Upon acquiring LPB in 1987 from PepsiCo, a French bakery/sandwich chain, the Fields applied a scissor on the count of administrative staff of the acquired company abridging its strength from 54 to 3. The reason behind as quoted by the Fields was assimilating “many of the…
LPB was a large company; their formulations of baking from the frozen dough the croissants, bread, hot soups and sandwiches, taken from Fields extended cookies business, had a different style. Technological processes at Fields were not changed to make adjustment with the working of LPB. Fields wanted to get the benefit of their in-practice MIS system, which was not customized to assimilate the management functions of LPB like Fields had done when it acquired Chocolate Chip Company, and made changes in the MIS system. Fields assumed that that it would be able to benefit from its current MIS system for adapting different overhead functions of PBS.
Working in a totally different management hierarchy would not have been easy particularly when no job orientation was given. Things could have gone haphazard without any staff reporting to the senior level, affecting performance in all segments of the organization. As per Randy’s statement, the organizational structure at LPB was not similar to the functioning at Fields who has been using IT to manage business functions across the globe efficiently. The impact of discharging 50 human resources from their duties of the acquired company and without providing the training of the work processes of the new organization structure, I would have felt crippled as a manager. Reporting of store managers at Fields was straight to all senior and middle level managers culminating in final reporting to Debbie and Randy. The change for the store manager’s rank was sudden from a traditional way of functioning to remaining available for seamless exchange of information horizontally and vertically on the vast communication network. Chances of failure had been more than success as store manager.
In my opinion, it would be wrong to say that business at LPB was same in kind as it was at Fields in different aspects like products, customers, and business challenges. Although bakery was the major business at LPB but it offered other ...
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