Running head: CASE ANALYSIS 1

CASE Analysis for the Great White capital and beach Co. Ltd

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CASE ANALYSIS 2

CASE Analysis for the Great White capital and beach Co. Ltd

I. The Case Story

Great White Capital is one of the private equity groups that are largely known and highly

recommended on Wall Street for their attitude that reflects tough on target. This means that it has

the ability to focus on its activities and with the existent organizational culture aligns its beliefs

well with those of other companies for effective services. The main objective of the company is

to search for small companies with good market positions but having poor management. The

characteristics of the firm entail those of the Great War. It is mainly in the sense that a competent

group of auditors and other professionals in different operations vet the companies that are in

line for purchase by the Great White Capital. The professionals ensure they earn significantly

from the negotiations. The company has a 25 per cent annual turnover of employees who include

the managers that averagely serve at the company for almost four years. However, there are

about 21 members of the management team that have served the company for over ten years. The

company prides in rough culture aspect.

Beach Co Ltd. is involved in the production of beach supplies. The supplies make high

profits because of their great management team and the extreme loyalty from distribution

services of their customer base. They include 850 associates who work together to find solutions

to customer issues or ensure that a required product reaches the market. The firm has its

headquarters in Paris in France but has a wide range of manufacturing plants in countries that

include Brazil, Vietnam and China. However, they have distribution services all over the world.

The rate of turnover at the company is below 5 per cent, and Great Capital wants to buy it. The

three main players in the purchasing process are GW Sharkey, who is an exceptional, upcoming
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executive at the company. He has a positive attitude towards the ability to acquire Beach Co.

since he thinks that there are some hidden profits that the company will be in a position to find.

However, GW has a shortcoming in the sense that he does not pay attention to those who report

to him. It would lead to major problems at the time of the purchase since he may not be in a

position to consider all the necessary aspects.

The other person who is involved in the purchase is Bob Quinn, who is a subordinate to

GW. He has offered his services at the company for around three years. The main thing that

attracted him to the company was that it had the reputation of “kicking butts”. He is shown to be

more sensitive that his colleagues at times. Therefore, in this case, he is not for the purchase of

Beach Co. Ltd. He has noted that the price that is being offered by Great White for the company

is not right. Moreover, it lacks professionals to run its operations besides the fact that they

operate on different cultures that are likely to develop into bigger problems on Great wall

acquires the company.

The third person who is involved in the acquisition process is Marie Clouseau who has

been working at the Beach Co. Ltd as a managing director for about eighteen years. She has been

part of the team owing to her smartness, high level of sophistication and her great degree of

commitment. Therefore, she brings a lot of experience and professionalism to the table.

Moreover, her professionalism is great and is handled in a very polished manner. One of the

outstanding elements about her is the perfect rapport that she holds with other employees. This

has made her Godmother to many of their children. Due to her commitment, she reveals the

strong business sense that she has for business, other charity activities as well as generosity

exposing activities. In this case, she is not only the considered as the Beach Co. matriarch but

also Beach Co. itself.

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II. Analysis

GW was forced to come up with numerous promises to convince the Board at Great

White Capital to make the acquisition. One of them involved the need by Great wall to create a

global network for its distribution. As a result, it fostered his willingness not to proceed at Beach

Co. According to him, the distribution at Beach and the management at Great White would make

an easy solution. The advantage that Beach Co. has in this matter holds a solid track record. For

instance, the elements are related to the location of its headquarters and the various distribution

centers across the world. The firm also has contributed by the resilient nature of the managing

director who has worked for a long period at the company. The elements are also related to the

number of years the strong management team members have been working together. Also, the

ability by a large number of associates to work well in a coordinated manner enables them to

handle the businesses and customer service in a great manner. The actions are an indication that

the company operates like a family that largely appreciates its employees who in turn improve on

their productivity and have a low turnover rate.

On the other hand, the Great White Company holds the belief that they know better than

any other company. The firm has limited interest in learning new components from the

companies that they merge in the market. In essence, Great White holds the notion that Beach

Co. is in dire need for growth. In this relation, they think that the company is only involved in the

deal to get the capital that the Great White capital is likely to contribute to it after the successful

completion of the purchase. The strategic operations will be enhanced after the purchase since

they will have access to the global distributors and the important connection of the company in

Europe. In this case, the acquisition will be vital for Great White. One of the decisions Great

White has made in the market is to close the back offices at Beach Co. The action means the
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closest office will be in charge of handling most of their workloads. Difficulties might arise

among employees currently working at Beach Co. to relocate and to experience the transition

activities with the new office. The movement to a different country implies most of the

employees will be forced to resign. On the other hand, it will be a great achievement for Great

White benefiting in terms of recruitment and selection of new employees. The process will

require teaching the beliefs and attitudes of the company in the new setting. The company has a

plan to eliminate the twenty-one members of the management team after the acquisition has

lasted for a year.

