Expando, Inc. produces a variety of tubular knit products. Founded in 1938, the company flourished for two decades as a manufacturer of elastic tubes or sheaths that were used in the construction of women’s undergarments. In the 1960s, changes in women’s fashions drastically reduced the market for these items. During this period, Expando’s sales were off by 75 percent, and the company was forced to sell all but one of its manufacturing units. During the 1970s, Expando continued to manufacture and sell their undergarment stock, but occasionally filled special orders from manufacturers of bathing suits, athletic equipment, aerobics costumes, athletic supporters, and so on. The company experienced little growth during this time, operating at about a break-even point.

In recent years, the rapid growth in popularity of health and fitness activities has been accompanied by the rise of speciality clothing manufacturers catering to that industry. These clothing producers have shown a steadily increasing demand for stretch fabrics. However, rapid technological developments in synthetic fibres and manufacturing processes, plus strong competition from larger companies, have presented problems for smaller companies such as Expando in responding to this new market.

Expando’s inability to compete for large volume business has made it necessary to depend increasingly on speciality orders from small clothing manufacturers. Although per-unit profit margin on such orders is acceptable, this kind of business requires flexibility and speed in changing manufacturing procedures, as well as an alert and aggressive sales force to obtain orders. Similarly, ingenuity in product development and production are essential for meeting competition, providing for efficient changeover from one order or product to another, and achieving quick solutions to a variety of complex production problems. In addition, it is necessary for the production supervisors and operators to adapt to frequent changes in job specifications and procedures, without undue amounts of training time or job dissatisfaction.

Because Expando management was not able to adapt to these changing conditions, something had to be done. Three years ago, the president of the company reached the mandatory retirement age and was replaced. Within a year, all senior executive positions had been filled with new faces.

A brief biography, known by all parties, of each of the senior executives:

President

Forty-eight years old; has been with the company 12 years, first as an accountant, then as controller for five years; promoted to president three years ago; college graduate majoring in accounting; a certified public accountant.

Vice-President, Manufacturing

Background in mechanical engineering; hired into the company as a management trainee, and was plant manager before promotion to vice-president two years ago; 45 years old.

Vice-President, Sales

Joined Expando five years ago as sales manager; previously was assistant sales manager for a division of a large textile manufacturer; recruited by Expando to widen the market for company products, but not given much support by former sales vice-president; has worked in sales since getting bachelor’s degree in business administration; is 46 years old and has been in present position for two years.

Vice-President, Human Resources

Thirty-nine years old; joined the personnel office at largest Expando knitting mill before it was sold; led both the recruiting and the training and development effort at company’s last remaining plant; eight years ago was brought to headquarters as personnel director, and was promoted to vice-president nearly three years ago.

You are the vice-president in charge of manufacturing for Expando, Inc. When you moved into this job from plant manager, two years ago, you had high hopes of streamlining operations, and at this point you have accomplished a great deal. For years, the previous management had refused to spend money on manufacturing facilities, and instead followed a penny-pinching practice of patching and fixing, making you do the best you could with inferior, outmoded facilities and equipment.

Through your influence with the new president, you have been able to make a number of changes in layout and methods. By careful shopping around, you have been able to get good buys on several pieces of secondhand but still fairly modern equipment. In addition, you have established a product-testing laboratory. This laboratory is required for the company to compete with larger organisations which have large development staffs. The laboratory has been very helpful in bringing out new products and in working out designs which help simplify manufacturing. The company has been slow getting “back on its feet,” but you have contributed greatly by managing to lower manufacturing costs.

However, you have gone about as far as you can in this direction. What the company needs now is a new facility. The present building was satisfactory for its purpose 30 years ago, but new and larger machinery, as well as government regulations, require more efficient space with better lighting and ventilation. The layout of the present building is awkward for moving products through the manufacturing cycle, which creates lots of needless delay in changeovers resulting from incoming new orders. Also, the current building is costly to operate, and the construction is not strong enough to support some of the new heavy machinery on the upper floors, where it ought to be located.

Repeatedly, you have urged the president to expand into a new, single-story building and purchase new machinery. You have always gotten a fair hearing, but have never yet gotten a firm commitment. The president is a good accountant, but does not know the manufacturing end of the business very well. On the issue of expansion, the president seems to be very undecided. Perhaps this is because, as controller, the current president merely advised and did not have to make final decisions. Now, on the “firing line,” the president does seem to have difficulty reaching such important decisions. You have given the best advice you can, and you want to help move things along faster, but the president has to make the decision to expand. Without expansion, the company will no longer be able to meet competition.

The president has called a meeting with you and the other two vice-presidents. You are not sure what the president wishes to talk about, but you hope to get a final decision to go ahead with the new building. Almost anything would be an improvement over the one you have now.

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You are vice-president in charge of human resources at Expando, Inc., and you have held this position since you moved up from the job of personnel director nearly three years ago. All of the usual personnel services are handled through your office, including recruiting, hiring, compensation, labour relations, and training and development. You have set up your office to meet three major priorities. One is to prevent as many personnel problems as possible, and to assist the supervisors with those that do arise. Second, you advise the president on personnel matters. Finally, you are responsible for maintaining a competent work force—people who get along well with each other and do a good job.

As personnel director, you were able to initiate an individualised program of training and work experiences for promising young college recruits. Even though the conservatism of the previous management stymied the progress of these newly hired professionals in many ways, you were able to obtain a few good people each year. When the reorganisation took place three years ago, a considerable number of these people were able to move up a notch. In turn, this left a number of vacancies at the trainee level which you were able to fill by recruiting at the universities. However, now you are faced again with the same problem you had previously: the company is not growing, and many of the individuals you brought in at the time of the reorganisation are now ready to move up, and they are becoming impatient. Further, you cannot offer much promise to new college graduates. At present, there just is no place for them to move up in the company – and there will not be, unless the company expands its operations.

Meanwhile, some of your best recruits are disheartened and are leaving. Competing companies are luring them away, one by one. If this is allowed to continue, the management at the middle and lower levels will become second-rate within a few years. Unless the company can offer good people some inducements to stay, there will be crippling losses in many of the key positions. The company simply cannot afford such losses if it is to remain competitive. From your perspective, expansion is absolutely essential if the company is to keep its most promising personnel.

The president has called a meeting, and all three vice-presidents will be attending. It looks like the president may be ready to announce plans for the new manufacturing facility. Unless there is some such development, it will be hopeless to try to keep your best people.

• Influence Objective(s)
• Influence Style or Behaviour you intend to practise
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