Case Study – Malden Mills

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Malden Mills Malden Mills, a family business that produces textile and employed thousands of people in the same communities in which they manufactured their product. The company was founded in 1906 and over the years, has a good reputation of social responsibility in the community and a great concerned of its employers. The company’s chief executive officer- Aeron Feuerstein believed the best way to run a successful company is through its employers. Making sure that the employers are treated as asset of the company, and making them feel as if they are part of the company not just a worker.

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Aeron Feuerstein feels deeply committed to its employers, and the communities than just the everyday operation of the company. Companies, regardless of size are in the business of making money, and stay competitive by increasing market share. When a chief Executive Officer deviates from the idea of making money, or searching for new way to stay competitive to employer’s satisfaction and the community then that company is bound to fail. Aeron Feuerstein showed too much concern of his employers and the community and got blindsided of actually solving the financial problem that the company was facing during the fire accident.

Malden Mills is a manufacturer company that produces textile, employed thousands of people, and even considered the biggest textile company in New England. A company like Malden Mills Safety has to be paramount. Especially when dealing with all kind of different chemicals and machines that generate heat and cough fire easily. Malden Mills failed to improve its safety measures especially in the flock department where the fire broke out. The folk department has been a hazardous work environment for employers. The U.

S occupational safety and health administration recommended the company to upgrade its safety measure and to improve the working condition of the department. Malden Mills made no effort to fix its safety problems which eventually lead to the fire accident. The chief executive officer- Aeron Feuerstein made a decision to not only compensating employers affected by the fire accident, but also continued to pay idle employers for three months. The company’s senior manager advices Aeron Feuerstein to restructure the company product line due to the current financial condition of the company.

He refused to consider their advice and put all his effort and spend millions of dollar on satisfying his employers, and the community. The fire accident and some of the bad decision made by Aeron Feuerstein lead to the company down fall. If all the safety problems had been solve, the fire accident could have been prevented. The decision to continue paying idle employers after the fire accident that destroyed assets worth millions of dollar, and needs to be replaced make no sense. Aeron Feuerstein should have first weigh the company financial status after assessing the damage caused by the fire before making decisions.

Aeron Feuerstein deep concerned for his employers and the community is a great idea to increase productivity from your employers and also build a strong relationship with the community. A crisis like the fire accident has a tremendous effect on the overall outlook of the company. The decision to compensate employers affected by the accident is perfectly normal, but decision to make employers and the community a priority over the managing affairs of the company future is a bad decision. Bad decision always leads to poor management and as a result companies fail or ready for a takeover by creditors and bigger companies.

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Case Study - Malden Mills. (2017, Sep 15). Retrieved February 3, 2023 , from

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