1) The company was established in 1941 and restructured in 1967 into two divisions, one headed by George Brown and the other by Richard Brown. 2) By 1974, the company had grown significantly but lacked strategic direction and long term planning from George Brown. 3) Under George Brown's hands-off management style and lack of strategic vision, the company was now poorly performing, with declining margins, market share, and employee motivation due to undefined roles and responsibilities.

1. An Organizational Behavior Case Study

2. Company History
Established in 1941
1967 - Brown Sr. Restructures the Biz & Exits
 UP Inc.– Headed by George Brown
 UP Southeast Inc – Headed by Richard Brown
1974:
 Sales - 3.5 Million (up 22%), Profits up 40%
 Sales doubled in last 4 years
 28000 Sq. feet facility, 6000 customers, 34 Employees
 Rivals competing on scaled down product portfolio
Product line (UPI):
 3500+ items: Staples, Stapling Machines, stenciling Equip.,
Industrial Tapes, Gluing Machines, work gloves, Gummed tape
machines, labeling equipment

3. Organization Structure

4. George Brown’s Management Style
GB’s Mission: Become financially secure, develop Highly Profitable
Business
Lack of Vision & Strategy
Conservative: Happy to grow @20%
No involvement
 100% Delegation
Little or no Competitive Analysis & Market Research
No innovation

5. How well is UPI doing now?
Key Decision Maker: Hank Stevens
No Long term planning, Only Reactive
Roles & Responsibilities not defined
Low employee motivation & productivity
No innovation
Increasing cost of inputs
Declining Margins & Market Share

6. What Explains level of
Performance?
 Lack of Strategy & Direction
Non-existent Planning
 GB is satisfied with the growth UPI has achieved
so far.
No Stretch-Goals
No review mechanism
No focus on analysis & control of costs