Professional Documents
Culture Documents
By Aditya Polisetty (12PGP006) BJVSP Varun (12PGP012) Harshvardhan (12PGP017) Venugopal Vellanki(12PGP049) Umang Agarwal (12PGP111)
SUMMARY / FACTS
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Facts
Issues
Possible Actions
Strength Weakness
Solution
Merger between DeWaal Pharmaceutical (Netherlands) and BioHealth Labs (USA) BioHealth Labs
Steve Lindell CEO Bruce Bollinger HR Head Alison Whitney Director, Sales and Marketing
DeWaal Pharmaceutical
Kaspar van de Velde Chairman Christian Meyer HR Head Albert Schenk Director, Sales and Marketing
Facts
Issues
Possible Actions
Strength Weakness
Solution
DeWaal: Lead HR, Operation in Europe and Global Marketing BioHealth: CEO, CFO, COO, Head of R&D
Steve had worked tirelessly on clearing the regulatory hurdles presented by FTC (Federal Trade Commission) and EC (European Commission) Meeting between the two heads and the HRs where final decisions need to be taken
ISSUES
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Facts
Issues
Possible Actions
Strength Weakness
Solution
Bringing two very different cultures together. Selecting the top layers of management for the new company as there were 120 people for 65 seats available. Talented people from both sides were leaving. Competitors are head-hunting the in-house employees. Need to demote several performing employees.
Facts
Issues
Possible Actions
Strength Weakness
Solution
Steve planned to close a DeWaal plant in Indonesia but Kasper was against it. Christian Meyer wanted to do a lot of testing of the executives IQ, EI, etc which Steve hated. Who is to head the Bangalore plant operations. Rumors of tension between Steve and Kasper. Stock prices dipped by 20%. The company got downgraded in rating.
POSSIBLE ALTERNATIVES
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Facts
Issues
Possible Actions
Strength Weakness
Solution
Alternative 1 Cross-culture training Dividing the employees according to the size of the companies. Create parallel posts where ever necessary ( Eg. Sales and Marketing Asia Pacific and Sales and Marketing US and Europe) Give the employees an incentive and motivation to stay associated with the company. Find different use of the existing facilities. ( Eg: Indonesian Plant)
Facts
Issues
Possible Actions
Strength Weakness
Solution
Alternative 2 Performance Evaluation - Grading the employees based on their capabilities and then selecting the best Retain the one who is better in comparison to the counterpart. Assessment of the Indonesian plant and other locations through a third-party consultant ( to avoid conflict ). Shut down the ones that are not necessary
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Facts
Issues
Possible Actions
Strength Weakness
Solution
Alternative 3 Experience counts rather than IQ and EI Give paid long-leaves to the employees so that we can call them back when the company grows. Outplacement employees are given this option Voluntary retirement option can be made available.
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Facts
Issues
Possible Actions
Strength Weakness
Solution
Alternative 4 Choosing the best option as per the situation.(Mix of the Alternatives) Being transparent with the employees and explaining the future course. Present a positive picture to media. Giving statement on the acquisition that there are is no tension between the two heads.
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Facts
Issues
Possible Actions
Strength Weakness
Solution
Alternative 1
Strengths
Weaknesses
Indian Institute of Management Raipur
Lot of cash reserves measuring up to $8 billions. Larger and Multinational Market. Economies of scale and strong distribution network. Large and skilled work force available at hand. Loyalty of employees. Reduces attrition rate.
Cross-cultural differences may arise. Restructuring the organizational hierarchy Relocation of employees. Employee expenditure is high. (salaries and trainings etc.)
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Facts
Issues
Possible Actions
Strength Weakness
Solution
Alternative 2
Strengths
Scientific approach to know who is good and who is not. Identification of talent and facilitate their growth. Objective oriented approach can help the organization grow.
Weaknesses
Indian Institute of Management Raipur
The grading / evaluation system may not always be accurate. May lose valuable experienced employees. Can lead to conflicts in the senior management. May result in poor employee loyalty Increases the attrition rate due to lack of trust. Can lead to bad Press.
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Facts
Issues
Possible Actions
Strength Weakness
Solution
Alternative 3
Strengths
Weaknesses
Indian Institute of Management Raipur
Gives time for the management to focus strategy and plan accordingly. Opportunity to call back the employees when required. Outplacement can give more exposure to the employees. Employee loyalty. No bad press.
Increased expenditure on the employees. May lead to increased attrition rate if kept on leave/outplacement for longer duration.
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BEST SOLUTION
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Facts
Issues
Possible Actions
Strength Weakness
Solution
Pre-acquisition
Due diligence
Identify the cultural barriers Integration of the prominent functions
Negotiation
Creating
a Foundation
Strategy Formulation
Role of Integration Manager Top Management Selection
Restructuring
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Facts
Issues
Possible Actions
Strength Weakness
Solution
Rapid
Integration
Indian Institute of Management Raipur
Course Assessment
Effective Communication Strategy Addressing Employee Concerns
Assimilation
Capitalizing on Success
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THANK YOU
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