Case Study: Micropoint Inc. : Robert Amter

Case Study: Micropoint Inc.

Micropoint Inc.

Sunnyvale, California

Situation & Problems:

Micropoint was privately owned and had lost sales, market share and money for three years. In 1971, the company was acquired by a large company. I was appointed President.

Prior to BIC becoming the largest selling ballpoint pen in this country, three small manufacturers dominated the market – Lindy, Fischer, and Micropoint. Micropoint’s core business had been high quality, commercial grade ballpoint pens sold to stationery wholesalers.

Actions Taken and Results Achieved:

Restored Micropoint to profitability in 10 months by refocusing Micropoint’s strategy to its profitable commercial core resulting in increased sales.

Stopped the expensive and fruitless development of a BIC pen look alike and entry into the mass merchant, big box retail channel segment.

Hired a national sales force of 125 commissioned manufacturers’ reps specializing in the stationery channel segment. Retained two of the eight company salesmen to manage the rep organization.

Retained an external agency to redesign the out-dated catalogs and packaging.

Developed a new product – the telephone pen. This pen generated new sales and also helped reopen wholesalers that had dropped the core product line.

Reduced salaried headcount.

Reduced cost of sales by implementing work simplification to improve through-put. Routings were changed. Direct labor content was reduced.

Eliminated approximately 25% of the model numbers with low sales.

Established a quality control function. Testing the finished pens had been stopped by prior management. Scrap and customer returns were reduced.

Reason I wrote my book “Learn to Whisper”

Click on this link for a more complete description of “Learn to Whisper”

The reason I wrote “Learn to Whisper”:

My conclusion after operating as a Turnaround Chief Executive Officer for more than twenty-five years is that the majority of this country’s top management is far from first-rate. In fact top management, particularly at the chief executive officer level, is at best average with a large number that can be rated mediocre. This lack of management competence has seen this country’s market leaders lose sizeable market share to foreign manufacturers able to export better quality and lower cost products to the USA. It has seen manufacturing and service operations unnecessarily moved to foreign countries. All of which has negatively affected the economy, severely damaged former blue-chip corporations and seen quality jobs lost.

It is quite common to discover that companies struggling with this inability to compete with foreign companies have been simply mismanaged. The once successful business deteriorated because of an incompetent chief executive officer and weak senior management

Why doesn’t this nation have first-rate management? Inadequate training. Chief executive officers and vice presidents learn “on the job”. A number get promoted based on personality, political connections and drive – not merit. They are not carefully screened for the potential to become successful at managing. For some all that is needed is a well-written resume, the right interviewing style and the inability of a new employer to accurately assess skills, performance and potential.

Compare this to the process doctors go through. From medical school to internship to residency to a senior role after years of education, experience and continuous training their progress and capabilities are constantly monitored even after they become senior in the profession. Generals and Admirals go through a similar protocol. They must prove themselves in low-level assignments before they are judged qualified for senior positions. Unqualified applicants in both professions are culled out. What can be done to improve management competence? Education, on-the-job training and job performance monitoring. My book will educate people on the subject of managing. Its 101 management lessons are separated into the 17 subjects managers need to know.