Managing organizational change (MBA course) Essay

Managing organizational change (MBA course) - Essay Example Sandoz was a profit making company that had transparent and defined marketing strategies with a number of products, employing fewer people (69 employees); whereas CG, a loss making company (129 employees) was a laid back attitude and heavily dependant on sale of one product Voltaren, that had generic substitutes, and the marketing was based on giving heavy discounts to achieve quarterly targets. These opposite cultures clashed with the merger. The result was that, feeling strangled, the Sandoz staff left the company through a golden handshake and the CG culture prevailed over NT. The lethargies of CG became the norm resulting in plummeting sales and mounting losses. Under Thai regulations the merger meant merger of Sandoz into CG thereby creating a new entity called NT. This led to the exodus to the Sandoz staff, and the CG culture and practices prevailed. The remaining Sandoz staff were unable to accept this practice and all but 12 left the company, after bitterly criticizing the CG ways and matters deteriorated with the new NT manager also leaving in early 1997. NT was rudderless and without objectives and goals. Fritz the new manager appointed to check and reverse the ills of NT was sent to Thailand in 1998, two years after the merger, with a mandate to raise market share and to improve management effectiveness across the organization. His clear mandate required him to turnaround the company and he handled it initially with the motive of streamlining the operations by first defining the team and team roles. He wanted to establish a hierarchy of reporting that looked like a cobweb with cross reporting resulting in loss of communications. He also found many malpractices that were either a result of corruption in the culture of the company or simply cover-ups for showing improved but false sales performances. He quickly made a situation analysis and identified