seca_group10_who goes, who stays

7/29/2019 SecA_GROUP10_Who Goes, Who Stays

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WHO GOES, WHO STAYS???

By

Aditya Polisetty (12PGP006)

BJVSP Varun (12PGP012)

Harshvardhan (12PGP017)

Venugopal Vellanki(12PGP049)

Umang Agarwal (12PGP111)

Indian

InstituteofManagementRaipur

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SUMMARY / FACTS

IndianInstituteofManagementRaipur

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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

IndianInstituteofManagementRa

ipur

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Facts IssuesPossibleActions

StrengthWeakness

Solution


4/20

Positions bargained in the new company

DeWaal: Lead HR, Operation in Europe and GlobalMarketing

BioHealth: CEO, CFO, COO, Head of R&D

Steve had worked tirelessly on clearing theregulatory hurdles presented by FTC (FederalTrade Commission) and EC (EuropeanCommission)

Meeting between the two heads and the HRs wherefinal decisions need to be taken


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StrengthWeakness

Solution


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ISSUES


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Bringing two very different cultures together.

Selecting the top layers of management for the newcompany as there were 120 people for 65 seatsavailable.

Talented people from both sides were leaving.

Competitors are head-hunting the in-houseemployees.

Need to demote several performing employees.


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StrengthWeakness

Solution


7/20

Steve planned to close a DeWaal plant in Indonesiabut Kasper was against it.

Christian Meyer wanted to do a lot of testing of theexecutives 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.

IndianInst

ituteofManagementRa

ipur

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StrengthWeakness

Solution


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POSSIBLE ALTERNATIVES


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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 andMarketing US and Europe)

Give the employees an incentive and motivation tostay associated with the company.

Find different use of the existing facilities.

( Eg: Indonesian Plant)

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ituteofManagementRa

ipur

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StrengthWeakness

Solution


10/20

Alternative 2

Performance Evaluation- Grading the employeesbased on their capabilities and then selecting thebest

Retain the one who is better in comparison to thecounterpart.

Assessment of the Indonesian plant and otherlocations through a third-party consultant ( to avoidconflict ). Shut down the ones that are notnecessary

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ituteofManagementRa

ipur

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StrengthWeakness

Solution


11/20

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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ituteofManagementRa

ipur

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StrengthWeakness

Solution


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Alternative 4

Choosing the best option as per the situation.(Mixof the Alternatives)

Being transparent with the employees andexplaining the future course.

Present a positive picture to media. Givingstatement on the acquisition that there are is notension between the two heads.


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StrengthWeakness

Solution


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STRENGTH / WEAKNESS ANALYSIS

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Raipur

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Strengths

Lot of cash reservesmeasuring up to $8 billions.

Larger and MultinationalMarket.

Economies of scale andstrong distribution network.

Large and skilled work

force available at hand.

Loyalty of employees.

Reduces attrition rate.


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StrengthWeakness

Solution

Weaknesses

Cross-cultural differencesmay arise.

Restructuring theorganizational hierarchy

Relocation of employees.

Employee expenditure ishigh. (salaries and

trainings etc.)

Alternative 1


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Strengths Scientific approach to know

who is good and who is not.

Identification of talent andfacilitate their growth.

Objective oriented approachcan help the organizationgrow.


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StrengthWeakness

Solution

Weaknesses

The grading / evaluationsystem may not always be

accurate. May lose valuable

experienced employees.

Can lead to conflicts in thesenior management.

May result in pooremployee loyalty

Increases the attrition ratedue to lack of trust.

Can lead to bad Press.

Alternative 2


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Strengths Gives time for the management

to focusstrategy and planaccordingly.

Opportunity to call back theemployees when required.

Outplacement can give moreexposure to the employees.

Employee loyalty.

No bad press.


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StrengthWeakness

Solution

Weaknesses

Increased expenditure onthe employees.

May lead to increasedattrition rate if kept onleave/outplacement forlonger duration.

Alternative 3


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BEST SOLUTION

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nstituteofManagement

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Pre-acquisition

Due diligence Identify the cultural barriers

Integration of the prominent functions

Negotiation

Creating a Foundation

Strategy Formulation

Role of Integration ManagerTop Management Selection

Acquisition and Integration workoutRestructuring


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StrengthWeakness

Solution


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Rapid Integration

Course AssessmentEffective Communication Strategy

Addressing Employee Concerns

Implementation

Assimilation

Long-term Plan Evaluation and Adjustment

Cultural IntegrationConflict Resolution

Capitalizing on SuccessMaintaining loyalty of employees


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StrengthWeakness

Solution


20/20

THANKYOU

IndianI

nstituteofManagement

Raipur

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seca_group10_who goes, who stays

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