The current situation of operations at Seagrams was a hierarchy structure put in place when the company first commenced. The culture was based upon “individualism, entrepreneurship, authority functional pride, and personal relationships”. (Jick and Peiperl, 2011 p.256). If the company had any chance of becoming successful in the future and moving out of the simply maintaining the status quo into diversifying and becoming a “best managed beverage company” then significant changes needed to be made at all levels.
In 1992 the operating income growth of the company’s core spirits and wines business stalled. This was due to the “new sobriety”, tax increase on liquor, recession, government regulations and social criticism of spirits market. Edgar Bronfman and the Seagram executives recognized the need for repositioning and redefining the company’s competitive edge for future success. This was done by expanding into the Asian market, acquiring fruit juice business, purchase of entertainment company, MCA. However, even with this expansion it became clear the leadership and they recognized the drive to change needs to be made from top management as this would eventually effect all areas of the …show more content…
The company decided to place employees in small groups to help redesign and streamline key business process. This fits in with the quote from Sam Walton, “Outstanding leaders go out of their way to boost the self-esteem of their personnel. If people believe in themselves, it's amazing what they can accomplish” (http://www.inspirationalquotes4u.com/waltonquotes/index.html). By going through this exercise it was evident there were significant barriers to progress exist. However, the top priority of these teams was to figure out what the customer wanted which would provide insight into how to bring growth to the
In 1992 the operating income growth of the company’s core spirits and wines business stalled. This was due to the “new sobriety”, tax increase on liquor, recession, government regulations and social criticism of spirits market. Edgar Bronfman and the Seagram executives recognized the need for repositioning and redefining the company’s competitive edge for future success. This was done by expanding into the Asian market, acquiring fruit juice business, purchase of entertainment company, MCA. However, even with this expansion it became clear the leadership and they recognized the drive to change needs to be made from top management as this would eventually effect all areas of the …show more content…
The company decided to place employees in small groups to help redesign and streamline key business process. This fits in with the quote from Sam Walton, “Outstanding leaders go out of their way to boost the self-esteem of their personnel. If people believe in themselves, it's amazing what they can accomplish” (http://www.inspirationalquotes4u.com/waltonquotes/index.html). By going through this exercise it was evident there were significant barriers to progress exist. However, the top priority of these teams was to figure out what the customer wanted which would provide insight into how to bring growth to the