Case Study of Semco

7/30/2019 Case Study of Semco

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CASE STUDY OF SEMCO

Shridhar kadam 12

Ritesh kelkar 31

Chetan devadiga 23



PROBLEM OF THE CASE

Ricardo semler has reduced his involvement insemco and has been devoting his time into other pursuits



SWOT ANALYSIS



STRENGTHS

Concepts like participatory management anddiversification was introduced and successfullyapplied.

Semco has wide range of products and services for almost every field of business.

Identification of new opportunities which wereconverted to two third of semcos products.

Annual turnover increased over a period of timefrom $4m to $200m.



WEAKNESS

There was dispute among ricardo and his father regarding changes in the business

Semco had fired 60% of top managers



OPPORTUNITIES If ricardo semler would concentrate on semco he

can run the business more successfully and havemore expansion and diversification plans.

Successful establishment of new eco-tourist resort.



THREATS

Ricardo was not concentrating on the business of

semco

More diversification may lead to many

complications



Q1: WHAT COULD HAVE GONE WRONG WITH RICARDO’S EXPANSION PLANS

As there was a slow down in business ricardodecided to cut down 60% top managers it may leadto the unloyalty in remaining employees.

The team which he had appointed would not haveperformed well to come up with opportunities.

As many of the companies were bankrupt therebusiness was at stake and in such conditionsexpansion plans were risky.

If the workers didn’t agreed to cut down of wages

and would have gone on strike.



Q2: IS PARTICIPATORY MANAGEMENT GOOD FOR AN ORGANIZATION THAT IS PLANNING TO GROW RAPIDLY?WOULD IT NOT SLOW DOWN THE ORGANIZATION

Yes participatory management is good fororganization in following aspects

Increase in Productivity Job Satisfaction

Motivation

Improved Quality

Reduced Costs



Decision making slows down:

Participative management stands for increasedparticipation and when there are many peopleinvolved in decision making, the process definitelyslows down. Inputs and feedback starts pouringfrom each side.

It takes time to verify the accuracy of measurements which means that decision makingwill be slowed down.



Secrecy Issue:

The security issue in participative managementalso arises from the fact that since early stages toomany people are known to lots of facts andinformation. This information may transform intocritical information in the later stages. There is thusa greater apprehension of information being leaked

out.



CONCLUSION :

Employee participation at each level of decision making process is not at all harmful if managed efficiently. The whole process canbe well coordinated and controlled by thesincere and honest efforts of human resourcemanagers.



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Case Study of Semco