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Dynomax Inc

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Submitted By sayang
Words 1692
Pages 7
Company overview and history

Navigational Systems Division (NSD) of Dynomax, Inc. began in 1965 as the Tucson Electronics Company, specializing in communications and radar equipment for the US military. Growth of this industry is greatly influenced by defense spending. 1980 – 1990 was a blooming period for NSD, it stretched from 500 to 1600 employees. George Landry grew with NSD from 1993 as a IS Manager to IS Director in 1997 and reported directly to Vice President of Finance. 1990 marked the end of cold war which directly impacted spending allocation for defense industry. The company faced financial difficulties and was acquired by Dynomax, a manufacturer of chemical, biological and radiological testing equipment used for military purposes. Had little choice in 1991 but to reorganize and depend less on military to survive. Dynomax Defense System Group (DSG) was formed comprising three divisions:

- Navigational Systems Division (NSD in Austin) - Radar Systems Division (RSD in Denver) - Communications System Division (CSD in Denver)

DSG was moving in negative trend in sales and profit. It became critical in 2001 and CSD had to be sold, while NSD and RSD receive instructions to combine operations, eliminate excess manufacturing capacity and reduce duplicate support costs. At the same time Dynomax announced its desire to divest the entire DSG in order to solve corporate cash flow problems.

Problems

1) Managerial Problems 1. Planning and planning methodology 1. Hesitant to formulate a strategy (annual plan) in view of uncertainty of the company future. 2. Functioning on prior years plan will not help IS solving any of their current problems since it will not address their needs. 3. Landry’s insufficient managerial and leadership is not helping to overcome

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