CONSEQUENCES AGENDA ITEM 1 HALF YEAR 1

FOREVER SUN

YOUR OPTIONS WERE:

1. Contact the relevant department at Regal Enterprises and explain you will not
be submitting a tender.
Mr Lee Chong finds out that you have not submitted a tender when the contract is
awarded to one of the other companies. He is concerned that he was not informed
that your company would not be tendering and is unlikely to consider recommending
you if he sees other potential opportunities.

2. Request that your Chairman has an informal conversation with Mr Lee Chong,
the Non-Executive Director who recommended your company for the tender, to
see if he can find out the likelihood of your tender being given due
consideration and gather any background information not in the tender
document.
It is a further three weeks before an opportunity arises for your Chairman to speak to
Mr Lee Chong. It was decided a phone call or email exchange would be inappropriate
and that the conversation should take place in an informal setting face to face. The
conversation was an excellent way of building the relationship between the two
individuals. Mr Lee Chong is delighted to know the company are interested in the
opportunity he has suggested. He is unable to give any useful background
information and the delay in starting work on the tender means it is now impossible to
submit on time. However, Mr Lee Chong does invite your company to attend the
International Furniture Fair in Singapore and for your Marketing manager to talk about
developments in the industry. The marketing and promotional activities associated
with this result in a small increase in awareness of your company within the region.

3. Submit the tender as requested in the format and timeframe required. Ask for
any clarification through the official channels.
Your tender is submitted and given due consideration by Regal Enterprises. The
tender is awarded to one of the companies with more experience in this market.
Regal Enterprise provide you with some feedback. They were impressed with the
accuracy and detail in your tender but because this is their first venture into this new
market, they have decided to work with a company with experience in the cruise ship
environment. However, they will be inviting you to submit a quote for the new
embarkation lounge that is being built in Barcelona.

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© 2019 Chris Elgood Associates Ltd.
CONSEQUENCES AGENDA ITEM 2 HALF YEAR 1
CONSOLIDATION
YOUR OPTIONS WERE:

1. Go ahead and sign the contract without disclosing anything to Swish.

Within a week of the contract being signed Mega terminated all business with Hotel.
Mega sued the company for fraudulent misrepresentation. The court ordered
rescission of the sale contract. The net result for you was:
 Your company now owns Hotel again, but Hotel’s value has significantly
diminished as it lost Mega as a customer.
 Your company has had to pay legal costs of £250,000.
 Your company’s share price has dropped by 10p because of the reduction in
value of Hotel and because investors are concerned about the company’s
board being responsible for a fraudulent misrepresentation.

2. Pull the deal completely.

The company retained Hotel. However, your company’s share price has dropped by
5p due to:
 A reduction in the value of Hotel. Investors see Hotel as too reliant on Mega
and now almost unsaleable as Mega would terminate its relationship with Hotel
if it was ever sold.
 A loss of confidence in the company’s board by investors as a result of the
aborted deal.

3. Tell Swish about Mega’s stated intentions.

Having disclosed the problem, the deal was the subject of intense last-minute
negotiations. Swish eventually agreed to buy Hotel at a reduced price of £1.2m.
Despite the reduction in price the value of your company’s shares has risen slightly.
This is apparently due to the market being happy that the company is ridding itself or
non-core business.

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© 2019 Chris Elgood Associates Ltd.
CONSEQUENCES AGENDA ITEM 3 HALF YEAR 1
CREATING AN INTRAPRENEURIAL CULTURE
YOUR OPTIONS WERE:

1. Assessment of the current culture and desired culture.

There are many valuable responses but a significant number of staff do not want to
engage in the process. They are reasonably content with their working life and do not
have any desire to participate in what they feel is a useless consultation exercise. It’s
clear that in some cases the adjectives submitted are designed to get a reaction
rather than provide useful data. The cost is as expected £75,000 and the result is
inconclusive. Further work would need to be done to create a culture where staff
wanted to engage with the process.

2. Review the current suggestion box scheme.

This approach has little impact because it is seen as a successor to the existing
scheme, a very bureaucratic process. It offers only money as a reward and
intrapreneurs are more interested in the opportunity to contribute and work in a
dynamic environment. There is no backing from senior management which indicates
to staff that their ideas are not wanted or needed.

3. Undertake a strategic review including how to decentralise decision making and

delegate to the lowest level possible.
A year passes before results are apparent. The new structure is much flatter, and
several people are made redundant or leave. The consultant’s costs are £120,000,
payable now, and a further £80,000 is set aside for future redundancy payments.
However, a lot of the newer and younger staff feel very positive about the change.
They appreciate your encouragement and the speed at which good ideas are now
evaluated. Staff motivation improves and several new ideas help to improve
processes and systems. The impact of the new ideas starts to appear in half year 4.

Consequences Agenda 3 Creating an Intrapreneurial Culture-v1.0 Page 1 of 1

© 2019 Chris Elgood Associates Ltd.