Schwinn Wipes Out

In: Business and Management

Submitted By jvuotto68
Words 1186
Pages 5
Schwinn Wipes Out
Jodi Vuotto
April 30,2012
Leo Maganares

Schwinn Wipes Out
This paper will examine the Arnold, Schwinn and Company (Schwinn) and their rise and fall as an American icon. By looking at the management, leadership, and organizational structure in the different stages of growth the slow decline and failure can be examined.
Arnold, Schwinn and Company was established in 1895 by German immigrant Ignaz Schwinn and Adolph Arnold. Schwinn was headquartered in Chicago, Illinios, and by 1905 had become a leader in bicycle manufacturing. Ignaz successfully brought the company through the Great Depression with new models, innovations, and improvements. Ignaz Schwinn died in 1948 and control of the company went to his son Frank W. Schwinn. Under the leadership of Frank W., Schwinn continued making improvements and in 1952 established the “Authorized Dealer Network.” The network established specific Schwinn stores that expanded their “genuine parts and accessories” program and provided training by Schwinn in repair; parts, and sales (Re-cycle, 2011). Schwinn became famous for its outstanding quality, service, and lifetime guarantee. With the death of Frank W. in 1963 Schwinn came under an incompetent third generation, Frank Jr. followed by Edward Jr., and thus began the end.
Organizational Behavior and Structure
Organizational behavior is “the study of what people do in an organization and how their behavior affects the organizations performance (Robbins, 2011. P. 10). From 1895 to 1963 Schwinn was managed by strong innovative and business wise leaders. They focused on continually up-dating and manufacturing new products. Under Frank Jr. Schwinn began to decline because of his lack of vision and business sense. The Chicago plant continued to produce bicycles on outdated equipment using outdated materials proving to be ill…...

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