Ellis is in a weakened competitive position mainly due to the lack of rationalization in his works. Driven by a strong traditional decentralized sales organization, Ellis finds that all plants want control over all product lines. As a result, overall economic scale are not achieved, and duplication of resources has weakened Ellis’s cost position. Case are sufficient data for students to make concrete recommendations.

Ellis is in a weakened competitive position mainly due to the lack of rationalization in his works. Driven by a strong traditional decentralized sales organization, Ellis finds that all plants want control over all product lines. As a result, overall economic scale are not achieved, and duplication of resources has weakened Ellis’s cost position. Case are sufficient data for students to make concrete recommendations.
«Hide

from
Roy D. Shapiro
Source: Harvard Business School
19 pages.
Publication Date: Jun 23, 1982. Prod #: 682 103 PDF-ENG
Ellis Manufacturing Co. HBR case solution