The person who is currently experiencing the greatest damage is Marie Clouseau. She has

put many years of effort during her work to make Beach Co. a company a respected and admired

firm. Her level of loyalty would be destroyed by Great White as it takes over the management

activities. She now seeks many approvals to give customer credits, had many reports that were

filled without reasons, placed requests from Great White capital and unprofessional emails that

demanded replies. Therefore, she cannot fly first class owing to the policies placed by Great

White. The only option is to retire and follow the advice given by her husband. Despite the

positive attempts, Mr. Sharkey was only interested in the purchase for the distribution routes

access.

III. Recommendations

The two Human Resources management departments from the two companies should

meet and discuss the merger details before the purchase can be implemented. Mr. Sharkey from

Great White indicated that he would not meddle with the affairs at Beach Co. As a result, it was

a clear way to convince the Board of Directors at Great White. The two companies will be
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involved in a serious conflict since Beach Co. is a foreign firm, and most operations will not

align.

The capital of Great White is in the United States. Thus, it will be the parent country

while France becomes the host country. The two countries have varied laws in terms of

employment since France operates under the European Union. After Great White purchases

Beach Company, it becomes a global organization with some of its distributors in other

countries. The human resources personnel and positions at the Great White Company are

occupied and has become a global organization. The company should be ready to abide by the

laws set up by the different countries they will source employees. One of the most notable

aspects in the case was EEO reports in the form of paperwork sent to Marie Clouseau.

In this case, it was not clear why a global company with its headquarters in the United

States would be concerned with France matters in the Equal Employment Opportunity in France.

Several differences exist in their mode of operations. They are not easy to align and would create

a conflict. The situation is made more complex since businesses in France are majorly run by the

European Union. The governing body provides most of the rules that include employment.

Therefore, the rules and regulations that emanate from the United States are not likely to have

any grounds on the French employees. This plan will lead a major clash or it may not be in a

position to be effective at all leading to additional challenges in the operations of the Great White

Capital Company.

After receiving a ten-page performance evaluation, Marie complained to Bob Quinn. She

was aware that the kind of performance evaluation does not align with the criteria used for the

management of effective performance. The evaluation is different from the short and precise
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evaluation she received at Beach Co. It is important to note, “The people who use a performance

measure must believe that it is not too time-consuming” (Noe et al., 2007). In this case, the major

changes should be made by the human resource department at Great White capital to meet and

discuss the transformations being experienced with that of Beach Co after the purchase. The

management should have a synergy between the two entities regardless of the demands of both

firms.

One of the major challenges being experienced in the whole deal is the bad attitude and

behavior of GW Sharkey. He already has a problem listening to his junior staff and is not ready

to make any changes and steps that they advise depending on their observation of the situation.

He had also made the promise to the board of members of Beach Company that he would leave

the company alone. However, it did not happen as he already had set plans long before the

purchase was approved by the board. He has also taken away the bonus plan from the associates

and free lunch hence, taking away the duties of ladies providing lunch. This is an indication of

the challenges ahead for the Beach Co. employees. The associates would form the lower class

members of the newly formed company. Therefore, the top executives would be the beneficiaries

of their efforts. The Beach Co. top leaders are new to the 12-inch stack of paper formulating the

duties of each employee at Great White Capital had and timeline of completing every Sunday

afternoon.

The alignment of strategies in the venture is important for employees at Beach Company

and Great White to brainstorm the business ideas. They will learn the culture of the company in

terms of its operations and expectations. There are plans for Great White to move the back office

of Beach Co. to the one closest to the location of Great White. The shifting of the office will

foster brainstorming of ideas. The problem is that this step would take too long to consider since
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Mr. Sharkey with his negative attitude is involved in its creation. Therefore, it becomes

important the Great White employees to consult the employees at Beach Co. on the necessary

aspects before they relocate to France and become ex-pats. It is through this that entire purchase

process would achieve the desired level of effectiveness in terms of integrated knowledge,

attitudes, beliefs and activities.

The first step towards the enhancement of a higher level of effectiveness level would be

dealing with Mr. Sharkey from the beginning. It would include talking and discussing issues that

are pertinent to the Great White Company through the need to integrate employees from Beach

Co. in an appropriate manner. This information would lead to significant changes since it would

help in the ability to reduce the paperwork given to every employee. In addition, there will be an

end to the vulgar and threatening emails whose example can be seen from one of them that stated

that “Get me my G__Damn report”. Subsequently a lot of professionalism will be involved in

communication. It would also be one of the means to be applied in the effort to obtain a high

level of synergy between both of the companies. With this, it is likely to create an outright

balance between the initial high and low turnover rates.

Subsequently, there is a need for one more major solution to ensure that the merger

acquisition is successful. It involves the relieving of Mr. Sharkey from his duties in the top

management position. In his place, it is would be recommended to appoint Madam Marie

Clouseau and Mr. Bob Quinn to act as co-executives. They will still be in a position to make

decisions while aligning them to the needs of both companies although in an integrated manner.

At the same time, Great White capital will still be in a position to make the many deals that

involve manufacturing and distributions as performed by the initial Beach Co. With this, both of
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the companies will gain the desired outcome both for the entire process of purchase and the

operations in future.
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References

Noe, R. A., Hollenbeck, J. R., Gerhart, B., & Wright, P. M. (2007). Fundamentals of human

resource management.
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