This case study about the merger of two beverage companies (company A and B) to form a medium-sized wholesaler company (“Super Beverage Company”.
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Company A: Known for its dynamic and profit-oriented approach, Company A has a strong track record of growth through strategic customer acquisition. The company culture emphasizes efficiency and flexibility, with employees often working overtime during high-demand seasons to meet customer needs. Financial decisions are driven by profitability, demonstrating a keen focus on financial performance.
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Company B: Company B has a more relaxed and employee-friendly work culture. They prioritize work-life balance, with strict adherence to regular working hours. Their financial approach is less aggressive than Company A, focusing more on steady growth and maintaining a comfortable work environment for employees.
Frequently, company mergers are viewed with suspicion by the employees on both sides, especially at the beginning. However, this does not always the case, but that initial excitement does not mean a totally smooth change.
The merged company (Super Beverage Company) now employs around 90 people. It was formed in 2011 from the merger of the two specialist beverage companies (A and B). These companies have a successful history of cooperation on several levels, particularly in purchasing.
In an environment of fast business growth, mainly achieved by gaining new major customers, the employees of both companies felt good about the merger. This positivity was because, unlike many mergers aimed at cutting down employees to save costs, this merger did not plan to reduce the workforce. Also, the employees and management of both companies were familiar with each other and had previously worked together smoothly. The excitement was further boosted because the merger created something new, with neither company dominating the other. Evidence of this was their move to a new, bigger, and more modern offices, and the equal representation of partners from both companies in management.
However, the financial contribution was not split evenly at 50% each, as initially thought, due to the greater financial power of one of the companies. To promote teamwork from the beginning, professional half-day team-building workshops were organized in all departments. Despite these promising starts, challenges soon emerged, stemming from the different cultures of the two companies. This was especially evident among the employees. In the beverage industry, which is seasonal, the demand and workload significantly increase during hot summer days, resulting in an increase in workloads in tasks like restocking and handling returns.
In the first of the two merging companies, Company A, employees routinely worked extra hours during busy periods to meet customer needs quickly. In contrast, Company B always stuck to their fixed closing times, no matter the season. This difference in work practices caused some tension among the employees. However, this situation led to some changes on both sides. For instance, several Company A employees began to appreciate the idea of leaving work on time, regardless of the workload. Meanwhile, some from Company B started to adopt the work ethic of putting the company`s success first.
Instructions:
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Work together with your group member to critically answer each of the questions listed below.
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Use question and answer format.
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One group member is to submit the report via the designated D2L Dropbox by the due date/time.
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Before submitting your assignment, please check it through Turnitin. Any instance of academic dishonesty (including, but not limited to plagiarism, and AI-generated text) would result in an appropriate penalty.
