Publications
Publications
- November 2008 (Revised January 2010)
- HBS Case Collection
Stone Finch, Inc.: Young Division, Old Division
By: Richard G. Hamermesh and Elizabeth Collins
Abstract
CEO Jim Billings wants to attract energetic, entrepreneurial talent to Stone Finch, Inc., which comprises an older division that fabricates products like piping and tanks for water and wastewater processing plants, and a much newer division that develops biochemical solutions associated with water purification. To accelerate the company's growth, Billings sets up subsidiaries to create cutting-edge technologies that can be brought to market by the biochemical solutions division. After a few years the subsidiaries have indeed produced innovative products and driven growth; however, problems are surfacing. Much of the investment in the subsidiaries has come from the old manufacturing-based "cash cow" division, which is now suffering from turnover, loss of morale, and loss of competitive position. Moreover, the solutions division—which has absorbed numerous employees who became wealthy by developing successful subsidiaries—is plagued by increasing polarization between the "haves" and the "have-nots."
Keywords
Organizational Behavior; Human Resource Management; Motivation; Business Growth; Motivation and Incentives; Leadership; Business Subsidiaries; Innovation Strategy; Resource Allocation; Organizational Structure; Organizational Culture; Retention; Operations; Recruitment; Integration; Business Growth and Maturation; Mergers and Acquisitions; Growth and Development Strategy; Manufacturing Industry
Citation
Hamermesh, Richard G., and Elizabeth Collins. "Stone Finch, Inc.: Young Division, Old Division." Harvard Business School Brief Case 083-214, November 2008. (Revised January 2010.)
