In 1978 the Tucker Company underwent an extensive reorganization that divided the company
into three major divisions. These new divisions represented Tucker’s three principal product
lines. Mr. Harnett, Tucker’s president, explained the basis for the new organization in a memo to
the board of directors as follows:
The diversity of our products requires that we reorganize along our major product lines. Toward this end I
have established three new divisions: commercial jet engines, military jet engines, and utility turbines.
Each division will be headed by a new vice president who will report directly to me. I believe that this new
approach will enhance our performance through the commitment of individual managers. It should also
help us to identify unprofitable areas where the special attention of management may be required.
For the most part, each division will be able to operate independently. That is, each will have its own
engineering, manufacturing, accounting departments, etc. in some cases, however, it will be necessary for a
division to utilize the services of other divisions or departments. This is necessary because the complete
servicing with individual divisional staffs would result in unjustifiable additional staffing and facilities.