Radical choices that changed the course of Business & Recommendation:

Henry Ford decides to double his workers' wages

In 1913, to help meet the growing demand for the Model T, Henry Ford turned his attention to improving the manufacturing processes. The business model Ford developedproduction on a grand scale, performed by well-paid workersspread throughout the world and became the manufacturing standard for everything from vacuum sweepers to cars, and more.

First of all, the moving assembly line was perhaps Ford Motor Company's single greatest contribution to the automotive

manufacturing process. First implemented at the Highland Park plant in Michigan, the new technique allowed individual workers to stay in one place and perform the same task repeatedly on multiple vehicles that passed by them. The moving assembly line proved tremendously efficient, helping the company to far surpass the production levels of its competitors while making its vehicles more affordable. On top of that the Highland Park

payroll actually fell. But the problem was, employee turnover rate was very high and it was on the increasing side. The demoralizing, discouraging, repetitive & dispiriting work on the line was made the workers to quit quickly.

Acting on the advice of Fords devoted lieutenant, James Couzens, Ford decided to take radical action in January 1914, he startled the world by announcing that Ford Motor Company would pay $5 a day to its workers. The pay increase would also be accompanied by a shorter workday (from nine to eight hours). While this rate didn't automatically apply to every worker, it more than doubled the average autoworker's wage. While Henry's primary objective was to reduce worker attritionlabor turnover from monotonous assembly line work was highnewspapers from all over the world reported the story as an extraordinary gesture of goodwill.

After Fords announcement, thousands of prospective workers showed up at the Ford Motor Company employment office. People surged toward Detroit from the American South and the nations of Europe. As expected, employee turnover diminished. And, by creating an eighthour day, Ford could run three shifts instead of two, increasing productivity. So the Five-Dollar Day turned out to be an excellent investment. Within a year, annual labor turnover fell from 370% to 16%; productivity was up 40% to 70%. Between 1910 and 1919, Henry Ford reduced the Model T's price from around $800 to $350, solidified his position as the world's greatest automaker, and made himself a billionaire. Henry Ford had reasoned that since it was now possible to build inexpensive cars in volume, more of them could be sold if employees could afford to buy them. The $5 day helped better the lot of all American workers and contributed to the emergence of the American middle class. In the process, Henry Ford had changed manufacturing forever.

Recommendation
The work environment on the assembly line at Ford was tedious, repetitive and tiring. Because of these conditions, many employees did not last long at Ford. In order to slow the turnover rate, Ford introduced job incentives to his employees. He promised a five-day workweek, eight-hour days and five-dollars per day. At the time, this was a very high wage for one day of work in an automobile factory. The new wage and workweek were radical to many other business owners. Productivity among workers increased and employee turnover

decreased. An increase in productivity caused a price reduction for Model Ts. The reduction in price meant that more people could afford to purchase a vehicle. So this change at first seemed costly but it has made a huge profit & most importantly decreased the employee turnover.

Apple brings back Steve Jobs

Apple made healthy profits from 1986 to 1995, mainly thanks to its monopoly on both the GUI and the desktop publishing revolution. Everyone who wanted a user-friendly computer bought a Macintosh for approximately $2,000, half of which were pure profits to Cupertino. In 1995, Microsoft launched Windows 95, which was the most successful GUI release in the history of personal computing. Almost every PC user upgraded and started using GUI en masse, while Apple lost its monopoly. Macintosh sales started going down dramatically, not only because of the Wintel domination, but also because of the bad move to license the Mac OS to Mac clone makers manufacturers of cheaper computers that could use Apples system. The company was losing market share, and getting rid of its successive CEOs didnt seem to help. After John Sculley left in 1993, Michael Spindler replaced him for two years, and then by Gil Amelio starting in February 1996. The company was going downhill, failing to deliver new products on time and lagging behind in software development. Then-CEO Gil Amelio convinced the board that Apple needed to purchase a software

