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Marconi Plc Essay

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Marconi PLC
The case deals with two major transformational organisational changes that take place within a span of 5 years in Marconi PLC. The first change process was under the leadership of Lord Simpson who took over this large diversified conglomerate in 1996 when the company was in a mature phase, already in decline. The company was under performing, had a rigid structure, lacked a clear vision and the employees had become change averse and complacent. To recharge the company Lord Simpson lead a change process with a clear vision with a growth oriented strategy, acquisition and a cultural change process for the employees. To motivate the employers to embrace the cultural change he introduced an attractive stock option plan.
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Then in 1900 the company was renamed to Marconi’s Wireless Telegraph Company Limited. In 1946 the English Electric Company acquired Marconi’s Wireless Telegraph Company. Then in 1968 General Electric Company merged with English Electric company where it became subsidiary to GEC.

LORD Weinstock ERA (1963 to 1996)
LORD Weinstock was appointed as the Managing Director of this company in 1963. The main strategies adopted by him were conservative acquisition and diversification. He expanded his business in the field of nuclear engineering, industrial appliances, telecommunications, power generation and transportation. Though the company grew in size, turnover and profitability during his tenure given his style of leadership, with centralized authority, a rigid structure, a risk averse culture the company started underperforming the market. This continued for 11 years out of 15 years between 1981 and 1996. Therefore in 1996 Lord Weinstock had to stand down. Though company underperformed but still it had sound financial and market standing in its existing business with the revenue of 1 billion pounds.

The SIMPSON ERA (1996-2000)
AFTER WEINSTOCK GEORGE SIMPSON TOOK over as the Managing Director in 1996. He quickly went on restructuring Weinstocks legacy with a clear vision of growth and a strategy of acquisition. He also

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