Analysis Xyz Energy Management Essay

619 Words May 9th, 2015 3 Pages
Case Study Essay: Big Energy
Sally Johnson is a member of the management team of XYZ Energy, a major government-owned energy company. Following a high-profile corporate sales process, XYZ Energy was bought by one of its private-sector competitors, Big Energy, for a record price.
XYZ Energy was successful company that had established strong, efficient and robust processes and systems to manage its business and risks. It had also innovated new processes in areas, which gave it significant competitive advantage. The company had a loyal staff with relatively low turnover. The XYZ Energy management team was well respected by employees. A large majority of staff worked hard throughout the lead up to the sale to support the process and
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Instantly the morale with the XYZ Energy staff plummeted as they realized that, like the management team members, they would not be allowed to compete for their jobs based on merit. Morale continued to decline and frustration arose as Big Energy failed to leverage innovative processes and systems for its own competitive advantage, focusing on the speed of integration rather than its quality and the long-term benefits. Big Energy’s senior management rarely came to the remote office to engage with their new team, and staff numbers dwindled as people elected to leave and more redundancies were occurred.
Sally felt a strong loyalty towards the staff that had supported the growth of XYZ Energy, and therefore, immense anguish for them as their fate became clear. She attempted to argue to senior management that Big Energy should revisit its integration model and priorities in-order to preserve and leverage the competitive advantages and key skilled staff it had acquired.
(Source: Wood, J. Zeffane, R. Fromholtz, M. Wiesner, Morrison, R. & Seet, P 2013, Organisational Behaviour: Core Concepts and Applications, 3rd Australasian Edition Wiley, Brisbane; pp. 75)

Students are required to address both of the following questions in the their essay:

Questions 1 The rapid rate, at which Big Energy has opted to absorb XYZ Energy into its existing business model, has had an adverse impact on the employees that originally came from XYZ Energy. Discuss the impact of…