The Company in Trouble

Abstract

The company was in constant trouble. Its customers were large motor-vehicle producers with a strong position in the market. They autocratically laid down the conditions of sale and delivery times, as well as the quality and quantity of the products. At the same time, the company did not have a corresponding position with its own subcontractors and had to accept deficiencies in deliveries. In particular, there was a problem with some defects that were only cosmetic but had not been accepted by the company’s customers. In addition, the company’s technical equipment was quite temperamental, which caused frequent interruptions to the flow of production. One of the workers had three posters ready to put up above his machine. The first one read, ‘Out of order’; the second, ‘Still out of order’; and the third, ‘For sale: modern Japanese machine; could be repaired or used for spare parts’.