Seagram's Case Study Summary

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A nationwide recession of the early 1990s compounded by increased taxes on liquor and government regulation the liquor industry that Seagram’s was a major contributor, sales flat lined across the entire industry. With a tight economy and slow sales Seagram executives needed to strategically reorganize the company’s business philosophy to remain profitable. This strategic reorganizing leads the organization to expand into Asia Pacific countries and purchasing majority ownership of the entertainment company MCA. Diverse acquisitions generated problems that required Seagram’s to reengineer and unify the fusion of managers and employees that have been obtained. The reengineering identified the culture change required within the organization. …show more content…
Seagram’s business philosophy was strongly rooted in diversification even in the 60’s and 70’s and continued that philosophy through the 90’s. The executives of Seagram’s failed to recognize the culture shift of workers that statistically don’t work at one company for the duration of their careers as with previous generations of employees. Compounding the lack of unity among the vast employees of Seagram’s was the fact that Bronfman single-handily developed a governing values for the company to abide by. This top down dictatorship from Bronfman was met with interrogation and skepticism identifying he lacked the art of managing an organization. Bronfman failure to recognize the key to Seagram’s success to was to transform the way they functioned. This failure lead the company away from a task-driven organization to the antiquated bureaucratic business model when Seagram’s was first founded in 1924. In …show more content…
The employees want to feel trusted and allowed to utilize their creativity in the workplace. The task alignment solution provides employees with the understanding of why the change in culture is needed, then allowing managers to focus on formal structures. With these structures in place managers can begin to set SMART goals for employees to provide feedback and prioritization relative to these goals. These goals will help employees understand cultural reorganization and how they impact the overall organization. With corporate leaders developing the overall cultural scope and strategic positioning required, allowing the managers and their reports the authority to develop the cultural atmosphere best suited for their facility and provides the organization the mind-set needed for managing

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