Case ID: 3214     Solution ID: 18955     Words: 1359 Price $ 45

Stone Finch Inc Young Division Old Division Case Solution

Case Solution

An English-language PDF of this Brief Case in an academic course pack will allow the students with the opportunity to buy an audio form as well.  CEO Jim Billings wants to recruit a pool of enthusiastic and innovative incumbents at Stone Finch Inc. Stone Finch Inc comprises of a former unit that engineers goods such as piping and tanks for water and wastewater processing facilities, and a more recent business unit that is responsible for the manufacture of biochemical solutions in relation to water cleansing. To hasten the development of the company, Billings has extended subsidiaries to form competitive technologies thay may be introduced to the consumers by the biochemical solutions department. Only after a few years of inception, the subsidiaries have been successful in launching transformational goods and have led to high development; however, issues have begun to rise. Much of the funding for the subsidiaries had been generated from the old production-based ‘cash-cow’ department, which is now burdened under high unemployment, employee non-motivation, and a loss of its cutting-edge position. Additionally, the solutions department – which had welcomed and hired a number of employees who became rich by managing different subsidiaries – is suffering from increased and prominent distinction between the ‘haves’ and the ‘have-nots.’

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Questions Covered

What is your assessment of Jim Billings’s performance as president of Stone Finch? What do you think of his leadership style?

How do you assess the entrepreneurial subsidiary concept? How can companies manage the contradictions of managing existing products and innovation simultaneously?

What are the major problems Jim Billings now faces? How quickly he should act? Why?

What should Jim Billings do?