Marvin Windows and the no layoff decision

An article in the New York Times (Sept 24, 2011) describes the”no layoff” strategy used by privately held Marvin Windows of Warroad, MN.  To reduce costs, employees saw cuts in perks like tuition reimbursement, overtime, salary cuts of 5 % and hourly worker working hours cut to 32 hours per week. But maintaining the workforce is a strategy the firm claims will allow them to gain market share as the economy recovers. Is Marvin Window’s strategy a competitive alternative to reducing capacity ? How could the slack capacity be deployed to enable innovative window solutions that can improve energy efficiency to comply with impending future regulations ? Given the volatile market for windows, do you expect Marvin to be able to synchronize supply with demand more effectively than the competition and imports ?

About aviyer2010

Professor
This entry was posted in Operations Management, Service Operations, Supply Chain Issues, Sustainability and tagged , , , , , . Bookmark the permalink.

One Response to Marvin Windows and the no layoff decision

  1. It sounds like this strategy will allow them to be a more reactive manufacturer, and possibly allow them to expand their product offering into more customization.

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