Pinnacle Machine Tool Company Case Study Essay
Pinnacle Machine Tool Company Case Study
The Pinnacle Machine Tool Company case is a case that studies the use of managerial decision making and different decision-making styles. Don Anglos, CEO of Pinnacle Company, a machine tool company, had a decision to make on whether to acquire another company. The company Anglos wished to acquire was Hoilman Inc., a company known for their cutting-edge sensor technology and communications software. Anglos had heard a creditable rumor that a rival company was planning a take-over of Hoilman, and by chance, Anglos knew Hoilman well because of previous talks he had with them about a possible joint-venture that never worked out. Anglos believed that by acquiring Hoilman, Pinnacle could develop new software that would enable them to provide top-notch service to their customers.
For the four years that Anglos has served as CEO for Pinnacle, he has used his gut instinct while making many risky decisions and it has proven to pay off handsomely. He was able to increase profit revenue growth and increase market share, but through making those moves, he has chipped away at the company’s strong profit margins. Anglos recognized that it was time for him to change his strategy in order to help the company further; he wanted to transform the company into a high-tech service company in order to achieve growth and profit, and he believed that acquiring Hoilman would be a good place to start. However, some of Anglos’ colleagues did not feel the same way. CFO, Sam Lodge, insisted that the timing was not right to invest in Hoilman.