Black & Decker International: Evaluating the Plan for a Global Lock Business
Fred Grunewald’s plan for creating a single global lock business is ambitious yet achievable. Grunewald’s experience working with different countries makes his plan feasible, especially with the acquisition of Emhart Corporation. The two factors form a solid foundation for the planned technostructural and strategic changes (Cummings & Worley, 2009). The acquisition of Emhart Corporation brought to Black & Decker eight separate company brands and their individual experiences, both domestically and internationally. Grunewald’s plan to consolidate the eight companies to form a global lock business to improve efficiencies by horizontally linking the eight companies and leveraging knowledge …show more content…
Grunewalds’ plan requires significant structural and strategic changes; they include many organizational infrastructure changes, technology system changes, process changes, and establishment of a common vision, performance goals and targets. The implication to the organization is the plan creates a new organizational structure and several layers of management or focal points within each lock company; this structure can disrupt and alienate the existing leadership of the eight separate companies. Additionally, with a new Global Sales and Marketing group, the various companies must work through a liaison, creating less autonomy. All of these have significant implications to the eight separate and unique lock companies; each company will lose their decision-making, and marketing and operations autonomy (Rantakari, 2008). While Grunewald feels that consolidation brings great advantages, he must consider that each company has long-standing traditions and independence; there is a high probability that the separate companies will resist the change and disrupt the productivity of the separate companies (Johnson-Cramer, Parise, & Cross, 2007).
To help facilitate the change and integration of the various companies under the global lock business umbrella of companies, a global strategic orientation design is required to be successful at standardizing and