- They hired Steve Hartman as Director of Human Resources for their experience in organizational culture, when the problem was about to blow up the company.
- The company had difficulties adapting to the changes in the business environment because for many years they kept the same organizational culture (work for many years).
- Andrew Gladstein CEO of Copper Ridge.
- Senior managers knew that the company had lost many performance goals in recent years.
- The founder decided to create another brand to sell on those careless channels and in 1960, he launched the Salt Creek brand.
- To motivate employees, they had job benefits such as free transportation, free accessories, seasonal product returns, and marketing assistance incentives.
- Copper Ridge Inc., was a bureaucracy that hired the type of people with a specific profile to follow if thinking about their organizational culture
- Its products include greeting cards, wrapping paper, ribbon, stationery, memory books
and small gifts that helped people to relate, communicate and celebrate. - Its main distributors were: Card shops,
pharmacies, grocery stores, convenience stores, etc ... - Copper Ridge, Inc. products were sold worldwide and translated into 22 different
languages. |
- The main problem is that the company did not reach the productivity goal in 7 years, then I quote:
"Over a seven-year period, the company's core brand, Copper Ridge, did not meet several of its performance objectives, which included asset performance (ROA), return on equity (ROE), performance of investment (ROI), earnings before income and taxes (EBIT), income, profitability and market share ". - However, Salt Creek, the brand of the company's mass channel, had achieved all of its performance and productivity goals.
- A generational change is taking place and this is affecting considerably the sales, since the new generation does not see so important the gratitude by means of the products offered by the brand.
- The busy consumers had less free time to buy.
- In the mid-1990s, Copper Ridge not only found that, but also the external.
- Between 1990 and 1995 sales fell very fast. (45% to 50%), this due to the loss of market share.
- The organizational cultures of Cooper Ridge and Salt Lake were very different:
"At Copper Ridge, you need a license to fish, at Salt Creek, all you need is a worm (manage and share your information with employees at all levels of the organization)." - The goal of Cooper Ridge was to please the managers and not the customer.
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- Take advantage of the tools you are implementing for Hartman, making a strategy from top management that includes a follow-up at least every 3 months to analyze whether the disruptive change has been well accepted by employees, if not, perform a reengineering of human capital.
- Make a strategic plan to combine both companies and stay with the best that each offers. It would not be a total reengineering. After this, carry out integration activities so that the employees of each brand get to know each other and begin to see themselves as a team.
- Contract an agency of MKT, to renew the image of the company, to give it more freshness, and adapt it to a new target (the new generation).
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