An American Tragedy: How a Good Company Died Essay

This case study tells us the story of Burgmaster Corp which is a form tool 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 mixed Houdaille Industries Inc. The case study also, inform us too many machine- tool and auto parts factories are silent, too many U.S. industries still cant hold their own. Holland uses Burgmasters demise to explore some key issues of economic and trade policy.The LBO chocked off Burgmasters investment funds when foreign challenger do them most necessary. Houdailles charge that a cartel led by the Japanese government had injured U.S. tool makers. Holland offers plenty of ammunition by creating capacious pressure to generate cash. Burgmaster pushed its products out as fast as possible. It shipped defective machines . It promised customers features that engineers hadnt yet designed.The External Forces for Burgmaster Corp Demise 1- T he Government policies tax laws and macroeconomics policies that gain ground LBOs and speculation instead of productive investment. 2- Pentagon procurement policies for favoring exotic, custom machines over standard, low cost models. 3- The indusrial policy Domestic tool makers were too complacent when imports seized the lower decision of the product line, the ill prepared for change 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 machines3- 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 shape was a substitute for management involvement on the shop floor . 6- A dramatic depiction of supply snafus that resulted in delays and cost increases.The role of the operations management in that demiseCompanies must be competitive to sell 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 utmost quality. It didnt be able to reflect joint efforts of product snd service design . No match between financial resources , operations capabilities , supply bondage and consumer needs. It didnt follow inventory strategy to be competitive .It neglected operations strategy.It didnt develop productivity measures for all operations. It didnt develop methods for achieving productivity improvements such as soliciting ideas from workers and reexamining the way work is done.