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  • August 1994 (Revised May 1995)
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Engineering Inspection & Insurance Company

By: Robert H. Hayes
  • Format:Print
  • | Pages:11
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Abstract

Engineering Inspection & Insurance Co. (EIIC) is a small but highly successful company that offers machinery and boiler inspection and insurance services. After years of above-average growth and profits, both are retreating toward the industry average, policy delivery times are excessive, and employee morale is low. There is increasing concern that the company's current strategy and organization are no longer working. The problem appears to be that, while the company initially was organized to provide inspection and insurance services for complex equipment, most of its premium revenue in 1991 comes from relatively simple, low-premium objects for which inspection probably is unnecessary. Reconciling the conflicting demands of these two types of businesses with the company's existing structure and value system is the essential issue. Teaching Purpose: To illustrate the basic operations strategy framework in the context of a service company, and to engage students in a discussion of the advantages and disadvantages of different methods for refocusing operations.

Keywords

Service Operations; Business Strategy; Organizational Design; Organizational Structure; Insurance; Strategic Planning; Problems and Challenges; Insurance Industry; United States

Citation

Hayes, Robert H. "Engineering Inspection & Insurance Company." Harvard Business School Case 695-009, August 1994. (Revised May 1995.)
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About The Author

Robert H. Hayes

→More Publications

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    • 2004
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    Operations, Strategy, and Technology: Pursuing the Competitive Edge

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    • May 1999
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    Allied Connector Company

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    • December 1998
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    Alden Products, Inc.: European Manufacturing, Teaching Note

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More from the Author
  • Operations, Strategy, and Technology: Pursuing the Competitive Edge By: Robert H. Hayes, Gary P. Pisano, David M. Upton and S. C. Wheelwright
  • Allied Connector Company By: Robert H. Hayes
  • Alden Products, Inc.: European Manufacturing, Teaching Note By: Robert H. Hayes
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