He has three management members that report to him, however, one of the positions is unfilled.

Dynomax Inc. was facing uncertainty for the future as a result of contractions and consolidations of the defense industry, which made George Landry extremely uneasy....