Brief Overview of the Organizations
Great White Capital (GWC) is an enormous Wall Street-based investment company. Great White Capital is recognized for its “tough on target” philosophy on Wall Street. They are looking for small businesses with a solid competitive position but ineffective supervision. Great White Capital is well-known for its 24-hour “War Room,” where a purported superb team of accountants and logistics executives vets the enterprise that Great White Capital is about to acquire, ensuring that they maximize their profit from the transaction. Staff turnover at Great White Capital is approximately 25% per year, with an average tenure of about four years for management. Great White Capital takes excellent pleasure in its status as authoritarian culture.
Beach Ltd. is the largest manufacturer of beach goods in the world. They are profitable, have a competent steering committee, and have an exceptionally devoted distribution base. They are based in Paris, France, and have operational facilities in China, Vietnam, Brazil, and international suppliers. As stated in their purpose and brand statement, “to foster the Art of Perfection in all its manifestations,” the administration of BeachCo is determined to achieve optimal sustainability objectives and act responsibly through their Ecological and public administration statement. BeachCo’s vision statement states that the attractiveness of an area stimulates the brilliance of the mind and that the magnificence of their resorts is complemented by the excellence of their service. Their ethos and principles serve as an example for the rest of the Group. Trust, collaboration, Mauritius, inventiveness, professionalism, know-how, and stability have contributed to our growth from creators of the BeachCo Ltd. Mauritian hotel industry to industry giants. These eight fundamental principles, developed in partnership with their employees, motivate BeachCo’s strategy, purpose, and Unique Selling proposition and drive functional performance.
When looking at the human resource practices of the two organizations, three major players are involved in the acquisition of BeachCo Ltd. The first is GW Sharkey, a rising star at Great White Capital. GW is extremely optimistic about the BeachCo deal, believing that he will uncover some undiscovered earnings. Nevertheless, GW has a significant flaw: he is not a particularly active listener regarding his reporting staff. Thus, this could present significant complications during the acquisition process since he may overlook essential details. Bob Quinn is an employee at Great White, and he has worked with the company for three years. As a result, he was drawn to Great White’s status as a corporation that “kicks butt.”
On occasions, Bob is more empathetic than his colleagues, and he considers that the takeover of BeachCo Ltd is a bad idea since Great White is not paying a fair amount, and BeachCo Ltd is not being led by specialists. In addition, the two cultures would cause problems after the purchase is finalized. For the previous 18 years, Marie Clouseau has served as general manager of BeachCo Ltd. She is a classy, intelligent woman who is extremely neat and presentable. Her interaction with her workforce is exceptional, to the point where she serves as godmother to a number of their children. She has demonstrated good business sense and has been incredibly giving in her community’s charitable circles. She is regarded as the Matriarch of BeachCo and is also seen as being beach.
Analysis
To “sell” this purchase to the Great White Capital Management board, G.W. Sharkey needed to make some commitments. He pledged to depart BeachCo alone and that the takeover would provide Great White with an excellent opportunity to acquire a worldwide supply chain network. Additionally, the unique mixture of the White administration and the BeachCo logistics system would make the acquisition a no-brainer. BeachCo Ltd has a long track record of success, and their headquarters is situated in Paris, France, and they have manufacturing facilities in China, Vietnam, and Brazil. In addition, they have merchants in every country. Marie Clousseau, the corporation’s general manager, has been with the organization for 18 years and leads a competent executive team. The leadership group, which consists of 21 members, has been in place for ten years. The 850 colleagues functioned well together and resolved business and consumer service challenges without incident.
BeachCo is more akin to a family-run business that demonstrates its appreciation for its employees. GWC’s philosophy is that “we know better,” and they have no interest in learning anything new from the businesses they acquire. GWC recognizes that BeachCo needs expansion, and GWC’s funding is the vehicle for such expansion. By acquiring BeachCo, GWC’s strategic activities will flourish now that they will have a connection to BeachCo’s global vendors and to BeachCo’s significant European foothold, both of which are critical to GWC. GWC has chosen to close the BeachCo back headquarters and consolidate operations at their closest location. Therefore, this will almost certainly make it more challenging for current BeachCo personnel to relocate and switch to a new workplace, potentially in another nation, pushing many to quit. As a result, this will benefit Great White’s strategic human resource management efforts since Great White will hire new workers who share the company’s attitude and values.
Additionally, Great White intends to remove the twenty-one-member executive team within the first year of acquisition. Bob Quinn, who has been opposed to the merger from the outset, came to Paris to examine BeachCo’s customs and parallels to Great White, but nothing materialized at the time. What does occur is catastrophic for BeachCo staff since Great White Capital discontinues the partner compensation package in favor of a “Super Star” incentive scheme that benefits senior supervisors more than BeachCo members. This bonus adjustment will affect approximately 75% of the BeachCo workforce. In addition, daily, BeachCo personnel went to their restaurant for a free meal. Great White eliminated this benefit as well, and the “lunch queens,” all of whom had worked for BeachCo for many years, were laid off and given a small severance compensation.
These modifications in laborers’ perks were significant because BeachCo’s workers demonstrated that they valued their commitment and dedication. When Great White eliminated all of these incentives, employee engagement took a knock. Moreover, Great White intended to liquidate BeachCo’s corporate room and consolidate operations at the nearest Great White location. If a significant number of BeachCo individuals cannot make a move, Great White will have to substitute them. Thus, this would advantage Great White since they would be permitted to employ and pick individuals who shared the company’s “take no prisoners” mentality. Furthermore, it would eliminate any international human resource administration opportunities.
