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InterClean is one of the leading sanitation cleaning and solution’s companies in an 8 billion dollar industry. The situation that is evolving now is the change in customer preference. Customers no longer want mediocre products that just clean and kill germs; these customers want solutions and services that will modernize their cleaning efforts and comply with rigorous changes in environmental safety. The profitability of the company depends on fulfilling the rising demands of customers. To keep up with the needs of customers InterClean wants to transform its business to provide solutions/services with the highest quality products and services to its customers. This paper will provide benchmarking data to support decisions made by InterClean management.
Benchmarking Company: BP AmocoTopic: Synopsis
BP Amoco is an industry leader in energy exploration and gasoline service stations had started to notice several trends. While observing consumer habits, BP Amoco had concluded that major oil companies may have to close smaller gas service stations and concentrate on maximizing gasoline distribution at major locations in order to maintain its market share. Along with that idea, consumer trends made it clear that lower gas prices were more important than full-service stations with uniformed gas attendants. The unbranded dealers were the first to feel the impact of this emphasis on price over service since they relied on the major oil companies like BP Amoco to supply them with gasoline. BP Amoco decided to re-align and concentrate on building bigger and better self service stations which eliminated the need for independent dealers. BP Amoco already held an economic advantage amongst local competitors in major cities and most small towns. The realization of generating bigger profits by creating larger self-service gas stations was inevitable. However, the key was to develop stations where people would often stop for gas as well as other services, for example, major highway routes, near shopping malls and collocated with fast food restaurants. Cost cutting in the oil industry in general as well as environmental legislation mandating upgrades for the gasoline service industry, meant that most dealers were looking for ways to reduce expenses and increase sales as well. By implementing this new strategy of building better and bigger self service gas stations, BP was able to attract a greater volume of customers. By following a well developed managing and re-structuring plan, BP Amoco was able to capitalize on new trends and cater to the demands of consumers. This strategy would ensure success for the future of BP Amoco.
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After reviewing the InterClean company overview in the given scenario, we examined the critical issues that the company was faced with, and the important decision making that would turn around the future outlook of the company. Their industry was changing rapidly; keeping up with the change would be instrumental for the organization’s success. The new strategies they would implement would spurt growth and allow them to be competitive again; the development of a two-pronged aggressive approach would bring these plans into fruition. First, they would realize growth if they created alliances, and partnership with EnviroTech. Second, by implementing cost-cutting measures they will reduce operating costs and improve profitability which will allow for maximum efforts concentrated on expanding the business globally. For BP Amoco, the mass production of the automobiles spurred mass construction of gasoline servicing facilities, with all the major oil companies staking a claim on some corner of the fledgling consumer market. Small family-run franchises were the norm and remained the mainstay of the market in remote areas well into the 1970s.
Bench-Marking Company: Cargill Incorporated Synopsis
Cargill Incorporated started in 1865 from a single grain elevator and has grown as one of world’s largest private companies with 90 different businesses around the globe. The issue that Cargill and InterClean face is the need to generate creative ideas and innovative services for existing and new customers, to meet aggressive growth targets. InterClean is challenged to increase revenues and profitability while driving down operating costs. The company will need to effectively implement their strategic business plan and create an edge that will set them apart from the competition. Cargill Inc, created a long- term short- term process to foster creativity and innovation among all employees, from the CEO down. Cargill identified three key steps it needed to complete to achieve an innovative workforce. First, executives identified specific management practices supporting the work environment, and capitalized on best practices. Second, the levels of obstacles and barriers to achieve creativity where reduced. The final step was to build powerful innovative cultures within each business unit. To assist with achieving these goals, Cargill created an Employee Engagement Survey that identified the aspects of the business that are in the most need of change. Cargill then created teams of employees from all levels to analyze issues and come up with an action plan to implement a solution.
