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Montley Life Insurance Company is struggling to cope with the growing
competition. The company has six regional centers across the country. Almost
all the regional centers (except the southern center) are accumulating
losses.
The directors of the company met recently and brainstormed to find out a way
to bring back the company into the profit zone. During the meeting, they
examined the reasons for the success of the southern center and the failure
of the other centers. One of the significant findings was that though the
size of operations in the southern center is big, the administration
expenditure is much less than the other centers.
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The top management identified other possible causes for the losses at
these centers:
• Excessive staff
• Duplication of work
• Inconsistency in data processing and standards
• High support cost
• Reluctance of employees to adapt to changes
Therefore, the company sought the help of an outside consultancy called
KP Consultancy to set things right. The project was given to Devesh
Chauhan (Devesh), one of the senior analysts at KP Consultancy... |
Please note:
This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
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