Henkel: Building a Winning Culture Harvard Case Solution & Analysis

INTRODUCTION:

The case solution and study lay focus on the issues of the core business management regarding the future policies along with the current standards of the business and its organizational structure. The challenges of the organization are related to the management of the company and the strategic policies and the values that it should pursue to overcome the crises and challenges that the business faces in its growth and development or the issues that might create hurdles in the future activities of the company.

The reason of this case study is to identify these issues and challenges of the company and to analyze and investigate them along with the recommendations and best possible action plan.

CRITICAL ISSUES/PROBLEMS:

The management of the company has various issues at its disposal and they are influencing the performance of the organization. The management of the organization identifiedthe importance of these issues that have been identified and some real time decisions are the need of the hour to counter these issues of the company.

The company is producing and manufacturing cosmetics and beauty care products that are not yielding positive growth and revenues of the company and due to them the financial performance of the company has been affected. Another issue for the management of the company is the directors’ newly introduced framework for the employees as it is harming and negatively affecting the human resource of the company.

ANALYSIS:

SWOT:

STRENGTHS:

The most critical strength of the company that is the source of motivation for its management is the expansion and the presence of the company in the potential markets. The product base of the company is also diversified and expanded into different fields of life essentials.
The price per product of the company is also diversified and expanded as the business manufactures products from high cost standards to the low cost standards of the market and this enables the organization to attend all the segmented proportions of the market as a vast majority of the consumers in the market are always on the lookout for the products and alternatives that are more in range as per their purchasing power due to the economic recession.
The products of the company also have their presence in the potentially growing markets of the Middle-East, which enables the management of the company to enhance their customers’base. The increased focus on the product development process of the company has enabled it to provide high quality products to the customers in the markets the business operates.

WEAKNESSES:
The major weakness and barrier for the management of the company in the overseas operations of the organization is that the company does not have the resources of cheaper and more economical materials for manufacturing the products and due to this significant barrier, the financial margins of the overseas business of the organization are relatively less.
It is due to this reason that the operating and manufacturing costs of the company are higher in the Middle-East as cheaper resources and materials are not available to the business and this directly affects the prices of the products of the company as they are higher.

Secondly, some of the products that the organization manufactures are chemically produced and this invites harsh criticism from the outside sources and some proportions of the society.

The other weakness of the organization is that the newly introduced policies and the business structure havedemotivated the staff members as it is based on the carrot and sticks model. There is no program for the employee motivation and satisfaction that is being pursued by the management of the organization.

The current adopted system has improved the efficiency and performance of the business however,it does have its shortcomings as it lacks to respond to the demands of the customers swiftly and results in lead times...............................

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