Assignment: Change Management Plan

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Change Management Case Study

Imagine you are the CEO of a large company, called Hamilton Snacks, which

has just acquired a smaller company, called Arlo’s Granola. You are responsible for

creating a Change Management Plan to ensure that the acquisition is successful and

sustainable.

History and Background

Hamilton Snacks

Hamilton Snacks was founded in Seattle, WA, in 1957. The business began as a

small, storefront shop that primarily sold candy and fountain drinks. By the late 1980s,

the business had expanded to include potato chips, pretzels, and cookies, which are

now sold in most major grocery stores in the United States, Mexico, Canada, and parts

of Europe. Hamilton Snacks now employs approximately 3,000 people and has enjoyed

steady growth until about 5 years ago due to the increasing public demand for healthier

snack options. You were hired as CEO shortly thereafter and implemented a plan to

remove high fructose corn syrup, MSG, and GMOs from all products. Unfortunately, the

products are still of relatively low nutritional value, and the business is still known for

selling “junk food.” In addition, Hamilton Snacks just received negative press for

contributing to deforestation due to its use of a particular palm oil supplier.

Hamilton Snacks has a hierarchical structure, with many layers of management

and is known for attracting Type A personalities. Employees describe the culture as fast

paced and process driven. Major decisions are generally made by senior leaders and

filtered through middle management to employees. Senor leaders and mid-level

managers have offices, but most make a concerted effort to leave their doors open and

talk with employees every day. The rest of employees sit in a cube formation outside of

the offices. Hamilton Snacks offers competitive benefits packages, and employees are

generally happy with their health insurance, vacation time, and 401k plans. In addition,

the company offers an on-site gym and a day care center in every location, which

employees pay a minimal fee to use.

Arlo’s Granola

Arlo’s Granola was founded in Olympia, WA, in 1995. The original owner, Arlo

Miller, was a health and environmental enthusiast and began the business in his

kitchen. Frustrated by the lack of healthy snack options in grocery stores, he made all-

natural granola bars and sold them at local health food stores. Since then, the business

has grown to 800 employees and now produces vitamin drinks and a wide variety of

plant-based snack bars. Arlo’s Granola is now sold in many major grocery stores in the

United States. Arlo’s son, Cooper, recently became CEO after his father retired 5 years

ago. Cooper is committed to preserving the brand but recognizes the need for more

capital to break into the global market.

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Arlo’s Granola has a flat organizational structure and is known for attracting

creative employees with a strong passion for health, wellness, and the environment.

Employees describe the culture as fun, team oriented, and relaxed. There is no dress

code or mandated reporting times; therefore, employees often wear jeans to work and

arrive at different times in the morning. Senior leaders have offices, but managers sit

with employees in an open floorplan with no partitions between desks. Major decisions

are debated among teams, and multiple options are presented to senior leaders, who

make the final decision. Like Hamilton Snacks, Arlo’s Granola offers competitive

benefits packages, and generally employees are very happy.

Current State

The acquisition has been finalized. You remain committed to transforming

Hamilton Snacks into a company that is known for offering healthy, nutritious, and

delicious snacks with no harmful ingredients. Therefore, you are excited to work with

Arlo’s Granola leaders, who you believe will help you transform the Hamilton Snacks

brand. Your senior leadership team has increased in size from seven to 11 leaders.

Seven of the leaders are from Hamilton Snacks and the other four are from Arlo’s

Granola, including the CEO, Cooper. There are some redundancies in leadership

positions, but you have decided to delay eliminating any of the positions until you get to

know Arlo’s Granola leaders better.

Last month Arlo’s Granola employees moved into a building across the street

from the Hamilton Snacks offices. You have heard that there is growing frustration

among both Arlo Granola and Hamilton Snacks employees. Hamilton Snacks

employees are envious that Arlo’s Granola employees have bigger desks, more

comfortable chairs, and newer computers. They also complain that Arlo’s Granola

employees are “inefficient” and “scatter brained.” Conversely, Arlo’s Granola employees

are finding it difficult to adjust to the Hamilton Snacks culture and are skeptical of the

company’s motives, believing that profit is valued above the public’s well-being and the

environment.

How will you address these challenges? What steps will you take to ensure that

the acquisition is successful?