Replace The Chinese Founder Of Cushy Armchair Essay

1395 WordsNov 9, 20166 Pages
Introduction Cabletronica is a cable and wireless company, which is located in New York. They acquired Cushy Armchair, located in Hong Kong. Cushy Armchair is a global leader in the chair business and they have 17 business groups, which are fully autonomous. This industry is not a new industry for Cabletronica, due to the fact they just completed the acquisition of WorldsFurniture, which is also based in New York. Cabletronica aim is to achieve costs benefits by applying the economics of scale and having a change from decentralization to centralization. To be conducive in this case, the company decided to replace the Chinese Founder of Cushy Armchair, Frances Wong, and make Alison Sampson take care of this division. In order to get straight into the business and achieve her goals, she sends an e-mail to sales and design executives of purchasing in the 17 business groups. Sampson appeals that before further decisions will be made by the executives, the business processes have to be approved by the department in New York. The demand has not been followed by the executives. What is/are the problem(s) at Cushy Armchair? Between Cushy Armchair and Cabeltronica are various issues, which can be divided into cultural, communicational and structural aspect. The problems start by replacing the founder of Cushy Armchair. He was well regarded in the company and was a legend in the industry. The replacement was only announced by a global e-mail, which is not personal at all. This
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