Harvard Case - Blake Sports Apparel and Switch Activewear: Bringing the Executive Team Together
"Blake Sports Apparel and Switch Activewear: Bringing the Executive Team Together" Harvard business case study is written by Boris Groysberg, Katherine Connolly Baden. It deals with the challenges in the field of Organizational Behavior. The case study is 12 page(s) long and it was first published on : Nov 21, 2016
At Fern Fort University, we recommend a multi-pronged approach to address the challenges faced by Blake Sports Apparel and Switch Activewear. This approach focuses on fostering a collaborative and inclusive organizational culture, promoting effective communication, and implementing a strategic integration plan to ensure a smooth and successful merger.
2. Background
Blake Sports Apparel, a well-established company with a strong brand and loyal customer base, is facing increasing competition and a stagnant market. Switch Activewear, a smaller, more innovative company with a focus on sustainability and performance wear, presents an opportunity for Blake to revitalize its product line and reach new customer segments. However, the merger faces significant challenges, including a clash of organizational cultures, differing leadership styles, and potential resistance to change from both sides.
The main protagonists are:
- John Blake: CEO of Blake Sports Apparel, known for his traditional management style and focus on maintaining the company's established identity.
- Sarah Jones: CEO of Switch Activewear, a dynamic and innovative leader with a strong vision for the future of the industry.
- The Executive Teams: Both companies have established teams with varying levels of experience, expertise, and perspectives.
3. Analysis of the Case Study
This case study presents a classic example of organizational change management, where two distinct companies with different cultures and leadership styles are attempting to merge. The success of the merger hinges on the ability to address the following key issues:
- Organizational Culture: Blake's traditional and hierarchical culture contrasts sharply with Switch's agile and collaborative environment. This clash can lead to friction, resistance to change, and difficulty in integrating the two teams.
- Leadership Styles: John Blake's autocratic approach may clash with Sarah Jones's more participative leadership style. This difference in leadership can create tension and hinder effective decision-making.
- Communication and Collaboration: The lack of open and transparent communication between the executive teams can lead to misunderstandings, misaligned goals, and a lack of trust.
- Integration Strategy: A clear and well-defined integration plan is crucial to ensure a smooth transition and avoid disruptions to operations and customer service.
Framework: We can analyze the case through the lens of the Lewin's Change Management Model, which emphasizes the importance of unfreezing, changing, and refreezing the organization.
- Unfreezing: This stage involves identifying the need for change and creating a sense of urgency for the merger. It requires addressing the existing organizational culture, leadership styles, and communication barriers.
- Changing: This stage involves implementing the merger process, including integrating operations, aligning strategies, and creating a new organizational structure. It necessitates open communication, collaboration, and effective leadership.
- Refreezing: This stage involves solidifying the new organizational culture and ensuring that the changes are sustainable. It requires establishing clear roles and responsibilities, reinforcing new behaviors, and celebrating successes.
4. Recommendations
Phase 1: Pre-merger Preparation (3 months)
- Leadership Alignment: John and Sarah should engage in a series of facilitated workshops to align their leadership styles, establish shared goals, and develop a clear vision for the merged company. This includes identifying areas of agreement and disagreement, understanding each other's strengths and weaknesses, and developing a collaborative approach to decision-making.
- Cultural Assessment and Integration Plan: Conduct a thorough cultural assessment of both companies to identify key differences and potential areas of conflict. Develop a comprehensive integration plan that addresses cultural differences, promotes inclusivity, and fosters a collaborative environment. This plan should include communication strategies, training programs, and team-building activities to bridge the cultural gap.
- Communication Strategy: Implement a transparent and open communication strategy to ensure all employees are informed about the merger process, its implications, and the expected outcomes. This includes regular updates, town hall meetings, and opportunities for feedback.
Phase 2: Merger Implementation (6 months)
- Integration Team: Establish a cross-functional integration team composed of representatives from both companies to oversee the merger process. This team should be responsible for developing and implementing the integration plan, resolving conflicts, and ensuring a smooth transition.
- Organizational Structure and Design: Design a new organizational structure that reflects the combined strengths and expertise of both companies. This may involve creating new roles, restructuring existing departments, and implementing a matrix structure to facilitate collaboration and knowledge sharing.
- Talent Management and Development: Conduct a comprehensive talent assessment to identify key skills and leadership potential within the merged organization. Implement a talent development program that provides training, mentorship, and opportunities for career advancement. This will ensure that the new organization has the necessary talent to achieve its strategic goals.
