Shelly-Gordon Energy Services, Inc
13 Pages Posted: 23 Jun 2009
Abstract
This case describes the devastating effect on a very successful design engineering firm of the sudden evaporation of its markets as the design and construction of new refineries was halted by environmental concerns. The case requires students to develop a strategy for restructuring the firm to deliver even more profitable upgrades and engineering services to the installed base of refineries. This restructuring requires very difficult decisions and attitude readjustment by the management of the firm.
Excerpt
UVA-OM-1069
Rev. Sept. 12, 2008
SHELLY-GORDON ENERGY SERVICES, INC.
Introduction
David Jones, vice president of the Refinery Engineering Division (RED) of Shelly-Gordon Energy Services, Inc., sat lost in thought at his desk. It was October, and Jones had recently learned that the latest Comprehensive Business Plan for the division had projected losses of about $ 19.9 million for the next fiscal year (see Exhibit l). He knew that Shelly-Gordon Engineering President, L. K. Matthews, was not going to tolerate any financial loss from RED and that he, David Jones, had to restore profitability to the division. Even though Jones had restructured his division in the past few years in response to changes in the business environment, he realized that RED still had a long way to go to become a viable business.
Division Background
. . .
Keywords: environmental issues, general management, reorganization, restructuring, strategy
Suggested Citation: Suggested Citation