A MANAGEMENT CASE

INFOTECH A. is a major computer components manufacturing firm which had been established as a joint venture with an international German information technology company, five years ago in Gebze, Istanbul. Due to its almost monopolistic position in the information technology sector in Turkey, the firm in its early years so far has achieved a good start in its market and operates profitably.

Recently, INFOTECH announced a job vacancy as Assistant Quality Control Manager. Cansu Tiller as a qualified applicant recently applied for that particular position. She has been a graduate of Massachussets Institute of Technology (MIT)in U.S. majoring in Computer Engineering. After completing her master's degree successfully, she returned back home to Istanbul Turkey and started immediately to look for a suitable job in accordance with her qualifications. She was previously graduated from Bosphorous University with high honours and obtained full scholarship to complete her graduate studies at MIT.

Several weeks after her application, she was informed that, although she was one of the top candidates, unfortunately another applicant, namely Cem Polat was selected for the position. Cem, an undergraduate from Yeditepe University, Information Technology Division, is a member of a well known wealthy family in Turkey.

INFOTECH has an hierarchical, bureaucratic organizational structure and culture as well as a very disciplined operating system. The firm operates in an isolated manner and do not have full communication and coordination with its stakeholders in the task environment. The majority of the people working at INFOTECH and particularly all the management staff consists of male employees, with the exception of Gzde Salam, the Human Resource Manager.

It is also noted that, the firm has a relatively high employement turnover and a full human resources performance program was not yet established and employee motivation does not appear to be high.

So far the company's main goal is to improve sales revenue by minimizing costs in general and increase profitability. Its character is rather conservative and is not inclined to establish a market research and product development function in its structure.

In the last two years, the company has not yet developed a brand new product and just markets the old product line, which the management thinks as a sufficient strategy.

Questions:

1.Based on the above mentioned information, what do you think about the culture and the future direction of the company. Do you feel INFOTECH has a sound strategic vision? Please evaluate the firm from the perspective of internal and external environment conditions and factors.

2.Also, do you feel that there are an ethical problems at INFOTECH? If there are, what kind of problems we are facing here in this particular case?

3.In your opinion, what are the appropriate steps that must have been taken by the senior management tolve the problems and to be successful and a sustainable competitive position in this market on a long term basis?