An American Tragedy: How a Good Company Died Essay

This case discipline tells us the story of Burgmaster corporation which is a machine excessivelyl maker company. Burgmaster was a thriving enterprise by 1965, when annual sales amounted to about $8 million. Although it needed backing to expand, it sold out to Buffalo-based conglomerate Houdaille Industries Inc. The case study also, inform us too many machine- tool and auto split factories are silent, too many U.S. industries still cant wait their own. Holland uses Burgmasters demise to explore some key issues of economic and care policy.The LBO chocked off Burgmasters investment funds when foreign competition do them most necessary. Houdailles charge that a cartel led by the Japanese organisation had injured U.S. tool makers. Holland offers plenty of ammunition by creating enormous pressure to generate cash. Burgmaster pushed its products out as fast as possible. It shipped defective machines . It promised usageers features that engineers hadnt yet designed.The External Forc es for Burgmaster Corp decease 1- The political science policies tax laws and macroeconomics policies that encourage LBOs and speculation instead of productive investment. 2- Pentagon procurement policies for favoring exotic, custom machines over standard, minor live models. 3- The indusrial policy Domestic tool makers were too complacent when imports seized the lower end of the product line, the ill prepared for replace and struggling to restructure. 4- A cartel led by the Japanese government had injured U.S. tool makers. 5- Foreign competition made.The Internal Forces for Burgmaster Corp Demise 1- The system for computerizing production scheduling was too crude . 2- High cost and much expensive machines 3- Defective machines as a result of pushing products as fast as possible without regarding to quality and customers needs 4- NO Cash to fund process and procedures to face competition. 5- No formula was a substitute for care involvement on the shop floor . 6- A dramatic d epiction of supply snafus that resulted in delays and cost increases.The role of the trading operations management in that demiseCompanies must be competitive to shop their goods and services in the marketplace. This company didnt follow the operations management principles or functions in its three major departments finance , operations and marketing. Burgmaster Corp didnt identify customer needs. It didnt follow the policy of low price and high quality.  It didnt be able to reflect fit efforts of product snd service design . No match between monetary resources , operations capabilities , supply chains and consumer needs. It didnt follow inventory outline to be competitive .It neglected operations strategy.It didnt develop productiveness measures for all operations. It didnt develop methods for achieving productivity improvements such as soliciting ideas from workers and reexamining the track work is done.