Not having some of the 850 BeachCo workers work in Great White Offices would undoubtedly generate some inclusive workplace and racial pluralism in any of the Great White offices where BeachCo personnel begin working. Finally, there is the collateral damage to Marie Clouseau. She clearly spent years growing BeachCo into a well-respected, respected firm, and now Great White Capital is ruining her enterprise. Marie’s numerous authorizations to award credit to clients, complete a new report for no rationale, and receive applications from individuals at Great White Capital were all disregarded by GWC. Moreover, distasteful emails requesting a response and the point where she was not even permitted to book first-class under Great White Policy, it would be appropriate if she considered retirement. It is quite clear that regardless of what Bob Quinn accomplishes (maybe I can arrange for someone to assist you in catching up), G.W. Sharkey desired to acquire BeachCo only for connection to its supply networks.
Recommendations
Before Great White Capital made this acquisition, the two human resources functions should have convened to consider the repercussions of a combination. Despite Great White Capital’s G.W. Sharkey indicating he wished to depart BeachCo alone, it was a tactic to convince the Great White Board of Directors to view things from his perspective. Dispute between the two groups was unavoidable, notably since BeachCo was a foreign corporation, and many procedures most likely did not fit both enterprises.
Considering Great White Capital is based in the United States, this renders the United States the mother state of Great White Capital and France a hosting nation. Moreover, the labor legislation of the United States deviates from France’s employment rules, which the European Union now administers. Now that Great White Capital has acquired BeachCo, with factories in China, Vietnam, and Brazil, and suppliers globally, it is a multinational company.
Great White’s human resource department is presently overburdened. As multinational corporations, businesses must be equipped for the varying regulations of the nations they will have the personnel (Milliman & Clair, 2017). One element in the case analysis that needs emphasis was that Marie Clouseau started getting a large amount of documentation from Great White, including equal employment opportunities reports (EEO). Why would a now worldwide corporation, based in the United States, be interested in EEO in France? The European Union is the regulating authority in France when it pertains to some of the labor standards, as is France. The United States policies and guidelines would not influence French personnel. Marie also reported to Bob Quinn about obtaining 10-page performance reviews. Ten-page work assessments do not fulfill the threshold for appropriate performance administration. The individuals who utilize a performance metric must understand that it is not excessively time intensive.
One modification that the HR department of Great White Capital can make is to engage with the HR team of BeachCo to explain the transformations that will be occurring now that Great White has finalized the takeover. The synergy between the two groups is vital, although the assumption is that the HR group from Great White will be quite aggressive. The primary concern in this whole deal is the mindset and conduct of G.W. Sharkey. Mr. Sharkey was originally known to have a challenge listening to his junior employees, and he pledged the Great White governing body that “we will leave BeachCo alone.” As a result, this was not the scenario, and G.W. Sharkey had arrangements in place well before the committee had to accept the acquisition.
By stripping away the partners’ bonus scheme, doing away with their free meals, and dismissing the lunch ladies from their roles, G.W. Sharkey demonstrated to the workforce of BeachCo how activities were going to be. BeachCo associates would be the “lower class” members of the newly united corporation, and that the top management would receive the advantages of their effort. Also, for the senior executives of BeachCo, they were not used to having “a 12-inch stack of paper” with tasks to do, which most Great White Capital staff would have to finish on weekend afternoons.
Concerning synchronization of the company plans, the workers of BeachCo ought to spend time with their colleagues at Great White to understand what is required of them. Great White staff should strive to describe the mechanisms to the BeachCo personnel before they decide to migrate and become French ex-pats. Therefore, this would also boost the performance of the entire acquisition. Additionally, improving productivity, Mr. Sharkey should attempt to lower the volume of paperwork and limit the number of threatening emails, such as ‘Get me my G Damn report’, as one email stated. He should make efforts to enhance the synergy between the institutions. As indicated before, Great White Capital had a return rate of around 25%, while the inventory turnover at BeachCo was less than 5%.
Lastly, as a desirable consequence, it would be essential to see one massive adjustment to this whole purchase and subsequent functioning. That modification would be the withdrawal of G.W. Sharkey from what looks to be the higher managerial post and instead appoint Mr. Bob Quinn and Madame Marie Clouseau as co-executives of this business. Marie must maintain a position where she will be able to make judgments considering how Great White Capital proceeds to engage with the multiple producers and suppliers of the former BeachCo. While initially opposed the buying of BeachCo, Mr. Quinn has considerably superior worker relations abilities than G.W. Sharkey has, and he would find it far easier to garner the same admiration accorded to Madame Clouseau.
Additionally, Mr. Quinn witnessed the contrasting philosophies between the two organizations before the acquisition and sale of BeachCo. He was apprehensive that someday the method in which Great White Capital functioned would not match BeachCo. The majority of organizations have a plan for the future and how they want to be viewed by consumers, shareholders, and the wider population. Bob Quinn as a competent leader, will guarantee that employees are informed of the organization’s goals and strategy and encouraged to incorporate them into their daily interactions.
Reference
Milliman, J., & Clair, J. (2017). Best environmental HRM practices in the US. In Greening People (pp. 49-73). Routledge.