Success Cases

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For the merger to continue, everyone had to move to the buyer facility. To move into the buyer facility, there was the need to address several concerns. There was a change in location, which meant extra transportation costs, as well as changes in various benefit plans for the business, such as compensation and health care. With these changes and no additional budget, there was also the risk that employees would not work as efficiently or reliably as hoped due to a lack of motivation.

Luckily, new plans were implemented at no cost, there were savings to cover other plans, and transportation was made available to employees. This made it possible for the integration to move forward smoothly and for all employees to remain on board, and employed with access to full plans, without sacrificing budget or the quality of the work. All plans offered roughly the same benefits, private bus lines provided employees transportation, and the Life Quality program came in at no extra cost.


The creation of a new entity required the integration of 3 different companies. Doing so came with its challenges, however. The biggest challenge was actually the fact that these were three separate cultures. They each came with their own people, locations, and strategies. They had years built up into each one, with long-time staff members and trusted strategy solutions. Getting everything together, and to work properly, was not going to be an easy task. Everyone had to work together, which meant managing relatively fast changes in strategy and environment. This could lead to numerous issues during production and sale, including an increase in defective products and difficulties with getting everyone on the same strategy. Since HR received no budget, though there was some available for communications when necessary, difficulties with managing this task increased. HR had to completely integrate all three with no extra finances available. This meant relying largely on skills and experience to keep everyone satisfied.



To ensure the successful closure of a factory in a poor area, there were several steps required. Due to the challenges that faced this closing, it was not going to be a straightforward and simple process. The location was the biggest hurdle that everyone had to manage. There was a drug lord controlling the area and the area has a high unemployment rate, both of which meant there was harm to the health of the individuals involved. On top of this, output had to remain the same throughout the process. There was no desire to fire anyone or lessen productivity at all until it came time to close the factory. These challenges led to risks such as threats from the drug lord if the factory were to close down, lowered productivity due to motivation loss, and a strike. With a budget of 2 Mio Euros, 1 for Labor Claims, everything went forward smoothly. Negotiations kept everything peaceful while training allowed for roughly 80 percent of the employees to find a new job within the first month, which got them into new companies to the region that wanted the specially trained staff that could do the work exceptionally well. There were no labor claims and a savings came up to 1,9 Mio Euros thanks to the wise spending.


The closure led to the opening of a new plant, in a different city. Opening this new plant came plenty of challenges. Since it was new, it required a completely new staff within 2 months’ time, a new benefits package that met certain requirements, public transport, and branding. These are only a handful of the challenges, too. Being a completely new location, everything had to get up and running from the ground up. Doing this while also getting production on the same page it was on in Rio would require training and a sizeable investment. Risks that arose here were an untrained staff that could not meet the production quality of the previous plant as well as higher payments to get everyone trained and the benefits packages, which was a real concern since the budget was to remain the same as it was in the previous plant. Through negotiations and training, everything did get off the ground without a large increase in monthly payments. From the original 1,2 Mio Euro monthly HR expenses budget we were able to save 600,000,



After no orders coming in for an extended period, layoffs were required at the production site. This was to avoid future financial damage from the lack of any income coming through. Challenges facing these layoffs included dealing with a highly specialized workforce and a poor working relationship with the union. Due to the issues facing the relationship between workforce and management, there was a risk that employees would leave or strike at some point. It was especially troublesome if an order were to come in at some point. With a budget of 2,570,000 USD and four possible scenarios for how to manage this, the layoffs went forward as planned. Scenario three, which kept all employees until April and then began with the layoffs, was the choice. It was costly to go with this, but it did allow the site to continue working until April and then slowly cut the costs through layoffs. The savings (100,000 USD) came from a better allocation of resources


CASE 7) SHARED SERVICE IMPLEMENTATION – Further integration of new acquired units

The unification of health care providers for the entire group would allow for easier management and cost savings. Doing so, however, meant looking over plans, dealing with bids, and creating services that would greatly benefit everyone. The health plan services implemented do just that. For the employees, the services cover checkups, access to a wider selection of hospitals, “Health Days” to ensure that the health of the employees is in check, checkups for management, and better reimbursement rates. These are merely a handful of the available benefits for employees. This means that employees can expect the same, or better, coverage that they had previously. Keeping the coverage in line with the previous coverage avoids changes in cost to the employees and benefits when visiting a doctor. This applies to all employees, including those with serious illnesses. The savings per year for implementing a unified health care service came up to 300,000 USD.

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