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Midwest Light Company Case Study

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Midwest Lighting Case
Midwest Lighting, (MLI) Inc was a company dealing with the manufacture of customized designed fluorescent light fixtures for commercial, and other institutional applications. This company was formed by Daniel Peterson and Julian Scott in 1956 in Flint, Michigan. Daniel was in charge of the engineering and finance sectors while Walters headed the Sales and design unit of the company. As the company grew, personal differences between the two emerged and Daniel bought out Walters from the company and brought in Richard Scott as his new business partner. Daniel became the treasurer of the company and Scott the company president (Adams & Spinelli, 2012, p. 385).
The company grew tremendously to steady sales of about $1.2 million and a net profit of more than $18,000. Daniel’s son Jack Peterson and Scott’s son David Scott joined the company in 1983 and 1984 respectively and went on to take charge of the company as the sales and manufacturing managers. The management of the company was stained with a lot of differences and conflicts in the ways of running the business, with both Jack and David preferring different approaches for the well good of the company.
As of 2005, the net sales of the company stood at approximately $5.5 million with an after tax profit of around $144,000 and an over 82,000 lighting fixtures shipped. The company had a total of 130 permanent employees with an additional 88 other employees working on an hourly basis.
The differences between Jack Peterson and David Scott intensified, and a string of complaints from some mid-level managers and sales agents on company leadership issues meant something had to be done. A decision had to be taken for the sake of the company, the two options were (1) one of the partners buys out the other or (2) they bought agreed to sell off the company to a third party (Sable, 2014). Thinking

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