Operations Management: LTV Case
Not what you're looking for?
In the late 1980's I went to work for LTV Corporation, Dallas, Texas. One day many of us middle managers were called to a lavish gala at corporate headquarters to watch the very public announcement that LTV's steel division, LTV Steel, had purchased/merged with another floundering US steel producer, Republic Steel. Both were losing hundreds of millions of dollars, perhaps billions, yearly. None of us peons could understand the executive wisdom of merging 2 large, 'losing' companies into one giant losing company. Our CEO argued that each organization would benefit from complementary products and substantial economies of scale.
Did the venture succeed? Were the peons or the big wigs right? In either case, briefly describe WHY the eventual result happened. Was this a good example of the principles of Operations Management properly applied?
Please note: this is a REAL case, in the sense that it relates to actual events that can be tracked/researched via the literature/Internet.
Purchase this Solution
Solution Preview
Well, clearly the company eventually went under in 2000. Although, the merger did work for about 16 years, more or less. I don't think the notion of merging two losing steel companies was a bad idea. By doing so, the combined entity could leverage a much larger market ...
Purchase this Solution
Free BrainMass Quizzes
Six Sigma for Process Improvement
A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.
Operations Management
This quiz tests a student's knowledge about Operations Management
Understanding Management
This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.
SWOT
This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.
Managing the Older Worker
This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce