Assignment task:
Timothy J. Feddersen and Susan Edwards -A New Mission Statement For The Mbc Corporation. (Kel710)
The October 2011 board meeting of the MBC Cooperation was two weeks away, and a new CEO Dave Williams needed to decide whether to proceed with his plan to discuss changing the mission statement with the broad.
MBC's current mission statement read as follows:
Our collective purpose is to achieve long-term profitable growth as a global supplier of high-quality metal-based chemicals. MBC is committed to excellence in customer service.
Williams found the current mission statement lacking; he thought it should articulate MBC's core values and inspire employees.
When Williams raised the idea of changing the mission statement with the company's senior executives, however, he was met with disinterest at best. One vice president said, "I thought we were here to talk about important things." Williams was not sure if they were actually opposed to his idea or if he had failed to effectively communicate its importance.
Although he was disappointed with his senior team's response, he had gotten support from one trusted board member, Larry Deer, and was still considering taking the idea to the full board.
MBC Corporation
Founded in 1946, the MBC Corporation was a manufacturer and marketer of metal-based chemicals with headquarters in Denver, Colorado, and plants in Colorado and Louisiana.
Following a recent acquisition, MBC employed two hundred people and generated $250 million in annual revenues. MBC's primary product, which helped reduce greenhouse gas emissions and strengthen building products, accounted for 80 percent of its sales.
MBC was a family-owned company; the Williams and Giles families owned 98 percent of the company's stock. Dave Williams' grandfather had been a co-founder, and his father, Steve, had served as president and CEO for thirty-four years until his retirement in 2010. Steve Williams had guided the company through some rough spots and had grown annual revenue from $10 million to $250 million. He had also favored an "old-school" approach to management, creating a hierarchical structure and culture in which seniority and position were rewarded more than performance.
Dave Williams
Although MBC was his family's company, Dave Williams did not begin his career with the firm. After graduating from college, he first worked as an institutional broker for a large financial company and then in business development and trade execution for Harris Futures and Options.
In 1998 Williams' father told him that if he wanted to come into the family business, "you need to do so sooner rather than later." Williams joined MBC later that year.
Although he had not started his career with MBC, Williams had "paid his dues"; despite his work experience, he started at MBC in a clerical position so he could learn everything about the business. Later he assumed responsibility for developing markets for new products and selling existing products. In February 2010 he was promoted to executive vice president, and he was elected by the board as president and CEO five months later.
Williams' election to the CEO role was not without controversy. The other two candidates for the job, brothers John and Jerry Giles, had been with the company longer than Williams, held senior leadership positions, and between them owned 49 percent of the shares in the company.
Williams' father held his family's 49 percent ownership stake.
Approaching the Board
When he became CEO, Williams proceeded cautiously. He thought the company needed to create a culture that could attract top talent and adapt to impending changes in the market and regulatory environment, but he waited to turn his focus toward those strategic issues until he had succeeded in mending fences and gaining the support of the Giles brothers.
Changing the mission statement would require approval from the board of directors. Two-day board meetings were held in March and October each year, one in Denver and the other in Montana or Louisiana. Of the nine board members, only four owned shares in MBC: chairman of the board Steve Williams, chair emeritus Larry Deer, and John and Jerry Giles. Before the full board acted on any issue, the four owners discussed it first; only if they could not reach consensus would the remaining directors be asked to make a decision.
Williams was closer to Larry Deer than to any other board member except his father. Deer had formerly served as board chairman, was the son of one of the co-founders, and was the retired president of a regional automotive supply company. Over the years he had been a mentor to Williams, and the two were good friends.
When Williams discussed his proposal to change the mission statement, Deer supported the idea. The next day he sent Williams an e-mail in which he suggested that the new mission statement should state that MBC "values results over effort" and that the goal of the company is "to maximize profits through sustained growth and continuous improvement."
Decision
Williams had just two weeks left to decide if he should discuss creating a new mission statement with the board, and if so, how to proceed. More immediately, he needed to respond to Deer and his suggestions.
Instructions:
Review this case study and provide a detailed analysis of the main issues prevalent in the case as it relates to strategic marketing management. The review should be done in the form of an essay
The review should include the below:
- Summary of main points
- Case Study Question Responses
- Conclusion
References where necessary