Question
Aeroplastics is a midsized company from Glasgow with about 200 employees producing hightech plastics for the civil aerospace industry. They design interior parts for aircrafts
"Aeroplastics is a midsized company from Glasgow with about 200 employees producing hightech plastics for the civil aerospace industry. They design interior parts for aircrafts in collaboration with large aerospace OEMs and manufacture these. Within the industry their outstanding quality and reliability in manufacturing on time is praised. All Aeroplastics operations are located within the UK. However, they export about 75% of their products. 80% of these go to Airbus sites across the EU. Just in 2015 they invested heavily in their manufacturing capabilities and introduced a fully digitalised production equipment. These changes were meant to make Aeroplastics ready for the future and be more competitive within the industry. Aeroplastics were hit hard in early 2020 when the Covid pandemic hit. Their prior investments in Industry 4 technology enabled a smooth transition to remote working. However, the restrictions in international travel and companies moving to online collaboration instead of travel, the aerospace sector was massively affected. After a first shock the situation stabilised on a very low level compared to before the pandemic. Even though this was enough business to help Aeroplastics survive as long as they could access the furlough scheme, this would not be enough business to survive after the pandemic. Then Brexit unfolded its impact and exports to the EU became significantly more expensive. Additional red tape caused unpredictable delays and the just in time delivery Airbus demands could not be held up. Aeroplastics is a family-owned company. CEO is 55-year-old Steve MacDonald who leads the company in third generation. As his father did, he follows a strict directive leadership style. He uses a strictly hierarchical structure in which himself and senior management control all decision making. The introduction of the new manufacturing equipment and the adoption of Industry 4 meant a big change which when initially pitched to senior management was met with significant resistance. In general, there is an atmosphere in which change initiatives are not appreciated. Hence, there are no mechanisms to record and reward ideas. The only ideas that are welcome are those that improve efficiency. Money is rarely spent on other initiatives."
What would be your advice? Including suggestions about general changes in how the company deals with innovation and change as a topic. And out of the sic paths framework which model is most suitable?
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