company to gain the intellectual property and talent to replace Apple's old operating-system software. Apple bought Steve Jobs NeXT. Steve also agreed to take the stage at Macworld Expo in January 1997. The show painfully showed how disastrous the companys management had become under Amelio. The CEO kept rambling, unable to make sense, as he got lost in his notes. And then he dropped the bomb: Apple had had one its most terrible quarters ever in Q4 1996, with sales that fell 30% below their 1995 level. The situation did not improve as in Q1 1997 the company lost $700 million, making the total losses under Amelio amount to over $1 billion. It was too much. In July, the board of directors, led by Steves ally Ed Woolard Jr., fired Amelio after 500 days on the job, and asked Steve Jobs to become the companys new chairman and CEO. He declined, accepting only to become a mere member of the board and an interim CEO, to supposedly help the company get back on track before leaving the position to somebody else. He was concerned about being CEO of two public companies at the same time Pixar and Apple. After he seized power, he reformed the board to install his friends: of course Ed Woolard, chairman of DuPont, stayed, as well as Gareth Chang, president of Hughes International. The new members were all supporters of Steve, starting with his friend Larry Ellison, CEO of Oracle; Jerry York, former CFO of Chrysler and IBM, also joined, together with Bill Campbell, the CEO of software developer Intuit.

Steve Jobs posing with the two computers with which he saved Apple: The Macintosh in 1984 and the iMac in 1998

Steve started working like crazy in that second half of 1997 to put Apple back on track. He surveyed every single product team in the company, calling them in one by one in Apples conference room. Everybody had to convince him that their product was essential to the companys strategy. There was no sentimentality: if the product was not making a profit, it usually had to go, however strategic it might seem to the engineers working on it. He soaked up a tremendous amount of information about all aspects of the business before taking action. To be fair to his predecessor, Gil Amelio had already started the turnaround work by cutting the number of Apple projects from 350 to

around 50. Some of Steves first decisions included the killing of the Mac clone business, which deeply hurt Apples hardware sales while not increasing the Mac OS market share; and the launch of Apples online store, one of the first of its kind. It would soon become a model to several other tech companies. Steve also brought with him the culture of secrecy he had developed at NeXT. Apple was a rumor mill at the time; every product was rumored months in advance in the specialized press... well this would end under Steve Jobs. He hung a World War II poster in his office that stated: Loose Lips Might Sink Ships. The new policy was clear: leaking information about future products to journalists or analysts would get you fired real quickly.

Recommendation
After two years as interim CEO, Steve Jobs completely turned Apple around. He restored the companys public image, implemented a successful and focused new strategy, attracted software developers, and launched highly innovative and awe-inspiring products on the marketplace. The confused product lines had turned into a simple yet powerful product matrix, filled with breakthrough computers. Jobs had a daunting task ahead of him, but he wasn't afraid to make difficult decisions to get the company back on track. Cutting costly projects like Newton and aligning with known-competitor Microsoft were controversial decisions that showed Jobs' authority, confidence, and smartness. This is how bring back Jobs made Apple got the position in the industry. Now we all know the current position of this Tec giant & top of that their position in the industry is way ahead of the

competitors as well. So the change did work for Apple.

A radical approach to downsizing

Tata's J.J. Irani at an executive meeting in 1994 in Jamshedpur, India

Tata steel is part of the Tata group of companies and like any other group companies, it is known for its good corporate governance, transport system, employer friendly atmosphere & excellent CSR. Therefore, the question, which trouble, was why did Tata steel require a change? and how was the change managed and was it difficult? When J.J Irani worked as a CEO of Tata, he took a decision, which gave him a place in the history and most importantly it really boosted

employee morale while saving money as well. There was a rumor that some employees were going to lose their jobs. But this was not easy to accept for the employee, as they believed that welfare of the employees of Tata takes priority over the company profits. No one ever last job in Tata, even his or her son or daughter could work there. So it was not an easy decision to make for Tata as well. The company took a decision, which was insane but remarkably one of the wisest decision in the whole realm of employee relations & corporate culture. Workers under age 40 would be guaranteed their full salary for the rest of their working lives. Older workers would be guaranteed an amount greater than their salary, from 20% to 50% greater depending on their age. If they died before reaching retirement age, their families would keep receiving the full payments until the worker would have reached that age. Tata steel labor costs had begun to decline & in 2004 its workforce shriveled from 78k to 47k. Lower labor costs, combined with over $1 billion of new investment, turned Tata Steel into a far more efficient, globally competitive firm.

