Management 594 Case 4
In partial fulfillment of the requirements for MGT 594
Table of Contents
Case Study special application of organization development integrative case. 3
Grunewald’s plan for creating a global lock business, factors favoring, and obstacles. 3
Organizational implications of the strategy and the kind of structure, culture, and systems necessary for it to work 5
Coaching advises to Grunewald. 6
It is a dream for every company to become a global leader in its line of business with the intention of maximizing its revenue earnings and reducing the overhead costs. This perfectly matches the scenario presented in the Black and Decker Company. Achieving this concept however is only possible when a responsible manager or consultant provides a roadmap through which the objectives that have been formulated can be achieved. It this company, Grunewald serves the purpose of providing the required strategies that would drive the company to the level of being a global leader. In addition to this, the strategies would also ensure that the company has a stable market for its hardware products and be able to compete effectively with other companies who operate in the same line of business.
According to Grunewald’s plan, Black and Decker would be able to achieve its objectives by establishing a global takeover and identifying the possible businesses that would champion its lock factories. The establishment of an office of a flexible marketing manager who would ensure that all activities relating to production and packaging were well coordinated would extend this. Companies would have to be established in the countries of interest, and this would ensure that the supply to the market is easily monitored. According to the plan by Grunewald, a local champion would be established and would act as a focal point of ensuring that all the activities of the company are in line with the objectives.
In addition to plan, the office of the group product manager was to be established in Towson, Maryland. The person would act as a link between the global sales and marketing division. It is also clear from the plan that new jobs would be established with proper avenues for communication, which ensured that all employees would get the right information in time. An inter-company organization is another facet that constituted the plan by Grunewald.
In my own opinion, the plan by Grunewald is suitable for Black and Decker as it seeks to command a sizable portion of the global market in relation to hardware business. This is because it is made of workable objectives and goals, which the company can achieve easily. Having a clear communication plan is always essential for any company that seeks to have its activities running smoothly. This achieved it Grunewald’s plan.
The establishment of inter-company organization as stipulated in the plan is also significant because it ensures that the mangers are meeting regularly to deliberate on the emerging issues within the company as it seeks to command the global market. The establishment of the office in Maryland is also an advantage that this plan achieves. This is because it would ensure maximal cooperation between the sales and marketing departments. The creation of many job opportunities is also among the benefits of the plans proposed by Grunewald.
Various favor this action and its workability. Grunewald is presented as a person who has a global concept on various business ideas. This is because he has lived in three different countries and this gives him the advantage of having a better understanding on what global leadership is all about in business. Grunewald has also spent some eighteen months in Black and Decker and has probably carried out a situational analysis of the company. The other advantage of this plan is that the company itself is in dire need of commanding the global market in terms of offering hardware solutions to its customers. The wide range of competitive locks makes it to win customers preference.
The company also has a vast resource in terms of human skills, and when this is coupled with the technology in its new locks gives it an advantage. The acquisition of Emhart has also given it the advantage of reducing its competitors, and this widens the market scope.
Barriers to achieving this plan however, exist. The proposal has too many complex things that may make it hard for the company to achieve it at once. Grunewald could have provided a period where the facets of the plan could be achieve within a certain period. The company is also suffering from the negative effect of the Emhart acquisition. This is because it was forced to shield the effect of lack of funds.
Most of the funds were used in the acquisition, and this means that the company lacks the surplus funds to shield any eventuality. Market diversification is not an easy task because each country has its own rules and regulations. This will obviously force the company to adhere to the rules and regulations or cease to operate. This is characteristically provided by the letter from country X in which Grunewald tables in the meeting. There is also the challenge of integrity on cross-border as depicted on the shipment that was less by two units as quoted by the company. The plan changes all the organizational plan and culture and it is not wise to assume the possibility of having employees who are resistant to change.
The strategy provided by Grunewald has a massive effect on the structure and culture of the organization. The structure will drastically change in the sense that there is a creation of new offices like the intercompany organization unit. The effect would be extremely felt in terms of strategic, managerial and operational activities. In terms of strategy, the new plan required the company to carry out quarterly reviews of its products, which was not initially done.
This would be done at the company headquarters with specific focus on setting priorities for new products and evaluating the existing ones. This plan also changed the nature of the company because it required managers to carry out constant market research for its new products based on programs that were being developed.
This strategy also had an impact on the company in the sense that managerial meetings were now being regularly held on a quarterly basis, unlike the past. This is because there was a need to monitor all the steps being taken in ensuring that all the objectives fully achieved.
The company benefited considerably from these meetings because they were able to identify the possible market niches suitable for the locks business. This strategy also changed the company in the sense that operational activities were continually held across the world. This saw the top management being constantly motivated to work together closely. The result ensured that productivity and quality work was periodically measured. My plan of action if I was Grunewald would be to set a systematic period within which the objectives of the plan would be achieved. This would ensure that the managers are not overworked in the initial implementation stage.
Executing such a strategy for such a global company is not an easy task. In this regard, I would let Grunewald to understand the fact that challenges will always exist and this will require his perseverance and determination. Additionally, it would be beneficial for him to set a systematic framework of achieving objectives. This is because planning to achieve them at once would strain the resources of the company.
As it can be seen from the case study, the plan came at the time the company was experiencing some problems with its newly acquired partner, Emhart. This situation could easily fatigue some employees if not monitored well. It would therefore, sound wise for Grunewald to educate the employees on the expected changes and the challenges that accompanies it.
This would ensure that all employees are prepared for any eventuality. It is also notable for the Grunewald to source for funds to meet any emerging costs in the course of implementation. It is also essential to reward employees who have taken the greatest role in ensuring that the plan succeeds. This is only possible by seeking their audience when strategizing on such plans.
Cummings, T. & Worley, C. (2009). Organization Development and Change. Cengage Learning.
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