J. R. Pierce, Inc. (JRP) was a small manufacturer of pastry forming equipment located in Marion, Ohio. JRP was one of two firms in the United States making equipment using the compression molding technique. JRP was founded by John Pierce who has now "retired" although he continued to work half-time without a salary, having turned over management of the company to his two sons, Bill and Mark. The company's dated product line consisted of three machines geared toward smaller volume pie crust manufacturers. JRP, a sub chapter S corporation, was very profitable at 33.4% before taxes after recovering in 1995 from two years of declining sales. Minimal promotion was done. Manufacturing was completed in a four-thousand-square-foot leased build-ing using fully depreciated equipment. Management succession was an important issue in the case as John owned two-thirds of the stock with the rest evenly split between his sons. They were frustrated with his continuing interference in the business that prevented them from taking steps toward modernization while being paid such low salaries that they could not accumulate sufficient funds to buy John out. What strategy could the sons have used to expand the business and how could they have made it their own company? This is a field researched case with full financial data provided.
This case can be used in business policy and marketing strategy courses to teach analysis and application of strategic concepts. It would be equally useful in entrepreneurship or small business management courses, not only from a strategic focus but also from a management succession and family business viewpoint. The case could also be used in an organizational behavior course. Additionally, the case could be used in an executive seminar regarding the manage ...