Ajax Minerals and Perrier

Ajax Minerals and PerrierPaper instructions:Read the Ajax Minerals exercise and the Problems at Perrier case study in Chapter 6 of the Palmer textbook.Write a six to eight (6-8) page paper in which you:1. Identify two (2) sources of resistance to change in the Ajax Minerals exercise and describe how the organization dealt with each type of resistance.2. Identify two (2) sources of resistance to change in the Perrier case study and describe how the organization dealt with each type of resistance.3. Compare and contrast how management diagnosed and approached change at the two (2) companies and indicate which company dealt with resistance to change in amore effective manner. Justify the reasoning.4. Consider a situation as a consultant with Ajax Management. Propose two (2) adjustments that should be made to improve its change strategy and provide ajustification as to why those adjustments would improve the effectiveness of the strategy.5. Consider a situation as a consultant with Perrier. Propose at least two (2) adjustments that should be made to improve its change strategy and provide ajustification as to why those adjustments would increase the effectiveness of the strategy.6. Use at least three (3) quality academic resources in this assignment. Note: Wikipedia and other Websites do not qualify as academic resources.Your assignment must follow these formatting requirements:? Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specificformat. Check with your professor for any additional instructions.? Include a cover page containing the title of the assignment, the student?s name, the professor?s name, the course title, and the date. The cover page and thereference page are not included in the required assignment page length.Number of Pages: 5 (Double Spaced)Writing Style: APANumber of sources:4Read the Ajax Minerals exercise and the Problems at Perrier case study in Chapter 6 of the Palmer textbook. Write a six to eight (6-8) page paper in which you:1. Identify two (2) sources of resistance to change in the Ajax Minerals exercise and describe how the organization dealt with each type of resistance.2. Identify two (2) sources of resistance to change in the Perrier case study and describe how the organization dealt with each type of resistance.3. Compare and contrast how management diagnosed and approached change at the two (2) companies and indicate which company dealt with resistance to change in a moreeffective manner. Justify the reasoning.4. Consider a situation as a consultant with Ajax Management. Propose two (2) adjustments that should be made to improve its change strategy and provide ajustification as to why those adjustments would improve the effectiveness of the strategy.5. Consider a situation as a consultant with Perrier. Propose at least two (2) adjustments that should be made to improve its change strategy and provide ajustification as to why those adjustments would increase the effectiveness of the strategy.Ajax MineralsAjax Minerals is a U.S. mining company. Recently, it was operating at full capacity, but there were problems on the horizon. Within the next three or four years,Pacific Rim companies will be able to mine and ship the same minerals to the United States for less than Ajax can get them out of the ground. The leadership team sawthis challenge and wanted to do something immediately. However, no one else in the company saw the threat. Supervisors and hourly workers could only see that workwas going on around the clock and that they were earning a lot of overtime pay.Although the current group of senior managers was fairly well respected, there was a history within Ajax of poorly run changes and even poorer management-laborrelations. The latter had got so bad that if management asked for something, workers were immediately suspicious that management was up to something that would haveunpleasant outcomes for the workers (e.g., layoffs, pay cuts). In light of this, the leadership team was aware that, at the very least, the workers? reaction to anycurrent initiative was likely to be a resigned ?here we go again.? Similarly, they were concerned that the union was likely to view any reference by management to?problems on the horizon? as a ploy to gain concessions during the next contract talks.Given the history of their relationship, the leadership team expected workers to drag their feet on implementing any new approaches and by so doing undermine theprospects of success. History suggested that both supervisors and workers would do just enough to ?get by?, that is, they would provide minimum compliance.Ajax management responded to the situation by establishing interactive sessions involving managers and supervisors. They decided that they needed to make a compellingcase for change before they began thinking about specific strategies. In the past, they had done the planning before ever getting others involved in any way andsuspected that that had contributed to the subsequent resistance. During the interactive sessions, the general manager and the managers made the case for change. Aspart of this process, they used stories about various companies that had faced similar situations and had suffered badly as a result of their inability to respond tocompetitive forces. They also, for the first time, adopted an ?open-book? approach in which employees were given unprecedented access to data on Ajax?s financialperformance, particularly ?the numbers that drive the business.? Following on from this, a practice was established whereby workers, supervisors, and managers metweekly to share key performance numbers.In view of all the Ajax management, they are already seeing a new level of cooperation between management and labor and are hopeful that it will help turn around thesituation that has applied in the past in terms of management labor relations.Problems at PerrierPerrier may well be the iconic brand in the world of mineral waters. However, regardless of the profile of the brand, the company that produces the bottled sparklingmineral water is having a tough time. It is the focus of what one commentator describes as ?a vicious struggle underway for the soul of the business?.The origins of the Perrier company can be traced to 1898 when a local doctor, Louis Eugene Perrier, bought the mineral water source near Vergeze, France. The companygrew steadily, but demand really escalated in the late 1980?s when it became highly fashionable and championed by a range of admirers including Wall Street yuppies.At its peak (1989), Perrier sold 1.2 billion bottles (830 million in 2003,) almost half to consumers in the United States.The boom years were good for the Perrier workers. Bouyant profits were associated with regular pay raises, social benefits, and extra holidays. However, in 1990 thefinding of a minute trace of benzene in a bottle led to the collapse of U.S. sales. By 1992, annual output had halved and the company was close to bankruptcy. Atthis point, it was bought for $2.7 billion by Nestle, the world?s largest food company. Attracted by the combination of bottled water as a fast growing business andthe world?s best known mineral water brand, Nestle identified Perrier as an attractive takeover target.However, Perrier struggles to turn a profit. In 2003 its pretax profit margin on $300 million of sales was only 0.6 percent, compared with 10.4 percent for the NestleWaters division overall. In 2004, it again recorded a loss.The Perrier factory is on a 234 acre site on the Mediterranean coastal plain near Nimes. The factory itself is rather nondescript, so much so that ?from a distanceit could be mistaken for a power station or auto plant. Perrier employees work a 35-hour week and earn an average annual salary of $32,000, which is good for thispart of France and relatively high for this industry. However, the average Perrier worker produces only 600,000 bottles a year, compared with 1.1 million bottles atNestle?s two other international French mineral water brands (Vittel and Contrex).Relations between management and workers are not good. Almost all (93 percent) of Perrier?s 1,650 workers belong to the CGT, a union that is viewed by the managementas consistently resisting Nestle?s attempts to improve Perrier?s financial performance. According to Nestle CEO Peter Brabeck-Letmathe, ?We have come to the pointwhere the development of the Perrier brand is endangered by the stubbornness of the CGT. ?Jean-Paul Franc, head of the CGT at Perrier, sees the situation differently. In regard to the company?s plan to cut 15 percent of its workforce, her protests, ?Nestlecan?t do whatever it likes.? He says, ?There are men and women who work here?Morally speaking the water and the gas stored below this ground belong to the wholeregion.?When in 2004, Danone launched a new product (Badoit Rouge) that was designed to directly compete with Perrier?s new super bubbly brand. Eau de Perrier, Perrier?smanagement put bottles of BadoitRouge in the factory cafeteria. This had been done to emphasize the point to Perrier employees that they were involved in a head tohead battle for that niche in the market. However, this act was not well received.?It was a provocation,? recalls one Perrier truck driver. ?We took the bottles and dumped them in front of the factory directors?s door, so he couldn?t get into hisoffice.?Order for a custom written PAPER now and one of our online writers will write your assignment from scratch within your deadline! Category: Essay Writing

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