Case Analysis Sonoco Products Company

1353 Words Nov 12th, 2010 6 Pages
Sonoco Products Company (A): Building a World-Class HR Organization Sonoco Products Company is a global packaging company that began in 1899 in Hartsville, South Carolina. During 1990’s Sonoco was one of the largest packaging companies in the world with revenues reached $2.6 billion through the manufacture and sales of consumer and industrial packaging, with 17,300 employees across 285 operations in 32 countries, serving customers in 85 nations. During 1990’s the United States was enjoying economic growth during the late 1990s/early 2000s, so was the packaging industry; as a result, Sonoco’s position began to change. Sonoco was becoming increasingly more susceptible to changes in the world economy, and the packaging …show more content…
Moreover, besides which option would be more flexible or ensure that the right people were in the right positions, Sonoco as a profit corporation is also looking for the most profitable strategy so the company’s shareholders would be satisfy. Between both structure, the centralized and the hybrid options, the best structure for profitability perspective is the hybryd structure. Even though, the centralized structure projected cost savings is higher thatn the hybrid structure with $3.1 million for the centralized option compare to the $2.7 million for the hybrid structure; however, the hybrid structure on the long run would be fair better because consolidating administrative functions where feasible to result in economies of scale would in cure in a bigger savings. Also, having the appropriate systems in place to get the right people in place and up to speed will improve productivity, increase employee satisfaction, reduce waste, and decrease turnover which will result in increased profits on an ongoing basis during the years which also helps to reduce employee turnover ratio which means that Sonoco would safe on training programs for new employees. Last