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MBAD 504 MANAGEMENT INFORMATION SYSTEMS
CASE STUDY
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Case: Crystalline Entities
According to the sign on the building, Crystalline Entities (CE) a company
founded in started in 1957 by Denise Luzon to import crystal glass figurines and china
plates for sale in the United States. Hardly anyone who works at the company today
remembers that Denise was really responsible for the creation and initial success of the
company, and that irritates John Balrun, the current CEO. Denise retired years ago and
the firm is now a publicly traded company with annual sales of about $20 million. John
has been CEO for seven years. All but one of the vice-presidents have been hired within
the last five years. The VP of finance, Martha Vaniche, has been with the company
almost as long as John. Because of turnover, most of the 342 employees at the corporate
offices are younger and have worked there an average of about three years.
The company is organized in a traditional hierarchy by business function
(marketing, accounting and finance, production and purchasing, distribution, and human
re-sources). About 15 years ago, CE bought several small manufacturers in Ireland and
Spain. These firms make up about 15 percent of current production. They are located in
small towns with low labor costs and are run independently by local managers. The local
managers know their employees personally and emphasize quality production. Items that
don’t pass the quality inspections are either destroyed or sold to local buyers. The other
85 per-cent of the production is purchased from a variety of companies around the world.
Quality is maintained by in ...