InterClean, Inc is an eight billion dollar institutional and industrial cleaning sanitation business. The company is going through some major changes. The company is in the process of switching it business a product based selling to a solution based selling company. The president and CEO of InterClean David Spencer and Sally Lindley, CEO of EnviroTech Inc. have discussed the acquisition of EnviroTech by InterClean. This merger would work out perfectly because it works out very well with interClean new strategic direction. With EnviroTech expertise and interClean resources, InterClean expect to reach their sales goal for the next year, which should increase profitability by 40 percent. By making this move InterClean will secure and also dominate a large market share. If this procedure is successful InterClean will be able to venture into other markets. By expanding their services into other markets InterClean will be able to retain the current customer it has now and bring in new customer as well. The company will generate more money and by doing so the company can provide the necessary training that the employees will definitely need since they will be going into new territory.
Opportunities and Challenges
The challenges I see is that InterClean and EnviroTech does not want a hostile takeover since three of EnviroTech Senior Sales Specialist are anticipating being named the sales and marketing leadership team for the new company. Another challenge is analyzing the information to make the best possible decision and preparing the staff for the potential out comes. With this acquisition, InterClean had taken a giant step in achieving domestic market dominance in the sanitation industry. Their will be a need to provide extensive training for employees in all department especially in the sales department. Since some of the employee's morale is very low they need to be provided some kind of program to help build the morale in the employee and leadership team. InterClean employees are not excited about the merger and at this point do not know where they stand. The new merger is set to take place in 90 to 180 days and this really does not give them a lot of time to do a whole lot of planning.
There is a problem and the company is well aware of it. It is worth taking the time to solve. First the company has to get everybody to see the new direction that they are heading in. They need to have meeting and insure all employees that they are being heard and that they will get the necessary training that is needed. The employees need to be told that the policies and procedures will be discussed with them and if there is a problem that it will be addressed. Employees have to know that they are a value and an asset to the company.
The opportunities are wide open they have the opportunities to expand the business and branch off into other markets. The problem is with the merger each CEO has to put their personal feelings and personal goals aside and think of the merger as a whole and what they hope to accomplish. It is worth solving because both Sally Lindley and David Spencer have a successful history with their company's and they do not want to lose all they have worked for to get to this point in their careers.
With all that is going on in the company at this point all InterClean wants is to make a smooth transition. The company was built on trust and this is what they are looking for.
If and when the transition does finalize the company will benefit for years to come. There is so much the two companies will gain from the merger. They will increase accountability and this will make a lasting impression on the customers and bring in new customers as well as help to save customer that they are servicing most.
According to McShane and VonGlinow (2004), the following are some of the goals pr practices that must be instilled in the members of the InterClean and EnviroTech Staff. Influence employees and provide employees with a work environment that is conducive for growth and achievement of organization objectives. Motivate employees to help them reach their full potential. Define the roles and responsibilities of every employee.
Holding on to all of the current employees and staff is crucial.
The company is proposing to launch it new strategy in 90-180 days and again this will increase their revenue. With all the movement going on InterClean the company should see little or no loss of employees. All employees whether new or current should be trained on all new product and services. One thing that he company must do is meet with all the employees and stress to them how important it is for them to support the new strategy. The company with this merger hopes to become an industry and global leader.
According to Kreitner and Kinicki (2004) the goals are supposed to be specific, measurable, attainable, and result-oriented and time bound
InterClean, Inc a successful industrial cleaning and sanitation industry company has been very successful in their line of business. InterClean will become a much profitable and much stronger organization at all levels by building a trustful relationship with it stakeholders current customers and potential customers. Some of the problems that the company must focus on are the facts that they are losing some of their current customers and this is affecting their revenue. The employees are not sure what they are suppose to do or be doing and they need to be told exactly what it is they are need to do to keep this company running smoothly. Since InterClean and EnviroTech are merging there is a hostile situation that is going on that has to be stopped. The two companies has to inform their staff of exactly what is going on and what is expected of them. The company only a has a very short time to make this more and they need to make it as smooth as possible for all involved. Be advised that they are switching from a product based selling company to a solution based selling company.© BrainMass Inc. brainmass.com June 3, 2020, 5:18 am ad1c9bdddf
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Focusing on human capital concepts, this solution discusses how InterClean to change the type of organization it is.