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Seagram Proposal
Definition of Project:
The goal of this proposal is to recommend business changes to Mr. Edgar Bronfman the
CEO of Seagram beverage company. In order to become the best globally, Mr. Bronfman will be
advised with suggestive tasks to pull through any challenges in order to achieve overall corporate
success. The CEO wants to have the best managed company with 15% growth yearly, but the
employing of new values is not enough to change the culture. To remain successful in a
competitive beverage industry, important transactions have to be made for the whole
organization to stay afloat.
In effect, companies are moving from the hierarchical and bureaucratic model of
organization that has characterized corporations since WWII to where what has to be done is
governed by who leads and who works together (Jick & Peiperl, 2011, p. 265). Seagram is a
complex system, and a redesigning of business processes to improving communication barriers;
was implemented to initiate the change necessary for growth.
Diagnosis of current situation:
There is was an obvious halt on upward success for Seagram in the early 1990’s from the
text, and this involved a recession, increased liquor tax with regulations, and the “new sobriety”
trend. The old way of doing things within the corporation was no longer effective at Seagram,
and employees had been used the past system of everyone doing their own thing without
teamwork. Cultural change is the key to the development of any new thinking in business, but it
is very difficult to bring about (Birch, 2008). Improving communication across all levels
throughout all branches is another key for success if any plan is to be implemented. Every
employee of every business, no matter how small or large, needs to be educated in the basic idea
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Seagram Proposal
that there are responsibilities beyond a particular position description or business role, whether
that role is senior management, or as a receptionist or cleaner (Birch, 2008).
Values were introduced by Mr. Bronfman, but the individual employees felt that they
deserved an input into what they were being asked to follow. Their feedback was considered in
evaluation, training programs for leaders was initiated, and a communication plan through a
cascade of meetings from top to the lower level was also presented to drive this new vision. In
achieving effective reorientation within a company, the strengths and weaknesses are evaluated
to gain a view on what needs to be changed and why (Jick & Peiperl, 2011, p. 246). Seagram’s
leadership was involved in driving value by spreading encouragement, comparing other
competitor processes, and determining what customers really needed. Although following up on
other competitor practices can be a setback since every company isn’t experiencing the same
issues, it can help us to know what exactly we need to improve on to draw others towards us.
Recommendations:
A plan is a blueprint specifying the resource allocations, schedules and other actions
necessary for attaining goals (Kiambati & Itunga, 2015). After realizing what the issues of
concern are, there needs to be rejection preparation for those who may not want to abruptly
follow through with the vision; thereby overwhelming senior management with more burden.
“Mr. Bronfman this is a list of recommended tasks necessary for transformation across the
organization:”
Reorientation from the old vision to the new one will constantly be supported through an
executive team who understands the vision, and will be effective in executing change
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Seagram Proposal
without the CEO when the need arises. Consistency and teamwork amongst all levels will
bring success to our goals to be the best managed. Training programs will support this
growth opportunity for all the company, and the new ones acquired such as MCA.
Everyone from top management to lower level employees must stick to to new cultural
policies, or there will be reprimand. At the DC hospital I worked at, there were 3 written
warnings before termination from not following the rules. This was a wakeup call to the
older staff who didn’t feel they needed to be scolded since they had been working so long
all those previous years. Rewards/ recognition was also presented to those who had been
loyal to the values, and these motivated others around to want to improve.
Improved information systems need to be presented so that there can be a measure of
performance, as well as allowing for others to respectfully input their suggestive ideas.
Through technology, there can be anonymous channels in case there is a feel that
repercussion will occur for speaking one’s mind to a higher channel.
Implementation Plan:
The success of a change initiative depends on whether there are specific skills and
knowledge that can be affected by selection and human resource development (Gebert, Boerner,
& Agafonov, 1999). Determinant factors/phases of that will drive success forward at Seagram
will come as follows:
Acknowledgement of stakeholders are an important part of what the vision is
driving toward. They should also be made aware of the constant changes that will
occur in the future because they are the reason we all have jobs.
Behaviors that reject the new vision will be counselled, terminated depending on the
discretion of the leader on the case, and how much that action costs the company.
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Seagram Proposal
Diagnostic evaluation of how allocations are being dispersed needs to be assessed
monthly, and adjusted accordingly.
Engaging in meetings to estimate probable forecast of the overall market and
government, will help make immediate changes when necessary.
There must be quarterly evaluations on the how we are doing, and at the end of
every quarter we will celebrate with gatherings depending on our profits reached.
Training programs will be in effect immediately to support staff so that they can be
energized to personalize the new values into their work regimen. Utilizing new
techniques will keep us on the rising edge of not staying complacent in a
competitive market.
In competitive environments firms must be ready to act and react; strategy must be
seen as a cross-functional tool consistent with the context of the organization
benefiting from the feedback loop of the unfolding environment (Kiambati &
Itunga, 2015).
Reminding staff in every work area and place they can visually see it, that our
customers are an important factor as to why we need to keep doing our best. For
those who do not feel they can comply, compensation for services will be rendered.
Summary:
In any company seeking cultural change, there will be serious challenges to face without
proper planning. Sometimes leaders believe they know what is best for the transformation of
culture within the organization they operate. However, it is important for everyone involved from
senior to low level staff; to deeply understand how/why their role in the success of a task matters.
People need to be persuaded to invest personally in the change before there is any evidence that
it will pay off, either for the organization or for them personally (Jick & Peiperl, 2011, p. 254).
With many companies under one umbrella, Seagram is headed for success once these changes
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Seagram Proposal
are imbedded across all locations because a family whether personal or business, must stick
together. Seagram faced its challenges from anticipated economic events, and also internal
behavior that no longer served to bring success to their values. With the implementation of
values reinforced as needed, there is no doubt that success will be in the future continuously in
any task ahead to please the customers of the Seagram corporation.
References
Jick, T. D., & Peiperi, M. A. (2003). Managing Change: Cases and Concepts (3 ed.). New York,
NY: McGraw-Hill Irwin.
Gebert, D., Boerner, S., & Agafonov, J. G. (1999). Attitudes toward change initiatives in
corporate cultures undergoing transformation: Two examples from Moscow. Eastern European
Economics, 37(6), 5-25. doi:10.1080/00128775.1999.11648702
Birch, D. (2008). Ten principles of corporate citizenship. Social Responsibility Journal, 4(1/2),
129-135. doi:10.1108/17471110810856893
Medcraft, G. (2016). Corporate culture, corporate values and ethics. Governance Directions,
68(8), 456.
Kiambati, K., Itunga, J., Water Services Regulatory Board, P.O. BOX 4162-0010-GPO, Nairobi,
Kenya, & Lecturer, Karatina University, P.O. BOX 1957 – 10101, Karatina, KENYA. (2015).
Managerial skills and corporate strategic planning. International Journal of Management
Science and Business Administration, 2(8), 16-23. doi:10.18775/ijmsba.1849-5664-
5419.2014.28.1002
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