Henkel: Building a Winning Culture

Henkel: Building a Winning Culture Description

This case illustrates a CEO-led organizational transformation driven by stretch goals, performance measurement, and accountability. When Kasper Rorsted became CEO of Henkel, a Germany-based producer of personal care, laundry, and adhesives products, in 2008, he was determined to transform a corporate culture of "good enough" into one singularly focused on winning in a competitive marketplace. Historically, Henkel was a comfortable, stable place to work. Many employees never received negative performance feedback. Seeking to overturn a pervasive attitude of complacency, Rorsted implemented a multi-step change initiative aimed at building a "winning culture." First, in November 2008, he announced a set of ambitious financial targets for 2012. As financial turmoil roiled the global economy, he reaffirmed his commitment to these targets, sending a clear signal to Henkel employees and external stakeholders that excuses were no longer acceptable. Rorsted next introduced a new set of five company values-replacing the previous list of 10 values, which few employees could recite by memory-the first of which emphasized a focus on customers. He also instituted a new, simplified performance management system, which rated managers' performance and advancement potential on a four-point scale. The system also included a forced ranking requirement, mandating that a defined percentage of employees (in each business unit and company-wide) be ranked as top, strong, moderate, or low performers. These ratings significantly impacted managers' bonus compensation. In late 2011-the time in which the case takes place-Henkel is well on its way to achieving its 2012 targets. Having shed nearly half its top management team, along with numerous product sites and brands, Henkel appears to be a leaner, more competitive, "winning" organization.

Case Description Henkel: Building a Winning Culture

Strategic Managment Tools Used in Case Study Analysis of Henkel: Building a Winning Culture

STEP 1. Problem Identification in Henkel: Building a Winning Culture case study

STEP 2. External Environment Analysis - PESTEL / PEST / STEP Analysis of Henkel: Building a Winning Culture case study

STEP 3. Industry Specific / Porter Five Forces Analysis of Henkel: Building a Winning Culture case study

STEP 4. Evaluating Alternatives / SWOT Analysis of Henkel: Building a Winning Culture case study

STEP 5. Porter Value Chain Analysis / VRIO / VRIN Analysis Henkel: Building a Winning Culture case study

STEP 6. Recommendations Henkel: Building a Winning Culture case study

STEP 7. Basis of Recommendations for Henkel: Building a Winning Culture case study

Case Analysis of Henkel: Building a Winning Culture

Henkel: Building a Winning Culture is a Harvard Business (HBR) Case Study on Finance & Accounting , Texas Business School provides HBR case study assignment help for just $9. Texas Business School(TBS) case study solution is based on HBR Case Study Method framework, TBS expertise & global insights. Henkel: Building a Winning Culture is designed and drafted in a manner to allow the HBR case study reader to analyze a real-world problem by putting reader into the position of the decision maker. Henkel: Building a Winning Culture case study will help professionals, MBA, EMBA, and leaders to develop a broad and clear understanding of casecategory challenges. Henkel: Building a Winning Culture will also provide insight into areas such as – wordlist , strategy, leadership, sales and marketing, and negotiations.

Case Study Solutions Background Work

Henkel: Building a Winning Culture case study solution is focused on solving the strategic and operational challenges the protagonist of the case is facing. The challenges involve – evaluation of strategic options, key role of Finance & Accounting, leadership qualities of the protagonist, and dynamics of the external environment. The challenge in front of the protagonist, of Henkel: Building a Winning Culture, is to not only build a competitive position of the organization but also to sustain it over a period of time.

Strategic Management Tools Used in Case Study Solution

The Henkel: Building a Winning Culture case study solution requires the MBA, EMBA, executive, professional to have a deep understanding of various strategic management tools such as SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.

Texas Business School Approach to Finance & Accounting Solutions

In the Texas Business School, Henkel: Building a Winning Culture case study solution – following strategic tools are used - SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.

We have additionally used the concept of supply chain management and leadership framework to build a comprehensive case study solution for the case – Henkel: Building a Winning Culture

Step 1 – Problem Identification of Henkel: Building a Winning Culture - Harvard Business School Case Study

The first step to solve HBR Henkel: Building a Winning Culture case study solution is to identify the problem present in the case. The problem statement of the case is provided in the beginning of the case where the protagonist is contemplating various options in the face of numerous challenges that Henkel Rorsted is facing right now. Even though the problem statement is essentially – “Finance & Accounting” challenge but it has impacted by others factors such as communication in the organization, uncertainty in the external environment, leadership in Henkel Rorsted, style of leadership and organization structure, marketing and sales, organizational behavior, strategy, internal politics, stakeholders priorities and more.

Step 2 – External Environment Analysis

Texas Business School approach of case study analysis – Conclusion, Reasons, Evidences - provides a framework to analyze every HBR case study. It requires conducting robust external environmental analysis to decipher evidences for the reasons presented in the Henkel: Building a Winning Culture.

The external environment analysis of Henkel: Building a Winning Culture will ensure that we are keeping a tab on the macro-environment factors that are directly and indirectly impacting the business of the firm.

What is PESTEL Analysis? Briefly Explained

PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in Henkel: Building a Winning Culture case study. PESTEL analysis of " Henkel: Building a Winning Culture" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.

