Free Problems, Challenges, And Opportunities Case Study Example

PetGourmand, a second generation family-owned Memphis-based company, is currently facing the challenge of a takeover by Bon Vivant Specialities (BVS). Bon Vivant Specialities is a large Chinese-based manufacturer and distributor of gourmet food and beverages. Although the company enjoys an impeccable reputation for high quality and ethical standards and processes and established a competitive advantage throughout the US South, the Great Recession hit the organization severely leading to a drastic fall in the demand for its products. In this context, the BVS contacted the PetGourmand CEO to inform its willingness to acquire the company. However, the PetGourmand employees are not interested in this proposal as they are reluctant to adapt to a new organizational culture and to work for foreigners.

The case study makes it clear that the PetGourmand follows a thoroughly hierarchical organizational structure with fairly rigid management divisions and reporting policies (Case Study: Going global). In the organization, processes such as research, manufacturing, sales, and marketing are carried out in a traditional fashion, with employees reporting to supervisors or mid-level managers. The case writer also says that BVS has a flat and smoothly efficient organizational structure and work teams constitute an integral feature of this structure (case study). This difference in organizational structure is the major reason that intensifies PetGourmand employees’ resistance to the proposed acquisition plan. In addition, the average employee age is late 40s in PetGourmand whereas the BVS is interested to employ young-to-middle age (ages 25 to mid-forties) workers. As a result, many PetGourmand employees are likely to lose their job if the acquisition becomes a reality. To worsen the situation, the BVS employees tend to be bi-lingual, self-directed, accustomed to working remotely, and clearly focused on the firm’s commercial success when the PetGourmand’s employees do not possess these qualities. In addition, the BVS management seeks to hire tech-savvy professionals but the PetGourmand has been following a low-tech, hands-on culture. However, this takeover plan raises some potential opportunities too. PetGourmand is a company with solid brand recognition, experienced workforce, low staff turnover, and impressive record of speedy state and federal new-product approvals. Furthermore, the company maintains solid working relationships with their veterinary and pet-owner customers. Considering the BVS’ expertise in the current telecommunications technology, the proposed takeover plan would raise few geography and location issues. By combining the synergies, the integrated organization can enjoy a competitive market edge over its rivals.

Recommendations

As the proposed takeover appears to be a better policy for PetGourmand to overcome its current market difficulties, it is advisable for the company to proceed with this acquisition plan. Despite the difference in the average employee age between the two companies, the BVS management has made it clear that – for now – most PetGourmand employees will be retained. Hence, the whole PetGourmand employees would obtain the opportunity and time to adapt to the BVS culture and practices. An effective workplace collaboration strategy may assist the BVS management to eliminate the issues associated with workforce diversity and language barriers. Referring to Jones and Recardo (2013, p.104), it is particularly recommendable for the BVS to design and implement an en effective change management program to address employee resistance to change and thereby to ensure active employee involvement. This strategy may also benefit the BVS management to increase individual potential through group collaboration and team synergy.

References

Jones, D. J & Recardo, R. J. (2013). Leading and Implementing Business Change Management:Making Change Stick in the Contemporary Organization: Making Change Stick in the Contemporary Organization. US; Routledge.