Background Your company, named Cornerstone Group, which providing services and products for oils, gas and

electricity has been working very well in the market for over ten years. However, since the company changed the management style, lots of problems have occurred. Your company has decided to hire professional consultants to do investigate the problems. Below is the memo from the consultants to your company, illustrating the difficulties.
COMPANY PROFIL Company: Cornerstone Group orkforce: !",### $urnover: %&.' bn (ocated: )allas, *+ ,et profit: ''- of turnover . appro/.0

Main Acti!ities 1roviding services and products for oil, gas and electricity industries.

Recent de!elop"ents Cornerstone have recently bought the 2rench white goods company, 3ean 4otrot, cie. 4otrot are well known for producing cookers, and refrigerators, as well as a range of household appliances. $hey have their head5uarters to the east of 1aris, and two other factories in northern 2rance.

Reasons for Cornerstone#s ac$uisition Cornerstone will e/pand sales of 4otrot products in 6urope. 7t will use 4otrot as a base for launching its own products in 6urope. 4otrot8s biggest asset is its valuable land. Cornerstone could use this to grow the company or may sell off some of the land to finance the ac5uisition. Co""ent 4otrot is an e/cellent ac5uisition. $here may be problems when *+ style management is introduced. 4otrot has always been family9owned, and Chief 6/ecutive, 3ean 4otrot, takes personal interest in his employee. $he new Chief 6/ecutive will be Hugh hitman. 7n his early !#s, trained at Hardward *niversity, hitman was formerly 6/ecutive :ice 1resident of the Cornerstone Group. 3ean 4otrot will remain on the board as an adviser.

M MO;;;;;;;;;;;;;;;;;;;;;;; $<: )an 3ohnson, 1ersonnel )irector 2=<4: 3ac5ues (afont, *nion <rani>er +*B36C$: +taff morale )?$6: 4arch '@

+taff are very unhappy with the present changes. ?s the result, productivity has fallen and the staff turnover is high. (et summari>e some of the reasons for the staff8s low morale. '. Factory inspections ?merican managers are always checking up on us and taking notes. ,o one knows why they are doing this or what they are up to. A. Redundancies +ince 3une, about B# employees from )evelopment )evelopment have lost their Cobs. $hey were given no reasons. $he staff think that this is unprofessional. !. Furt%er c%anges 1eople are looking for new Cobs elsewhere. $hey want to move before they are pushed. 1eople are afraid that the new management will relocate both of the factories. &. Manage"ent styles +taff constantly complain about the silly changes the new management are making. 7 enclose a list of comments made to me by our members. D$hey8re trying to do everything too fast E a new computer system, learning 6nglish, and maybe other languages, new product ranges, new customers.F D$here was a family atmosphere before. $he management really cared about us. 6verything was more informal.F D e don8t know where the company is going now. strategy is, what our obCectives are.F e have no idea what our

&ask ? meeting of senior managers has been called to resolve the problems. ?fter a long meeting with all the senior managers and e/ecutives, today you are going to present the results of the meeting. &%e agenda is as follo's( '. =easons for the resistance to change.

A. +uggestions for managing the change effectively. !. ?ction plan to raise staff morale and resolve the present problem. &%e end