Definition of the Project
Seagram Sons Inc. is one of the largest alcohols distilling company that experienced new business challenges in the 1990s. The challenges encountered by Seagram Sons Inc. were increased government taxation and regulation on liquor, the nineties recession, spirits marketing criticism, sales decline, and core market erosion. The CEO of the Company, Edgar Bronfman Jr. recognized the problem at hand and resolved to redefine and reposition the competitive advantage of the company based on changing its core values ( Schein, 2016 ). The CEO took critical actions by differentiating the activities and product of the company by taking ownership in several industries such Martell USA (cognac), Dupoint (chemical), Tropicana (fruit juice beverages) and expounded its spirit business into the Asia Pacific and China.
Definition of the Current Situation
Through its exclusive vision, the company is one of the best-managed beverage company with its focus on growth, customers, consumers, teamwork, training, development, motivation, honesty and reward. The case of Seagram Sons Inc. provides details of the various steps taken to transform the organizational culture into a culture of innovativeness, openness and effective communication. This paper seeks to review the corresponding actions of Seagram Company in transforming its organizational values and culture and management style to increase diversification, company competitiveness, and profitability.
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With regard to management, Seagram Sons Inc. is concerned with building an effective image in the minds of its employees and customers. The company is managed with an authoritative attitude that involves a hierarchal management structure. Rohlinger, (2014) suggests that organizational cultures that are founded on strict hierarchies may result in weak communication between employees at different levels. This organizational culture may create a gap where employees at a lower level may lack direct access to the top management. Besides, a trust deficit between the employees and top management may also result. The trust deficit may cause deterioration in the productivity of these employees. The image issue is one of the issues facing Seagram. The top management is facing a lot of difficulties in identifying their image in the world.
Implementation Plan
Seagram Sons Inc. has been working on transforming its organizational culture since 1992. To start with, Bronfman (CEO) and the executives of the company teamed up to create a greater global image of the company which improved their operating income growth. The leadership had established a strategy they knew did not have the organizational culture to reach it. This strategy depended on solo thinking, hierarchy, risk aversion and inefficient communication. Bronfman needed to change the values and beliefs of the people in the organization to achieve quality, innovation, customer focus, and teamwork ( Marrus, 2018 ). He analyzed the business and identified the cultural need in line with the new company strategy. He then developed a stirring vision of Seagram by indicating that it is the best-managed beverage company. Bronfman took a personal initiative and involvement in the process and everybody knew that the change was committed to change the organizational values.
In addition to improving the operating income growth, they have also achieved different milestones in the market of the consumer which have made their employees to gain confidence. The focus groups strategy worked tremendously and enabled employees to be listened to. This strategy effectively changed the performance behavior of employees. Bronfman encouraged his employees to learn from some of the already tested best practices by other organizations. One of the learned best practices incorporated into various business operations is understanding customers’ needs. According to Alvesson (2012) , understanding the needs of the customers is a significant factor in coming up with innovative solutions to issues that deal with customers’ expectations. The CEO organized focus groups from several departments which were fundamental in establishing a relationship of communication that has helped employees to adopt new organizational context. These kinds of the setting have provided an opportunity for all employees at all levels to develop a culture that is based on understanding and trust in the company. Some of the employees feel recognized when asked for suggestions and opinion. Employees’ involvement in the management of the organization has proven to be a healthy way of managing the workforce based on developing trust between the employees and the top management.
Recommendations
From my own perspective, Seagram Company should not use its values as a measure of success but should use it to act to the various circumstances affecting different department. More so, the values ought to be utilized as a communication method to the employees who work in Seagram but not a measure of success. The exact measure of success is determined in the development of the personal sections within the company. The various department of Seagram is therefore expected to meet with the manager to determine the application of values in their department. Specifically, people ought to conduct meetings with the management to determine how these values relate to their daily operational tactics within their role. The role of management in helping success should not be through micromanaging the goals established but through creating an environment that provides the team with necessary resources that facilitate the needed changes.
Furthermore, introducing and implementing corporate values is important to bring effective change. According to Trompenaars and Hampden-Turner (2017) effective organizational communication gives employees an opportunity to deliver their needs, concerns, and ideas about the change. It is imperative for leaders to get buy-in from employees before coming up with drastic conclusions about any issue. Seagram leadership should be willing to shift employees to new roles. This will help the employees to learn new skills and get better at what they do and expected of them. Employees with changing roles will become organizational culture agents that provide Seagram with future leaders.
Summary
Conclusively, it is important for organizational leaders to understand that cultural changes are a continuous process that need to be dealt with using different entity. The cultural improvement process has been vital in bringing innovative ideas to the processes of the organization and therefore more innovations need to implemented to direct organizations to better and productive future.
References
Alvesson, M. (2012). Understanding organizational culture . Sage.
Marrus, M. R. (2018). Samuel Bronfman: The Life and Times of Seagram's Mr. Sam . Hanover, NH: Brandeis University Press.
Rohlinger, D. A. (2014). Eroticizing men: Cultural influences on advertising and male objectification. Sex roles , 46 (3-4), 61-74.
Schein, E. H. (2016). Organizational culture and leadership (Vol. 2). John Wiley & Sons.
Trompenaars, A., & Hampden-Turner, C. (2017). 21 leaders for the 21st century: how innovative leaders manage in the digital age . McGraw-Hill Companies.
