Business / Situation Analysis And Problem Statement: Interclean, Inc
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Autor: anton 16 March 2011
Words: 1093 | Pages: 5
Situation Analysis and Problem Statement
InterClean, a cleaning product solution company, is one of the leaders in the sanitation industry. David Spencer, InterCleanÐŽÐ‡s CEO, believes that for the company to stay as a major player, it needs to meet the new regulations and change their selling point from cleaning products to customized solutions. In order to find the best solution for InterClean to succeed in aligning organizational structure around the new model, current issues and opportunities needs to be described, any problems needs to be framed, and goals need to be defined.
The sanitation industry is changing. The clients no longer just want products but also customized solutions and services that will help meeting environmental safety requirements. Currently, InterCleanÐŽÐ‡ sales force is trained to demonstrate and sell the products. David Spencer wants to change the current model to solution/service model. Under this new model the sales force will develop customized service packages for each client and have close relationships with clientÐŽÐ‡s managers and executives. The successful acquiring of EnvironTech, a competitor and have customer service expertise, will give InterClean better position in the future.
First issue is that the current sales force does not have knowledge regarding customized client service solutions. Looking at Carol StanleyÐŽÐ‡s, an internal consultant, note on current sale team members demographic data (Attachment A), most of the sales force do not have skills in customer service, communications, and compliance and regulatory, which are the key items in the new customized solution model. Training in sanitary regulations, products information, and building customer relationship is needed to the sales force to align with business direction. Second issue is changing the current organization structure to meet the new business vision. Because many employees are adapt to the current business vision, changing business vision will lead to many problems such as low morality in workplace, job security issues, and changing benefits. To make the successful transition, InterClean needs to ÐŽÂ°motivate change, create a vision, develop political support, manage the transition, and sustain momentumÐŽÂ± ( Dreher and Dougherty, 2001, p16). Third issue is acquirement of another company that is already aligned with InterCleanÐŽÐ‡s vision. InterClean will benefit from the expertise but also needs to be careful not to scare the current employees. Any voluntary leave of current employees, such as Mary in sales, will affect the company because ÐŽÂ°turnover is costly because replacement must be recruited, selected, and trainedÐŽÂ± (p115). Fourth issue is mistrust within the executive levels. Mistrusting within the top management will lead to un-smooth transition in the working levels. The executives must be aligned with the vision before any others in the company. Last issue is the time limit of six month for the transition to take in place. Six month is very short time to make the change. InterClean needs to make sure that there arenÐŽÐ‡t any problems when making the transition.
There are several opportunities when InterClean makes the change and acquire EnviroTech. First, InterClean will be a leader in the service solution in sanitary business domestic and worldwide. By being one of the first companies to meet the clientÐŽÐ‡s needs and by acquiring EnviroTech, InterClean will gain larger market share then any other companies. With successful media blitz, InterClean gain new business from all around the world. Second, the employees at InterClean will have vast knowledge from environmental safety regulations to communication and relationship with the clients. Lastly, the company will have organizational structure aligned with the new vision.
Most of the executives at InterClean believes that by changing the companyÐŽÐ‡s vision and organizational structure toward that vision, will able to gain opportunity to expand the company. Some of the InterClean employees view the change as good thing and that it maybe a step toward increasing their values. However, they feel that their job is threatened because of rumor that new employees will be hired but no news regarding re-training. Sally Lindly, CEO of EnviroTech, believes that EnviroTechÐŽÐ‡s employees will take leading role in sales and marketing. EnviroTech employees see their company being acquired as an opportunity because they will receive additional funding and support.
InterClean needs to make smooth transition of current to new organizational structure based on the new vision. By acquiring the experienced company will give boost to the companyÐŽÐ‡s step toward the vision but may also make noise within the current employees at InterClean. InterClean needs to come up with aggressive and thorough training plan for the current employees.
InterClean will strive to become world-wide customized sanitary solution service company by re-organizing organizational structure, training the current employees, giving seniority to current workers over the new employees, successfully merging with EnviroTech, and have a successful media blitz.
InterClean needs to fulfill the following end-state goals to achieve their plan to become industry leader and provide customized solutions with educated sales force. First end-sate goal is InterCleanÐŽÐ‡s human resource team aligned the organizational structure to meet the new vision. By having organizational structure aligned with the vision, InterClean will be able to have organizational capability. Because it is how they manage their workforce that gives competitive advantage and not the technology, neither patents, nor the strategic position (p5). Second end-state goal is successful merger with EnviroTech. Successful merger means that InterClean was able to bring the new company under new structure, gain expertise from EnviroTech, and had no or less problems with current workers interacting with EnviroTech employees. Third end-state goal is all sales force is trained well and is capable of providing customized solution to the customers and have up-to-date knowledge on current environmental safety regulations in each clientÐŽÐ‡s industry. Fourth end-state goal is having almost no turn-over during the transition. Loosing employee is costly because the company can lose the clients that were related to the employee. Fifth end-state goal is being the leader in the industry and expanded to new markets. As the leader in the industry, the company is the first to give new solutions and also gained compliance-related services business.
To become the leader in the industry and have a smooth transition, InterClean needs to understand the current issues and gain the opportunity by achieving the end-state goals. InterCleanÐŽÐ‡s plan to make the transition with in a short period of time can not be achieved without aligning all employees views regarding the new service model. By having a plan that benefits both the company and the employees will lead to one step closer to the goal.
Dreher, G. & Doherty, T. (2001). Human Resource Strategy, 1st Edition. The McGraw-
Hill Companies. Retrieved May 16, 2005, from eBook Collection.
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