Reference no: EM133098570

Case Study: Hawkins Screen Printing

Michael Hawkins stared at his computer. This year's sales figures were dreadful. His screen-printing business wasn't looking good. He had just spoken to his bank manager to have his company's loan re-financed, buying himself four more months of breathing space, but that was all. Mr. Hawkins had already cut his production workforce down to just seven full-time operators, and three part-time casual workers. Two years ago his factory had nearly forty operators working long shifts around the clock. The global financial recession had hit his company hard.

Next door, he heard his sales team laughing and joking. Why weren't they working to open up new markets in the Southern region, he wondered. A knock at the door followed. Patrick, the sales team leader entered.

"Mike, I need a favour" he said. "I need to take two weeks of paid leave, please - a family emergency."

Michael nodded, but before he could say anything, Milos the foreman burst into the room looking angry.

"Mike, that new chap you hired last week - he's just managed to crack the glass panelling on our most expensive printer. I've called the supplier - they can't get a maintenance man out here to repair it until the middle of next week. I'm concerned that we won't be able to meet that regional airport contract deadline now."

Mike had the contract on his desk. The high-end fees they had charged depended absolutely on a timely delivery of this, their largest order of the year.

The rest of the day went by in a blur. Michael had the feeling that the whole business was getting away from him. Many of his hardest workers had left the business 12 months ago when he was forced to reduce salaries and overtime rates. His sales team wasn't delivering, and the remaining operators were either lazy or inexperienced according to the foreman, Milos. In the past, he had relied heavily on Milos to keep the operators honest, but now all the foremen could do was shout at them in exasperation. The customary Friday afternoon get-togethers after work were no longer a regular occurrence. People were clocking off and leaving immediately. Michael wondered if he should return to the operational side of the business himself. This was something he really knew well. He felt that if he were to replace the foreman, he just might be able to get the younger operators trained up properly. But the administrative side of his business seemed to demand more and more of his time. Over-extended financially and without any office support, Michael had taken on the arduous task of attending to the administrative duties required to keep the business ticking along. Several years ago he had completed a certificate in small business management at a private college in London, but was still struggling to put it all into practice.

Early that evening as he left his office, he heard two of the operators talking. One was complaining about the awful working conditions, suggesting that the foreman was effectively "in cruise control mode" and "retired on the job" because he was largely unconcerned by the mounting production problems that had begun to occur over the past month.

Michael heard the operator say "I told Milos not to put young Sam on that printer but he did it anyway and look what happened. I suspect he wanted Sam to mess things up so he could go to Mike and say 'I told you so.' We all know how unhappy Milos was when Mike wouldn't let him have a say in the new appointment."

The following day another mishap occurred - this time with one of the large ink vats which had been moved carelessly and placed up against the sharp edge of a metal storage cabinet, puncturing the sheath and releasing toxic chemicals into the air. One of the men who wasn't wearing his safety mask had a severe allergic reaction to the pungent smell that now permeated the premises. As he was being wheeled into the ambulance, Milos was still rebuking him angrily for not taking appropriate safety measures.

Just as Michael was about to intervene to calm Milos down, his mobile phone rang. Instinctively he answered it. It was an official from one of the Premier League's most successful football clubs. Hawkins Screen Printing had won the tender for a seven-million-dollar contract. The agreed delivery date for this large-volume order was just six weeks away.

1. Identify the main issue or problem in this case. Provide a clear justification with relevant evidence for your answer.