Phase 3: Post-merger Integration (12 months)
- Performance Management System: Implement a unified performance management system that aligns with the new organizational culture and values. This system should focus on individual and team performance, provide regular feedback, and foster a culture of continuous improvement.
- Communication and Collaboration Tools: Utilize technology and analytics to facilitate communication and collaboration across the merged organization. This may include implementing collaboration platforms, project management tools, and data analytics dashboards to improve transparency, efficiency, and decision-making.
- Culture Change Initiatives: Implement ongoing culture change initiatives to reinforce the new organizational values and promote a sense of unity and belonging. This may include team-building activities, social events, and recognition programs to foster a positive and inclusive workplace environment.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core competencies and consistency with mission: The recommendations align with the core competencies of both companies, focusing on innovation, sustainability, and customer satisfaction. They also support the mission of the merged company to create a leading sports apparel brand that meets the evolving needs of consumers.
- External customers and internal clients: The recommendations prioritize customer experience and employee engagement. By fostering a collaborative culture and implementing a clear integration plan, the merged company can ensure a seamless transition for customers and employees.
- Competitors: The recommendations consider the competitive landscape and aim to position the merged company as a leader in the industry. By leveraging the strengths of both companies, the new entity can offer a broader range of products, reach new customer segments, and gain a competitive advantage.
- Attractiveness ' quantitative measures if applicable: While specific quantitative measures are not provided in the case study, the recommendations are expected to lead to increased revenue, market share, and profitability through a more efficient and innovative organization.
Assumptions:
- The leadership team is committed to the success of the merger and is willing to embrace change.
- Employees are open to new ideas and are willing to adapt to the new organizational culture.
- The integration process is managed effectively and potential conflicts are addressed proactively.
6. Conclusion
The merger of Blake Sports Apparel and Switch Activewear presents a significant opportunity for growth and innovation. However, the success of this merger hinges on the ability to address the cultural differences, leadership styles, and communication challenges. By implementing the recommended strategies, the merged company can create a unified and collaborative organization that leverages the strengths of both companies, fosters a positive and inclusive workplace culture, and achieves its strategic goals.
7. Discussion
Alternative Options:
- Independent Operations: Maintaining separate operations for Blake and Switch could minimize cultural clashes but limit the potential for synergy and innovation.
- Acquisition: Blake could acquire Switch outright, giving them more control but potentially discouraging the innovative spirit of Switch's employees.
Risks:
- Resistance to Change: Employees may resist the merger due to fear of job security or cultural differences.
- Integration Challenges: The integration process may be complex and time-consuming, leading to delays and disruptions.
- Loss of Key Talent: Some employees may leave the company due to the merger, leading to a loss of valuable expertise and experience.
Key Assumptions:
- The leadership team is committed to the success of the merger and is willing to embrace change.
- Employees are open to new ideas and are willing to adapt to the new organizational culture.
- The integration process is managed effectively and potential conflicts are addressed proactively.
8. Next Steps
- Develop a detailed implementation plan: This plan should outline specific timelines, roles, responsibilities, and resources for each step of the integration process.
- Communicate the plan to all stakeholders: This includes employees, customers, suppliers, and investors.
- Establish a dedicated integration team: This team should be responsible for overseeing the implementation of the plan and resolving any issues that arise.
- Monitor progress and make adjustments as needed: Regular progress reports and feedback mechanisms are essential to ensure that the integration process is on track.
By taking these steps, Blake Sports Apparel and Switch Activewear can successfully merge their operations and create a strong and sustainable business for the future.
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Case Description
Cameron (Cam) Barker, founder and CEO of Blake Sports Apparel and Switch Activewear, manufacturers and distributers of sports apparel and accessories, was facing a challenge with his executive team. Their inability to work together on seemingly simple issues was a chronic problem. Although they were a competent group of executives, most of whom had been with Barker for a number of years and had played an integral role in the growth of his company, the team's dynamics were dysfunctional. Lack of communication, mistrust, and refusal to collaborate were some of their biggest challenges. Barker had had enough and was ready to take action, but what action should he take? How could he teach the executive team to work together? Did he have the right people in the right roles? Was the team appropriately structured and managed? How could Barker bring his executive team together in order to maximize performance and face the challenges and opportunities that would be presenting themselves to his young company in the months and years ahead?
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