White Cap

Case #3

1. What was Browning’s predicament at White Cap?

Browning’s predicament at White Cap is to turn the company around without turning it upside down. He does not want to be too radical or abrupt and threaten the culture that has been prevalent for so many years. White Cap is behind in manufacturing plastic closures. Many other competitors are manufacturing them, which seems like it a profitable move. There are also personnel changes that may be make initial sense, but Browning fears that the aftershock of “dethroning” a manager, which has never been done before, will shake up the environment too much at White Cap. Browning also wants to connect with Bob White, White Caps former president. If Browning can somehow publically display an image of unity with White, it could make transition much easier and smoother because Bob White is “a key to the White Cap pride and morale that Browning had to preserve.”

2. What should his change objectives and time frame be?

The marketing department needs to spend more time “aggressively addressing new competitive issues” and not just maintaining current marketing strategies. The administrative salaries are also inflated or “fat”. They are currently 13-14% of sales while others are 3-4% of sales. I do not advocate changing the salaries any time soon. If Browning angers the managers, the people running White Cap, he will have no chance of having their support during the transition, and the whole task of a turnaround will like never happen. His short term goals should be to keep morale and loyalty from the employees while starting an aggressive marketing and R&D campaign for the future of closures. His long term goals need to be cutting excessive spending in places that do not threaten to ruin the culture and loyalty of the employees. Noticeable change should be made for the short term goals within the first year. Short and long term goals should all be met within five years.

3. What should he do...