Gabriel case study- Organization and management

Résumé du document

Gabriel is a Danish established niche company which develops, manufactures and sells upholstery fabrics and related product features. Gabriel works on a global level and is constantly aiming towards reaching a blue ocean status.
The current vision is as follows :

•Gabriel is to be the preferred development partner and supplier to leading international manufacturers and lead users of upholstered furniture, seats and upholstered surfaces.
•Gabriel is to obtain Blue Ocean Status through an innovative business concept, patents, licences or similar rights.
•Gabriel is to enjoy a status as an attractive workplace for and partner of qualified employees and enterprises.

In the annual report, the management are of the opinion that due to the current poor economic conditions, Gabriels's growth potential within its core business may reduce. This could potentially prevent them from reaching their vision, thus the vision needs to be re-considered. As a result of this, a committee has been set up in order to increase revenue through acquisitions.

Extraits

[...] We will be writing this case from the perspective of the management. Under which internal conditions is this beneficial for the corporate strategy of the company? What are the implications for functional strategies and planning? New potential acquisitions will have an impact on the company in both negative and positive ways. On the positive, it will help support one of the key points in Gabriel's vision which is to obtain a blue ocean strategy through an innovative business concept, patents, licenses or similar rights[6]. [...]

[...] Lastly a big concern is the risk of decrease in innovation. Research has shown that integration with new businesses may decrease innovation[12]. This cannot happen for Gabriel if they want to maintain their innovative status. Thus, it is very important for them to constantly update their employees and keep them motivated to stay innovative in order to make the company grow. If all these aspects are considered and dealt with and Gabriel's employees maintain the global mind-set, this acquisition strategy will work. [...]

[...] When it comes to organization in the company, the biggest issues are with the existing employees. Gabriel needs to be ready that in the process of acquiring new companies, they may lose some employees but also risk gaining less qualified employees from the companies acquired. Will that acquisition strategy work? The key issue in changing the vision and strategy of Gabriel is communication. The new vision and strategy have to be clear so the business units can create their own short term and long term goals in order to work towards the vision. [...]

[...] If the acquisition of new businesses does not get integrated properly it might harm the innovation and affect the organization on many levels. Are there any issues you would like to address regarding the acquired companies/business activities? There is no doubt that the acquisition strategy will increase growth, it will make the company more global if expanding into new segments abroad. It will also help maintain the global mindset of the employees and, if integrated well, it will increase innovation. A change in vision, may affect the internal conditions drastically. [...]

[...] It is very crucial to set up a powerful team lead by their management. Management need to be able to motivate them and create meaning in the employees' life. ‘'A vision is not just a picture of what could be; it is an appeal to our better selves, a call to become something more.'' - Rosabeth Moss Kanter If a new vision is made, Gabriel has to make it understandable for its workers and needs to be sure that everybody accepts it. [...]