DR.

Hesham Sadek Wednesday, June 14, 2023

Contemporary Management Abdelhamid Taha Halawa
ESL 72V1 abdelhamid.halawa23bg@eslsca.edu.eg

Case Study #04 – Version (1)

Volvo vs Ford

 Problem Definition:

The ambiguous and uncertain message of “post-acquisition period” that communicated

by Ford's CEO developed a high insecurity feeling by Volvo’s employees, in addition to
the culture differences between the US and Sweden company had emphasized the
anxiety of losing the facilities and the extensive perks they experienced, in addition to
the expected disturbance in the work-life balance resulting from the two shifts they will
work.

 Justification of the Problem:

The fear of the unknown usually translates to resistance when the organization goes
through the merger after an acquisition.
Both organizations have different work culture although they produce the same goods,
it is important to evaluate how culture is affected when such an operation take place.
Employees may fear from the following:
1. Losing their jobs or loosing opportunities That They formerly had. This fear can
negatively impact productivity and may even result in employees leaving the company
to seek jobs elsewhere.
2. Losing the wealth of benefits they already have (they get to enjoy luxury facilities
at minimal cost “gym, swimming pool, Tennis courts, physical Therapy sessions, health
club).
3. To change their work ethics, & get involved in The Tough American production
timetable, after following their relaxed timetable.
That change is not in their favor, and they will be enforced to change makes especially
the organization’s employees feel that change is not in their favor, and they start ready
to defend their job security

 List of Alternatives:
a. Communicate the new vision of resource management with clear strategy and criteria
for retaining existing employees and a fair policy terminating employees.
b. Develop and communicate clear strategy for working hours and salary backages changes
according to the new changes and incentives policies.
c. Develop and communicate clear plan for facility management and employees benefits.

Abdelhamid Taha Halawa Page 1 of 2

abdelhamid.halawa23bg@eslsca.edu.eg
Mob.: +201005858149
DR. Hesham Sadek Wednesday, June 14, 2023
Contemporary Management Abdelhamid Taha Halawa
ESL 72V1 abdelhamid.halawa23bg@eslsca.edu.eg

Case Study #04 – Version (1)

Volvo vs Ford

 Alternatives Evaluation:
a. It is important to set a clear criterion for layoff or keeping employees with a reasonable
time for evaluation and guarantee a fair end of service package for terminated workers.

b. due to deferent culture for both companies “two shifts & three shifts” it is
recommended to evaluated salaries and working hours to reduce the gap between both
cultures and it will be an option to open the overtime concept with management
monitoring and controlling according to the life balance.

c. It is important to set a standard benefit for both companies with high expectation as
Volvo company that will add more cost to removes their fears for luxury and increase
the productivity and loyalty. In successful companies it is important to treat the
employees as an assent instead of cost.

 Recommendations:
Immediately action plan for alternative a & c is highly recommended.

Thanks.

Abdelhamid Taha Halawa Page 2 of 2

abdelhamid.halawa23bg@eslsca.edu.eg
Mob.: +201005858149