Case Study Of Henkel

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4 The company’s culture supported the strategy execution Instructors may want to take some time at this point to recap key features of a company’s corporate culture in Chapter 12 “Corporate Culture and Leadership”. These features include: Values, business principles, and ethical standards Official policies, procedures, and practices guiding employee behaviour Atmosphere and spirit How managers and employees interact Strength of peer pressure Actions and behaviors that are explicitly encouraged and rewarded Revered traditions and “heroic acts” How the company deals with external stakeholders Strength and genuineness of the commitment to corporate citizenship and environmental sustainability. Remind students that strongly implanted cultures assist in executing strategy because company managers can use the traditions, beliefs,…show more content…
First and foremost, Henkel will do what it can to oversee productivity at its overseas plants and thereby try and minimize the effects of escalating petroleum and other raw materials prices, used in the manufacture of adhesives, laundry/detergent and cosmetics/toiletries products, or at worst pass those increased costs on to its customers in terms of higher prices (not wholly inconsistent with its previous strategy). Second, continued rationalization of Henkel’s workforce via the new appraisal system appears to be inevitable, resulting in moderate operating cost reductions across units, balanced with the costs of termination and outplacement of underperforming executives. Third, bonus compensation expectations may need to be revisited and adjusted to the realities of a global economy that continues to be plagued by lackluster demand and likely recessions in the Euro Zone and other important global markets. The biggest risks for Henkel
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