Peter Browning and Continental White Cap

Continental White Cap was had a long history of traditional management and close control by White's Cap founding family. However in changing market invironment the headquarters recognised he need for change in order to stay competitive.

The decision to place Peter Browning in Vice Presidents and operating officer position was part of the change strategy as he has proven himself as successful manager. Peters new assignment was to push the exciting successful business division towards leaner, more efficient, and more flexible operation capable of responding to changing market condition.

Browning has recognised the dilemma that he had to face. His boss said "White Cap needed changes, but don't brake it while you are trying to fix it. Continental cant afford to loose White Cap". There was a very strong corporate culture in place backed up by impressive business results over the last 50 years and clear need for change. Employees have developed loyalty to company under family style management culture characterized by long-standing traditions of job security and liberal benefits. Change of existing traditions would not be welcomed.

From the other side market conditions required a quick response and change. Shipments of plastic bottles for food has gone up from 260mln in 1978 to 900mln in 1984. Clearly ignoring this market trend would be destructive for business. Price competition began and customers started to take Total System for granted. What was a competitive advantage of having own R&D and full service, now was a cost that made it difficult to compete with competitors in price. Clearly it was a mistake from White Cap management to ignore the market trend and be reluctant to allow R&D commercialise plastics. White Cap was facing chalanges from 5 significant competitors in national marketplace and 70 manufacturers worldwide.

There are several change objectives that Browning needs to consider;

• A new strategy for the division to stay competitive in the changing market environment.

• A change in company culture to ensure the resistance for change is minimised.

• Optimization of costs inline with Continental overall policy.

It is clear that Browning will not be able to change organizational culture in such a short time as market environment is requiring but change can take place gradually and all parts involved don't have to change at the same paste. Cultural change will take a longer period