How to do PESTEL / PEST / STEP Analysis? What are the components of PESTEL Analysis?

As mentioned above PESTEL Analysis has six elements – political, economic, social, technological, environmental, and legal. All the six elements are explained in context with Henkel: Building a Winning Culture macro-environment and how it impacts the businesses of the firm.

How to do PESTEL Analysis for Henkel: Building a Winning Culture

To do comprehensive PESTEL analysis of case study – Henkel: Building a Winning Culture , we have researched numerous components under the six factors of PESTEL analysis.

Political Factors that Impact Henkel: Building a Winning Culture

Political factors impact seven key decision making areas – economic environment, socio-cultural environment, rate of innovation & investment in research & development, environmental laws, legal requirements, and acceptance of new technologies.

Policy Making Impact on Henkel: Building a Winning Culture

Government policies have significant impact on the business environment of any country. The firm in “ Henkel: Building a Winning Culture ” needs to navigate these policy decisions to create either an edge for itself or reduce the negative impact of the policy as far as possible.

Data safety laws – The countries in which Henkel Rorsted is operating, firms are required to store customer data within the premises of the country. Henkel Rorsted needs to restructure its IT policies to accommodate these changes. In the EU countries, firms are required to make special provision for privacy issues and other laws.

Competition Regulations – Numerous countries have strong competition laws both regarding the monopoly conditions and day to day fair business practices. Henkel: Building a Winning Culture has numerous instances where the competition regulations aspects can be scrutinized.

Import restrictions on products – Before entering the new market, Henkel Rorsted in case study Henkel: Building a Winning Culture" should look into the import restrictions that may be present in the prospective market.

Export restrictions on products – Apart from direct product export restrictions in field of technology and agriculture, a number of countries also have capital controls. Henkel Rorsted in case study “ Henkel: Building a Winning Culture ” should look into these export restrictions policies.

Foreign Direct Investment Policies – Government policies favors local companies over international policies, Henkel Rorsted in case study “ Henkel: Building a Winning Culture ” should understand in minute details regarding the Foreign Direct Investment policies of the prospective market.

Taxation & Regulation Impact on Henkel: Building a Winning Culture

Corporate Taxes – The rate of taxes is often used by governments to lure foreign direct investments or increase domestic investment in a certain sector. Corporate taxation can be divided into two categories – taxes on profits and taxes on operations. Taxes on profits number is important for companies that already have a sustainable business model, while taxes on operations is far more significant for companies that are looking to set up new plants or operations.

Tariffs – Chekout how much tariffs the firm needs to pay in the “ Henkel: Building a Winning Culture ” case study. The level of tariffs will determine the viability of the business model that the firm is contemplating. If the tariffs are high then it will be extremely difficult to compete with the local competitors. But if the tariffs are between 5-10% then Henkel Rorsted can compete against other competitors.

Government Scheme & Subsidies Impact on Henkel: Building a Winning Culture

Research and Development Subsidies and Policies – Governments often provide tax breaks and other incentives for companies to innovate in various sectors of priority. Managers at Henkel: Building a Winning Culture case study have to assess whether their business can benefit from such government assistance and subsidies.

Consumer protection – Different countries have different consumer protection laws. Managers need to clarify not only the consumer protection laws in advance but also legal implications if the firm fails to meet any of them.

Political System & Stability, and its Impact on Henkel: Building a Winning Culture

Political System and Its Implications – Different political systems have different approach to free market and entrepreneurship. Managers need to assess these factors even before entering the market.

Freedom of Press is critical for fair trade and transparency. Countries where freedom of press is not prevalent there are high chances of both political and commercial corruption.

Corruption level – Henkel Rorsted needs to assess the level of corruptions both at the official level and at the market level, even before entering a new market. To tackle the menace of corruption – a firm should have a clear SOP that provides managers at each level what to do when they encounter instances of either systematic corruption or bureaucrats looking to take bribes from the firm.

Independence of judiciary – It is critical for fair business practices. If a country doesn’t have independent judiciary then there is no point entry into such a country for business.

Government attitude towards trade unions – Different political systems and government have different attitude towards trade unions and collective bargaining. The firm needs to assess – its comfort dealing with the unions and regulations regarding unions in a given market or industry. If both are on the same page then it makes sense to enter, otherwise it doesn’t.

Economic Factors that Impact Henkel: Building a Winning Culture

Social Factors that Impact Henkel: Building a Winning Culture

Technological Factors that Impact Henkel: Building a Winning Culture

Environmental Factors that Impact Henkel: Building a Winning Culture

Legal Factors that Impact Henkel: Building a Winning Culture

Step 3 – Industry Specific Analysis

What is Porter Five Forces Analysis

PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in Henkel: Building a Winning Culture case study. PESTEL analysis of " Henkel: Building a Winning Culture" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.

Step 4 – SWOT Analysis / Internal Environment Analysis

Step 5 – Porter Value Chain / VRIO / VRIN Analysis

Step 6 – Evaluating Alternatives & Recommendations

Step 7 – Basis for Recommendations

References :: Henkel: Building a Winning Culture case study solution