Interclean Inc. Benchmarking
By: Stenly • Case Study • 1,817 Words • April 21, 2010 • 1,095 Views
Interclean Inc. Benchmarking
Interclean Benchmarking
Within the global market economy, companies continually meet the demands that influence the performances and productivity required for future growth and success. There are a multitude of strategies that are implemented to help in the decision making model systems that allow for the utilization of human capital and optimization. Throughout time, many of the early pioneers created solutions dependent on both market equilibriums to gather information on consumer needs as well as organizational behavior towards success. These companies set the forefront on the leadership spectrum of capitalism within the United States and across the globe. Furthermore, it has become evident that a specific exchange of knowledge was shared which allowed future companies to use as models for improvement. These research processes have propelled business leaders to take closer looks at alternative solutions to problems that companies face during their growth phases.
The InterClean Company which is focused on the industrial cleaning and sanitation industry is a prime example of the difficulty an organization may have to endure in order to meet its goals and organizational objectives. In order to gather data useful during the company’s decision to conduct a merger and acquisition, benchmarking a few companies such as the mergers of Nextel and Sprint as well as Mercedes Benz and Chrysler can help define best practices that may be applicable to InterClean’s current situation in order for it to reach its end-state goals. These companies may give further details on clearly apparent issues when engaging successful mergers as change continues to target key components such as communication, structural integrity, innovation, valued decision making, corporate culture, and human resources with the development of skills inventory.
This benchmark should shed light on InterClean and Envirotech’s current situation and provide a vehicle that reshapes the vision of the company allowing continued functionality and improved processes to work out the key issues that strengthen the analysis of the benchmark.
Issues
Based on early findings, InterClean Inc. faces issues with its organizational structure with the adoption of 60 new employees from EnviroTech along with new strategies that must be incorporated within management to improve communication, to align human capital development, and to create training and development that channel efforts with its current skills inventory. David Spencer, President and CEO of InterClean, has desires to move his company from a product based company to a service provider and realizes that many facets of the company will be affected such as morale, transformation of the workforce, evaluation of the management team, staffing plans, sales force optimization, project costs, and implementation integration timelines and processes.
The companies that will be mentioned in this benchmark have faced similar issues in hopes to capture a greater piece of their respective industries. The industries that will be focused upon are the fast paced phone carrier industry and the dynamic and innovative car industry. Businesses in both industries acknowledge that strategic prowess and the capitalization of human capital are vital towards reaching future goals and brand recognitions. Target marketing and sales increase becomes quintessential yet a deeper understanding of how these companies adjusted to the changes of the mergers can be crucial for the development of InterClean Inc. For Jane Durham, the Vice President of Human Resources, this benchmark should be useful as the InterClean and EnviroTech management team tackle the complex and unique challenges that will identify who they want to move, what incentives will be offered, and how to retain the key talents.
Response to Merger Issues
The most important realization that mergers represent is the value that is placed on the drivers towards globalization primarily the company’s duty to handle competition. With Nextel and Sprint, both telecommunication companies found it fit to join forces in order to meet the demands of market changes to embrace more global capabilities. By doing so, the companies were allowed to expand their array of services to more geographic areas and heightened levels of quality. In 2004, Nextel and Sprint announced a $36 million merger that allowed for a larger customer base. Both companies contain strengths with Sprint, at the time, being the leader of wireless data communications and Nextel being the pioneer in walkie-talkie services. With two business models and customer targets, both companies responded to the merger by aligning strengths and efficiencies with the process. Nextel and Sprint also responded to the developments of technology