Rhodes Industries

1. Case Overview:

Company background:

Rhodes Industries (RI): Established by Robert Rhodes in 1950s in Southern Ontario, Canada

The business of RI:

- developed pipes and glasses for industrial uses

- gradually branched out into new areas such as Sealants, coatings and cleaners and parts for trucking industry

- expanded by acquiring small firms in Canada and the United States during the 1960s

- was a conglomerate structure with subsidiaries across NA reporting directly to headquarters at Ontario, Canada.

- consisted of independent local business units

1970s and 1980s, the president at that time, Clifford Michaels, brought a strong international focus to RI and adopted a strategy of acquiring small companies worldwide. RI ventured into new lines of business such as consumer products and electrical equipments, in addition to its previous line of business. This strategy was adopted with the belief of forming cohesive units that would bring RI synergies and profits. Most of these products had local brand name.

During 1990s, RI changed its strategy and focused more on three lines of businesses viz. Industrial products, Consumer products, and Electronics. Sean Rhodes led the acquisition of more international business related to these three categories and divested business not related to the above three categories.

Current Organisational Structure:

2004: The current structure is based on 3 major geographical areas viz. North America, Asia and Europe. The various autonomous units within those regions report to the office of the regional Vice President. Businesses are largely independent which provides flexibility and motivation for subsidiary managers.

3 central departments: Corporate Relations and Public Affairs, Finance and Acquisitions and Legal & Administrative serve the Corporate Business worldwide.

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