Recommendation
To implement such a revolutionary step Tata Steel required a strong leadership. Fortunately, they had J.J Irani at the helm of affairs who was very clear in his intensions with a conviction that he had to make the company survive in midst of intense global competition. He communicated very clearly in his many interactions with the workforce that through the focus of the company of creating job and balanced against productivity.

HOW INTEL GOT CONSUMERS TO LOVE ITS CHIPS:

A computer is made various components: the power unit, keyboard, mouse, hard disk, and the microprocessor. Before Carter promotionmaking strategy there was no identity of the parts item. But in 1991 Intel inside logo was in computer and by this Intel changed all, until then high- tech marketing landscape had pretty much consisted of Apples rainbow logo and IBM s little tramp. Intel inside logo worked as a marketing icon. Dennis carter, technical assistant of CEO Andy Grove identified the problem why customer not buying their products after differentiating. Intel was in trouble in that time nobody was purchased their update version of microprocessor 386, everybody

was still buying old version of 286chip. Carter was wondered, at that the time he was thinking of the problem and trying to find out what is going wrong. In the early 1989, Intel CEO agreed to invest $ 500,000 to a test and told to Mr. Carter to do such a strategy so that consumer can differentiate the new products. Young technical assistant that do the main strategy that was, he took all the Intel billboard ads in Denver with a big, bold 286 inside a circle and a large red X spray-painted over the 286. After a couple of weeks, another sign went up next to it: Sales of Computers with Intels 386 microprocessor shot up. It was a huge decision for Carter because by this decision he had shifted the power in the chip industry. His promotion strategies change the business model of Intel. Intels microprocessor chip got the single identity in the market and also creates the new industry of the microprocessor chip.

Recommendation
So by changing the promotion style of a product or making it innovatively one industry can demonstrate that an anonymous ingredient of a larger consumer product might achieve its own identity. By deciding to brand and its product Intel inside, the chipmaker provide that anonymous ingredient of a consumer product achieved its own identity and provided a competitive edge. So taking the greatest decision Intel changed their market and establishes their own product as their own identity in the market so it was a great decision by the Intel as well as a chipmaker.

BOEING BETS BIG ON THE 707

Boeing commercial airplanes mid size, narrow- body four engine jet airliners build the Boeing 707 in 1952. Its name is commonly pronounced by seven oh seven. Boeing was primarily a maker of military aircraft. Its famous b-52 bomber and a companion tanker had proved that the Seattle Company had the right stuff when it came to jet aircraft technology. But in that time jets were not commercially viable. It was very much expensive process to convert jet airline technology because it took massive investment that pockmarks their bottom line. But the Boeing postwar president, William McPherson Allen, who made a prototypical great decision, a bet the company move on civil aviation in the form of a single product. He was convinced that consumers would cotton to the speed, convenience, and comfort of jet

travel and that the real growth of the civilian sector of the booming global economy. Allen was taken a high risk but he was sure of his conviction. He also thought about their financial position of the future. After in 1952 he persuaded the Boeing board of directors to invest $16 million in what would become the Boeing 707, the first U.S. transatlantic commercial jetliner and the plane that would alter the course of Boeings history. The 707 were developed from the Boeing 367-80,a prototype jet aircraft first flown in 1954. A larger fuselage cross-section and other design modification resulted in the initial production 707-120 Developed as Boeings firs jet airliner, the 707 is a swept-wing design with podded engines. Dominating passenger air transport in the early 1960s and remaining common through the 1970s, the 707 are generally credited with ushering in the jet age. Although it was not the first jetliner in service, but the 707was the first to be commercially successful. The 707 have been used on domestic transcontinental and transatlantic flights, and for cargo and military applications. It established Boeing as one of the largest manufacturers of passenger aircraft, also led to the later series of aircraft. The 707 grew to become as much a cultural icon as a transportation vehicle. Later on 727, 737, and 757 share elements of the 707s fuselage design.

Recommendation
So taking the decision of converting jet airlines technology by William Allen it was great for the aircraft industry because it changed the aircraft industry by launching the new single product The 707. Further they should update their service and based on the convenient and comfort ability. Allen only consider customer would buy his product and he has believed that his decision will work. After all,

Boeing profit was increased and they discover a new world where passenger can travel by aircraft. By the great decision net worth of Boeing increased. It was just one plane, but it remade a company, an industry, and the very culture of its time. So it was a great decision for Boeing.