InterClean will need to inform employees of their decisions to expand the company. This will lesson rumors and help employees to understand the reasons behind the new vision for the company. In the scenario employees were overheard speaking of the changes of InterClean and apparently they were concerned for their jobs within the company and voiced their concerns to each other. (University of Phoenix, 2007, Memorandum dated February 3, 2005). “Maintaining employee morale when the actions taken by management seem to suggest that people are expendable requires extraordinary leadership skills.” (Dreher, 2001. p. 118)In today’s competitive global marketplace, the strategic role of human capital management is to help organizations meet business objectives and gain an advantage over competitors. To do this, organizations need a clear idea of how tools of human resources like effective motivation techniques, improving communication with employees, and promoting cohesive work environments directly affect important areas of the organization. As demonstrated through the case studies in this paper the above tools impact the achievement of organizational goals in the following key areas:•Improving the interpersonal communications process within the organization. Effective recruitment techniques can ensure that new hires have the communications skills necessary to fit well within the organization’s style of communication. Compliance with federal employment laws governing race and sex discrimination can encourage better interpersonal communications process within the organization because it signals the employees that this is an organization that values people and will not tolerate hurtful behavior toward any individual.
•Fostering cohesive group dynamics within the organization. Effective recruitment techniques can enhance group cohesiveness through recruiting individuals who have acquired good teamwork skills through previous experience and who are a good fit for the existing group for which they are being hired. Compliance with federal employment laws governing discrimination issues can foster better group dynamics within the organization because it shows the employees that this is an organization that treats all individuals equally.
•Improving inter-organizational commitment. Effective compensation packages assure employees that the organization is aware of and is committed to their needs, thereby securing employees’ commitment to the organization. Complying with federal labor laws such as those governing sex and race discrimination improves inter-organizational commitment because its shows employees that the organization is committed to treating them fairly.
•Reducing or eliminating inter-group conflicts. Ensuring that the organization is in compliance with federal state and municipal employment laws aimed at promoting diversity within the workplace can reduce inter-group conflict because it lets employees know that they are working for a fair, impartial and ethical employer. Leadership that can prevent or diffuse conflict among employees will have a lower turnover rate than those that are not adept at solving conflict.
•Enhancing leadership development within the organization. Effective leadership and training techniques enhance leadership development through attracting, hiring, and developing better leaders for the organization. Members of leadership with advanced training are more likely to gain the respect of employees because they are able to motivate their employees.
•Improving organizational environment, the organizational structure, culture and development. Effective compensation packages and recruitment techniques directly affect this key area in that they ensure the retention of key talent and the attraction of high quality new talent that fits in with the organization’s strategic goals and its current culture. Complying with federal labor laws such as affirmative action and others that promote diversity within the workplace improve the organization’s culture fostering openness and fairness.
These relationships are all critical to the overall strategic goal of human capital development, which is to retain the talent that is available and to recruit the talent that will be needed for achieving organizational goals in the future. It is imperative that InterClean Senior Management evaluates the benchmarking data presented in this paper to insure successful implementation of the new team sales approach and merger with EnviroTech. Through benchmarking InterClean will be able to focus on the successful acquisition of EnviroTech with the priority of combining the complementary attributes of very different backgrounds and skill sets of key employees. Training these key employees to work in harmony together in multifunctional teams will be a difficult task, but with the right management techniques, InterClean should have fewer potential problems while implementing this new strategy.
Dreher, G., Dougherty, T.W., 2001. Human Resource Strategy: A Behavioral
Perspective for the General Manager. New York: The McGraw-Hill Companieshttp://www.usatoday.com/money/industries/telecom/2005-07-13-nextel-sprint-merger_x.htm retrieved March 25, 2007.
Krietner, Robert, & Kinicki, Angelo (2004). Organizational Behavior: Managing Conflictand Negotiation. New York: The McGraw-Hill CompaniesPetrowski, J., (2002) Controlling Energy Costs: C-Stores Exceed Almost Any Other Retail Format on Energy-Cost-Per-Square-Foot. How Can This Trend Be Altered?, National Petroleum News, December 2002.
University of Phoenix. (2007). InterClean Inc. Retrieved March 21, 2007, from University of Phoenix, rEsources, Scenario, MBA 530 – Human Capital Development Course Web