Cushy Armchair Essay

1380 Words Apr 13th, 2012 6 Pages
Cushy Armchair Case Analysis Cushy Armchair, based in Hong Kong, a leader in the global armchair business has been successfully using its model of centralization for over 50 years. It operates fully autonomous business facilities in 17 countries. Cabletronica has recently acquired the company and has sent one of their own senior personnel to restructure operations and integrate the company with another of their furniture divisions outside of the country. Acting as a consultant, the founder of Cushy Armchairs Frances Wong is consulted regarding a communication on a change in policy, but the new head of the company Alison Sampson decides to use the parent company’s standard method of announcing changes email, and soon realizes that the …show more content…
Third, is that email s an inefficient medium for in ambiguous, complex and novel situations”.
There is no doubt that the situation was both ambiguous and novel, due to the fact that people from 15 different countries and many different cultures were the recipients of the message.

Root Cause
There are other factors that are cause for concern aside from the medium that the message was delivered. Alison clearly rushed the decision to centralize the operations of Cushy Armchair; the fact that the changes were expected to take place during the busiest time of the year will increase the potential for failure. Alison has had some success in finance and the communications industry in the US but should begin to understand the armchair industry and the employees that work in it before instituting her recommendations for change. There was very little research on the value of the change and the experience and knowledge of the upper management of Cushy was not considered as a resource to implement the restructure

Because of the hasty decision to implement the change there is a very high risk of employee resistance to change. The upper management had no investment in the decision and will feel a resentment and lack of control that could trickle down through the organization. The dangers her are that original companies will become infected with a negative attitude toward the new parent company causing
Open Document