ElastoTherm: The Next Step Harvard Case Solution & Analysis


ElastoTherm: The Next Step


ElastoThermInc. was founded and was acquired by Bursteins in the year 1977. The husband and wife took majority of the shares and elected to manage the company on their own. The person from whom the shares were acquired had 63% of the shares in the company and other 37% of the shares were acquired by the employees of the company.

Bursteinspreferred the way the company was managed by the old man. At ETI, Julia served as the company’s CEO while Nate was the president of the company. However, the job roles evolved over time.

Nate and Julia Burstein’s management styles:

Both Nate and Julia were different in managing the people at work. Nate had a style of his own but a common one present in every owned of the business these days. The style that Nate followed was authoritative style of leadership. The behavior of Nate was of doing a particular thing or leaving it ending up with an expulsion of the employee.

An example of this is when the head of sales and Nate had differences of opinion and Nate fired him sometime later the conflict. The basis of firing the employee seemed to be the conflict between the two. However, Julia was on a more friendly side of the management style. She did not believe in pressurizing and implementing more restrictions on the employees, however she used to make rounds in the factory and talk to the employees, she often used to encounter with the women at work and listens to their problems.

An example of this and removing the pressure on the employees is that Julia fired the plant manager and started to manage his duties on her own to see if the position of the plant manager is required to run the plant or the employees are good enough to work on their own...................

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