Strategic Human Resource Research

Strategic Human Resource Research

March 30, 2008

University of Phoenix

MBA 530/MBAA0BB5E6

Instructor: Angela Nixon

Strategic Human Resource Research

In the $8 billion dollar institutional and industrial cleaning and sanitation industry, success is no longer about which products best cut through the grime or kill the most germs. As the industry evolves, clients are more and more interested in not just products, but solutions and services that will streamline their cleaning efforts in the wake of more stringent requirements for environmental safety.

Health care clients, for example, are continually faced with new regulations governing the maintenance of their sterile environment. Cleaning companies can offer greater value to these clients by providing turn-key solutions that include product training for employees, regular monitoring and info-sharing of new relevant regulations and, in some cases, full cleaning service contracts. Retail customers have shown interest in similar operational solutions.

For InterClean, Inc., a major player on the sanitation scene, future profitability hinges on fulfilling this emerging need. Currently, the sales force excels at demonstrating and selling product, but under the newly proposed solutions/service model, reps will be grouped into multi-functional teams prepared to support InterClean�s high-quality products with high-quality service.

They’ll be instructed in development of full-range service packages tailored to individual accounts. They’ll be trained to engage directly with facilities managers, health care professionals, and operational executives in their customers' organizations. And this will all happen in 90 to 180 days, when a marketing blitz announces the launch of InterClean’s new service focus.

Gateway by In order for InterClean to improve their inter culture with EnviroTech lets Benchmark against Gateway. Founded in 1985 in an Iowa farmhouse, Gateway has grown into one of America's best known brands with millions of satisfied customers. Starting with a $10,000 loan guaranteed by his grandmother, a rented computer and a three-page business plan, Ted Waitt turned Gateway into a revolutionary company whose innovations helped shape the technology industry. Gateway is now the third largest PC Company in the U.S. and among the top ten worldwide. (Gateway.com/about)

Jeffrey Brut, author of the article, "Gateway: Cost cutting, Refocusing Will Lead to Profitability" explains how Gateway plans on cutting cost and reaching its goal. In year 2004, the President and CEO of Gateway Inc., Wayne Inouye, had made plans for "bringing back the PC maker back to health." (Burt, 2004) The plans were to cut operation cost by reducing the workforce and implementing new ways to sell their product.

Gateway had recently bought out eMachine (for $235 million) and Inouye decided to close down "Gateway's 188 retail stores and reaching agreements with several major retail outlets from Best Buy Co. Inc. and CompUSA Inc. to Office Depot Inc.to carry Gateway-branded products on their shelves." (Burt, 2004) This move would help Gateway keep their new product eMachine on the lower end and sell their high end product in retail outlets by making it distinct. They also plan on shutting down their own manufacturing and outsourcing the job to "ODMs, a move that should reduce Gateway costs by 14 percent." (Burt, 2004)

“Acer agreed on Monday to purchase the American PC maker, it wasn't shocking, since more than a few pundits would say Gateway's acquisition has been several years overdue. But at a $710 million purchase price, it's a comedown for a company that in 1997 was offered $7 billion to become part of Compaq Computer (which was eventually acquired by Hewlett-Packard).” (Ogg, 2007)

Acer won't be axing any jobs from the ongoing acquisition of computer brand Gateway, according to company Chairman and Chief Executive Officer J.T. Wang. In fact, he's had to fend off many inquiries on whether his strategy to get ahead of Chinese personal computer manufacturer Lenovo (OTC: LNVGY) with the Gateway acquisition and the purchase of the European PC brand Packard Bell is wise in a market where margins are so thin and changes are so rapid.

Due to Gateway InterClean can learn from Gateway’s failure of mismanagement . Gateway’s internal communications and unwillingness to sell cost them over $6 billion in potential revenue. If InterClean plan works out maybe they will not chose to bypass a generous buyout offer.

InterClean can learn from Gateway’s failure of mismanagement. Gateway’s internal communications and unwillingness to sell cost them over $6 billion in potential revenue. If InterClean plan works out maybe they will not chose to bypass a generous buyout offer. There are many transformations a company can go through. InterClean is changing the way they do business to keep up with new regulations governing the maintenance of sterile environment for health care clients. Also, InterClean is merging with Enviro Tech, to achieve a better position in the market.

There are many factors involved in mergers including organizational structure and cultures. Mergers have been unsuccessful when the merging companies do not or cannot align along these lines.

UPS by On December 19th, 2004, the ubiquitous shipping conglomerate, United Parcel Service, completed its acquisition of Menlo Worldwide Forwarding, a global freight forwarder for $260 million. Despite the apparent bargain price paid by UPS, the integration was so severely mismanaged that it led to profit erosion and the only reduction in force by UPS in its 100 year history.

Menlo was a provider of global logistics solutions including a full suite of heavy air freight forwarding services, ocean services and international trade management, including customs brokerage, with revenues of about 1.9 billion. UPS had been assessing the capabilities of middle market freight forwarders for years to “expand its global capabilities and add guaranteed heavy air freight services around the world, enabling customers to reach the global marketplace faster.” (Business Wire, 2004)

With the acquisition of Menlo Worldwide, UPS had gained one of the last capabilities it needed to become a complete solutions provider, however, knowledge of the organizational capability of Menlo was almost nonexistent among UPS