Whitbread Plc and Change Management

Traditionally a vertically integrated brewing company, Whitbread (WB) had to case a new market situation in 1992. Anti-monopoly regulations hold the companys opportunities to profit from economies of scale and further egression opportunities in the beer industry. As a consequence, WB proactively started to diversify and fester a leisure division that was successfully headed by dean doubting Thomas, who was appointed CEO in 1997. At that time, it seemed clear to outsiders that the beer occupancy would not be profitable in the long-run. However, Thomas adhered to WBs legacy and tried to close a bulky reckon to acquire new pubs. Only after the deal had failed, which triggered a severe company crisis (WBs stock cost crashed, Thomas reputation and credibility were harmed due to his failure to all the way communicate and explain his strategy internally and externally), he accomplished that an overall strategic change was necessary. Consequently, he sold the beer strain in 2000 and focused solely on the leisure business. The distinguish challenge was to transform the operations-focused single business suffering from transfer underperformance into a high-performance and brand-led multi-business company. In a first step, Thomas unfreezed the organization and restructured it to a decentralized federalization.

He significantly trim back the headquarter staff and eliminated duplicated positions, but he missed to strategically fructify and clearly communicate the role and added value of the headquarters as well as the employees responsibilities. The new structure increased the self-reliance of the divisions and its managers, which created latitude for opportunistic behavior. This was further aggravated by the position that the divisional heads did not have to team up on strategic issues and individually reported to the CEO and CFO. Thomas, who was known as being collaborative and consensus-oriented, neglected to form a cabbage management team that worked together jointly and whose members identified not... If you emergency to get a full essay, order it on our website: Orderessay

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